India’s Kotak Mahindra unit secures UAE license, marking a historic milestone as the first Indian firm authorised to sell investment funds directly to retail investors in the United Arab Emirates. This breakthrough opens new avenues for UAE residents, particularly the large Indian diaspora, to invest in India’s booming markets. The move, driven by growing global interest in India’s economy, strengthens financial ties between the two nations, offering hope and opportunity to investors seeking to diversify their portfolios.
A Pioneering Step for Indian Finance in the UAE
Kotak International, the global arm of India’s third-largest private lender, Kotak Mahindra Bank, has received approval from the UAE’s Securities and Commodities Authority to offer investment funds and portfolio management services. This landmark licence positions Kotak as the first Indian company to directly engage retail investors in the Gulf nation, a market previously dominated by global financial giants. The firm plans to launch India-focused retail funds by the final quarter of 2025, tapping into the UAE’s tax-friendly environment, where personal income and capital gains on fund returns are not taxed.
Why India’s Markets Appeal to UAE Investors
India’s economic story, marked by a young, dynamic workforce and robust growth, is drawing significant attention from UAE investors. Shyam Kumar, president of Kotak International, highlighted India’s diverse and resilient economy as a key attraction. The UAE, home to over 3.5 million Indian expatriates who form roughly 35 percent of the population, presents a ready market. These expatriates, already major players in Dubai’s real estate with purchases exceeding 35 billion dirham last year, are expected to embrace Kotak’s funds, which require a modest minimum investment of approximately $500.
Expanding Access to Retail Investors
Previously, Kotak engaged UAE-based investors through wealth managers and insurance platforms, focusing on high-net-worth individuals. The new licence allows India’s Kotak Mahindra unit secures UAE licence to directly reach retail clients, significantly broadening its market scope. This shift enables everyday investors, not just the affluent, to access India-centric investment opportunities. The low entry point of $500 makes these funds accessible, fostering financial inclusion and empowering a wider range of UAE residents to participate in India’s growth story.
Deepening India-UAE Financial Ties
The licence comes at a time of strengthening economic bonds between India and the UAE. Recent agreements, including those signed during Indian Prime Minister Narendra Modi’s seventh visit to the UAE in July, have bolstered bilateral trade and linked India’s digital payment systems with the Gulf nation. This financial integration creates a fertile ground for Kotak’s expansion, positioning the UAE as a gateway for Indian firms to reach global markets. The move also aligns with the UAE’s efforts to enhance its status as a regional financial hub, attracting diverse international players.
A Bright Future for Cross-Border Investment
As India’s Kotak Mahindra unit secures UAE licence, it sets a precedent for other Indian financial institutions to explore opportunities in the Gulf. The firm’s strategy extends beyond the Indian diaspora, aiming to attract a broader investor base in the UAE. With plans to roll out funds aligned with its successful Luxembourg and India-domiciled strategies, Kotak is poised to strengthen its global presence. This development not only boosts investor confidence but also underscores the growing trust in India’s economic potential, offering UAE residents a chance to share in its prosperity.
Empowering Wealth Creation Across Borders
The approval of India’s Kotak Mahindra unit secures UAE licence heralds a new era of financial collaboration between India and the UAE. For retail investors, this opens doors to participate in one of the world’s most dynamic markets, with the promise of accessible, tax-efficient investment opportunities. As Kotak prepares to launch its funds, the move signals hope for countless investors, from Indian expatriates to global citizens, eager to engage with India’s vibrant economy. This milestone strengthens the financial bridge between the two nations, fostering shared growth and opportunity.
Published in SouthAsianDesk, August 18th, 2025
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