India’s Kotak International, a subsidiary of Kotak Mahindra Bank, has made history by becoming the first Indian financial institution to secure a license from the UAE’s Securities and Commodities Authority (SCA) to sell investment funds and portfolios to retail investors.

The approval marks a major milestone in deepening financial cooperation between India and the UAE, strengthening cross-border investment channels at a time when both nations are pushing to expand trade and economic ties.

The new license allows Kotak to market mutual funds and wealth management products directly to onshore clients in the UAE, a space traditionally dominated by global financial players. This regulatory breakthrough not only expands access for Indian asset managers to high-net-worth individuals in the Gulf but also gives UAE-based investors direct exposure to India’s fast-growing capital markets.

Analysts view the move as part of a broader shift in the UAE’s financial sector, which is increasingly opening its doors to international players in order to enhance competitiveness. For Kotak, the license provides a launchpad to strengthen its brand in a region home to over 3.5 million Indian expatriates, many of whom already invest in India through informal channels.

The development follows a series of recent India-UAE initiatives, including the Comprehensive Economic Partnership Agreement (CEPA), which has boosted bilateral trade and positioned the UAE as a gateway for Indian companies to global markets.

Industry experts believe Kotak’s entry will pave the way for other Indian asset managers to follow suit, reinforcing the UAE’s reputation as a financial bridge between Asia, Africa, and Europe.