Dubai International Financial Center (DIFC), the leading global financial center in the Middle East, Africa and South Asia (MEASA), announced on Tuesday that in the first nine months of 2022, the number of FinTech and innovation firms joining DIFC exceeded the total that established operation during the whole of 2021.
Among this number are newly graduated start-ups from this year’s DIFC FinTech Hive program cohort, according to a DIFC press release.
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The first and largest FinTech accelerator program in the region has now attracted more than 3,000 applications from around the world, which have been whittled down to 200 participants, based on their ideas and ability to generate revenue. The program has delivered more than 100 proof of concepts with support from over 65 partners.
The DIFC is currently seeing increased levels of interest from FinTechs in the Singapore, South East Asia and Asia Pacific markets. As FinTech and innovation firms mature in these locations, they seek new opportunities to scale beyond their regional boundaries and into new economies with demand for their products and services. Dubai has become their bridge to expand our reach and capture opportunities in our new geographies, providing a familiarity that matches their sophisticated multinational environments.
The UAE and Dubai’s globally recognized management of the pandemic, strategic investment and business-friendly structural reforms, long-term residency schemes and innovation-enabling regulatory environment have drawn entrepreneurial talent from all corners of the world.
Initiatives such as the new long-term Golden Visa options and incentives for technology entrepreneurs and professionals to develop the country’s technology sector and the five-year green visa for freelance professionals are helping to attract international talent to the sector.
The UAE is a stable, thriving and globally ranked talent hub. The nation ranked number one in the Middle East and North Africa (MENA) and 22 globally in the 2020 INSEAD Global 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’s Doing Business 2020 report. Dubai is also among the top three cities for expats to live in globally, along with Miami and Lisbon.
DIFC’s comprehensive FinTech and innovation proposition has created unprecedented opportunities for success for start-ups, global players and unicorns. The ever-expanding platform includes access to education, entrepreneurship and accelerator programs, mentoring and networking, operating and regulatory licenses, and funding and expertise through venture studios – all under one cost-effective roof – presenting the ultimate platform to innovate and scale.
Mohammad AlBlooshi as Vice President and Head of the DIFC Innovation Hub.
Reflecting the continued importance of the FinTech and innovation sector, the DIFC has appointed Mohammad AlBlooshi as Vice President and Head of the DIFC Innovation Hub. Mohammad, a UAE national who has gained extensive experience at the centre, will provide leadership for the DIFC Innovation Hub, which will include the FinTech Hive, Venture Studio Launchpad, Dubai FinTech Summit and new initiatives to be launched in 2023.
Arif Amiri, Chief Executive of the DIFC Authority, said: “In recent years, the DIFC has remained at the forefront of innovation, attracting more than 600 start-ups, growth-stage and unicorn companies to Dubai. These businesses now make a significant contribution to our economy. For To continue to build momentum, the time is right for us to strengthen our offerings by bringing together several innovation propositions under a new leader.”
AlBlooshi, Head of DIFC Innovation Hub and FinTech Hive, added: “I am delighted to have the opportunity to own and develop one of DIFC’s strategic growth priorities. At DIFC, we are committed to helping FinTech and innovation companies based in the hub. We will continue to develop initiatives that will see us welcome an influx of innovation and talent to our region.”
DIFC’s progressive business-friendly and innovation-enabling regulatory regime, along with Dubai’s overall openness and encouragement of innovation, are most valued by disruptive players. This approach means they can engage in meaningful dialogue with regulators directly and look at ways to collaborate on new models that could define the future of finance.
As a global capital for financial services and a leading hub for financial technology and innovation, the center is also a space with significant access to capital sources that have a greater appetite for risk, and innovative and inclusive business models.
Between January and September 2022, DIFC-based FinTech firms secured more than $559 million (Dh2 billion) in funding, according to the DIFC FinTech Hive’s 2022 FinTech Report. FinTech funding activity nearly doubled in 2021 and startups in MENA raised $998 million in 2021, a 78 percent increase from 2020.
Read more: DIFC FinTech Hive’s accelerator programs return with focus on impact, sustainability
