In a strategic leap forward, First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates by assets, has announced its plans to establish a new branch in India’s premier financial services hub, Gujarat International Finance Tec-City (GIFT City). This expansion marks a significant milestone in FAB’s global strategy and symbolizes the growing depth of economic and financial cooperation between the UAE and India.
GIFT City: India’s Rising Financial Star
GIFT City, located in the state of Gujarat, is India’s first operational smart city and International Financial Services Centre (IFSC). The city is designed to provide high-quality infrastructure, a business-friendly environment, and a low-tax regime that rivals global financial centers such as Dubai, Singapore, and London.
Offering benefits such as zero capital gains tax for certain categories, tax holidays for up to 10 years, and a regulatory framework aligned with international standards, GIFT City has rapidly attracted the attention of global financial giants. It offers companies a unique opportunity to engage in international transactions and offshore banking from within Indian soil.
For FAB, establishing a presence in this low-tax hub is more than a tactical financial decision—it’s a strategic positioning within a future-forward financial ecosystem.
Strengthening Bilateral Relations Between UAE and India
FAB’s decision to open a branch in GIFT City reflects the strengthening economic and diplomatic ties between the UAE and India. Over the past few years, both nations have taken significant steps to fortify their trade and financial relations. In the financial year ending March 2023, bilateral trade between the two countries reached a remarkable $85 billion, making the UAE one of India’s top trading partners.
This expansion complements broader economic engagements, including the Comprehensive Economic Partnership Agreement (CEPA) signed in 2022. CEPA has significantly reduced tariffs on a range of goods and services, opening up new avenues for trade and investment. With the UAE increasingly viewing India as a major economic partner, FAB’s entry into GIFT City is poised to become a cornerstone of future financial cooperation.
A Landmark for FAB’s Global Strategy
First Abu Dhabi Bank is not new to the international stage. With operations already spanning 20 international markets—including Egypt, Saudi Arabia, the UK, and the USA—FAB’s expansion into India represents a calculated step in its long-term global growth strategy.
FAB’s CEO Hana Al Rostamani stated in a recent announcement, “India is a core strategic market for FAB. Our new branch in GIFT City will enable us to serve our clients better, enhance trade corridors, and contribute to the evolving financial landscape between our two countries.”
In 2024, FAB reported a 13% increase in profit before tax, reaching AED 19.9 billion. This strong financial performance was driven by a 15% surge in revenue, which totaled AED 31.6 billion. Its total assets grew to AED 1.21 trillion, underscoring its strength and capability to expand internationally.
By planting roots in GIFT City, FAB will provide an array of services including cross-border financing, treasury operations, and trade facilitation, specifically targeting businesses and institutions with interests across the UAE-India corridor.
GIFT City as a Launchpad for Global Finance
India’s GIFT City has emerged as a dynamic launchpad for global finance. Designed to transform India into a global financial powerhouse, it hosts several international banks, insurance companies, asset managers, and stock exchanges. The regulatory environment in the city is governed by the International Financial Services Centres Authority (IFSCA), which provides a progressive and transparent regulatory framework.
FAB’s move into this environment sends a strong signal to other Middle Eastern financial institutions, encouraging them to consider GIFT City as a potential hub for operations in the Indian subcontinent. As the UAE increasingly diversifies its global investments, tapping into India’s rapidly growing economy through a forward-looking financial center like GIFT City is both a logical and visionary step.
Moreover, GIFT City has become a magnet for sovereign wealth funds. Earlier in 2024, the Abu Dhabi Investment Authority (ADIA) received in-principle approval to establish a $4-5 billion investment platform in GIFT City. FAB’s branch is likely to complement such strategic investments, providing banking infrastructure and expertise to support large-scale fund flows.
Benefits for Corporates and Investors
For corporate clients and high-net-worth individuals operating across India and the UAE, FAB’s presence in GIFT City is expected to bring a wide range of benefits. Businesses will gain access to advanced cross-border solutions, trade finance, and currency management services tailored to their regional needs.
Given India’s status as one of the fastest-growing major economies, FAB’s entry into the market through GIFT City allows it to tap into a massive pool of opportunities—especially in sectors like infrastructure, renewable energy, technology, and real estate.
Furthermore, FAB will be able to help facilitate investments between the UAE and India, offering advisory services, wealth management, and risk mitigation solutions in a tax-efficient environment. This will not only add value to clients on both sides but will also help channel institutional capital toward key development projects across the region.
Digital Innovation and Fintech Collaboration
FAB’s expansion to GIFT City may also pave the way for enhanced digital collaboration between the two nations. The bank has invested heavily in digital transformation over the past few years, introducing AI-powered customer solutions, paperless banking, and real-time transaction tracking.
GIFT City, being a technologically advanced zone, offers the ideal environment for piloting innovative digital solutions. FAB’s branch could serve as a catalyst for fintech collaboration between India and the UAE, leading to joint ventures, co-developed digital platforms, and greater integration of digital payments systems.
This synergy between FAB’s digital prowess and GIFT City’s smart infrastructure could drive financial innovation on a new scale.
Future Outlook
The opening of FAB’s branch in GIFT City is expected by late 2025, pending regulatory approvals. Once operational, it will serve as a bridge between the Middle East and South Asia, enhancing the bank’s role as a connector of trade, investment, and innovation across continents.
This expansion comes at a time when financial institutions are seeking new growth avenues and looking to operate within specialized economic zones that offer tax advantages, regulatory support, and access to large emerging markets. For FAB, GIFT City ticks all the boxes.
In the broader context, this move exemplifies a new era of South-South cooperation, where emerging economies in Asia and the Middle East collaborate directly to accelerate development, bypassing traditional Western-dominated financial structures.
Conclusion
First Abu Dhabi Bank’s decision to establish a branch in India’s GIFT City is a bold and visionary move that reflects its global ambitions and commitment to enhancing UAE-India economic synergy. It stands as a symbol of mutual trust, shared economic vision, and the promise of closer financial integration between two of the world’s most dynamic markets.
As FAB prepares to open its doors in GIFT City, it ushers in a future of cross-border prosperity, deeper financial inclusion, and strategic connectivity between the Gulf and South Asia—ultimately strengthening the global financial ecosystem for years to come.
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