The Finance and Fintech Ecosystem in the UAE is growing rapidly. The Free Zones in UAE are one of the major reasons fueling the growth of Fintech companies, especially the Fintech start-ups.
Specific Free Zones such as the Abu Dhabi Global Markets (ADGM), Dubai International Financial Centre (DIFC), Dubai Multi Commodities Centre (DMCC), Dubai Airport Free Zone (DAFZA), Dubai Technology Entrepreneur Centre (DTEC), and more are providing the perfect platform for the finance startups and technology companies to easily scale up.
What is a Fintech Company?
Fintech is advancing rapidly due to evolving technology and the merging of geographic boundaries. It is nothing but making use of customer data to provide targeted financial advisory and support services to customers.
It covers a wide range of financial requirements – facilitating online payments, credit facilities, money lending, foreign currency transactions, money exchange, mobile app-based transactions, and more.
FinTech and its Scope in Dubai
There are several opportunities for a Fintech Company in Dubai. The Fintech Companies have a significant role in transforming the way public handle finance. The Fintech Companies will help initiate secure and transparent transactions across commercial and personal levels.
The financial houses, financial regulators, banking service providers, etc., make up the ecosystem of a Fintech company. A Fintech company will support banking service providers in launching technology-driven solutions to ease customers’ financial requirements.
Fintech Companies have the flexibility to initiate seamless transactions in Dubai and is at the same time regulated by the financial laws and the Central Bank of UAE. They must follow the regulatory standards to avoid any risk of misrepresentation or money laundering acts.
Growth of Finance and Fintech Companies in Dubai
The Finance and Fintech Companies are on a surge in Dubai. Fintech Companies in Dubai especially are witnessing transformational changes. Also, there is a rise in demand from commercial and private customers too.
Similarly, strategic industry sectors such as manufacturing, production, pharmaceuticals, etc., have a growing requirement for financial support from Local and International Banks and other financial houses in the UAE. Fintech Companies will be helpful in processing large business requirements easily.
Dubai is seeing a rise in finance companies and Fintech start-ups in various areas such as:
- Money lending,
- Trading platforms,
- Bitcoin investment,
- Investment relations,
- Financial services,
- Money exchange, and more.
The Finance and Fintech ecosystem is growing in Dubai with more companies venturing into space. The Finance sector supports UAE’s economy significantly by providing financial assistance. They also offer solutions to other industry segments that are witnessing downtime due to the pandemic.
As per the reports of the Dubai Statistics Centre, there is a surge in new finance companies in UAE. Fintech companies are registered in the finance-specific zone such as the Dubai International Financial Center (DIFC).
Free Zones in UAE Supporting FinTech Companies
In Free Zones like the ADGM, there are business incubators for Fintech companies to build, test, and manage their solutions. The Companies registered in ADGM will be governed by the Financial Services Regulatory Framework (FSRA). It will ensure 100% transparency and no discrepancies are located in the company’s transactions.
The technological advancements, coupled with the robust network of international and local commercial banking solution providers build a robust ecosystem for Fintech companies.
It will help them to launch their support services either by partnering with the banking providers or independently to serve the growing demand in the region.
Also, the growing market confidence in UAE being a global investment hub is attracting many new investors to the region. The UAE financial Markets mainly trade equities, securities, bonds, futures, mutual funds, commodities, currencies, metals, stones, derivatives, Sukuk bonds, and commodities.
The Financial Companies and Securities Exchange in UAE
The Financial Securities Exchange markets operate in UAE under the Securities and Commodities Authority (SCA).
A few of the UAE’s financial Markets are Abu Dhabi Securities Exchange (ADX), Dubai Financial Market (DFM), and the Dubai International Financial Center (DIFC). They predominantly deal with equity, debt, exchange-traded funds, bonds, etc.
Then, Dubai Multi Commodities Center (DMCC) trades in precious metals and commodities. Also, there is NASDAQ Dubai that trades securities.
Hence, investing in the Financial Market in Dubai is a prospective business investment for company owners, high-net-worth individuals, and other investors.
Fintech Companies in UAE and Growing Finance Ecosystem
The advancements in Artificial Intelligence identify various customer transactions and suggest specific financial solutions based on the transaction history. Finance Tech companies support established international banks in the UAE with advanced technology-first banking products.
The Financial Markets in UAE are attractive for business investors as it offers funds with a high return on investments, less risk, secured future investments, diverse Exchange Trade Funds, and many more.
Also, a few of the new Fintech firms are obtaining banking licenses too. The Fintech companies are partnering with established bank solution providers in the UAE. They will further streamline the financial products and services to benefit the maximum number of customers.
There are many ways a FinTech Company operate in the UAE. One way is through mutual partnership to create a proprietary digital infrastructure to enhance the digital offerings of the brand.
Similarly, the next way is to tap the unbanked population. Also, provide them with effective banking products to fulfil their daily requirements.
The Government Financial Regulations favor Fintech Solutions to create effective products and services to help the public to spend, save, invest, and transact efficiently.
To know more about opening a Fintech Company in Dubai and the steps involved in company incorporation, connect with our expert Business Consultants right away!
