Dubai has emerged as one of the most powerful financial hubs in the world. FinTech companies around the globe have recognized the vast potential in Dubai and moved to the city to take advantage of its fast-paced, business-friendly environment and easy access to funding. As a result, the United Arab Emirates has become an increasingly popular destination for entrepreneurs looking to expand their businesses into new territories. Those who choose to start FinTech businesses in Dubai are joining the ranks of some of the most successful companies in the world today.
Dubai boasts a wealth of success stories that have generated excitement over the country's potential for global startup dominance. As a leader in implementing regulations and policies that support investment and innovation, Dubai passed the Virtual Asset Regulation Law on March 11, 2022. Investors and founders interested in starting a FinTech in Dubai should know some of these facts.
Huge Funding Opportunities
In choosing a new base, a significant consideration is funding opportunities. According to Magnitt's State of Startup Funding - 2021 Emerging Venture Markets Report, UAE received the most significant share of funding and the highest deal volume in the Middle East and North Africa. One of the top five beneficiaries of FinTech funding is the Dubai-based company. Due to the wealth of funding opportunities, many companies choose to keep their base in Dubai.
Business-Friendly Regulations and Licensing Options by SEZs
The UAE has established several special economic zones to attract local businesses and international entrepreneurs. For example, the Dubai International Financial Center (DIFC) is considered the most prominent economic platform in MEASA, having been built in 2004 to propel Emirate's finance sector to greater heights.
Some of the benefits of DIFC include 100% foreign ownership and no restriction on foreign exchange or capital/profit repatriation. In addition, the DIFC was founded on business-friendly laws derived from advanced employment and pension provision, English common law principles, addressing insolvency, and globally compatible data protection regulations.
Solid Digital Infrastructure and Tech Talent
Dubai has rapidly adopted emerging technologies and is introducing new legislation to move the process forward. Dubai wants to become the world's technology hub by creating the first blockchain-powered city, with 50% of its financial transactions occurring on the blockchain. Dubai FinTech is also a good fit for companies interested in the crypto boom. The Dubai Financial Services Authority recently announced a regulatory framework for Investment Tokens. More digitally motivated developments to continue to be made in Dubai, making it the best digital infrastructure in the world. UAE is also ranked as the top country for tech talent in the Arab world and second in the MENA region after Israel. Dubai attracts international talent worldwide because of its high quality of life. The city has been ranked as the best city to live and work in the MENA region by Kearny's Global Cities Report for eight consecutive years.
Requirements to Open a FinTech Company in Dubai
An investor must first receive the innovative testing license (ITL) from the Dubai Financial Service Authority. There is no minimum share capital requirement for setting up a FinTech company in Dubai. FinTech Company in Dubai should offer various products for financial entities interested in developing tech areas to provide customers with fast, quality, and reliable services. These services may include online payments, internet banking, electronic bill payments, and other applications that can ease exchanges and transactions in the country and abroad.
How to Obtain ITL for FinTech Company in Dubai
For you to obtain the innovation testing license, your Dubai FinTech company must:
Use innovation when designing products and services for financial entities.
Engage in developing financial products.
Must be ready to test and implement the products or services with the customers after obtaining the license.
For additional information on how you can open a FinTech company in Dubai, contact Sentinel Business Centers. We have successfully helped scores of businesses to build their presence in Dubai and the Middle East. In addition, we can help your company to handle all aspects of business licensing.