Thaw in ‘funding winter’ in UAE as market sees slew of multi-million, double digit investment deals

The trend is expected to continue as regional economies rebound and investors look for opportunities in emerging markets

The UAE is of late seeing a thaw in ‘funding winter’, with several domestic ventures, especially in the fintech segment, raising multi-million dollars in double digits, industry insiders said.

UAE fintech’s Yuze , which raised $30 million, Ziina ???? , which raised $22 million, Abhi, which raised $15 million , and PiP World, which secured a $10 million funding, are among a slew of ventures which attracted significant growth capital in recent months.

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The rising levels of investments in UAE ventures, despite the still persisting global funding slowdown, indicates the growing confidence in the vision and ability to execute by many of the domestic startup ventures, industry experts said.

“I believe the “funding winter” is slowly thawing in the Middle East, especially in markets like the UAE, where there is a strong appetite for innovation and growth,” Faisal Toukan , Co-Founder and CEO of Ziina, a leading financial platform in the UAE, told Arabian Business.

“Sectors such as fintech, healthtech, and edtech are currently attracting significant funding,” he said.

Senior executives at some of the fintech and investment banks said they expected this trend to continue as regional economies rebound and investors look for opportunities in emerging markets.

The move on the part of some of the homegrown investment firms such as Amplify Growth Partnership to launch new funds with significant corpus – Amplify recently launched a $100 million debt fund – also adds to the rising confidence of UAE startup founders to hit the market for new fundraising rounds.

With the new fund, Amplify seeks to bridge the existing debt capital gap and accelerate the growth of technology-driven businesses in the Series A to Series C stages.

UAE funding landscape still challenging but recovery signs are quite visible

Sector experts said the funding landscape in the UAE and the region has been challenging in the last few years, reflecting a global trend.

However, the market is currently seeing signs of recovery and renewed investor interest, particularly in high-growth sectors like fintech, they said.

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They, however, said there is still a level of selectivity when it comes to picking up ventures for funding, as VCs (venture capitals) and PE (private equity) funds are still cautious about where they allocate capital.

“The fact that we’ve secured $22 million in Series A funding, despite the global funding slowdown, indicates that there is significant confidence in our vision and our ability to execute,” Faisal Toukan said.

Attracting global talent adds to UAE ventures’ attractiveness to investors

Industry insiders said the ability and success of many startup and growth-stage ventures in the UAE in attracting top-tier talent from worldwide is also acting as a major factor in attracting investors – both international and domestic – to them.

Several ventures in the country currently boast off a workforce comprising leading technologists from global biggies such as 苹果 , Uber , Nubank , Klarna, Coinbase, Amazon, FundingCircle, and Yandex.

“With the recent funding, we will also be adding additional hires from global tech giants and fintech innovators like Revolut and Nubank, who have played pivotal roles in scaling their companies to valuations of $45 billion and $70 billion, respectively,” the Ziina Co-founder said.

Spike in finding comes amidst new trends emerging in UAE’s financial sector

Sector experts said the current spike in investor appetite in UAE fintech ventures comes amidst the emergence of a few major trends shaping the financial services sector, including the transition from traditional banking to digital-first, customer-centric platforms.

Both businesses and consumers want faster, more convenient ways to manage their money – whether that is through mobile banking, digital wallets, or contactless payments, they said.

“This shift is driven by a demand for simplicity and speed in everyday transactions,” an industry executive said.

Another trend is the increasing demand for tools that give people more control over their finances.

“Here, we’re talking about things like expense management, peer-to-peer payments, and quick access to credit.

“People want to do more with their money in a way that’s flexible, transparent, and tailored to their needs,” Toukan said.

The Ziina Co-founder also said the industry is also seeing regulatory bodies, like the Central Bank of the UAE, actively promoting innovation, while maintaining a strong emphasis on security and compliance.

“We see the market continuing to expand, driven by these favourable regulatory environments and the increasing demand for digital financial solutions.

“Our SVF (Stored Value Facility) license is a great example of how forward-thinking regulation supports the development of financial services that drive growth and inclusion,” he said.

Sector experts said they expect the financial services market in the UAE – as also in the Middle East – to experience significant growth in both size and scope over the next 3-5 years.

This growth will be driven by several factors such as continued digital transformation, regulatory support for fintech innovation, and a young, tech-savvy population that demands fast, secure, and easy-to-use financial services, they said.

The growing?trend towards creating integrated financial ecosystems, where different players – banks, fintech companies, and tech providers – collaborate to deliver seamless, end-to-end financial solutions in the UAE financial sector is cited as another facilitator for the projected growth.

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