DIFC Serving as Fintech Gateway Into the Middle East
Dubai International Financial Centre (DIFC) positions itself as a fintech bridge between the world and Asia. DIFC has become a gateway into the Middle East, Africa and South Asia (MEASA) for fintech and innovation firms. This is amidst reports of elevated interest in the fintech industries of MEASA and the wider Asia region. As fintechs in neighbouring industries mature, new opportunities to scale beyond their regional borders will be in high demand.
The Fintech Ecosystem and Innovation Hub
DIFC is now home to more than 240 fintech related firms, representing over 50 per cent of all fintech entities in the Gulf Cooperation Council region (GCC), helping achieve its vision to shape the future of finance. DIFC FinTech Hive is part of the DIFC Innovation Hub, the only environment in the region that brings together all parts of the innovation ecosystem.
Arif Amiri, CEO of DIFC Authority, shares: "DIFC has attracted 600 start-ups, growth stage companies and unicorns to Dubai. These businesses are now making a sizeable contribution to our economy." During the first nine months of 2022, the number of new firms joining DIFC exceeded the total that established operations during the whole of 2021. Reflecting the continued importance of the sector, DIFC recently appointed Mohammad AlBlooshi as vice president and head of its Innovation Hub.
Strategic Accelerator Programmes
DIFC FinTech Hive
The first and largest fintech accelerator in the Middle East, Africa and South Asia (MEASA), DIFC’s Fintech Hive has been active since 2017 and has nurtured FinTech innovation with a total of 1,400 applications received for its signature programme. Of the 3,000-plus applicants in recent cycles, participants were selected through an intensive, competitive process to participate in a 14-week curriculum that helps growth-stage start-ups expand in the MEASA region. Since its creation, the programme has delivered more than 100 proof of concepts with the support of its 65 partners.
AccelerateHER
Running alongside the signature FinTech Accelerator programme, DIFC FinTech Hive’s AccelerateHER programme will continue to empower young female talent to play a more active role in shaping the future of the financial services industry. Sponsored by HSBC, the programme equips young aspiring executives with the necessary tools and experience to broaden their knowledge and reach in the industry.
Regulatory Environment and Talent Hub
DIFC’s business-friendly regulatory regime, along with Dubai’s encouragement for innovation, is most appreciated by disruptors. This approach allows direct dialogue between the community and regulators, triggering collaboration on future-defining models of finance. The UAE talent hub ranks number one in the Middle East and North Africa (MENA) and 22 on INSEAD‘s latest talent competitiveness index.
- Golden and Green Visas: These include the Golden and five-year Green Visa schemes which seek to attract foreign talent, such as freelance professionals, into the industry.
- Ease of Business: The country holds the top spot for ease of doing business in MENA, while filling the time-zone gap between the East and West, according to the World Bank.
- Access to Capital: DIFC is also serving access to capital sources with a greater appetite for risk, and innovative and inclusive business models.
Funding and Industry Growth
Funding activity for fintech nearly doubled in 2021. Between January and September 2022, DIFC-based fintech firms secured around AED2billion ($559million) in funding, according to DIFC FinTech Hive’s 2022 fintech report. Start-ups in MENA raised $998million in 2021; a 78 per cent increase from 2020.
| Metric | Data Point |
|---|---|
| DIFC-based Fintech Funding (Jan-Sep 2022) | AED 2 billion ($559 million) |
| Total Start-ups, Growth Stage & Unicorns | 600 companies |
| MENA Fintech Funding Growth (2021) | $998 million (78% increase) |
| FinTech World Cup Prize Pool | $1 million |
Global Events and Competitions
The inaugural edition of the Dubai Fintech Summit (DFS) aims to congregate regional and international fintech industry experts, startups, and investors in one place to discuss how they can drive forward a new phase of innovation. Furthermore, DIFC announced the launch of the FinTech World Cup (FWC), the first of its kind on a global scale. Start-ups who qualify for the FinTech World Cup final are eligible to secure up to $1mn in funding, attracting the most forward thinking and innovative start-ups to showcase their solutions.
