Mashreq Bank is preparing to open its first branch in India’s Gujarat International Finance Tec-City (GIFT City) in the fourth quarter of 2025, according to Tushar Vikram, CEO of Mashreq India. The move positions Mashreq to capitalize on deepening India-UAE economic ties and India’s robust economic growth.
Mashreq has recently secured in-principle approval to establish an International Banking Unit (IBU) in GIFT City, making it the first UAE bank to achieve this milestone. The lender is in the final stages of obtaining a full license from India’s International Financial Services Centres Authority (IFSCA), having already received approvals from the Central Bank of the UAE. The bank has identified a branch location and commenced recruitment for key staff.
The new branch will offer a suite of services, including foreign currency loans, trade finance, and treasury and risk management products. It is expected to benefit from GIFT City’s incentives, including tax exemptions, which will enable Mashreq to offer competitive financing structures. This expansion will make Mashreq the second Middle Eastern lender in the low-tax zone, following Qatar National Bank, joining a growing roster of global banks utilizing the hub for cross-border financing and acquisition lending. First Abu Dhabi Bank is also reportedly considering a presence in GIFT City.
Mashreq’s focus on India is strategic, with its existing Indian operations serving as its largest offshore hub, accounting for a quarter of its international assets. To support its growth initiatives, Mashreq India raised a $150 million Additional Tier 1 (AT1) bond last year.
The move comes amid a broader surge in UAE investment in India. In February 2024, the Abu Dhabi Investment Authority (ADIA) received regulatory approval to establish a local subsidiary and launch a $4-5 billion fund in GIFT City. In October, the UAE and India announced a $2 billion food corridor initiative and agreed to establish joint investment offices. Discussions are also underway to increase UAE foreign direct investment in India to $100 billion, from approximately $75 billion in existing commitments. Both nations aim to elevate bilateral non-oil trade to $100 billion by 2030.
Mashreq is proud to announce that we are the first UAE-based bank to receive In-Principle Approval (IPA) to establish an International Banking Unit (IBU) at GIFT City – India’s pioneering global financial services hub.
— Mashreq (@MashreqTweets) July 2, 2025
This strategic milestone reflects our deep and growing… pic.twitter.com/BuDcWwUwCm
Ahmed Abdelaal, Group CEO of Mashreq, noted: “This milestone complements our commitment to fostering innovation, investment, and facilitating trade between India and multiple key corridors in the Middle East and across the world, as we aim to leverage our extensive global network. With the support of India’s Prime Minister’s visionary leadership and the CEPA agreement between India and the UAE, we are well-positioned to deliver world-class financial solutions that meet the evolving needs of our clients.”
Mashreq is also banking on the continued growth of Indian firms and banks, citing India’s projected 7% GDP growth for 2025 as a key driver. Vikram added that the bank’s global network, particularly its distribution reach in the Middle East and GCC, offers a significant advantage to Indian firms and banks, contributing to a healthy pipeline for its corporate banking and financial institutions businesses in the upcoming quarter.