KOCHI: More and more Indian business entities are eyeing the Gulf market to expand the business horizons. The Gulf economy has always attracted the Indian financial houses as well as businessmen. Established companies are keen on expanding ties with counterparts in Gulf countries. A few developments that had taken place in recent times indicate that the trend is fast catching up.

The Federal Bank has announced that it will open a representative office in the UAE soon.

The bank has already received RBI's permission for the same. This will establish the bank's permanent presence in West Asia for its aggressive penetration, according to bank chairman M. Venugopalan.

The IndusInd Bank had recently announced a tie-up with the Union National Bank (UNB), Abu Dhabi. The strategic alliance was termed as a unique one by bank's managing director Bhaskar Ghose. The tie-up encompasses a wide range of banking services, including deposit accounts, remittance business, loans, wealth management advisory, distribution of third party products, trade finance, global banking and investment banking.

Through this alliance, both banks focus primarily on the business opportunities generated by non-resident Indians in the UAE.

The IndusInd Bank and the UNB will treat each other as preferred partners with reciprocity of business flows and promotion of each other's banking services, according to the mutual agreement.

Apart from this initiative, 17 exchange houses from the UAE, Kuwait and Oman have entered into arrangements with the IndusInd Bank to provide convenient, cost-effective and quick funds transfer facilities to NRIs. The IndusInd Bank also caters to the other banking and financial needs of expatriate Indians through NRE and FCNR deposits, e-broking, direct investments in mutual funds and other related third party distribution products and services.

In another development, Kochi-based Geojit Financial Services Limited, along with partners from Saudi Arabia, Oman and the UAE, has taken steps to set up a brokerage company in Saudi Arabia. The contract was signed in Riyadh recently between Geojit Financial Services Limited, Kamal and Khalid Al Johar Development Company (Al Johar Group), National Securities Company from Oman, Rasmala Investment Company from the UAE and eight Saudi investors.

The joint initiative would be a landmark in the area of financial services in Saudi Arabia, according to C. J. George, managing director of Geojit. Geojit will be responsible for the management of the company and local partners will provide the required support.

Earlier, only banks were allowed to do stock broking business in Saudi Arabia.

Geojit has another joint venture with Barjeel Geojit Securities LLC, based in Dubai which is said to have a client base of 40,000 non-resident Indians. This company has five offices in Dubai, Abu Dhabi, Sharjah, Oman and Doha.

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