Kotak can now sell funds to retail investors in UAE
What's the story
Kotak International, the global arm of Kotak Mahindra Bank, has become the first Indian company to receive a license from the United Arab Emirates (UAE) to sell investment funds and portfolios to onshore retail investors. The move comes as more investors in the UAE show interest in Indian markets. The license was issued by the UAE's Securities & Commodities Authority.
Strategic expansion
Fund launches by Q4 2025
Kotak International plans to launch its first India-focused retail funds in the UAE by Q4 2025. Shyam Kumar, President of Kotak International, emphasized India's diverse economic story and young working population as factors that make it appealing to foreign investors. He also highlighted the absence of capital gains tax on fund returns in the UAE as an attractive feature for global investors.
Wider access
Minimum investment set at $500
The new license from the UAE allows Kotak International to directly approach retail clients for investments, as opposed to just high-net-worth individuals. Kumar said this development "really expands the scope," with clients now able to invest in Kotak's funds with a minimum investment of around $500. This is a major step toward making investment opportunities more accessible for a wider range of people.
Diverse targets
Focus on Indian diaspora, but also eyeing global investors
Indian nationals, who make up the largest expatriate community in the UAE, account for some 35% of its population. They are also Dubai's top foreign investors, having bought over $9.53 billion worth of property last year. While Kumar acknowledged the importance of this demographic in Kotak's UAE expansion strategy, he stressed that the firm is also eyeing investors beyond just the diaspora.