Flexible UAE regulations drive Fintech growth
17 May 2025 13:40
ABU DHABI (WAM)The UAE is solidifying its position as a regional and global Fintech hub, driven by forward-looking strategies, flexible regulatory frameworks, and strong support for innovation.The sector has seen rapid growth in recent years, spurred by government initiatives, evolving legislation, and rising investment and startup activity. Global confidence in the UAE's Fintech ecosystem is reflected in international rankings and the country's leadership in financial digital transformation across the region.Abu Dhabi and Dubai have introduced clear regulatory structures through bodies such as Dubai's virtual Assets Regulatory Authority (VARA), Dubai Financial Services Authority (DFSA) - the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC) - and the Abu Dhabi Global Market (ADGM).Initiatives like the FinTech Hive at DIFC and ADGM's Regulatory Laboratory have played a pivotal role in the sector's expansion.According to a report by Mordor Intelligence, the UAE's Fintech market is expected to grow at a compound annual growth rate (CAGR) of 12.56 percent from $3.56 billion in 2025 to $6.43 billion by 2030.Lukasz Rey, Managing Director and Partner, Middle East Head of Financial Institutions at the Boston Consulting Group, said that by 2028, the UAE's payment sector is projected to reach $27.3 billion in revenues, with a CAGR of 7.8 percent.Transaction volumes are also forecast to rise significantly to over 3.1 billion by 2028, representing a 78 percent increase—well above the global average of 5 percent.Mohamed Fairooz, Middle East Lead at SC Ventures (Standard Chartered's innovation arm), said the UAE has become a regional leader in Fintech due to its advanced regulatory environment, digital infrastructure, and institutional support.He noted SC Ventures launched seven Fintech startups in the UAE over the past year, creating more than 150 high-skilled jobs. This, he said, underscores investor confidence in the country's governance, data protection, and regulatory agility.Sabyasachi Goswami, CEO of Perfios, echoed the sentiment, crediting the UAE's progress to strong regulatory support—especially in areas such as open finance and financial inclusion.
He acknowledged the ongoing challenges posed by digital fraud and risk, but noted that the UAE has made significant strides in developing risk management solutions to keep pace with the rapid rise in digital transactions.
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