UAE fintech market to double in five years
26 June 2025 00:52
AMEINAH ALZEYOUDI (ABU DHABI)The UAE fintech market value is projected to nearly double from $3.16 billion in 2024 to $5.71 billion by 2029, according to a report released by Emirates NBD in collaboration with PwC.Titled 'From Code to Capital: The UAE's FinTech Revolution', the report offers a data-driven overview of the country's fast-maturing fintech ecosystem and was recently unveiled at the Dubai FinTech Summit 2025.The report underscores the UAE's growing role as a regional fintech leader, backed by investor confidence, regulatory innovation, and widespread digital adoption. In 2024 alone, UAE-based fintech startups raised $265 million in venture capital, accounting for about one-third of all startup funding in the country. Fintech now commands the largest share of the startup funding landscape, representing roughly 32% of all venture capital deployed in the UAE during the first half of 2024.Neeraj Makin, Group Head of Strategy, Analytics and Venture Capital at Emirates NBD, said the sector's strong fundraising reflects sustained investor interest. 'The UAE's $265 million of fintech funding in 2024 signals strong investor confidence. Bolstered by a robust venture capital network, diverse talent, and clear exit paths, the UAE is primed to attract even greater investment and cultivate future fintech leaders,' he noted.Consumer adoption continues to be a core growth driver. The report reveals that 89% of UAE consumers now use digital-first bank accounts, while smartphone penetration exceeds 90%. This digital readiness, coupled with a youthful population and increasing comfort with digital payments - 88% of users transact regularly online - has created fertile ground for fintech adoption.The number of fintech companies in the UAE has surged as well. From just 144 firms in 2021, the figure has jumped to 329 in 2025, according to Fintech News Middle East. Dubai remains the primary hub, home to roughly 62% of these companies, while Abu Dhabi continues to expand its fintech cluster within the Abu Dhabi Global Market (ADGM). About a quarter of the firms operate from outside the UAE.Regionally, the UAE maintained its dominance in the MENA fintech space, capturing about 39% of all fintech investment in the first half of 2024. This resilience is particularly notable given the 45% year-on-year decline in fintech funding across MENA during the same period. While markets like Saudi Arabia showed explosive growth - its fintech funding surged 391% in H1 2024 - the UAE's mature ecosystem and consistent deal flow underpinned its lead position.Stephen Anderson, Strategy Leader at PwC Middle East, highlighted the region's transformation, 'This report illuminates the dynamic fintech landscape within Dubai. We see a region transformed by innovation, driven by technology and visionary strategies.'Artificial Intelligence (AI) is emerging as a powerful force reshaping the financial services sector, the report finds. From personalisation and compliance to risk modelling, AI is being embedded across service layers. Emirates NBD has already undergone a shift from pre-AI to post-AI operations, resulting in marked gains in operational efficiency and scalability.
Corporate venture capital is also playing a growing role. Banks such as Emirates NBD are actively investing in fintech startups through dedicated funds and incubators, offering not just capital but also market access.
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