Fintech Panorama of Abu Dhabi in 2022

Right here in our newest highlight on the United Arab Emirates (UAE), we enterprise into its capital metropolis’s most present financial developments by means of the lens of fintech.  

The Emirate of Abu Dhabi is house to round three million individuals, with half of its inhabitants inhabiting its capital metropolis below the identical identify.

There’s a complete of seven such Emirates (or states) situated within the UAE, with Dubai, Sharjah and Ras al-Khaimah being neighbouring examples.

The UAE has the sixth-largest crude oil reserves on the planet (2020), with Abu Dhabi having the most important share of that from the opposite six Emirates, with round 92.2 billion barrels of oil (2019).

Its huge oil reserves have reworked the economic system of Abu Dhabi from a small fishing village to a affluent and rich Emirate capital, house to the $3billion Emirates Palace (the world’s most costly resort ever constructed) and Sheikh Zayed Grand Mosque, one of many world’s largest mosques.

Neighbouring Gulf nations have additionally skilled related prosperity off the again of their oil reserves.

Abu Dhabi can also be a regional hub, enjoying host to the headquartered of the likes of the Arab Financial Fund.

Similar to the remainder of the Gulf Cooperation Council (GCC) nations – Saudi Arabia, Qatar, Oman, Kuwait and Bahrain – the UAE is implementing long-term financial growth methods that purpose to diversify its economic system away from oil.

Its consideration is more and more turning to the likes of knowledge-intensive sectors, akin to tech and fintech.

Within the case of Abu Dhabi, in parallel with the broader UAE, the Emirate has Abu Dhabi 2030, which caters for the Emirate and town.

Monetary providers and fintech have gotten an growing precedence for Abu Dhabi. Tens of millions have been channelled into the startup ecosystem lately by way of sovereign wealth funds (SWF) just like the Abu Dhabi Funding Authority (ADIA), which is among the world’s largest SWFs with round $700billion in belongings.

That is evident with the Abu Dhabi World Market (ADGM), which is situated on Abu Dhabi’s Maryah Island. ADGM is town’s worldwide monetary centre and free zone and has been the most important catalyst in Abu Dhabi driving its fintech agenda, which helps general foster financial growth.

In discussing the super development of town’s monetary sector, Emmanuel Givanakis, CEO of the Monetary Companies Regulatory Authority (FSRA), explains Abu Dhabi’s strengthening give attention to key high-growth sectors.

These embody “data and communication applied sciences, renewable vitality, agritech, high-tech manufacturing and defence,” Givanakis feedback.

This focus is accompanied by varied initiatives that promote innovation inside sustainable financial growth.

“ADGM has emerged as a strong instance of Abu Dhabi success tales, and a main facilitator of worldwide funding and enterprise development in Abu Dhabi and past,” he continues, making word of the monetary centre’s contribution to the sector.

To cement its place because the worldwide monetary centre of alternative, Givanakis explains how ADGM’s enterprise ecosystem is constructed on three pillars.

These embody a business-friendly registration facility that ensures flexibility of licensing for varied companies, state-of-the-art jurisdiction primarily based on English frequent regulation and a trusted and progressive regulator that upholds the integrity and credibility of the monetary centre.

“As a part of its work to assist the digitalisation transformation of the finance trade, the FSRA launched a number of enabling rules and steerage that higher assist and govern the usage of know-how to ship monetary providers and construct a extra inclusive monetary sector,” Givanakis provides.

The FSRA stays in shut contact with the trade to make sure its regulatory frameworks and approaches are match for goal.

“The FSRA has simply carried out its regulatory framework for spot commodity and environmental instrument actions, making it the primary worldwide monetary centre within the MENA area to take action,” Givanakis feedback.

“One other region-first inclusion on this framework highlights purpose-built choices and itemizing guidelines regarding mining and petroleum firms.

“Taking a leaf from its progressive method to regulating digital belongings, the FSRA lately issued a dialogue paper on decentralised finance (DeFi) to actively have interaction trade stakeholders within the growth of a regulatory framework and convey concerning the potential alternatives arising from DeFi.”

Givanakis explains how the ADGM is absolutely embracing the usage of regulatory know-how that not solely supervises but additionally helps the monetary providers trade’s compliance capabilities.

This he says is establishing the foundations of a strong and clear centre for sustainable finance.

“Extra importantly,” Givanakis reiterates, “it reinforces the Worldwide Finance Company’s institutional governance and supervisory effectiveness, which cements and expands Abu Dhabi’s footprint within the world finance trade.”

What have been key highlights throughout Abu Dhabi for 2022 with fintech?

First, the Emirate has hosted varied occasions, discussions and boards pertaining to finance, fintech and wider digital.

One that may put a highlight on Abu Dhabi within the area is the deliberate Abu Dhabi Finance Week which shall be hosted by ADGM this November.

In line with ADGM’s web site, this occasion builds on the success of its flagship initiative Fintech Abu Dhabi, which it hosted since 2017.

Second, additionally situated on Al Maryah Island, there’s Hub71, which can also be been a serious catalyst for Abu Dhabi with respect to fostering and rising its tech ecosystem and was solely launched again in 2019.

This 12 months, Hub71 in August chosen its newest cohort of tech startups, which embody fintechs in addition to different sectors, from a lot of purposes worldwide.

The contributors will see them partake in a two-year programme by Hub71 referred to as the Incentive Programme, whereby they’ll profit from equity-free incentives price as much as $136,124.80 (500,000 AED).

Third, varied bulletins, launches and improvements have been popping out of the capital metropolis.

For instance, Wio Financial institution, a digital banking platform regulated by the Central Financial institution of the UAE (CBUAE), formally launched in September with a give attention to serving up ‘state-of-the-art digital banking apps for purchasers’ and embedding monetary providers in digital companies.

Collectively owned by Abu Dhabi Growth Firm (ADQ), Alpha Dhabi Holding, Etisalat, one of many UAE’s main telecom firms and First Abu Dhabi Financial institution (FAB), one of many largest banks within the Center East and Africa (MEA) area, Wio is constructed round three important capabilities: digital banking apps, embedded finance and banking-as-service (BaaS) options.

That is, in accordance with them, the primary platform financial institution within the area and is according to UAE’s Digital Economic system Technique, which goals to double the contribution of the digital economic system to the nation’s gross home product (GDP) over the subsequent decade.

It goals to reinforce the place of the UAE as a hub for the digital economic system within the area and globally.

Additionally, the ecosystem catering to fintech – from the fintechs themselves to different direct and oblique enablers – has been rising in numbers.

Fintechs which are headquartered and/or based in Abu Dhabi embody the likes of the buying and selling platform MidChains and the wealthtech firm Finamaze; to call just a few.

The capital can also be house to numerous accelerators akin to Plug & Play, and in addition rising and fostering its wider tech and fintech ecosystem akin to VCs and mentors.

Indubitably, I count on extra to return out of Abu Dhabi because it additional implements its wider financial growth agenda; fintech will play a task in that.