Three major Emirati institutions are betting that India’s banks and nonbanking financial companies (NBFCs) will bring the country’s financial sector into the global spotlight in 2025.

In October, Dubai-based Emirates NBD Bank (ENBD) PJSC—the UAE’s second-largest lender—agreed to acquire a 60% controlling stake in India’s RBL Bank Ltd. through a $3 billion preferential share issue, marking the largest-ever foreign direct investment in India’s financial services sector.

The deal is also the largest ever equity fund raised in the Indian banking sector and the largest fund raised via preferential issuance by a listed company in India. It will mark the first acquisition of a majority interest in a profitable Indian bank by a foreign bank.

The boards of both banks have approved the amalgamation of ENBD’s Indian branches with and into RBL Bank, which will occur after the preferential issuance into RBL Bank.

As a part of the Securities and Exchange Board of India’s takeover regulations, ENBD will make a mandatory offer to buy up to 26% stake from RBL Bank’s public shareholders.

This will be a major capital boost for RBL Bank to strengthen its balance sheet, increase its lending capacity, and pursue expansion. But for ENBD, it can tap into RBL Bank’s 15 million customers, a network of 564 branches, 1347 business correspondent branches, and 415 ATMs.

Another transaction in October was the Abu Dhabibased International Holding Company’s (IHC) agreement to acquire a 43.5% stake, valued at $1 billion, in India’s Sammaan Capital, an NBFC focused on mortgage loans.

It was one of the largest investments in India’s NBFC sector, betting on housing loans. IHC will have to execute an open offer to buy an additional 26% stake for retail investors as per Indian takeover regulations.

Earlier in May, Japan’s Sumitomo Mitsui Banking Corporation acquired a 20% stake in India’s Yes Bank for $1.6 billion, and increased the stake to 24.99%. It was the country’s largest crossborder financial sector merger and acquisition.