Tech

The UAE Fintech Ecosystem A High-Growth Market Paving the Future of Finance By Peter Davis The United Arab Emirates (UAE) is rapidly establishing itself as a dominant force in the global fintech landscape. Situated strategically at the crossroads of East and West, the UAE has successfully leveraged its geographic, regulatory, and technological advantages to cultivate a thriving fintech ecosystem. With continued investments, a forward-thinking regulatory regime, and an innovation-centric economy, the UAE’s fintech industry is not just evolving it is accelerating at an unprecedented pace. As a fintech expert observing this dynamic transformation, it is clear that the convergence of favorable policies, world-class infrastructure, and tech-savvy consumers has positioned the UAE as the fintech capital of the Middle East and North Africa (MENA) region. This article unpacks the growth trajectory, ecosystem drivers, key segments, regulatory frameworks, and the future outlook of the fintech sector in the UAE. A Market Ripe for Innovation The UAE’s financial technology market has seen exponential growth over the past five years. According to Magnitt and other industry reports, the country attracted over 47% of total fintech investments in the MENA region as of 2024. With more than 800 fintech startups operating in the country, up from just 46 in 2015, the growth curve is steep, driven by supportive policy frameworks and significant capital inflows. Dubai and Abu Dhabi, the country’s two major financial centers, have become fertile grounds for fintech startups. These emirates are home to major accelerators like DIFC FinTech Hive and ADGM’s Digital Lab, both of which offer sandbox environments, funding opportunities, and exposure to a broad network of investors and financial institutions. Key Drivers of UAE’s Fintech Surge 1. Government-Backed Innovation From the onset, the UAE government has played a pivotal role in promoting digital transformation. Visionary strategies such as the UAE Vision 2031, the Smart Dubai Initiative, and the National Artificial Intelligence Strategy 2031 are key frameworks that embed fintech as a central enabler of economic diversification. The Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) are more than just financial free zones, they are innovation incubators backed by regulators that are agile and pro-digital. Initiatives like the DIFC Innovation Hub and FinTech Hive provide world-class infrastructure and investor access to emerging fintech firms. 2. Digital-First Consumer Behavior With over 99% internet penetration and high smartphone usage, UAE consumers are digitally native. According to Visa’s 2023 study, nearly 70% of UAE consumers had used at least one form of fintech application—ranging from e-wallets and robo-advisory platforms to BNPL (buy now, pay later) services and crypto trading apps. This digital readiness has created fertile ground for fintech companies to scale rapidly, especially in areas such as digital banking, P2P payments, and investment platforms. 3. Robust Investment Climate The UAE fintech ecosystem has also gained the attention of global venture capital and private equity investors. In 2023 alone, UAE fintech startups raised over $400 million in funding, with mega deals going into neobanks, regtech solutions, and blockchain ventures. Government-affiliated funds, including Mubadala and Dubai Future District Fund, are actively investing in early- and growth-stage fintechs. Fintech Segments Driving Growth 1. Digital Payments and Wallets Payments remain the bedrock of fintech growth in the UAE. With the rise of e-commerce and contactless transactions, digital payment platforms like Payit (by FAB), Emirates Digital Wallet, Apple Pay, and Google Pay have seen widespread adoption. Paytech innovation is also evident in real-time payment infrastructures like the UAE’s Instant Payment Platform (IPP), expected to revolutionize local and cross-border payments. 2. Neobanks and Challenger Banks Digital-only banks are rapidly entering the UAE market, targeting a young, mobile-savvy population. Players like Wio Bank, YAP, and Zand have successfully carved niches in SME banking, personal finance, and digital wealth management. These institutions offer a frictionless banking experience with features such as instant onboarding, integrated payments, and AI-driven financial planning. 3. Wealthtech and Robo-Advisory With a growing pool of high-net-worth individuals (HNWIs) and millennials interested in self-directed investing, platforms like Sarwa, StashAway, and Baraka are democratizing investment in stocks, ETFs, and cryptocurrencies. These platforms are backed by AI algorithms and regulatory compliance with the Securities and Commodities Authority (SCA). 4. Blockchain and Crypto The UAE is a regional pioneer in blockchain and digital assets regulation. ADGM and VARA (Dubai’s Virtual Assets Regulatory Authority) have issued comprehensive frameworks for crypto exchanges, wallet providers, and token issuers. Global firms like Binance, Crypto.com, and Kraken have chosen Dubai as their regional base due to regulatory clarity and pro-innovation policies. 5. Insurtech and Regtech Although still emerging, the insurtech segment is gaining traction. Platforms offering usage-based insurance, digital underwriting, and automated claims processing are beginning to reshape traditional insurance models. Simultaneously, regtech firms are helping banks and fintechs comply with KYC, AML, and risk management requirements using AI and data analytics. Regulatory Landscape Agile, Adaptive, and Future-Oriented The regulatory environment in the UAE deserves special mention. The UAE Central Bank, Securities and Commodities Authority (SCA), DIFC, and ADGM have all introduced sandbox programs and fintech-specific licensing regimes. Key regulatory milestones include: Central Bank’s Stored Value Facilities (SVF) Regulation (2020): Lays down the groundwork for e-wallets and prepaid card solutions. ADGM’s Digital Lab: Enables fintechs to test new solutions in a controlled environment. Dubai’s VARA Framework (2022): Sets comprehensive guidelines for virtual asset service providers (VASPs), including licensing, cybersecurity, and governance. The UAE’s consultative approach regularly engaging fintech firms for feedback, demonstrates a regulatory maturity rare in the region. Challenges in a Rapidly Growing Sector Despite impressive strides, the UAE fintech industry faces challenges that must be addressed to sustain its momentum: Talent Gap: The demand for fintech-specialized talent, particularly in blockchain, data science, and cybersecurity, outpaces supply. Although the UAE has relaxed visa policies for tech professionals, more investment in local upskilling is essential. Data Sovereignty and Cybersecurity: As digital financial services expand, so do the risks of cyber-attacks and data breaches. Ensuring robust cybersecurity and data privacy frameworks will be key to maintaining consumer trust. Bank-Fintech Collaboration: While collaboration between legacy

Smart Cities, AI & the UAE’s Tech Evolution By Desk Reporter As of 2025, the transformation of Dubai into a smart city is no longer a distant ambition; it’s unfolding in real time. Across the emirate, intelligent systems are gradually becoming part of daily life. In modern homes, automated lighting and climate control are increasingly common. Voice assistants help residents manage their routines, while app-based transport services harness real-time data to reduce congestion and wait times. These features, once considered futuristic, are now quietly reshaping the way people live, work, and move. Looking ahead to 2030, the pace is expected to accelerate. Mornings may begin in fully responsive apartments where room temperatures, lighting, and energy usage adjust automatically to personal habits and preferences. Autonomous shuttles and self-driving taxis, already in trial phases, are set to become a standard part of the urban commute, powered by AI systems that manage traffic flows and optimize routes in real-time. Public infrastructure, from streetlights to waste bins, will increasingly be connected through sensors and data platforms, creating a more efficient, responsive urban environment. Electric vehicles are also gaining traction, supported by a rapidly expanding smart grid that regulates charging to minimize energy demand during peak hours. Environmental sensors already feed data to government platforms, guiding city planners in real-time to address pollution, heat islands, and emergency response more effectively. This evolution is not confined to Dubai alone. Across the UAE, from the glittering skyline of Dubai to Abu Dhabi’s dynamic innovation districts, smart city principles are taking root. The goal isn’t just efficiency; it’s quality of life. As one UAE innovation leader described it, the mission is for Dubai to become “the smartest and happiest city in the world… where services are managed through smart and integrated systems… making the lives of citizens, residents and visitors easier and enhancing their happiness.”  Guided by this vision, both emirates are investing heavily in AI, sustainability, and digital infrastructure, turning the UAE into a living laboratory for urban innovation. With national strategies like the UAE AI Strategy 2031 and the Dubai Smart City Agenda, governments and private sectors alike are working to embed intelligence into every layer of society. The result? A future where cities are not only more connected, but also more human, designed to serve, adapt, and inspire. Smart Dubai and a Happy City Dubai’s smart city journey began with bold goals: a paperless government, widespread data platforms, and an official “Happiness Agenda.” By 2021, the government had transformed thousands of public services into seamless digital offerings and launched the Dubai Blockchain Strategy and Dubai AI Roadmap to cement innovation into policy. These efforts are framed by the founding vision of Sheikh Mohammed bin Rashid Al Maktoum, to make Dubai “the happiest city on Earth” through technology. For example, the city’s AI Happiness Meter uses real-time feedback to ensure government services make people smile, while smart apps let residents complete all tasks, from paying bills to planning weddings, with a few taps. Dubai’s 2021 Smart Strategy outlined the path: a “seamless, efficient, safe, and personalized” city. Residents would live in a smart, livable and resilient city, supported by a globally competitive economy and an interconnected society with accessible services. Infrastructure targets even aimed for “0 visits” to the government by providing 100% of services online. Sustainability was likewise baked in: a “clean environment enabled by cutting-edge ICT” was an explicit goal, echoing Dubai’s 2050 clean energy vision. These plans are more than rhetoric. Already, Dubai has set up massive projects like the Mohammed bin Rashid Al Maktoum Solar Park and a citywide smart grid, slashing emissions even as the population grows. A new Dubai Digital Authority now coordinates data and cloud infrastructure across agencies, aiming to double the emirate’s digital economy to over AED 200 billion in a few years, “making Dubai the smartest and happiest city in the world,” as the head of Dubai’s utilities put it. The emirate’s AI strategy for 2031 explicitly targets integration across healthcare, transport, education, and government, preparing the city for the next phase of growth. Dubai is already experimenting with futuristic urban mobility. In July 2025, Dubai’s RTA signed an MoU with Pony.ai , a Chinese-American self-driving firm , to begin public trials of autonomous taxis. By 2030, the plan is for one-quarter of all city trips to be handled by driverless vehicles. RTA CEO Mattar Al Tayer said these partnerships “support our ambition to lead globally in smart, efficient, and sustainable transport,” improving first-and last-mile connectivity and safety. On the roads, AI manages traffic flow; at stations, cameras and analytics smooth crowd movements; on the curb, electric pod cars quietly buzz. These innovations build on the dozen AI projects Dubai revealed at its “Smart Commute” expo, from AI maintenance of cycling lanes to bus-network optimization. Behind the scenes, Dubai’s data brains crunch city metrics. In 2025, the federal government rolled out a Proactive Government Performance System, an AI tool that processes millions of data points to predict how well each department meets its goals. Sheikh Mohammed hailed it as enhancing the government’s ability to “anticipate future challenges and opportunities”. Likewise, Dubai is building a national AI lab and advisory board to ensure data is used responsibly; its Ethical AI Toolkit guides vendors and officials on fair algorithms. In short, Dubai’s authorities see AI not as a gadget but as the operating system of the city, directing traffic, smoothing government services, and even nudging residents toward greener, happier lifestyles. Abu Dhabi’s Innovation Engine Dubai’s digital dazzle often makes headlines, but in Abu Dhabi, a quiet revolution is underway. The capital’s leaders have invested heavily in AI and startups, aiming to pivot from oil to high-tech. Abu Dhabi’s Government Digital Strategy 2025-2027 explicitly commits the emirate to becoming “the world’s first fully AI-native government across all digital services by 2027”. An AED13 billion budget will build cloud infrastructure, automate all government processes, and train citizens in AI. As H.E. Ahmed Al Kuttab, chairman of Abu Dhabi’s digital agency, explained: “By

Pioneering the Future An Exclusive Interview with Eng. Eman Ahmed the First Emirati Woman to Launch a Metaverse Company By Sidra Asif In a time when digital frontiers are rapidly expanding, Eng. Eman Ahmed stands out as a trailblazer in the Arab world. As the first Emirati woman to establish a company rooted in the metaverse, she is not just shaping virtual landscapes—she is redefining what leadership in technology means for the region. Founder and CEO of Avitech, Eman has turned curiosity into innovation, and innovation into a national contribution. In this exclusive interview, she shares her journey, challenges, vision, and how Arab women are at the forefront of the next technological revolution. Eman Ahmed’s journey began with a simple yet profound question: “What would the future look like if we were the ones designing it?” As an engineer and lifelong tech enthusiast, her curiosity was fueled by growing up in an Emirati environment that supports digital ambition. In 2015, she launched a small research project focused on interactive environments. What started as academic exploration soon evolved into a visionary idea—the founding of Avitech, the first Emirati company rooted in the metaverse. With it came a bold purpose: to be builders, not followers. For Eman, the convergence of artificial intelligence and the metaverse represents more than a technological advancement. It is a transformative shift in how we perceive and interact with value. She sees this fusion as redefining user experience, as AI injects intelligence and responsiveness into boundless virtual spaces. In the UAE, this powerful combination is helping build a digital economy that transcends sectors, including education, healthcare, retail, and government services. Launching a company in such a nascent industry was no easy task. One of the most significant challenges Eman faced was building trust. Many people struggled to understand what the metaverse really was, so she and her team had to demonstrate its tangible value rather than just pitching futuristic concepts. There was also a shortage of specialized local talent, which led her to establish an internal academy to train the team in emerging technologies. At the same time, they navigated an evolving regulatory landscape, finding creative ways to innovate while remaining compliant. Avitech today is at the forefront of real-world digital transformation in the UAE. The company is behind a range of projects, from interactive platforms for ministries to intelligent virtual stores and industrial training simulators. Each solution is AI-driven, scalable, and designed to align with national ambitions. Eman emphasizes that their mission is not to ride the wave of digital change, but to help lay its foundation and lead the way forward. She believes strongly in the power and perspective that Arab women bring to technology and innovation. According to her, Arab women contribute unique problem-solving abilities and a deep sense of responsibility. They no longer belong behind the scenes but deserve to be at the helm of change. At Avitech, more than 60% of the team are women, and this is not a symbolic move—it’s a commitment to real leadership. For Eman, women shouldn’t just be included in transformation efforts, they should be the ones designing and leading them. Eman points to a standout project as a prime example of how Avitech uses AI within the metaverse to create real-world impact. In collaboration with a major energy company, they developed a virtual environment simulating an offshore platform. Technicians could train in this space with AI-powered interaction, resulting in a 40% reduction in training costs and a significant improvement in safety. In retail, Avitech has also built AI-enabled virtual stores that recognize customer preferences—even interpreting tone of voice—to deliver a more personalized experience. Her advice to aspiring entrepreneurs in the region is grounded in purpose and clarity. She urges them to start with a problem, not with technology. Rather than chasing hype, she recommends pursuing meaningful, high-impact ideas. Education, cross-cultural collaboration, and ethical intent should be at the core of every venture. Web3 and the metaverse, in her view, are not just innovations—they are new philosophies that change how we think, connect, and create value. Looking ahead, Eman’s personal vision for Avitech is to become a global leader in developing AI-powered metaverse environments that carry a distinct Arab identity. One of the company’s current flagship projects involves building a prototype for a “digital capital” focused on education and smart governance. She sees the Middle East as a future global epicenter for metaverse development, empowered by visionary leadership and a new generation of youth who believe that nothing is impossible. As Eng. Eman Ahmed continues to drive transformation from the heart of the UAE, her mission is clear and unwavering. “We aim to be a global launchpad from the UAE to the world. We are the changemakers in a world that knows no impossible.” With leaders like Eman paving the way, the future is not just virtual—it’s bold, inclusive, and unmistakably Emirati.

Can the UAE Lead the Future of Localized Language Models? By Hafsa Qadeer In a world shaped by artificial intelligence, language is no longer just communication, it is computation. And in the swirling momentum of machine learning models trained in English, Chinese, or Spanish, a singular question echoes from the dunes of Arabia: What about Arabic? The UAE, ever the orchestrator of ambition, is responding with clarity. In the corridors of its AI labs and under the domes of its digital ministries, a new mission is being coded into reality, to lead the future of Arabic Large Language Models (LLMs), and, through them, to redefine the digital future of the Arab-speaking world. The Rise of Falcon At the heart of this ambition stands Falcon LLM, developed by the Technology Innovation Institute (TII) in Abu Dhabi. It is not just another generative model, it is the first open-source Arabic-first LLM designed to rival the likes of GPT and LLaMA. Unlike its Western counterparts, Falcon is trained on multilingual datasets with a special emphasis on Arabic dialects, classical fusha, and cultural nuance. It doesn’t just understand Arabic, it thinks in it. This is more than technical progress. It is linguistic sovereignty. A Language Reborn in Code Arabic is one of the most spoken languages in the world, yet for years, it has been underrepresented in the AI revolution. The challenges were steep: complex morphology, diverse dialects, and script variations. But these hurdles are now becoming frontiers. UAE researchers, backed by state support and private innovation, are fine-tuning models that can write legal contracts in Emirati Arabic, generate poetry in Nabati verse, or answer questions in Gulf dialects with cultural fluency. This is not just about data. It’s about dignity. AI as a Cultural Custodian In many ways, the UAE’s investment in localized AI is also an investment in identity. It’s a means to preserve oral traditions, revive endangered dialects, and protect historical narratives from being lost in translation. AI is no longer just a tool for productivity. It is becoming a cultural custodian. Museums are digitizing archives using LLMs that understand pre-Islamic inscriptions. Universities are using Arabic-trained models to annotate classical manuscripts. Even chatbots at government portals now greet users not with a stilted phrase, but a warm “Marhaban, kaif al-hal?” The Power of a Multilingual Model But the UAE isn’t stopping at Arabic. Its vision is broader: to lead in multilingualism with cultural depth. Falcon 180B, the flagship open-weight model, offers performance that competes globally, yet with accessibility tailored to regional needs. With partners across MENA, Africa, and Southeast Asia, the UAE is positioning its AI not just as a product, but as infrastructure, the digital scaffolding upon which future economies and educational systems may be built. Startups and Sovereignty And the private sector is responding. AI startups in Dubai are launching voice assistants that speak Khaleeji Arabic. Healthtechs in Sharjah are training diagnostic models on patient notes written in colloquial Sudanese Arabic. Fintechs in Abu Dhabi are developing fraud detection systems that comprehend Islamic finance terminology. This localized intelligence is more than market innovation. It is digital sovereignty, ensuring that the UAE and its neighbors are not passive consumers of foreign models, but active architects of their AI future. The Future Speaks Arabic The promise of AI has always been its ability to learn. And now, it is finally learning to speak us. In the UAE, language is not just data to be parsed, it is a legacy to be uplifted. And if the nation succeeds in weaving its linguistic soul into the code of tomorrow, it won’t just lead the Arab world in AI. It will give the world something it has never truly had, an intelligence that dreams in Arabic.

Dubai Unveils Crypto and Blockchain Incubator Tower at JLT By Desk Reporter In January 2025, the Dubai Multi Commodities Centre (DMCC) announced the development of a 17‑storey Crypto Tower in Jumeirah Lakes Towers, designed as a dedicated hub for blockchain, DeFi, AI and Web3 startups. The 150,000 sq ft building will host nine floors of offices plus specialized floors for blockchain incubators, venture firms and innovation labs. The tower is more than office space, it embeds smart contracts, tokenized equity, on‑chain voting and leasing into its operational infrastructure. This aligns with Dubai’s ambition to cement itself as a global center for blockchain innovation, offering regulated, transparent frameworks for digital enterprises. The initiative complements Dubai’s broader technology acceleration strategy, including projects like real estate tokenisation (through Dubai’s Real Estate Department), AI infrastructure rolls, and investments in sustainable fintech. Many startups based in the tower are expected to focus on environmental finance, real estate fractional ownership, and tokenized commodities. As a flagship for digital entrepreneurship, the Crypto Tower symbolises a shift from hospitality and tourism to becoming a hub for future-proof technologies and investment. The project strengthens Dubai’s positioning as a regional base for blockchain-based economic transformation.

How AI Is Quietly Reshaping Emirati Life By Hafsa Qadeer The future does not arrive in a flash. In the UAE, it settles like sunrise, gradual, golden, and full of intention. And nowhere is this more evident than in how artificial intelligence is becoming not just a tool, but a quiet partner in daily life. From Vision to Infrastructure The UAE’s AI journey didn’t begin with apps or algorithms, but with vision. When the country appointed the world’s first Minister of AI in 2017, it didn’t signal a fascination with novelty; it marked a long-term commitment. Fast forward, and that commitment pulses through every sector: healthcare bots in Abu Dhabi hospitals, predictive analytics in traffic systems, AI-led courtroom support, and even robot baristas greeting office workers in Dubai. Smarter Cities, Softer Touch In the desert, smart cities bloom not with noise but nuance. AI in the Emirates is less about spectacle and more about harmony. In Masdar City, smart grids learn usage patterns to optimize energy. In Sharjah, waste management is now a data-driven ecosystem. The tech is invisible, but its impact is everywhere. A Cultural Intelligence Unlike many global AI projects that lean coldly into efficiency, the UAE’s approach is deeply human-centric. Language AI models now recognize Khaleeji dialects. Heritage is being preserved using AI restoration tools. Even chatbots at government entities like MOHRE can switch between formality and cultural warmth. Because in the Emirates, intelligence must also understand emotion. Youth Coding the Future AI isn’t just implemented, it’s being built locally. From 12-year-old coders in Ajman to MIT-trained Emirati engineers returning home, the talent pipeline is vibrant. Initiatives like One Million Arab Coders have ensured that the future is not outsourced, but homegrown. Not Just Smarter, Kinder As AI ethics becomes a global concern, the UAE has positioned itself uniquely: blending Islamic principles with data policy. The question isn’t just what AI can do, but what it should do. A quiet, powerful idea: that intelligence, to be valuable, must also be virtuous. In the UAE, the machines may be learning, but the society is leading.