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UAE’s FinTech sector Annual funding to touch $2.8bn funding in next five years

September 19, 2023

VC/Investors funding for FinTech sector in the UAE is poised for significant growth, with predictions that it could reach $2.8 billion by the year 2028. This optimistic outlook is driven by several factors, including the UAE’s robust economy and the favorable environment for fintech innovation.

UnaFinancial, a fintech company backed by Singapore, formerly known as Robocash Group, has conducted an analysis and forecasts that fintech funding in the UAE will follow an upward trajectory. Specifically, it is anticipated to increase from $1.7 billion in 2022 to $1.8 billion in 2023 and eventually reach $2.8 billion by 2028.

In addition to the surge in funding, the number of fintech start-ups in the UAE is expected to experience substantial growth. UnaFinancial’s analysis, based on data from Tracxn, indicates that the number of fintech start-ups will more than triple during this period. Starting at 163 in 2022, the count is projected to rise to 200 in 2023 and further expand to 531 by 2028.

Several factors contribute to this favorable fintech landscape in the UAE. One key factor is the presence of a wide range of multidisciplinary free zones that facilitate the establishment of businesses. These free zones offer an environment conducive to fintech innovation and expansion. Additionally, the UAE provides special visa categories designed to attract investors and start-up owners, further incentivizing entrepreneurship and fostering an environment conducive to fintech growth.

In conclusion, the UAE’s fintech sector is on a trajectory of remarkable growth, with predictions indicating substantial increases in funding and the number of fintech start-ups over the coming years. This positive outlook is underpinned by the nation’s strong economy, supportive policies, and an environment conducive to innovation and entrepreneurship. As fintech continues to gain prominence globally, the UAE is positioning itself as a hub for fintech innovation and investment.