Dubai is an international hub specialising in luxury experiences and business development with state-of-the-art technology. Settling down in Dubai allows entrepreneurs and investors to enter a fast-expanding fintech landscape with a flexible regulatory and commercial structure. But most of you might wonder: “How can I start a fintech company in Dubai?”. So, in this guide, we will show you all the opportunities Dubai presents to launch new fintech firms and the process of creating a Fintech company in Dubai.
What Is a Fintech Business in Dubai, UAE?
Fintech firms deliver all banking products formerly handled by traditional banks through technology that optimises or automates fintech activities for consumers and businesses.
Examples within the UAE’s fintech ecosystem include mobile banking solutions alongside peer-to-peer payment platforms, automated portfolio management systems, and trading platforms. These fintech solutions allow the development and trading of cryptocurrencies.
Insights into Dubai’s Fintech Industry
For 2024, the UAE fintech market will hold AED 11.60 billion in total assets management, reaching AED 20.97 billion* by 2029. The UAE fintech innovation industry will follow a 12.56% compound annual growth rate that will take the value to AED 20.97 billion* in 2029.
Dubai’s environment for fintech sector offers exponential growth through various trends that lead to the market’s expansion:
- Digital payments
- Digital investment
- Digital capital raising
- Digital assets
- Neobanking
Since Covid, the overall fintech revenue expanded substantially by 928.30%. The fintech venture in the UAE began in 2020 with a total revenue of AED 175.79 million*, which analysts believe will achieve AED 1.807 billion* by 2024.
Moreover, the United Arab Emirates government offers support to start and grow the fintech sector. During the last few years, various initiatives have supported establishment of new fintech startups to test in Dubai and the UAE.
How to Launch a Fintech Company in Dubai?
Let’s discuss how I can start a fintech company in Dubai.
Setting up a fintech company in Dubai requires following a particular procedure. Single mistakes during the application process can lead to rejection by the authority.
Hiring a business consultant like Xpert Advisory for the process becomes essential because of its complexity. The steps to acquire a fintech company license and start your business in Dubai are outlined below:
Step 1: Choose the Jurisdiction and Structure
Among all the crucial factors for starting a fintech business setup in Dubai, the selection of structure and jurisdiction is the most vital element.
The choice of location depends heavily on your business targets and market needs, your present and anticipated objectives, your operational characteristics, and the requirements of your organisation.
The city of Dubai offers two main choices for business establishment:
- Mainland company
- Free Zone company
Let’s understand both in detail:
Mainland Company
A mainland company formation exists within Dubai’s mainland boundaries and in its registration area. Mainland company registration provides two main benefits: businesses can reach local market assets and gain increased acceptance from Dubai residents.
A mainland company must follow UAE laws and compliance requirements and face a corporate tax obligation of 9%. Companies within the mainland offer the best solution to domestic market expansion and physical infrastructure opportunities for fintech startups in Dubai.
Free Zone Company
Free zones inside the UAE create special economic areas that allow fintech companies two main benefits: exemption from corporate tax and unrestricted foreign ownership rights.
To register your company, you need to visit the Dubai International Finance Centre (DIFC). A dedicated centre called DIFC FinTech Hive exists at its premises. Mentoring programs, funding programs, and networking possibilities exist for new startups operating at FinTech Hive. The structure facilitates investors, entrepreneurs, and financial institutions working while developing fintech sector technologies with backing.
Step 2: Finalise the Company Structure
After deciding on a jurisdiction, you need to select your business structure. Launched by Dubai, the available business structures for new firms include limited liability companies and limited liability partnerships. The appropriate structure exists for every need you may have.
To start a business in Dubai, you can obtain guidance from professional consultants like Xpert Advisory. According to your business goals and requirements, we offer appropriate guidance that matches your needs.
Step 3: Get Your Fintech Business Registered
The registration process requires companies or free zone entities to enrol at the Department of Economic Development (DED) for onshore businesses while their counterparts at various free zone authorities for free zone entities.
The search for either a domestic alliance or sponsor becomes pertinent to proceed. Businesses need to obtain required permits from the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) as a crucial requirement after these initial setup stages.
You can seek guidance from Xpert Advisory legal experts due to their expertise in UAE fintech legislation. They can help navigate this complex environment successfully.
Step 4: Get Fintech Permits and Approvals
Dubai-based fintech companies must follow particular regulations requiring authorisation from authorities, including the Dubai Financial Services Authority (DFSA) and the CBUAE. Fintech businesses which handle payments and digital wallets should ensure their operations meet all requirements set by the UAE Central Bank.
Through the Innovation Testing Licence (ITL) programme, fintech startup firms can operate their products in limited conditions before obtaining full product licenses.
To gain trust and credibility within the UAE market, businesses must build relationships with local institutions and regulatory bodies while developing client connections. Companies in the UAE must usually establish a physical office facility for certain jurisdictions.
Step 5: Comply with Anti-Money Laundering Requirements
Any fintech startup doing business in the UAE must follow all AML and KYC regulations established by the country. Implementing solid customer onboarding methods, advanced transaction surveillance tools, and staff training regarding AML rules becomes necessary for compliance. The AML compliance framework of fintech companies needs to be constructed for their individual risk profiles and specific business approaches.
Step 4: Establishing an Office
The smallest overhead physical office space should be established inside Dubai to conduct all business operation activities. Business owners who recruit remote staff should consider using virtual office registration services. A virtual office setup allows new businesses to cut down their start-up funds substantially.
Step 5: Open a Bank Account
Opening a bank account for financial operations is an important step involved in starting a fintech business in Dubai. You must present all required documents, including company registration material and a fintech license.
Step 6: Apply for Visas
If you intend to move to Dubai, the following step requires visa applications as an investor or employing worker. Submit visa applications for your family and employees once your visa process is complete to bring them to join your Dubai-based business.
Step 7: Launching and Marketing Your Fintech Services
Due to its emphasis on technological solutions, you must keep developing your product with improved functionality for better customer satisfaction outcomes. Your fintech services need both proper technology infrastructure and a skilled workforce, which requires financial resources for improvement.
To retain your customers, you need strategic marketing tailored to fintech offerings and multiple distribution channels that help you achieve efficient market penetration. Using social media, PR, event marketing, online advertising, and a few more options creates an effective strategy.
How Much Does it Cost to Start a Fintech Company in Dubai?
The cost to start a Dubai-based fintech company falls between AED 16,000* and AED 37,000*. However, the fee for a fintech license in Dubai differs according to the selected business activities. To obtain a fintech license in the UAE, you need to pay anywhere from AED 9,000* to AED 29,000*.
Final Words
Knowing the answer to how can i start a fintech company in Dubai involves understanding the legal procedures. Your success in establishing a fintech company in this thriving market depends on having an appropriate strategy and needed regulatory approvals together with expert oversight.
Starting a fintech business in Dubai can be tricky, but Xpert Advisory makes the process easy for new businesses. Our experts manage all steps efficiently, including jurisdiction selection, visa approval and compliance validation. Contact us today for a successful transformation of your fintech vision into reality.
FAQs
What is the Total Size of the UAE Fintech Market?
Analysis of the past five years demonstrates that the UAE Fintech market holds a value of AED 11 billion*. Three main factors drive the UAE Fintech market: digital payment solution adoption, mobile banking growth and advancements in financial technology like blockchain and AI.
How Many Fintech Companies in the UAE Are Operating Now?
The United Arab Emirates had 686 fintech companies.
