Fintech: Dubai looks at the financing technology of the future

With rising inflation, interest rate rises and political uncertainty, the world economy can withstand a difficult storm, but one sector that has performed better than others is financial technology or Fintech.

Fintech: A growing sector

FinTech usually refers to software, technology and mobile apps, designed to improve, automate and adapt traditional forms of financing for businesses and consumers.

According to the analysis company Statista, digital payments are expected to grow to 7.92 trillion euros by 2024, from 4.22 trillion euros in 2020.

At Dubai International Financial Center or (DIFCs) Fintech Week, the think tank conference took a deep dive into the latest opportunities, challenges and technology trends driving the region’s financial services sector.

The first event was reinforced by news that fintech is the fastest growing sector for DIFC, contributing more than 35% to the total number of companies that have been established in the last 12 months.

The Governor of the Dubai International Financial Center (DIFC) Essa Kazim said that part of the success was down to the establishment of a hub that supports fintech companies from incubator to accelerator and investment stage.

“We have this integrated ecosystem that has created a very favorable environment for them to grow and prosper. In parallel, we have worked to truly create a regulatory environment with best practices and international standards.”

Dubai ahead of Fintech development

From technical talks to showcases and panel discussions, investors and companies seeking solutions for the blockchain and fintech sectors gathered.

Experts at fintech week said Dubai will be a starting point for global entrepreneurs to build and scale across the Middle East and Africa region thanks to expertise and funding.

The sector in Dubai is similar to the global picture and is expanding rapidly. The Chairman of the Board of the MENA Fintech Association said that our daily lives are surrounded by innovations that came out of the fintech industry.

Amazon gave a further boost to the industry in the region in June with the launch of their Fintech Lab, a hub for digital innovation and creativity based in Dubai’s financial and fintech centers.

In collaboration with start-ups, SMEs and partners, the goal is to support new programs and ideas and promote knowledge about digital payments and the fintech sectors worldwide.

Financing the future

But in these more challenging economic times, investors are more cautious, and access to finance is still the highest priority for start-ups.

Sharif El-Badawi, CEO of Dubai Future District Fund, said his company has an asset. They have a pillar in the fund that they invest through called the finance of the future.

“For me, it’s about the path to where these technologies lead, especially as we move into the next 24 months,” he told Euronews.

“I think it will be crucial here in the region and around the world how we look at the underlying value propositions of fintech companies, the intersection between them and the banks and financial institutions and regulators with whom they have to play along,” he added. .

Dubai-based FinTech company Qashio has raised 2.4 million euros in its latest round to launch in the MENA market.

They have created the UAE’s first platform for managing business cards and expenses. With Qashio, business economics and HR teams can set and change spending limits on virtual and physical cards. This eliminates the use of cash, avoids costly delayed expenses and reduces the amount of work put into reimbursements.

CEO and co-founder Armin Moradi says that it has been a product that companies, authorities and banks are all concerned with enabling as it reduces the amount of cash in circulation. It reduces fraud and can be used to monitor the company’s expenses in real time.

“You do not have to wait for your money when you make an expense. It is already available on the app for you. It also provides clarity on how you can spend money so that you work within the guidelines the company has set up, and which by default reduces internal conflicts “, he said.