Fintech companies around the world are setting their sights on Dubai as a new frontier of business innovation and opportunity. Amidst economic and diplomatic uncertainty in the West, the UAE is becoming more attractive to the world’s business community, ranking 7th globally in the IMD World Competitiveness Ranking in 2024 and 2nd for economic performance.
In this post, we look at the opportunities the region presents for fintech businesses and why it’s growing as a hub.
Dubai, one of the UAE’s seven Emirates, each with its own manoeuvrable economic strategy, has become an increasingly popular destination over the last two decades. There has been rapid growth in tourism, immigration and a resulting property boom with investment pouring into the young city.
In many respects this boom is only just beginning. In 2024, Dubai set a national record for international tourism, welcoming 18.72 million overnight visitors, representing a 9% year on year increase.
But it’s also being sought after for its fintech credentials. The fintech market is estimated to be worth $3.56 billion in 2025 and that could almost double to $6.43 billion in the next 5 years.
Is Dubai the next big fintech hot spot?
Let’s look at some of the numbers behind this growth. With a compound annual growth rate (CAGR) of 12.56% and the number of active fintech companies increasing by 128.5% from 2011 to 2024, the UAE fintech market is experiencing impressive expansion. Dubai is at the heart of this with over 61% of these companies headquartered there, according to Fintech Middle East.
Yuze, Ziina and Stake were just some of the UAE based fintech companies that secured multi-million USD deals in 2024. Several major global fintech companies have also expanded or are planning to expand there, including Revolut, Ripple, Airwallex, and now IFX Payments (read to the end to find out more about that…).
Fintech events are also contributing to a positive atmosphere for growth, with the Dubai Fintech Summit into its third year and Seamless Middle East entering the fray. Money20/20, one of the world’s largest fintech and financial services events announced they would be opening a Middle East edition in Saudi Arabia in 2025, showing the industry is increasingly turning its eyes to the region.
Funding has increased by a significant margin with a 92% increase in 2023, compared to the rest of the world, which saw a 48% decrease by comparison. It’s now one of the top 10 most well-funded fintech hubs in the world.
Money is also moving at increasing rates, with total transaction values to reach $80 billion by 2028. The CAGR of the UAE’s overall payments revenue is forecast to be at 7.7% from 2021 to 2031. Sub sectors with notable growth include embedded finance, virtual cards, and cryptocurrency. Many cryptocurrency companies have chosen Dubai as a home, with a regulatory environment that appears to be favourable, encouraging their growth.
These are all positive signs, but why is this happening?
The key factors contributing to fintech growth in Dubai
There are several key reasons why Dubai and more broadly the UAE are providing a welcome environment for fintech growth.
A favourable regulatory environment
The UAE’s governing authorities, like many petrostates in the Middle East, are looking to a future beyond oil. One clear aim is to create an environment where businesses can flourish, starting initiatives such as the Dubai Economic Agenda (D33), We the UAE 2031 and the UAE Centennial 2071.
In service of these initiatives is the creation of the Dubai International Financial Centre (DIFC), a financial freezone which allows businesses to set up in a separate jurisdiction to onshore UAE. It even has an independent regulator, the Dubai Financial Services Authority (DFSA), that has additional freedoms to adapt and innovate.
The role of the DIFC
This financial free zone, within Dubai, is a financial hub that has attracted businesses and startups with its bespoke legal system, tax incentives and supportive regulatory framework.
The Fintech Hive incubator and accelerator based here focuses on growing financial services businesses. For fintechs this is an enviable opportunity.
A huge expat population (and young people)
Where there are expatriates (also known as expats) there are payments. And there’s a lot of expats in the UAE. In fact, they outnumber UAE nationals, by a significant margin. Estimates vary but many of them suggest that non-nationals make up around 88-90% of the population.
This presents several opportunities for fintechs operating within the payments industry. Many of these residents are building wealth in tax friendly Dubai and in some cases are making investments, such as buying property. Both private individuals and businesses need ways to make effective and seamless cross-border transactions. As such there is significant demand for payment service providers who can support with this.
Dubai is also a relatively young place, with a median age of around 30. The USA, Australia, China and Switzerland have a median age of around 40 by comparison. This could mean a larger proportion of the population who will adopt fintech and neo banking solutions.
Strategic global position
Dubai’s location and diplomatic position also make it a very attractive destination for fintech businesses. As a hub for international travel and a gateway between East and West, it offers a connection to the Middle East and Asia for international businesses. In a region containing a mix of emerging and developing markets, more and more are turning their attention here.
You may need to attract talent, to bolster your operations, or recruit from the growing pool of people now living in Dubai, however the government are offering incentives to bring certain skills to the area, including a Golden Visa program for 100,000 coders. Regardless, there’s plenty of optimism which is bound to drive growth in this area.
UAE licence means IFX Payments can assist with business opportunities
At IFX we’ve been tracking the changes occurring in the UAE, and have had a presence in Dubai, since 2013. In 2025, we’ve stepped up our game.
With the above opportunities, our expertise in international payments is needed.
Having been granted a category 3C licence by the DFSA, we can now offer our services to customers from within the UAE.
This is a significant move and means moving to a larger office space within the DIFC. As we said in our original announcement, this is a vital stepping stone towards our vision of becoming the number one service-led alternative banking partner in EMEA for corporates and financial institutions. By combining seamless international payments with strategic foreign exchange risk management, we’re empowering businesses in the region to operate globally with greater confidence and control.
We’re excited to enhance our proposition in the UAE, one of the fastest growing payment hubs, to deliver our customers value beyond the transaction.
If you are looking to make the most of this exciting region and growing city, you may need a partner that can give you a personal service in relation to your transactions. Be sure to get in touch with our team today, to find out how we can help you.
