Kotak Mahindra International Secures UAE License for Retail Investment Funds

 


Kotak Mahindra (International) Ltd., a global subsidiary of Kotak Mahindra Bank, has been granted a license by the UAE Securities & Commodities Authority (SCA) to provide investment fund management and portfolio management services within the UAE. This marks the first time an Indian institution has secured such direct access for retail investors in the region.


Key Details & Significance

Market Access Expansion

  • Until now, Kotak Mahindra primarily served UAE-based HNWIs through intermediaries like wealth managers and insurance platforms. This license allows them to directly target retail clients with a low entry threshold of around USD 500.Reuters+1

  • Initiatives like these democratize access to professional investment opportunities in the UAE’s previously high-barrier market.

India-Focused Fund Launch

  • Kotak plans to launch India‑centric retail funds, aligning with its successful UCITS (Luxembourg-domiciled) and India-domiciled strategies. Subscriptions are expected to open in Q4 2025.Reuters+10Reuters+10The Economic Times+10

  • India’s robust economic growth story and resilient demographics make it an attractive portfolio diversifier.

Capitalising on UAE’s Tax Environment

  • The UAE’s 0% personal income and capital gains tax policy adds strong appeal for retail investors seeking tax-efficient investment vehicles.Reuters

Strategic Bilateral Context & Investor Base

  • Indian nationals represent a significant portion of the UAE’s population (~35%) and are major investors in Dubai real estate.Reuters

  • This move complements recent financial integration efforts, including initiatives linking India’s digital payment systems with the UAE.Gulf News+3Reuters+3Angel One+3

Global Footprint & Vision

Why This Is a Positive Development for UAE Investors

FactorImplication for UAE Retail Investors
Direct Fund AccessEnables lower-cost, streamlined investment without relying on intermediaries.
DiversificationOffers exposure to India’s growth sectors via professionally managed funds.
Tax EfficiencyFund returns are advantaged by the UAE’s favorable tax regime.
Inclusive MarketAppeals to both the large Indian expatriate community and non-Indian investors seeking region-level access.
Strength in TrustBoosts confidence in the UAE as a bridging hub for global and cross-border financial services.

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