Reasons for the Rise in Fintech Startups in Dubai, UAE

The second-largest emirate of the UAE, Dubai is widely known for its incredible infrastructure, ideal strategic trade location, and tourism. The United Arab Emirates has observed a significant rise in a wide variety of business options, with fintech business setups being in high demand. Because of the growing number of fintech business setups in Dubai, this city is currently among the top 10 fintech hubs worldwide.

In this article, we’ll explore the reasons why Fintech companies are opting for a business setup in Dubai. But before looking into how Dubai has emerged as a prominent fintech hub, let's start with what a fintech business setup is. 

 

What are Fintech Startups?

Fintech, which is short for Financial Technologies, is an innovative technology that provides financial services to consumers across the world. Fintech startups include companies that primarily rely on cloud and tech services instead of physical locations for providing financial services and products to their clients. Payment services, and trading platforms are some examples of fintech startups. They help their customers with tasks like investing money, bill payments, providing a secure platform for storing money, etc. Fintech companies, by using digital banking technologies like blockchain, artificial intelligence, and other algorithms, provide efficient financial services to their consumers.

Benefits provided by fintech or financial technologies

Fintech offers a secure and user-friendly experience to consumers.

They are easily accessible and provide faster and cheaper transaction facilities.

Provides services to consumers at lower rates as compared to traditional financial companies.

They offer more customized products and services to the consumers based on their needs and the data provided.

They also provide better investment options.

Rise of Dubai as a Fintech Hub in UAE

There are many factors because of which global fintech investors have preferred Dubai company setup over the other options available worldwide to them. So, let’s explore how Dubai is becoming the UAE’s leading fintech hub.

Increasing Entrepreneurship:

Entrepreneurship is a significant factor in the economic development of a nation. This activity results in the creation of more jobs, generating more income, which automatically helps in the stabilization of the economy of the country. The business-friendly environment and tax advantages this emirate provides encourage fintech entrepreneurs to start their business setup in Dubai. Additionally, skilled workers, entrepreneurs, and investors are getting great benefits from the UAE government’s Golden Visa program. This visa permits them to live as well as work in Dubai for a long period of 10 years. The Golden Visa also increases the potential customers for Dubai company setups from India of the fintech entrepreneurs.

The Supportive Government:

The UAE government grants a wide variety of benefits to the fintech business setups in Dubai. UAE has 40+ free zones, which come with facilities like tax benefits, office facilities, etc. Also, these free zones ease the process of obtaining trade licenses and visas for freelancers, investors, business owners, and their skilled workforce. Free zones in Dubai, like Dubai International Financial Centre (DIFC) and Dubai Internet City (DIC), provide a great opportunity to fintech startups for a company setup here with fewer investments. Also, the accessible funding schemes and loan facilities through resources like EDB (Emirates Development Bank) and Hub71 provide support for the implementation of fintech innovations in Dubai.

Growing Digitally Literate Population:

The UAE’s government has launched the National Strategy for Artificial Intelligence and initiatives like One Million Arab Coders. These programs focus on encouraging youth’s interest in digital technologies, which can result in the government’s vision of the nation's digital future. The initiatives taken by the UAE government have helped in the growth of the digitally literate population in the nation. Dubai, being one of its most populous cities, is home to tech lovers who opt for technological innovations for a better experience of financial services. These have created opportunities for fintech investors to establish their business setup in Dubai.

Easy Access to International markets:

Dubai’s strategically ideal location is a big advantage to fintech companies who wish to start their business setup in Dubai. Its strategic location serves as a junction to markets in Europe, Asia, and Africa. For business owners that aspire to expand their businesses in these markets, Dubai is a perfect destination for them. Moreover, its centralized location results in a reduction of shipping time and cost-effective operations. It has become a hub for technology and innovation, which has attracted a number of international or national fintech startups to establish their company setup in Dubai.

Conclusion

Dubai is rapidly becoming a worldwide leader in fintech technologies due to these advantages. Its development as a fintech hub in the UAE has also aided in the economic advancement of the nation. The city provides numerous opportunities for fintech innovations like digital payments, artificial intelligence, cybersecurity, and blockchain technology. Important fintech hubs like DIFC (Dubai International Financial Centre), with strong growth, lay the foundation of a promising digitally visioned nation. I believe that this article was helpful for everyone who has dreamed about starting a business setup in Dubai.