DIFC acts as the Fintech gateway to the Middle East
The Dubai International Financial Center (DIFC) positions itself as a fintech bridge between the world and Asia.
DIFC has become a gateway to the Middle East, Africa and South Asia (MEASA) for fintech and innovation firms.
This is amid reports of increased interest in the fintech industry to MEASA and the Asia region. As fintech in neighboring industries matures, new opportunities to scale beyond its regional boundaries will be in demand.
In the first nine months of 2022, the number of new firms joining the DIFC exceeded the total that set up business in the whole of 2021.
Among this number are newly graduated start-ups from this year’s DIFC ‘FinTech Hive’ programme. Of the over 3,000 applicants, 200 were selected to participate in the program based on their ideas and ability to generate income. Since its creation, the program has delivered more than 100 proof of concepts with the support of its 65 partners.
A fintech bridge
The DIFC has positioned Dubai as a stepping stone between the various fintech ecosystems in the world. The latter statement describes a “familiarity on par with sophisticated multinational environments”.
It works alongside initiatives designed to strengthen the country’s technology sector. These include the Golden and five-year Green Visa schemes which seek to attract foreign talent, such as freelance professionals, into the industry.
The UAE talent center ranks number one in the Middle East and North Africa (MENA) and 22 on INSEADits latest talent competitiveness index.
The country ranks top for ease of doing business in MENA, while bridging the time zone gap between East and West; according to The World Bank.
Reflecting the continued importance of the fintech and innovation sector, the DIFC recently appointed Mohammad AlBlooshi as vice president and head of the Innovation Hub.
AlBlooshi’s management of the Hub will include the FinTech Hive, Venture Studio Launchpad, Dubai FinTech Summit and additional initiatives in 2023.
In a statement, AlBlooshi confirmed DIFC’s commitment to helping fintechs based in Dubai, including “initiatives that will see us welcome an influx of innovation and talent to our region.”
DIFC’s business-friendly regulatory regime, along with Dubai’s encouragement of innovation, is most valued by disruptors.
This approach allows direct dialogue between the community and regulators, triggering collaboration on future-defining financial models.
Funding and growth
DIFC also offers access to capital sources with a greater appetite for risk, and innovative and inclusive business models.
“DIFC has attracted 600 start-ups, growth stages and unicorns to Dubai,” shares Arif AmiriCEO of the DIFC Authority.
“These businesses are now making a significant contribution to our economy. To continue the momentum, the time is right for us to strengthen our offerings by bringing together more innovation propositions.”
Between January and September 2022, DIFC-based fintech firms secured around AED 2 billion ($559 million) in funding, according to DIFC FinTech Hive’s 2022 fintech report.
Funding activity for fintech almost doubled in 2021. Start-ups in MENA raised $998 million in 2021; an increase of 78 percent from 2020.
