From the past few years, Dubai is quickly becoming a global hub for technology and innovation, making it the perfect place to launch your fintech company. The city has everything it needs from strong buildings, smart leaders, to a great spot between the East and the West.
Fintech companies are businesses that use technology to improve and automate financial services. They are often seen as disruptors of the traditional financial industry, as they use technology to provide financial services that are more convenient, efficient, and affordable.
Therefore, if you are interested to start a fintech company in Dubai, you’ve come to the right place.
Therefore, here we will guide you through countless opportunities for fintech startups in Dubai. We will also help you learn how to establish a Fintech company in Dubai.
Understanding the Fintech Business in Dubai
The Dubai fintech business landscape is a vibrant and dynamic ecosystem that is constantly evolving. The emirate is well-positioned to become a leading global hub for fintech innovation.
Furthermore, collaborations between government bodies, financial institutions, technology startups, and research institutions have created an environment ripe for innovation.
The emirate is home to over 80 fintech startups, making it one of the leading fintech hubs in the Middle East and North Africa (MENA) region. The Dubai International Financial Centre (DIFC) is especially a major driver of this growth, as it provides a supportive regulatory environment and a wide range of financial services and infrastructure.
Key Trends in Dubai Fintech Business
The following are some of the key trends in the Dubai fintech landscape:
Digital Payments
The use of digital payments is growing rapidly in Dubai, as consumers and businesses increasingly adopt cashless payment methods. This is being driven by the increasing availability of mobile payment apps and the growing popularity of e-commerce.
RegTech
RegTech is the use of technology to improve regulatory compliance. This is a major area of focus in Dubai, as the government seeks to create a more efficient and effective regulatory environment for fintech businesses.
InsurTech
InsurTech is the use of technology to improve the delivery of insurance services. This is also a growing market in Dubai, as insurers seek to find new ways to reach customers and provide them with more personalized services.
Blockchain
Blockchain is another distributed ledger technology that has the potential to revolutionize the financial industry. Certainly, Dubai is one of the leading cities in the world in terms of blockchain adoption, and there are several fintech startups in the Emirates that are using blockchain to develop new financial products and services.
Here are some of the key players in the Dubai fintech landscape:
- DIFC Fintech Hive
- Emerging Payments
- Fintech Dubai
- NOW Money
Without a doubt, Dubai fintech landscape is expected to continue to grow in the coming years. The emirate has several advantages that make it an attractive place for fintech businesses.
Benefits of Starting a Fintech Company in Dubai
There are many benefits to setup a fintech company in Dubai. Here are some of the most important ones:
1. Supportive Regulatory Environment
The Dubai Financial Services Authority (DFSA) is a forward-thinking regulator that is supportive of innovation in the fintech space. The DFSA has several initiatives in place to help fintech startups, including the Innovation Testing License (ITL), which allows startups to test their products and services in a controlled environment.
2. 100% Ownership
Foreign investors are allowed to own 100% of a fintech company in Dubai, which of course gives you full control over your business.
3. Global Business Hub
The city’s status as a global business hub opens doors to potential partners, investors, and clients from around the world.
4. Large and Growing Market
The UAE is a rapidly growing economy with a young and tech-savvy population. This provides a large and growing market for fintech products and services.
5. Skilled Workforce
Dubai also has a skilled workforce with a strong background in finance and technology. This makes Dubai comparatively easy to find the talent you need to build and grow your fintech business.
6. Favorable Tax Regime
The UAE has a favorable tax regime for businesses, including fintech startups. This can help you save money and grow your business more quickly.
7. Cultural Diversity
The city’s diverse population creates opportunities for testing and adapting fintech solutions for various market segments.
If you are looking to start a fintech company in Dubai, it is indeed a great place to do it. The emirate has several advantages that can help you succeed.
At Shuraa Business Setup, our company incorporation consultant will assist you through the Fintech company registration process in Dubai.
Business Structuring and Planning
When planning to start a fintech company in Dubai, choosing the right business structure is a crucial decision. Dubai offers several options, each with its own advantages and considerations.
Here’s a breakdown of the main business structures to help you make an informed choice:
1. Free zone company
A free zone company is a company that is registered in a free zone, which is a special economic zone that offers several benefits to businesses, such as 100% foreign ownership, tax exemptions, and simplified registration procedures.
Free zones are a good option for fintech companies that are targeting the international market or that need to operate outside of the UAE’s mainland.
Set Up Dubai FinTech Companies in DIFC: The Dubai International Financial Centre (DIFC) is a financial-free zone located in Dubai, United Arab Emirates that cater to unique packages for fintech companies. It is a self-regulated jurisdiction that offers several benefits to financial institutions, including a tax-free environment, a common law legal system, and access to a global market. Additionally, there are also other free zones such as the International Free Zone Authority (IFZA) that offer similar license services.
2. Mainland company
A mainland company is a company that is registered in the UAE’s mainland. Mainland companies are subject to UAE law and regulations, but they also have access to the UAE’s domestic market. However, companies established in UAE Mainland often carry more credibility and trust among local customers.
Nevertheless, mainland companies are a good option for fintech companies that are targeting the UAE’s domestic market or that need to have a physical presence in the UAE.
When choosing the best structure, consider factors such as the nature of your fintech services, target market and long-term business objectives. It’s recommended to consult legal and business experts in Dubai who can guide you through the legal, financial, and operational aspects of each structure.
This is where Shuraa comes in! Our business consultant in Dubai will help you navigate through the business so you can easily incorporate your fintech company in UAE.
Steps Involved in Starting a Fintech Company in Dubai
Setting up a fintech company in Dubai involves several steps, from business planning to obtaining licenses and registrations. Therefore, it is always better to get assistance from a Business setup consultant like Shuraa to ensure
Here’s a step-by-step procedure to guide you through the entire process to obtain a fintech company license in Dubai hassle-free.
Step 1: Choose a business structure
As discussed earlier, there are three main business structures available to fintech companies in Dubai: free zone company or mainland company. Choose the one that best suits your needs and requirements.
Step 2: Register your fintech company
Once you have chosen a business structure, you need to register your company with the relevant authorities. The process for registering a company in Dubai will vary depending on the business structure you choose.
Step 3: Obtain the necessary licenses and permits
Depending on the type of business you are starting, you may also need to obtain certain licenses and permits from the relevant authorities.
Step 4: Open a Bank Account
Open a business bank account with a local bank in Dubai. Provide the required documents, including licenses and legal papers.
Step 5: Register for Visas
If you’re planning to establish a team then you must apply for employment and investor visas for yourself and your team members.
Step 6: Set up your office
You will need to set up an office for your company in Dubai. This can be either a physical office or a virtual office.
Step 7: Compliance and Regulation
You must ensure ongoing compliance with the regulations of your chosen jurisdiction and sector.
Step 8: Market your business
Once you have set up your company, you need to start marketing your business. This can be done through a variety of channels, such as online marketing, print advertising, and public relations.
Remember that the process may vary depending on the chosen jurisdiction and the specific fintech activities you plan to offer. However, consulting with legal and business experts who are familiar with the Dubai Fintech business can provide invaluable guidance throughout the setup process.
Cost of Setting Up Fintech Company in Dubai
The starting price of obtaining a fintech company license in Dubai is around AED 16,000 (US$ 4,400). However, the cost of license depends on the type of license you apply for and the free zone or regulatory authority you choose. In short, the exact cost will depend on the specific requirements of your business.
Grow Your Business with Shuraa
Starting a fintech company in Dubai can be a daunting task, but it is also an exciting opportunity. The UAE is a rapidly growing market with a young and tech-savvy population, making it an ideal place to launch a fintech business.
If you’re an aspiring fintech entrepreneur, we strongly encourage you to not be discouraged. The rewards can be great, but it is important to do your research and get professional help.
Consulting a business setup advisor can be essential for the process, as they can help you navigate the legal and regulatory landscape and ensure that you comply with all the requirements.
Shuraa Business Setup is a leading business setup consultant in Dubai, UAE with over 22 years of experience. We have assisted over 50,000 entrepreneurs in establishing their businesses in the UAE. Our team of experts can provide you with comprehensive support for every step of your journey, from company registration and licensing to office space solutions and PRO services.
For a free consultation regarding Dubai business establishment with one of our well-informed experts, reach out to Shuraa by phone at +971 4 4081900, via WhatsApp at +971 50 7775554, or by sending an email to [email protected].
We would be happy to help you make your dream a reality!
