DIFC Governor Essa Kazim attributed the FinTech industry's rapid growth to a proactive policymaking approach. Pawan Singh / The National
DIFC Governor Essa Kazim attributed the FinTech industry's rapid growth to a proactive policymaking approach. Pawan Singh / The National
DIFC Governor Essa Kazim attributed the FinTech industry's rapid growth to a proactive policymaking approach. Pawan Singh / The National
DIFC Governor Essa Kazim attributed the FinTech industry's rapid growth to a proactive policymaking approach. Pawan Singh / The National

FinTech growth 'helping DIFC to outpace' Dubai economic expansion


Sarmad Khan
  • English
  • Arabic

The FinTech sector has emerged as a main contributor to the Dubai International Financial Centre’s growth and has helped the financial centre to outpace the emirate’s economic expansion over the past few years, the governor of the DIFC has said.

The DIFC, one of the top financial centres in the Middle East, Africa and South Asia region, has become a “major engine of growth” for Dubai's economy and a significant contributor to its gross domestic product, Essa Kazim told delegates at the FinTech Summit on Monday.

The financial centre has been expanding fivefold faster than the emirate's average gross domestic product growth over the past 10 years, contributing about 6 per cent to its GDP, Mr Kazim said in his keynote address in Dubai.

“A key growth driver over the past three years has been FinTech and innovation companies contributing over 27 per cent to the centre’s overall client growth."

The sharp growth in the emirate’s FinTech industry is in line with Dubai’s D33 economic agenda, which aims to double the size of Dubai’s economy, with financial, trade and investment targets of Dh32 trillion ($8.71 trillion) over the next decade.

The overarching growth road map also aims to propel the emirate into the world's top four financial centres.

Dubai's economy expanded by 4.6 per cent on an annual basis in the first nine months of 2022, according the emirate's statistics centre.

Emirates NBD estimates Dubai's full-year growth for 2022 at 5 per cent and expects its GDP to grow by 3.5 per cent in 2023.

The DIFC grew at a record pace last year, with the number of active registered companies climbing by 20 per cent while the financial centre's annual revenue exceeded Dh1 billion for the first time.

The number of active registered companies in the DIFC rose to 4,377, almost doubling from the 2019 pre-coronavirus level of 2,431.

New companies registered in DIFC last year surpassed 1,000 for the first time since its inception.

FinTech and innovation was the fastest-growing sector in the DIFC last year, with the total number of companies in the sector growing 36 per cent to 686.

Mr Kazim attributed the fast growth of the FinTech industry to the “proactive approach taken by policymakers”.

Government entities are mandated to provide the right ecosystem to enable innovation, testing, investment, and growth, and that is the reason why DIFC has invested heavily in its FinTech ecosystem, he said.

With demand for digital payments and other FinTech services continuing to grow, DIFC FinTech and innovation companies raised more than $615 million in funding last year, Mr Kazim said on Monday.

Since the onset of Covid-19, people have turned to online banking services and other contactless technology to transfer money and pay for e-commerce transactions, boosting the FinTech sector.

The industry is expected to double in size to about $270 billion in 2027, from more than $135 billion in 2021, in the wider Middle East, Africa and South Asia region, according to the DIFC FinTech Hive 2022 report.

Globally, digital payments are expected to grow to $8.26 trillion by 2024, from $4.4 trillion in 2020, according to Statista's data.

The DIFC will continue to invest heavily in its FinTech ecosystem by creating a “supportive and agile regulatory framework, providing access to funding, sandbox environments and resources for start-ups and established companies alike”, Mr Kazim said.

“As we move towards an ever more digitally connected world, FinTech is destined to play a significant role in shaping the financial landscape, and Dubai is well positioned to lead the way in this exciting and dynamic sector,” he said.

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

Day 1, Abu Dhabi Test: At a glance

Moment of the day Dimuth Karunaratne had batted with plenty of pluck, and no little skill, in getting to within seven runs of a first-day century. Then, while he ran what he thought was a comfortable single to mid-on, his batting partner Dinesh Chandimal opted to stay at home. The opener was run out by the length of the pitch.

Stat of the day - 1 One six was hit on Day 1. The boundary was only breached 18 times in total over the course of the 90 overs. When it did arrive, the lone six was a thing of beauty, as Niroshan Dickwella effortlessly clipped Mohammed Amir over the square-leg boundary.

The verdict Three wickets down at lunch, on a featherbed wicket having won the toss, and Sri Lanka’s fragile confidence must have been waning. Then Karunaratne and Chandimal's alliance of precisely 100 gave them a foothold in the match. Dickwella’s free-spirited strokeplay meant the Sri Lankans were handily placed at 227 for four at the close.

Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

Price: From Dh98,800

Available: Now

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Fifa%20World%20Cup%20Qatar%202022%20
%3Cp%3E%3Cstrong%3EFirst%20match%3A%20%3C%2Fstrong%3ENovember%2020%0D%3Cbr%3E%3Cstrong%3EFinal%2016%20round%3A%20%3C%2Fstrong%3EDecember%203%20to%206%0D%3Cbr%3E%3Cstrong%3EQuarter-finals%3A%20%3C%2Fstrong%3EDecember%209%20and%2010%0D%3Cbr%3E%3Cstrong%3ESemi-finals%3A%20%3C%2Fstrong%3EDecember%2013%20and%2014%0D%3Cbr%3E%3Cstrong%3EFinal%3A%20%3C%2Fstrong%3EDecember%2018%3C%2Fp%3E%0A
PROFILE OF SWVL

Started: April 2017

Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh

Based: Cairo, Egypt

Sector: transport

Size: 450 employees

Investment: approximately $80 million

Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani

Tonight's Chat on The National

Tonight's Chat is a series of online conversations on The National. The series features a diverse range of celebrities, politicians and business leaders from around the Arab world.

Tonight’s Chat host Ricardo Karam is a renowned author and broadcaster who has previously interviewed Bill Gates, Carlos Ghosn, Andre Agassi and the late Zaha Hadid, among others.

Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.

Facebook | Our website | Instagram

 

Star%20Wars%3A%20Ahsoka%20
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Various%20%3Cbr%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Rosario%20Dawson%2C%20Natasha%20Liu%20Bordizzo%2C%20Lars%20Mikkelsen%20%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%0D%3Cbr%3E%3C%2Fp%3E%0A
FIXTURES

Monday, January 28
Iran v Japan, Hazza bin Zayed Stadium (6pm)

Tuesday, January 29
UAEv Qatar, Mohamed Bin Zayed Stadium (6pm)

Friday, February 1
Final, Zayed Sports City Stadium (6pm)

Fixtures

Tuesday - 5.15pm: Team Lebanon v Alger Corsaires; 8.30pm: Abu Dhabi Storms v Pharaohs

Wednesday - 5.15pm: Pharaohs v Carthage Eagles; 8.30pm: Alger Corsaires v Abu Dhabi Storms

Thursday - 4.30pm: Team Lebanon v Pharaohs; 7.30pm: Abu Dhabi Storms v Carthage Eagles

Friday - 4.30pm: Pharaohs v Alger Corsaires; 7.30pm: Carthage Eagles v Team Lebanon

Saturday - 4.30pm: Carthage Eagles v Alger Corsaires; 7.30pm: Abu Dhabi Storms v Team Lebanon

UAE currency: the story behind the money in your pockets
The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

Three tips from La Perle's performers

1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.

2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.

3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.

THE BIO:

Favourite holiday destination: Thailand. I go every year and I’m obsessed with the fitness camps there.

Favourite book: Born to Run by Christopher McDougall. It’s an amazing story about barefoot running.

Favourite film: A League of their Own. I used to love watching it in my granny’s house when I was seven.

Personal motto: Believe it and you can achieve it.

 

 

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
Updated: May 08, 2023, 10:43 AM