For decades, the financial relationship between Gulf-based Indians and their home country was defined largely by remittances. Today, however, a growing number of affluent non-resident Indians (NRIs) in the UAE and wider Gulf are evolving from simple income earners and money senders into global wealth creators, with investments spanning multiple countries, asset classes and currencies.
According to Pranav Mishra, Head of Distribution, Consumer Bank at Kotak Mahindra Bank, the profile of the Gulf Indian investor has changed significantly in recent years as the diaspora becomes more skilled, mobile and financially sophisticated.
“The Gulf Indian of an earlier generation earned here and sent money home. That person still exists. But sitting alongside them now is a more affluent, better-informed and globally connected individual whose financial life runs across the UAE, India and often a third market,” Mishra told Khaleej Times.
The shift reflects broader changes in migration patterns and wealth accumulation among expatriate Indians. Rather than focusing solely on supporting families back home, many Gulf-based professionals are now building long-term portfolios that combine investments in India, the UAE and international markets.
While India remains a key destination for wealth creation, Mishra said investment decisions are becoming increasingly diversified.
“A reviving IPO pipeline has helped after a cautious phase, and affluent families are looking beyond listed stocks into private equity, venture capital, REITs,” he said.
At the same time, rising market volatility has prompted a more balanced approach to portfolio construction. “In a volatile year many are also holding more liquidity and leaning on gold and debt, which reveals their considered allocation and patience,” Mishra noted.
A lesser-known factor driving new investment flows is the generational transition taking place within Indian family businesses.
“Older family businesses are changing hands, and so a good deal of equity is being released, and that liquidity is looking for a new home,” he said.
The changing investment behaviour is also reshaping the financial ties between India and the Gulf. Rather than a one-way flow of remittances from the Middle East to India, Mishra believes the corridor is becoming increasingly multidirectional as businesses and investors operate across borders.
“This is not a one-way flow from the Gulf into India. It has become a two-way relationship,” he said. “Global Indians connect Middle East earnings with India priorities, and at the same time Indian families and businesses are engaging more seriously with the UAE as a financial centre and a base for global ambitions.”
The UAE’s emergence as a global financial hub is playing a critical role in this transformation. Improved correspondent banking networks, digital payment infrastructure and closer cooperation between banks in both countries are helping customers move money and manage assets more efficiently across jurisdictions.
Yet managing wealth across borders remains complex. Investors often face challenges related to currency exposure, regulatory requirements, succession planning and maintaining multiple banking relationships.
“When your income, your investments, your business and your family sit across different jurisdictions and currencies, ordinary decisions can assume complexities,” Mishra said.
Despite ongoing market uncertainty, he believes affluent NRIs are becoming more focused on preserving and growing wealth over the long term rather than pursuing short-term gains.
“Volatility has pushed a lot of families into serious reflection on how their wealth is allocated for the medium term, which reveals their maturity,” he said. “Clients who are thinking in decades want a banking partner who thinks the same way.”
Source: Khaleej Times