Kotak International, the global arm of India's third-largest private lender Kotak Mahindra, said on Monday it has been given a licence by the United Arab Emirates (UAE) to sell investment funds and portfolios to onshore retail investors.
Kotak is the first Indian firm to receive a licence from the UAE's Securities & Commodities Authority, as more UAE investors show interest in Indian markets.
The firm plans to launch its first India-focused retail funds in the Gulf country by the final quarter of 2025.
"India has got a story which is extremely wide and diversified," Shyam Kumar, Kotak International's president, told Reuters, noting this makes it appealing to foreign investors.
"You have a very young population, working population, so that makes it very strong and resilient in terms of economic growth."
Unlike India, the UAE does not tax personal income or capital gains on fund returns, making the country an attractive base for global investors.
While Kotak has previously engaged UAE-based investors via wealth managers and insurance platforms, its new licence enables the firm to directly solicit investments from retail clients, moving beyond traditional high-net-worth clientele.
"It really expands the scope," Kumar said, noting clients will now be able to access Kotak's funds with a minimum investment of around $500.
Indian nationals are the largest expatriate community in the UAE, representing roughly 35% of the population.
They're also the top foreign investors in Dubai real estate, purchasing over 35 billion dirham ($9.53 billion) of property in the emirate last year, according to real estate agency Aeon & Trisl.
While Kumar noted the importance of the Indian population in Kotak’s UAE expansion strategy, he said the firm has a broader goal of attracting investors in the country beyond the diaspora.
Kotak's move to court retail investors comes amid a deepening financial integration between India and the UAE.
In July, Indian Prime Minister Narendra Modi made his seventh visit to the Gulf nation, where he signed key agreements to link India's digital payment system to the UAE and boost bilateral trade.
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