Financial services are being revolutionised by FinTech, and Dubai is a top destination for these companies due to its thriving startup scene and government laws that encourage it. The largest FinTech ecosystem in the area, DIFC’s Innovation Hub offers businesses tools and mentorship. With 10% of GDP coming from fintech, Dubai’s economy is significantly boosted by the financial sector. This blog highlights the key support factors that are making Dubai a lucrative place for investments in the FinTech sector

Through the Tabby platform, residents of the MENA region can choose to Buy Now Pay Later (BNPL), which allows them to buy things on credit and pay them back over time without paying extra interest or fees. It is comparable to Indian fintech startups like ZestMoney, ePayLater, and Simpl, among others. Tabby has worked with more than 3000 offline and online retailers from a variety of industries. These cover home, travel, gadgets, fashion, and beauty. The business also provides retailers with solutions to increase sales, revenue, conversion, and client loyalty.

Tabby’s has a considerable amount of experience in the fintech community and industry. By offering BNPL options, it has shaped the fintech industry’s foundation. It has even helped retailers expand their clientele and attract new clients. According to Tabby’s yearly report, the merchant’s average order value climbed by 60%, conversion rate increased by 25%, and repeat buy rate increased by 40%. Over 2 million people utilise the platform at the moment, and it handles over $1 billion worth of transactions annually.  

In 2019, a well-known MENA entrepreneur named Hosam Arab established Tabby. Hosam Arab was a co-founder of Namshi, a well-known online retailer of clothing that Emmar Malls eventually bought. With the help of several large investors, including STV, Global Founders Capital, Raed Ventures, and others, Tabby has raised USD 275 million. Currently, Tabby operates out of Saudi Arabia and the United Arab Emirates. This company is a great example of the exciting global fintech solutions emerging from fintech Dubai.

(Source: LinkedIN)

The Growth of FinTech in Dubai

At a compound annual growth rate (CAGR) of 12.56%, the size of the UAE Fintech Market, measured in terms of assets under management value, is anticipated to increase from USD 3.16 billion in 2024 to USD 5.71 billion by 2029. The United Arab Emirates has become a centre for fintech developments as the global fintech sector continues to grow with almost every software development company in UAE exploring fintech. 

Dubai is one of the top 10 FinTech hubs in the world right now, and it’s in a great position to spur expansion and provide a jumping off point for new prospects. UAE has emerged as the largest FinTech hub in the Dubai UAE, and is home to more than 400 FinTech startups. 25.4% of Dubai fintech companies are in the payments sector, followed by 12.7% in Blockchain and cryptocurrencies.

How Dubai is becoming a FinTech Leader 

In 2022, DIFC experienced significant expansion in the FinTech and innovation companies. Currently, the hub is home to over 686 fintech enterprises, comprising both global unicorns and startups. As part of the agreement it made with Federation of Indian Chambers of Commerce & Industry (FICCI) LEAD to introduce the India-UAE Startup Corridor, DIFC is also aiming to identify, facilitate, and develop ten exceptional fintech startups, based in both India and the UAE, into unicorns by 2025.

One of the most potent catalysts for revolutionary change is innovation. Innovation is putting the fintech services sector at a turning point in its development as economic paradigms change and software product engineering solutions for finance become important . Prior to the pandemic instigating the digitization process, one of the most inventive industries, FinTech, significantly simplified the organisation and provision of financial services.

With over 600 FinTech start-ups established in Dubai, the UAE leads the GCC as a FinTech hub and is home to the largest FinTech ecosystem. Dubai is a hub for international entrepreneurs, drawing FinTech firms aiming to become part of the elite group of innovators.

Entrepreneurship on the Rise

Economic development relies heavily on entrepreneurship, and Dubai’s thriving enterprises are boosting the ecosystem by inspiring others to start their own businesses. With investments in digital and physical infrastructure, the emirate provides start-ups with access to a wide range of potential customers, accounting for 57% of scale-up funding in the Middle East and North Africa region. With the advent of the UAE’s Golden Visa, which aids entrepreneurs in securing a long-term future in the city, Dubai has also earned a competitive edge. The UAE government also released a new business entrance visa. This draws entrepreneurs and investors interested in learning more about business and investment prospects in the nation.

Government Support

The strategic objectives of the Government of Dubai include innovation, and the emirate’s location plays a major role in its reputation as a FinTech centre. Within an entrepreneurial ecosystem that draws foreign venture capitalists looking to take advantage of the prospects available throughout the region, Dubai offers access to the less saturated young market in MEASA. The last few years have seen a sharp increase in demand for FinTech software development services in Dubai due to innovation and digital technologies that are changing the wealth management, lending, payments, and insurance sectors. A number of crucial elements have contributed to the growth and success of FinTech start-ups in Dubai during the past eight years.

Driving Change for the Future

In addition to driving Dubai’s status as a centre for innovation and technology, DIFC serves as a platform that makes it easier to tap MEASA opportunities in emerging markets and beyond. The Innovation Hub, the largest innovation community in the region and the current home of over 600 growth-stage digital startups, is housed in the Centre together with the FinTech Hive, the first and largest financial technology accelerator in the MEASA region. The highest concentration of venture capitalists in the area may be found at The Center’s Innovation Hub, which also houses education and accelerators aimed at fostering entrepreneurship. Mentors, affordable operating and regulatory licences, experience, and mentorship are all available here.

The Bottom Line

Indeed, fintech solutions and the whole sector has emerged as a major engine of the Dubai economy, accounting for roughly 10% of the emirate’s GDP, according to the most recent report released by the Dubai Statistics Centre. It also draws substantial foreign investments, fosters entrepreneurship, supports the expansion of MSMEs, and employs a sizable portion of the local population.

As Dubai’s FinTech services witness tremendous growth, companies will continue to innovate and bring new products to serve the markets. Tntra, a leading software product engineering company, helps enterprises and individuals bring their FinTech ideas to reality with its team of 100+ domain experts and engineers.

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