ADNIC plans GIFT City entry as global push widens

Abu Dhabi National Insurance Company is preparing to establish a branch in Gujarat International Finance Tec-City, positioning the insurer among a growing list of Gulf financial firms seeking a foothold in India’s offshore financial hub and signalling a sharper international expansion strategy. The move, expected to culminate in an operational launch in the latter part of 2026, follows approval from the Central Bank of the United Arab Emirates, with regulatory clearances in India anticipated to be secured in the coming months.

Abu Dhabi National Insurance Company, widely known as ADNIC, is among the UAE’s largest listed insurers and has been steadily broadening its regional and international presence. Its planned branch in GIFT City, India’s first International Financial Services Centre, would allow the company to write offshore insurance and reinsurance business under a distinct regulatory framework designed to attract global financial services firms.

The proposed India presence reflects a convergence of strategic priorities. ADNIC has been seeking to diversify revenue streams beyond its core domestic market, while India’s expanding insurance demand and the rise of cross-border financial activity through GIFT City present a platform for long-term growth. Executives familiar with the company’s plans indicate that the branch would initially focus on serving corporate and institutional clients with cross-border exposures, including trade, infrastructure, energy, and specialty risks.

GIFT City, located between Ahmedabad and Gandhinagar, has been positioned by policymakers as a competitive offshore centre for banking, insurance, asset management, and capital markets. Over the past few years, global insurers and reinsurers have explored the IFSC structure to access South Asian risks, manage international portfolios, and offer dollar-denominated products under a single-window regulatory regime. For ADNIC, the location offers proximity to a large and complex market while allowing operations to be ring-fenced from its onshore UAE business.

The insurer’s India plans also align closely with its broader Middle East expansion. ADNIC has already made an entry into the Saudi Arabia market, a move that marked a significant step in its regional growth strategy. By pairing a presence in Saudi Arabia with an offshore base in India, the company is building a geographic footprint that spans two of the fastest-growing insurance markets linked to infrastructure development, industrial diversification, and increased foreign investment flows.

Industry analysts note that insurers entering GIFT City are typically motivated less by immediate premium volumes and more by strategic positioning. India’s insurance sector remains underpenetrated relative to the size of its economy, while cross-border trade, overseas investments, and outbound projects by Indian corporates continue to rise. An IFSC-based branch allows insurers such as ADNIC to underwrite international risks linked to India without navigating the constraints of the domestic insurance regime.

The regulatory pathway remains a key variable. While approval from the Central Bank of the United Arab Emirates clears an important hurdle, the branch must also receive authorisation from the International Financial Services Centres Authority, which regulates financial entities operating in GIFT City. The process involves scrutiny of capital adequacy, governance standards, risk management frameworks, and alignment with the IFSC’s prudential norms. Market participants expect these approvals to progress steadily, given the authorities’ stated objective of attracting well-capitalised global insurers.

From a commercial perspective, ADNIC’s move comes at a time when competition among international insurers in GIFT City is intensifying. Several global and regional players have either established operations or announced plans to do so, targeting niches such as reinsurance, specialty lines, and captive insurance solutions for multinational groups. This competitive environment may pressure margins but also encourages product innovation and deeper engagement with corporate clients.

For ADNIC, the India branch is expected to complement rather than replace its existing operations. The company has historically maintained a conservative underwriting approach, supported by a strong balance sheet and a diversified portfolio across health, motor, property, and engineering insurance. Expansion into offshore markets introduces new risk dynamics, including exposure to unfamiliar legal systems and claims environments, but also offers opportunities to balance cyclical pressures in domestic markets.