UAE - The Rising Hub For Fintech Sector

by Zaara 08, Jul 2021

UAE - The Rising Hub For Fintech Sector

Dubai is a vital investment center where entrepreneurs can evaluate and test the market in various fields, especially where innovation and technology are active.

"Fintech" is the technology and innovation that seeks to compete with the traditional forms of financial services delivery. It's an evolving industry that makes use of technology to boost finance activities. Examples of technologies that seek to make financial services more available to the general public are mobile phones used for mobile banking, investment services, and cryptocurrency. The adoption of technology and innovation is also one of the prominent drivers that improved the UAE's ground to become one of the most favorable investment grounds.

The UAE has improved itself from all possible ways with time by focusing on the non-oil economy and leveraging the full possibilities. When it comes to financial investment, the United Arab Emirates serves as a significant investment ground. The region has also set itself up as one of the dominant global tech-grounds. Technology has become a challenging part of today's life and plays an essential role in many business sectors.

Global investors recognize FinTech 's new diversion to be a golden investment opportunity, which would yield more return on the investment made.

The FinTech Sector in the UAE

The United Arab Emirates has taken a significant step towards giving the finance and development industries a cutting-edge approach. The Government has made the effort of building specific zones for each of the sectors to promote the different business sectors. The UAE has the Dubai International Financial Center (DIFC)-one of the region's most popular free zones when it comes to the finance industry. In the latter part of this article, you will be getting to hear about it.

Abu Dhabi, the UAE capital, is one of the foreign investors' attention-grabbing areas. The Abu Dhabi Global Market (ADGM), headquartered in the UAE, is an award-winning international financial center. The center is one of Abu Dhabi 's vital pillars of Economic Development, intended to improve the region 's financial scenario. The government has taken different initiatives to promote the FinTech industry and spread a word through business organizations.

FinTech 's growth within the MENA area can be best understood by looking at the example below. To know more information about FinTech application in DIFC, click here.

FinTech Industry Key Drivers in the MENA region

The main drivers of the FinTech field are:

  • consumer profiles
  • Web & the acceptance of payments
  • Attitudes amongst consumers
  • Sandbox Regulations
  • Fintech Funds & Accelerators
  • Availability of private capital

Initiatives Taken by the Government

As the MENA region organized the leading FinTech and Financial event, which welcomed over 5000 + delegates from over 70 countries, the period of Oct 2019 has been a game-changer for the FinTech sector. More than 130 + speakers have been invited to champion the event and industry.

The outcomes of the event are stated below:

  • Recognize the world's most innovative FinTech talent.
  • Showcased companies are developing the future of the FinTech field.
  • Financial problems for companies are considered.
  • Over 2000 + Startups, Scale-ups, and SMEs acted as a forum for business collaboration.
  • Inaugurated FinTech Abu Dhabi Awards
  • A benchmark was set for excelling FinTech sector.

FinTech in DIFC

Financial services digitization has gone ahead with unparalleled speed. The DIFC has come up with FinTech Hive to recognize the growth prospects, which accelerates the processes of financial institutions and insurance companies, paving the way for investors to come forward and invest in the respective domain. The DIFC provides business investors with various facilities to grow and start-up their business.

Conditions to Set up a FinTech Company in Dubai

Fintech companies can be established in the Dubai International Financial Center (DIFC), one of the most vital and freely developed zones in the city. The process begins with the "Innovation Testing License" (ITL), issued by the Financial Services Authority of Dubai. There is no need for initial share capital, making a businessman more inclined to set up a Dubai fintech company. One valuable thing to consider is that a Dubai-based Fintech company needs to use creativity when designing its financial institution products and services. It is also prepared to evaluate and execute the services with the customers.

The financial market in Dubai is far ahead in terms of the technical requirements needed currently because the fintech companies have met a vast development in recent years and are in a continuous quest to provide top quality services.

The Dubai government supports financial development in every way and has always offered support to all entrepreneurs who want to set up in this area. A lot of initiatives have been put in place to help fintech companies grow rapidly and reliably. The FinTech Group, the UAE Innovation Strategy, the Dubai Blockchain strategic thinking, and the Dubai Future startups are among the main programs that help Dubai's fintech companies progress in the financial sector.

How to Start a Company in DIFC?

The following process must be undertaken to set up a business in the DIFC Free Zone:

  • Fill out the application form
  • Proceeds towards first approval
  • Keep your records handy
  • Make sure you keep the minimum share capital ready
  • Proceed ahead with opening your bank account

Documents Required to Set up a Company in DIFC

The required documents to submit when opening a DIFC company includes:

  • Procedures and measures to tackle money
  • Financial position in history.
  • Functions of the company's internal control and compliance framework
  • A well-planned marketing strategy.
  • Operating System details and controls.
  • Shareholders information (identity and proof of address)
  • Certificate of ownership which confirms the fitness of the institution to conduct business
  • The organizational structure of the proposed organization.
  • Shareholders' accounts audited for the past three years.

To know more about the Dubai International Financial Centre, click here. Now, let’s take the initiative ahead and have a look at the advantages that investors can avail by integrating a business in the UAE.

Advantages of Starting a Company in the UAE

International investors choose to select UAE as the ultimate investment-destination for the following advantages:

Tax-Free

Corporate and income tax payments are one of the company investor’s and owners' main concerns. Well, UAE 's land provides business owners with flexibility in moving forward and enjoying the tax-free benefits. There is full personal tax exemption; however, as of 1 January, the UAE government introduced the VAT proceedings, set at a rate of 5%.

Complete Resettlement

The next benefit the business investors enjoy is that they don't have to pay any fees while liquidating their business. It is possible to repatriate the total capital invested and profits earned, and this has an additional benefit for investors in the business owners.

Diverse Location Option

Investors have several choices to select the best position for their business enterprise when it comes to a business venue. Options such as Mainland, Free Zone, and Offshore are available; however, one must have proper knowledge before selecting the company’s best location.

A Quick Method of Integration

The enterprise incorporation process has turned out to be an easy one for years. The Government has simplified the process of integrating the business to make it much easier for foreign investors to grow and invest. The ease of company incorporation has drawn foreign investors ' interest, thus encouraging them to step forward and invest.

Simple to use Business License

It serves as a warrant to obtain a business license to carry out the company activities on the land of each. Now, the region offers multiple licenses to various business investors dealing in different business sectors. To know more information about the UAE business licenses, click here.

Upcoming Expo 2020

One of the most anticipated events, Expo 2020, is on the verge of opening. The case, which will take place over six months, is eagerly anticipated as a forum for business collaboration.

These are the benefits an investor will significantly benefit from, paving out multiple opportunities to earn more returns on the investments made. However, to conclude the incorporation process at ease, business owners tend to go ahead with business experts who have enough knowledge of the company’s incorporation of legal proceedings.

How Can Commitbiz Help?

Commitbiz Management Consultants provide you with strategic business insights, manage all legal paperwork, and offer full management consulting solutions to ensure the company’s trouble-free incorporation.

Our skilled professionals are well versed in the processes of integration and maintain a vision to boost your FinTech business in the UAE.

Commitbiz was established in 2007 to provide world-class management consulting services to corporate, government, non-governmental, and academic companies. Over the years, we have developed existing capabilities in various segments of functions and specialties.

In several innovative and path-breaking initiatives provided by different businessmen around the world, we emerged as the partner chosen for this. With over 50 team leaders and 2,000 + clients, we are now one of the largest consulting firms in the UAE.

How Can We Benefit You?

We advise you in the following processes as one of the best company consultants in the UAE:

  • Strategize to speed up your market growth
  • Rationalize your growth
  • Comply with the statutory regulations
  • Grab tailor-made company strategies
  • It helps you establish the pillars of business with post-incorporation solutions such as accounting, taxation, etc.

If you intend to move ahead and set up your company in the UAE, please contact us we will be happy to help.