Union Bank of India heads for Dubai

A further boost to the state of the economy in Dubai, and a pointer to future growth, comes with the announcement that the Union Bank of India is to open a branch in Dubai. With foreign investment in the region a major part of the recovery and growth process it is a promising sign when such a major bank moves into the market, and with the promise of help to Indian companies wishing to invest in Dubai there is plenty of scope for added investment opportunities.

Although the Union Bank of India has an office in Dubai this will be a fully fledged branch, and the Khaleej Times reports that the Chairman and Managing Director of the bank – M.V. Nair – has declared that the branch will be dedicated to helping the interests of Indians who are not resident in the region in their quest for business investment.

To be based in the Dubai International Finance Centre – the DIFC – which is the major international hub for the financial world in Dubai, the bank will, according to Nair, focus on foreign currency funding. The DIFC offers a place where trade is much more open, as the Chairman explained in his comments:

“In DIFC, we are permitted to do wholesale business and here the purpose would be… supporting the UAE and India trade that will be major focus.”

With Indian investment in the region growing all the time the announcement is a definite boon for Dubai at a time when foreign investment is vital to the growth of the economy.