Reliance Money launched its Middle East operations in partnership with Dubai International Securities to cater to the more than 20 million-strong NRIs in the region.
Targets NRI assets worth $1.25 billion
DUBAI: Reliance Money launched its Middle East operations on Tuesday in partnership with Dubai International Securities, the brokerage arm of the Al Rostamani Group, to cater to the more than 20 million-strong non-resident Indians in the region.
The company will offer securities trading, mutual fund distribution and portfolio management services (PMS) in the UAE.
However, the company’s business model will differ from the one used in India. Reliance will not be able to install kiosks, as that permission is yet to be granted. The flat fee-structure used in India too would hit the regulatory hurdles and the company will have to charge customers on the basis of transactions.
“We are targeting 25,000 people for our PMS operations,” said Sudip Bandopadhyay, CEO of Reliance Money. He said the firm was looking at an asset base of $1.25 billion in the current year.
And going by the CEO of Reliance Money’s partner, that is not impossible to achieve. “As the opportunities in India are growing, it is becoming increasingly difficult to hold back people in the UAE,” said Earnest Ratnayake, CEO of the Al Rostamani Group.
Salary levels in the UAE have been going up, to prevent reverse brain drain of migrants returning to India and match the inflation level in the country, Ratnayake added. Inflation in the UAE is at 10%.
Also, Ratnayake pointed out, “India and China currently present several opportunities, and so increased petro-dollar flows are being diverted to these countries.”
This money might flow into investments, via Indian financial services firms wishing for a pie of the NRI kitty.
Industry sources said Dubai-based brokerage houses have been approached by other big Indian names, including India Infoline, Motilal Oswal and Religare. ICICI Direct and Sharekhan too have initiated baby steps for a presence in the Gulf. Reliance Money itself plans to expand to Bahrain, Qatar and Oman within the next 6-12 months.
However, Barjeel Geojit stands out as the only licensed Indian player in UAE so far. “Getting regulatory approvals is a difficult process,” said one Dubai-based broker. Moreover, a foreign firm is not permitted to start a standalone organisation in Dubai.
The writer is in Dubai at the invitation of Reliance Money
d_khyati@dnaindia.net
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}