While the pandemic pushed the traditional financial industries into a struggle as they were forced to cut down on their working hours and the number of branches due to service disruption, the Fintech companies stood strong and led the sector.
With the support of institutions like Dubai International Financial Centre (DIFC), Fintechs in the region are achieving tremendous growth and are set to lead the sector in the “new normal”. DIFC has a $100 million set aside as a fintech fund which is used to support and establish the startups and growth-stage companies in the sector.
“Dubai is being recognized as one of the world’s top 10 fintech hubs, and nurturing innovation will help these firms capitalize on growth opportunities in the Middle East, Africa and South Asia”, says Arif Amiri, CEO of the DIFC Authority.
Mr. Amiri added that “Over the last three years, we’ve been able to build the region’s most comprehensive offering for fintech firms. Over 160 fintech companies now operate from the DIFC. Part of our commitment includes investing in start-ups through our $100 million fintech fund. We invest to demonstrate our commitment to developing the sector and to help drive sustainable economic growth for Dubai. These start-ups will help us drive the future of finance.”
Four startups – Sarwa, Flexxpay, Rise and Now Money received funding from DIFC’s Fintech fund and they are planning to utilize these funds to expand their ventures.
Sarwa, a Robo advisory wealth management, plans to expand to other markets and reach more audiences with the fund. They reported having 4 times more clients this year compared to 2019.
Flexxpay is an employee benefits platform that makes it easier for the users to access their earned income, which can be salary, commission, or pension whenever they want to and not wait for a month. The company will utilize the fund upscale their technology offerings and to acquire more corporate clients.
Rise is the first of its kind fintech company that works to empower the migrant workers and plans to use the fund from DIFC to improve their team while bringing more products for the migrant workers.
Now Money expressed their delight in receiving the fund from DIFC. It provides payroll services to Gulf-based companies.
Fintechs, with their increased efficiency and transparency, is here to stay and set to play a major role in boosting the UAE economy.
