Mashreq became the 1st UAE Bank to Receive Approval for IBU in GIFT City

Current Context: On July 2, 2025, Mashreq Bank became the first UAE-based bank to receive in-principle approval from the International Financial Services Centres Authority (IFSCA) to set up an International Financial Services Centre Banking Unit (IBU) in GIFT City, Gujarat.

Key Highlights

• First UAE bank to enter India’s GIFT City financial hub.
• The branch is expected to be operational by Q4 2025, pending final regulatory clearances.
• Services will include foreign currency loans, trade finance, and treasury & risk management.
• The move strengthens India–UAE financial ties, supported by the CEPA agreement and regulatory incentives like TDS exemptions.

Question:

Q.1 Which bank became the first UAE-based bank to receive in-principle approval from IFSCA to set up an IBU in GIFT City, Gujarat, in July 2025?
a) Emirates NBD
b) Abu Dhabi Commercial Bank
c) Mashreq Bank
d) First Abu Dhabi Bank

Answer: c) On July 2, 2025, Mashreq Bank became the first UAE-based bank to get in-principle approval from IFSCA to establish an International Financial Services Centre Banking Unit (IBU) in GIFT City, Gujarat.