$3.5 billion financial technology market in the UAE by 2026

The financial technology (Fintech) industry in the UAE has achieved leaps in growth in recent years, amid positive trends indicating great investment opportunities in the sector, which represents one of the fastest growing sectors in the country, in light of the tremendous developments in digital financial innovations that are expected to reach… Global financial technology market revenues will reach approximately $1.5 trillion by 2030.
The regulatory environment in the UAE is very conducive to supporting financial technology. While the Central Bank regulates financial services, the Securities and Commodities Authority regulates capital markets. In light of this, the country is keen to attract large investments in the financial technology sector in the UAE.
The financial technology market in the UAE is expected to reach about $3.5 billion in 2026, with an annual growth rate of about 20%. This growth is supported by significant investments in financial technology and advanced digital infrastructure, in addition to a supportive business environment for emerging projects and companies operating in the field.

Big market
The Abu Dhabi-based Interregional Center for Strategic Analysis said in a recent study that, according to the Ministry of Economy, the UAE leads the financial technology market in the region and North Africa, as the value of the local market reached a record high of $2.5 billion in 2022.
Both Abu Dhabi and Dubai have external financial centers that fall under the auspices of their own regulatory bodies. In addition, Dubai launched the Virtual Assets Regulatory Authority to manage companies and participate in cryptocurrencies and non-fungible tokens. The Dubai International Financial Center currently includes more than 900 companies specialized in financial technology.
The FinTech Abu Dhabi Conference, which is the largest financial technology forum in the Middle East and North Africa region, will launch in its 8th edition during Abu Dhabi Financial Week, December 11, 2024.
According to the Interregional Center, the Kingdom of Saudi Arabia has witnessed rapid growth in the financial technology (FinTech) sector thanks to government support and significant investment in digital transformation and Saudi Vision 2030, and the number of financial technology companies has increased significantly in recent years.
There are about 150 active financial technology companies in Saudi Arabia so far, and the number is expected to continue to increase as innovation and digital services expand.
The sectors that financial technology companies focus on in Saudi Arabia include: digital payments, which represent the largest share, with the launch of electronic wallets, applications that facilitate online payment, and Islamic financial technologies that provide solutions that are compatible with Islamic law, such as digital Islamic finance and lending to individuals and small and medium-sized companies via Internet, digital insurance technologies, wealth and asset management.
Saudi Arabia supports the growth of this sector through regulatory initiatives from the Central Bank of Saudi Arabia (SAMA) and the Capital Market Authority, and also through the Saudi Fintech Program, which was established in 2018 with the aim of stimulating the financial technology sector in the Kingdom.

Global market
“Interregional” pointed out that there are several investment trends in the financial technology sector, the most prominent of which are: venture capital, which has played a decisive role in financing waves of technological innovation, and over the past 9 years, it has ranked first as one of the leading sectors in terms of investment capital, as It attracted a 12% share of total venture capital funding globally.

In recent years, the number of start-up companies in the field of financial technology has grown around the world, exceeding 26 thousand companies, and the Middle East and North Africa region achieved the second highest growth rate of venture capital financing for financial technology in the period between 2015 and 2023, with an average annual growth of 33 million. %.
Over recent years, artificial intelligence and machine learning have played a pivotal role in enhancing financial services, from being used extensively in financial forecasts to smart credit assessments, by companies in order to improve customer experience, increase efficiency and reduce potential costs.
Challenges
Interregional said: “Despite the positive growth trends in the financial technology market, there are challenges facing the sector, the most notable of which are: the difference in laws from one country to another, which makes it difficult for companies to expand the scope of their business, and some traditional financial systems are outdated and not in line with changes.” “The rapid growth in the sector, cybersecurity threats and electronic attacks targeting financial institutions are increasing, including hacking and data theft, and the lack of specialized human competencies is significant for the sector.”