Abu Dhabi, UAE — Sammaan Capital will intensify its focus on affordable housing loans following a $1 billion investment by Abu Dhabi’s International Holding Company (IHC), the non-banking lender’s Chief Executive, Gagan Banga, told Reuters.
“Affordable housing is a key growth area, and the IHC investment will give that focus even greater momentum as the firm works toward an assets under management (AUM) target of 1 trillion Indian rupees ($11.27 billion) by the financial year 2027,” Banga said.
To support the expansion, Sammaan is opening about 10 new branches a month, primarily in tier-4 and tier-5 cities and outer suburbs of larger metros. The company plans to add at least 60 to 70 branches in the next six to nine months, according to Banga.
India’s non-banking financial companies (NBFCs) have sharpened their focus on affordable housing in recent years, driven by growing demand, government incentives for low-cost housing, and reduced competition from major banks.
Earlier in October, IHC agreed to acquire a controlling stake in Sammaan Capital, marking a major bet on India’s fast-expanding housing finance market.
Banga said the first tranche of the capital infusion will be used mainly to expand the lender’s core portfolio of home loans and loans against property.
“The company will then evaluate new, commercially viable products such as gold loans and personal loans for lower- to middle-income customers to expand its offerings,” he told Reuters, adding that future tranches could support these new products.
Previously known as Indiabulls Housing Finance, Sammaan Capital is now focused on organic growth but remains open to strategic acquisitions in the longer term.
Once one of India’s largest housing finance firms, Indiabulls faced financial strain after the 2018 liquidity crisis triggered by the collapse of Infrastructure Leasing & Financial Services (IL&FS). The rebranding as Sammaan Capital in July 2024, coupled with the new IHC investment, marks a turning point for the lender, which aims to reclaim a top-3 to top-5 position among India’s NBFCs by FY2030.
“With the experience that the management team has, the distribution network, and the firepower that IHC’s capital and tech capabilities bring to the table… we are confident of being able to break into that club,” Banga said.
Strengthening Financial Ties Between India and the UAE
The IHC–Sammaan Capital investment is emblematic of the growing economic synergy between India and the UAE, two nations increasingly connected by capital, trade, and strategic partnerships. This transaction brings Gulf capital into one of India’s most socially impactful sectors—affordable housing—while providing Abu Dhabi investors with long-term exposure to a stable, high-yield asset class.
By channeling institutional capital into India’s housing finance ecosystem, IHC reinforces the UAE’s position as a key investment bridge to South Asia. This aligns with the UAE’s ongoing diversification strategy, which focuses on expanding non-oil investments in infrastructure, finance, and real estate—sectors that drive steady, sustainable returns.
A New Phase for India’s Housing Finance Ecosystem
For India, the $1 billion investment is more than just a capital boost—it signals renewed investor confidence in its affordable housing sector, a key pillar of the nation’s development agenda. The funds will strengthen Sammaan’s ability to serve new borrowers in tier-3 and tier-4 markets, where housing demand is surging but access to credit remains limited.
The investment will also support government initiatives such as the Pradhan Mantri Awas Yojana (PMAY), which aims to make homeownership accessible to low- and middle-income families. With expanded access to structured housing finance, the ripple effect could drive growth across allied industries such as construction materials, mortgage insurance, and affordable township development.
What This Means for Indian Investors
The partnership also opens strategic avenues for Indian investors, both domestically and internationally. Within India, improved liquidity and confidence in housing finance companies could translate into stable returns across mortgage-backed securities, REITs, and NBFC-linked bonds.
Internationally, the deal strengthens India’s credibility as a reliable investment partner for Gulf-based funds, potentially paving the way for reciprocal investments. Indian investors seeking diversification could find the UAE’s real estate market—especially Abu Dhabi and Ras Al Khaimah—an appealing extension of their portfolios, offering stability, tax efficiency, and global exposure.
As financial integration between India and the UAE deepens under the Comprehensive Economic Partnership Agreement (CEPA), such bilateral transactions could accelerate co-investment opportunities in real estate, fintech, and sustainable infrastructure, enabling both nations to leverage each other’s growth momentum.
Long-Term Implications
IHC’s investment in Sammaan Capital underscores a shift from speculative capital to strategic capital—where investments are anchored in real economic growth, long-term planning, and inclusion. It is a signal of trust not only in India’s housing finance ecosystem but also in the nation’s broader consumption-driven economy.
For Abu Dhabi, it marks another step toward globalizing its investment footprint beyond traditional energy-linked sectors. For India, it represents a confidence boost and a reaffirmation that its affordable housing story is both economically viable and globally investible.
Ultimately, the partnership captures a broader truth about India–UAE relations: capital flows are no longer just transactional—they are transformational, setting the stage for deeper financial and developmental collaboration between two of Asia’s fastest-growing economies.
Discover more from Invest Dubai Today - Dubai Realty Insights
Subscribe to get the latest posts sent to your email.
