UAE Fintech: Innovations in Finance and Beyond

The United Arab Emirates (UAE) is a country on the Arabian Peninsula along the southern coast of the Persian Gulf, consisting of seven emirates. The emirates of Dubai and Abu Dhabi each have their free trade zones, fueling fintech dynamism through specialized regulations and oversight.

The Dubai Financial Services Authority (DFSA) regulates financial activities in the Dubai International Financial Centre (DIFC), while the Financial Services Regulatory Authority (FSRA) oversees financial activities in the Abu Dhabi market.

Staying updated on fintech legal decisions is crucial. For this purpose, it is advisable to regularly check the media announcements published on the ADGM website and the news section of the DFSA site. In the RegTech sector, Meerana is a notable startup that offers an Artificial Intelligence (AI)-driven legal application, dubbed Hi Legal, to its clients.

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Instant Payments Unlock of E-commerce Huge Potential

In the fall of 2023, Aani Instant Payments (IP) was launched by the Central bank of UAE (CBUAE) and run by AI Etihad Payments, the regulator’s arm.

Aani becomes a bedrock for new innovative ideas. In July this year Mashreq bank started offering application programming interface (API) based IP solution to its clients in the business sphere, integrated with Aani. At the start of this program the high limit of payments was set at AED 50,000.

Another case. Foloosi develops software and APIs aimed to facilitate the management of transactions (including payments) for the business with any scale of its operating activities.

Instant payments are a key to the development of e-commerce in the B2B as well as in B2C segment. The intention of CBUAE to go forward on the path of introducing digital dirham is also a promising sign in this direction.

With the situation when almost all adults in the country have access to the Internet, the digital transformation of the financial sphere has a bright future. Moreover, currently 95 out of every 100 adults in UAE have smartphones so they can load banking and fintech applications.

Fintech companies are enhancing the e-commerce experience, making it an exciting journey for consumers. One example is Designhubz, a software-as-a-service system that integrates 3D and augmented reality innovations to bring customer’s experience with online shopping to a new level.

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APIs Development and Its Importance

In today's digitalized society, application programming interfaces (APIs) play a central role in how systems and applications communicate and integrate with each other. APIs function as messengers, enabling data exchange and functionality in an efficient and well defined manner, facilitating the deployment of complex systems. To enable this data exchange, integration engines act as intermediaries, serving as a platform that links different systems together.

Information transfer between systems that use different programming languages, operating systems, and data formats requires some form of bridging, which is achieved through integration engines. Information exchange can also occur between different companies and between different machines.

Communication between various devices and machines without human intervention, known as Machine-to-Machine (M2M), enables the automation of processes across different industries. Thus, APIs galvanize the development of the whole economy since they operate not only in the banking sector but also play an important role in extracting the highest value from the information and communication in industries such as insurance, logistics, and others.

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Fintech Companies in the UAE: A Great Track of Success

There is a boom in fintech activities in the UAE. They work with technologies such as big data, biometrics, cloud computing, AI, robotics, 3D printing, IoT, Web 3.0, blockchain, shared economy, and digital worlds.

In the digital age, information is a key element. The fintech business understands the value of data, making it natural for more platforms to offer troves of market information.

The Yalla Compare application is one of them in the UAE. Since 2011 (before 2014, it was known as “Compare It 4 Me”), it has provided comparison services in the region, helping users find and compare financial products (insurance, bank deposits, credits, etc.) from various local and international banks and financial institutions. Data is also important for financial market players, and the Lune Technologies startup offers an AI-driven analytics system.

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Investment and Payments Sphere

Investment sphere attracts many fintech initiatives in the UAE. Baraka, the service founded in 2021, provides access to the market of more than 6,000 U.S. stocks and exchange-traded funds (ETFs).

Fintech fills the gap in UAE when one speaks about financing. For example, Beehive is a peer-to-peer (P2P) lending platform providing financing to small and medium-sized enterprises (SMEs).

SHUAA Capital is a platform for asset management and investment banking activities. In the first quarter of this year, it made an impressive operating income of 5 million AED versus the loss of minus 14 million AED reported for the first three months of the previous year.

In this sphere, one can mention the Xare startup that promotes the shared economy approach in the financial sphere, in the credit and debit cards sector in particular. Another interesting case is Appro, a banking onboarding platform that streamlines the client onboarding process by enabling instant approvals and processing without the need for documentation or manual intervention.

Through its provision of an AI-powered digital financing system to SMEs situated in the UAE, eFunder has facilitated their growth, and some of their clients managed to double their turnover on the horizon in half a year.

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Fintech: Beyond Finance

The impact of fintech startups in the UAE extends beyond the financial sector, significantly influencing various industries, including health and insurance.

HealthTech Innovations

In the realm of HealthTech, several startups are making notable advancements. P4ML is boosting care delivery for patients with rare diseases through its analytical capabilities. Another player, Predictiv, offers an AI-driven system that creates tailored digital twins for predictive and preventive healthcare.

Additionally, Udenz leverages AI for dental diagnostics and practice management, while Doctoori Connect empowers individuals to take control of their health through its comprehensive healthcare system.

At the intersection of HealthTech and InsurTech, Wellx stands out as a prevention-focused digital health insurance startup, promoting proactive health management. Meanwhile, Aura startup enhances the customer experience by opening up opportunities for companies to offer contextually personalized insurance packages at checkout.

The health industry, like any other sector, requires robust financing solutions. For the last six years, Klaim has helped healthcare providers effectively address the challenge of finding working capital.

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Real Estate and Fintech

In the real estate sector, Baytukum is a crowdfunding system that enables people to co-own properties with investments starting as low as AED 5,000. Meanwhile, Keyper simplifies the rental experience in Dubai by enabling tenants to make hassle-free monthly rent payments while simultaneously offering landlords the benefit of upfront payment, thereby optimizing the overall rental process.

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ESG Agenda in Fintech

In the area of environmental, social, and governance (ESG) initiatives, The Waste Lab is a startup focused on diverting food waste from landfills through innovative, nature-based repurposing solutions.

Rebound offers a global trading framework that allows buyers and sellers to trade recycled plastic in a comfortable way.

Additionally, ACX provides an exchange platform designed for the modernized transaction of environmental assets.

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Ecology

Fintech startups in the UAE are making a profound impact on ecological sustainability. Just three cases.

Aya leverages the power of Web3 technology and crowdfunding platforms to make a valuable footprint in the sphere of climate finance by connecting investors directly with climate-related projects.

Circa Biotech is pioneering sustainable aviation fuel by transforming food waste into clean energy through industrial insect farming. Their innovative approach addresses two urgent global challenges: food waste and climate change.

HeroGo is disrupting the grocery industry with a subscription model that cuts food waste and consumer expenses. By optimizing food supply chains, HeroGo is making a tangible impact on both environmental sustainability and consumer affordability.

The UAE is more than just a fintech hub; it's a hotbed for innovation. The country's fintech ecosystem is driving positive change through a range of business initiatives that reshape classical industries and infuse innovation into various sectors. These companies are not just focused on profits but are engineering a more sustainable future.