Kotak Mahindra (International) Limited (KMIL), a wholly owned subsidiary of Kotak Mahindra Bank Limited, has become the first Indian financial institution to receive approval from the Securities and Commodities Authority (SCA) of the UAE to conduct investment fund management and portfolio management activities.

The licence marks a historic step for both the bank and the UAE's financial sector, opening new avenues for cross-border investment flows and collaboration between the two economies.

Kotak Mahindra, one of India's most prominent private sector banking and financial services groups, has a long-established reputation for innovation in wealth management and investment banking. Founded in 1985, the Kotak Group today operates across consumer banking, corporate lending, insurance, asset management, and capital markets. With more than 70,000 employees, it manages assets worth over $100 billion and serves millions of clients globally.

Kotak Mahindra Bank itself is among India's most valuable banking institutions, listed on Indian stock exchanges with a market capitalisation exceeding $50 billion. Its international operations include regulated businesses in the United States, United Kingdom, Singapore, and Mauritius, and now extend more deeply into the Middle East with the SCA licence.

The SCA, established in 2000, is responsible for regulating securities markets, investment funds, and financial services. The licence granted to Kotak Mahindra allows the firm to launch UAE-domiciled funds for retail investors – an important milestone since it will make India-focused investment products more accessible to the UAE's large expatriate community and local investors seeking portfolio diversification.

“This licence is a testament to our enduring commitment to the UAE and our vision of fostering globally integrated, transparent capital markets,” said Shyam Kumar, president and head of Kotak International.“India's economic momentum continues to attract global interest, and through this licence we are excited to offer UAE investors access to India-focused investment strategies, enabling them to participate in one of the world's most dynamic and resilient markets.”

Kotak Mahindra intends to launch funds aligned with its successful UCITS (Luxembourg-domiciled) and India-domiciled strategies, which have attracted strong investor participation globally. The new offerings will cater specifically to the UAE market and are expected to open for subscription in the final quarter of 2025. Analysts note that such initiatives will deepen the financial ties between India and the UAE, two economies already closely linked through trade, energy cooperation, and remittances.

Industry experts also see the move as part of a broader trend of Indian financial institutions expanding internationally. As India continues to grow as one of the fastest-expanding major economies – projected by the IMF to grow at over six per cent annually through 2026 – global investors are increasingly seeking exposure to its markets. Kotak's presence in the UAE will give them a direct gateway, regulated under one of the most respected capital market authorities in the region. For the UAE, it underscores confidence in its regulatory environment and its ambition to attract international asset managers to base products locally, according to analysts.

The licence adds to Kotak's global footprint, with approvals already in place in India, the US, UK, Singapore, and Mauritius.

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