Why regulation is essential for FinTech success


The global FinTech market is expected to reach USD949 bn by 2030, registering a CAGR of 17.2 per cent between 2022 and 2030, as per a report by Grand View Research Inc.[1] The FinTech sector in the Middle East and North Africa (MENA) region is mirroring the global growth trajectory, having received funding worth USD925 mn through 131 deals in 2022 – with the UAE in pole position accounting for 37 per cent of total funding in the MENA region.[2]

Arif Amiri

Published: 28/02/2023

3 min read

This burgeoning growth of the FinTech industry has created opportunities as well as challenges for regulators across economies. In the Middle East, Africa, and South Asia in particular, regulators have taken proactive steps to create an enabling environment for the industry by combining regulatory frameworks and innovation initiatives.

Arif Amiri

With 680+ FinTech companies operating out of DIFC, (which is reported to be 60 per cent of all FinTech companies within the GCC) regulatory authorities have fostered policy changes to help such entities from across the globe set up base in DIFC and grow. Through the DIFC and its independent regulator, the DFSA, the Centre has brought to the fore proactive policy regulations, leading to increased interest from FinTechs in Asia-Pacific and South-East Asian markets. The development of a new integrated DIFC Metaverse Platform is also focused on accelerating the achievements of Dubai’s aspirations in this sector – to secure FinTechs by building trust in the space.

In the last year alone, DIFC based FinTech and innovation companies have raised over USD 615mn of funding, with a vast majority from venture capital companies, corporate investors, and private investors. This is the kind of trust and market confidence that DIFC has built. A lot needs to be done to sustain this. Globally, there have been steps to regulate the cryptocurrency and decentralised finance space to usher in greater security, stability, and efficiency. At DIFC, we are committed to creating an enabling framework to foster the kind of technological and business model innovation required to expand financial access and improve the quality of financial services in the country.

Experimentation is key to regulatory progress, and is committed to two-way consultation to enable innovation to flourish.

Regulation and other emerging trends in the world of finance and FinTech, which will take centre stage at the Dubai FinTech Summit later this year. At the Summit, DIFC aims to bring together global FinTech experts and technology innovators to a curated audience to discuss all things FinTech taking place on 8 and 9 May 2023 at Madinat Jumeirah in Dubai.