In the United Arab Emirates, the fintech sector is currently experiencing rapid growth fuelled by several factors, including the increasing smartphone penetration, a tech-savvy population that demands convenient solutions, as well as lending services, insurance, and investments. In addition, government initiatives such as Fintech clusters, funding programmes, DIFC Fintech Hive, ADGM, and the UAE PASS are also accelerating the promotion of financial inclusion and competitiveness in the landscape.
The fintech market has focused on several digital transformation initiatives, a supportive regulatory environment, and an overall increased adoption of a financial technology suite of services. In the last couple of months, companies in the UAE have also established multiple partnerships and initiatives in order to attract global startups and ensure that the process of emerging financial technologies is tested in a compliant manner. This process focused on attracting several significant investments, both from local and international players, driving competition in the market as well.
According to a study made by Forbes, the fintech market is projected to reach USD 3.56 billion in 2025, and USD 6.43 billion by 2030, growing at a CAGR of 12.56%. During this period, the landscape is set to establish fintech sandboxes and accelerator programmes, aiming to provide startups and entrepreneurs with a platform that can test their solutions, while providing them access to mentorship and exposure to potential investors as well.
The launch of a fintech sandbox focuses on multiple aspects that need to be taken into consideration. This includes a clean framework of objectives, in which companies need to define the scope, criteria, regulatory oversight, and overall duration of the sandbox, as well as a close collaboration between regulatory authorities and fintech institutions.
The process of regulatory monitoring and evaluation of the activities that are taking place in the sandbox is also necessary to assess the areas and impact of improvement, as this learning phase will optimise regulatory approaches and the overall effectiveness of the sandbox. In addition, a fintech sandbox is required to protect its customers and their data privacy, while also ensuring that users’ interests are safeguarded. This will allow for an efficient transition process from the sandbox to full deployment in the market, as it involves complying with regulatory requirements and the process of scaling the solutions appropriately.
However, there are also some market restraints that need to be taken into consideration in this development process. As the landscape develops, challenges as regulatory requirements, cybersecurity concerns, an overall limited awareness and trust from customers, and resistance from traditional financial institutions can slow down the growth process of a fintech sandbox.
According to their official website, the Central Bank of the UAE has signed two separate MoUs with ADGM and DIFC in order to introduce a co-sandbox programme that will enable fintech companies to test their innovative solutions under the existing sandbox programme.
The objectives of the Insurance Sandbox Regulatory Environment were set on contributing to the process of achieving the UAE Vision 2021, which aims to develop a competitive knowledge economy based on innovation, qualifying the bank to understand the products to be introduced, as well as identify possible associated risks and seek to guarantee client satisfaction. Alongside these opportunities, the sandbox will also focus on creating an optimised environment for the insurance sector, leveraging improved systems, making it a platform for interaction with fintech companies, as well as optimising the overall regulatory framework and contributing towards economic growth and risk management.
In addition, the UAE saw multiple developments towards a fintech sandbox throughout 2025. For example, in April, UAE-based alternative payment methods provider Pay10 became the first fintech company to launch its production on the Central Bank of the UAE’s Open Finance Framework. The institution introduced the Open Finance Regulation in mid-2024 in order to promote secure, customer-permissioned access to financial data through the use of licensed third-party providers. The regulation outlined an overall phased rollout and represented a foundational component of the UAE’s broader digital economy and financial inclusion strategy. Furthermore, Pay10’s production environment was also launched, authorising the firm to offer payment initiation services, including support for variable recurring payments.
The UAE's progress in Open Finance also aligned with its Digital Economy Strategy, which was developed in order to target doubling the contribution of the digital economy to GDP by 2031. Initiatives such as the Emirates Blockchain Strategy, digital identity systems like UAE PASS, and instant payment platforms have designed an optimised ground for development, making it easier for companies like Pay10 to scale and grow in an ever-evolving industry.
In March 2025, the UAE Central Bank also announced its decision to advance its plans to introduce a CBDC, with the Digital Dirham expected to be launched for retail use by the end of the year.
Alongside governmental initiatives, multiple institutions were enabled to secure licences in the region, whether focused on banking, cryptocurrencies, fraud, or payments. In January, MENA-P-based financial services enabler Paymob received the Retail Payment Services (RPS) licence from the Central Bank of the UAE (CBUAE), aimed at offering merchant acquiring, payment aggregation solutions, and domestic fund transfers within the region. In March, Bybit received In-Principle Approval from the Securities & Commodities Authority of the United Arab Emirates to operate as a Virtual Asset Platform Operator, while Ripple secured a DFSA licence to provide regulated payments and services in the DFIC and UAE region. Following this announcement, Telr, a payment service provider in the MENA region, secured a Retail Payment Services Licence from the Central Bank of the UAE as well.
Later in April, Fuze received approval for a Retail Payment Services and Card Schemes licence from the CBUAE, becoming a fully licenced operator for digital assets infrastructure and a regulated service provider for the region. Following this announcement, NymCard also received regulatory approval to offer Open Finance services under the CBUAE’s new Open Finance framework.
The UAE fintech market is currently concentrated in major fintech centres such as Abu Dhabi and Dubai, which have developed rapidly as regional fintech hubs. The cities also benefit from an optimised business environment and strong infrastructure, as well as a supportive government initiative. However, fintech growth is not limited to these cities, as multiple other key players in the region focus on accelerating their digitalisation and development in the market.
With this in mind, companies such as Telr, Network International, PayTabs, Checkout.com, YAP, NymCard, Tabby, and Beehive Group leveraged the development of governmental initiatives in order to expand their services and optimise their overall customer experience.
For example, Checkout.com started 2025 with a partnership with Visa, aiming to launch a push-to-card solution in the UAE region. Later in the same month, it collaborated with Mastercard Move to optimise money transfers for individuals and businesses in the landscape. In the following months, the digital payments provider partnered with Tabby to offer BNPL solutions in the UAE and the KSA, announcing its initiative to become a global digital PSP and launching secure card issuing tools in the UAE later on as well.
Furthermore, there were multiple partnerships and product launches that took place in order to accelerate the growth of SMEs in the landscape. This includes the collaboration between Mashreq and NEO PAY, which introduced PoS lending for SMBs in the UAE, the partnership between Mamo and Paymentology, which aimed to improve operations for small enterprises, as well as PayPal’s deal with Ignyte, which aimed to assist the process of developing UAE’s startup and SME ecosystem.
eToro also focused on its development in the UAE, as the company integrated the UAE PASS in May 2025 to streamline and optimise user onboarding in the region. Later in the same month, eToro announced its long-term investing feature for users in the UK, Europe, and the UAE, as it enabled customers to automate the repeated purchase of an asset at regular intervals.
The UAE fintech landscape has witnessed rapid development in recent years, fuelled by multiple factors such as increasing smartphone penetration, government support, a robust regulatory framework, and investments, all of which have driven development and competition in the market. The latest initiatives enabled the region to develop a comprehensive, secure, and supportive environment for fintech development and digitalisation as well.
Through the process of offering multiple new opportunities and products that were tailored to different sectors and stages of growth, the UAE is expected to continue to attract new customers, foster collaboration between companies and regulators, accelerate digital transformation, as well as ensure government support and the development of the new optimised technologies of fintech sandboxes. About Sînziana Albu Sînziana is a Senior News Editor with a keen focus on fintech, payments, and digital identity. With a passion for unravelling the complexities of the rapidly evolving technological landscape, Sînziana is dedicated to delivering insightful news that keeps her readers informed.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now