How Financial Centers are Driving the Fintech Sector in the Middle East

The DIFC is bringing groundbreaking changes in the insurance sector on account of which Dubai holds an advanced fintech licence system for breakthrough changes in the market.

FREMONT, CA: Financial centres and organisations all around the world are making efforts to strengthen their nations’ financial markets, business environments, and innovation ecosystems to enhance economic growth. In recent times, they have emerged as fintech powerhouses through building their strong digital ecosystems, deep international relations, and transparency regarding their business environment.

Financial centres today are critical for enabling the digital revolution while prompting a regulatory change to allow digital finance. This comes with equipping fintech labs for helping fintech startups with low-cost operations, along with supporting digital initiatives enhancements such as identity schemes and understanding the customers’ systems. A close acquaintance with stakeholders and financial centres liaises with industry and regulators and ensures that regulations promote innovation while robust systems are present simultaneously to tackle financial fraud and corruption.

Financial centres are vital factors in attracting and developing talents. This has manifested in the development of executive education programmes developed in conjunction with renowned international business schools, professional development providers, and other training academies, as well as the recent emergence of a new coding and artificial intelligence (AI) licence designed to foster tech firms and builders from all across the world.

Major financial hubs in the Middle East, Africa, and South Asia (MEASA) house a vibrant business ecosystem of nearly 25,000+ professionals who work across 3600 active companies. Such innovation ecosystems account for more than numerous growth-stage tech firms, established innovation companies, digital labs, venture capital (VC) firms, regulators and educational entities. Numerous initiatives introduced by public agencies, regulators, and policymakers over the past two years have led to the rise of several hubs.

For example, the ​​Dubai International Financial Centre (DIFC) accelerator programme was launched in 2017 to connect promising startups with key stakeholders and build strategic ties. It has become the region's largest fintech program, with nearly 160 startups accelerated to data, and a startup application count of up to 2,500. Further, DIFC also gives access to funding. Thus, licensed authorities enable young fintech startups to quickly establish a presence, conduct business in a regulated and compliant manner, and test new products.