Despite economic uncertainties and global fundraising challenges, fintech in the United Arab Emirates (UAE) continued its robust growth in 2024, driven by regulatory advancements, digitalization efforts from the government, and a dynamic fintech startup ecosystem, a new report by Fintech News Middle East says.

The UAE Fintech Report 2024, released in December and supported by PayTabs Group, highlights this growth trajectory, offering a comprehensive analysis of the UAE’s thriving fintech ecosystem by exploring fintech funding trends and key developments over the past year.

According to the report, the UAE has emerged as a leading fintech hub in the Middle East and North Africa (MENA), with Abu Dhabi and Dubai, in particular, rapidly becoming major fintech powerhouses. Abu Dhabi emphasizes regulation and compliance, creating a stable environment for fintech companies to operate, while Dubai is characterized by its entrepreneurial spirit and adaptability, making it an attractive destination for startups and innovators, the report emphasizes.

Fintech deals in 2024

In 2024, fintech continued to dominate venture capital (VC) funding in the UAE, accounting for 32% of total funding volume in H1. This underscores the sector’s prominence in the domestic tech landscape and reflects the impact of government initiatives aimed at fostering innovation and investment, the report says.

It highlights that while fintech investments declined year-over-year (YoY) following global trends, the UAE continued to lead fintech funding in the region in 2024, cementing its position as a leading fintech hub across MENA.

Despite fundraising challenges, the report notes that UAE startups managed to secure notable rounds of funding in 2024, underscoring the sector’s resilience. The year also recorded several mergers and acquisitions (M&A) transactions. These involved both UAE companies pursuing growth and foreign firms seeking to establish or expand their presence in the UAE, showcasing that the UAE remains a highly attractive market for global fintech players seeking entry into the region.

Insights into the UAE Fintech Map 2024

The UAE Fintech Report 2024 also presents an updated edition of the UAE Fintech Map, which tracks the growth of active fintech companies in the country. This year’s edition identifies 329 active fintech companies in the UAE, representing a 128.5% increase from the 144 companies featured in the previous map dated 2011. Of these, 61.7% of these companies are headquartered in Dubai, reinforcing the emirate’s role as a leading fintech hub in the UAE.

Like in 2021, the payments and transfers vertical remains the largest fintech category, accounting for 29% of all fintech companies. However, that proportion marks a decline from 37% in 2021, and signals increased diversification beyond payments and growing maturity of the industry. This reveals confidence in the sector’s growth prospects and an emphasis on long-term, higher value opportunities across more complex areas such as financial infrastructure and application programming interfaces (APIs), capital markets and trading, and trade finance.

In 2024, the blockchain and digital assets vertical continued to thrive, retaining its position as the second largest category, with a 14% share.

Meanwhile, wealthtech, digital banking and alternative lending, saw remarkable growth rates of 80%, 150% and 111%, respectively, between 2021 and 2024.

Conversely, the insurtech vertical experienced a decline, dropping from ranking as the third-largest vertical in 2021 with a 11% share to seventh place in 2024 at 5%.

Growth drivers of fintech in the UAE

The report identifies several key factors driving the growth of fintech in the UAE. National developments plans, such as the Financial Infrastructure Transformation (FIT) Programme and Dubai Cashless Strategy, have played a crucial role in fostering innovation and digital transformation.

Launched in 2023, the FIT Programme aims to drive digital transformation, enhance financial inclusion and position the UAE as a global fintech leader. It comprises nine initiatives spanning open finance, central bank digital currencies (CBDCs) and payment innovation, among key themes.

The Dubai Cashless Strategy, introduced in October 2024, seeks to enhance digital payment solutions across both the public and private sector. It aims to make cashless transactions account for 90% of all transactions by 2026 and boost economic growth by over AED 8 billion (US$2.2 billion) annually through fintech innovation.

The report also emphasizes the role of new rules in supporting emerging trends and technologies, including digital assets and open finance, and stresses the role of regulatory sandbox regimes in fostering fintech innovation and facilitating market entry to new players.

It also highlights the rise of digital payments as a key driver of fintech growth, emphasizing the shift away from cash-based transactions toward digital payments. This trend is setting the stage for the expansion of fintech adoption across various sector in the UAE.

Finally, the report concludes by spotlighting some of the UAE’s most promising fintech startups that reached significant milestones in 2024. These companies have received backing from prominent investors, secured key licenses or witnessed strong customer growth in 2024, positioning them for even greater success in 2025.

Other resources you might be interested in

Curious about Asian Fintech Startup Maps and Report? Here’s a handy guide looking at the fintech startup maps in Asia by country.

and the fintech startups report in Asia by country.