The growing Indian diaspora and business opportunities in Dubai have excited Indian bankers in the region. No wonder, a number of public sector banks like Union Bank of India, Indian Overseas Bank and Federal Bank have started talks with Dubai Financial Services Authority (DFSA), the independent regulator for Dubai International Financial Centre (DIFC), to commence operations there. However, the Central Bank of Dubai has not shown any keeness to give them branch licences just as yet.
“We are planning to open a branch in Dubai. There is a big opportunity for us due to the large representation of the Indian diaspora. Also, when we send people from India to work there, they find it much easier to adapt to the surroundings. Proximity to India and the time zone advantage make it a preferred destination for offshore banking,” said Abraham Chacko, executive director, Federal Bank.
There are other advantages as well. DIFC is an economic centre that allows tax-free income and profits by foreign institutions.
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