21/09/23

FINTECH: Dubai Ready to Capitalise on Projected 17.2% Global Growth of Fintech Investment, Says DIFC

As published on: thefintechtimes.com, Thursday 21 September, 2023.

Investment in fintech is projected to grow by 17.2 per cent CAGR to $949billion from 2022 to 2030 and is accelerating the pace of fintech innovation globally. 

The projections come from a report issued by the Dubai International Financial Centre (DIFC), the financial centre in the Middle East, Africa, and South Asia (MEASA) region, titled ‘Drivers of Innovation in Financial Services’ in collaboration with Refinitiv, a London Stock Exchange Group (LSEG) business and a financial markets data and infrastructure provider.

DIFC’s report reveals a five-year outlook for innovation in the financial services industry and outlines the importance of innovation within established financial institutions to facilitate agile development and improve future competitiveness through frameworks such as Venture Studios.

Leveraging automation technologies such as artificial intelligence (AI), blockchain, and cloud computing are seeing business model and product innovations that have led to reduced operating costs and streamlining of inefficient processes.

A strategic hub for fintech and innovation companies in the region, Dubai and DIFC is home to an innovation ecosystem that provides financial institutions and fintechs alike with the tools, platforms and regulatory support that enable financial innovation. This support ranges from forward-thinking regulations, accelerator, and venture-building platforms, to venture capital and other start-up funding vehicles, as well as internationally recognised talent development programmes.

“Fintech has been a cornerstone for financial innovation in recent years”

Arif Amiri, CEO of DIFC Authority, said: “Investments in fintech, projected to grow by 17.2 per cent CAGR to USD $949billion between 2022 and 2030, are accelerating the ongoing pace of fintech innovation globally and in Dubai. Combined with access to high-growth emerging markets and DIFC’s world-class financial, regulatory and innovation eco-system, this provides immense opportunities for expansion and innovation.

“At DIFC, we already see financial institutions actively joining forces with disruptive start-ups as we collaborate to shape the future of finance in line with our 2030 strategy and beyond.”

Nadim Najjar, managing director, CEEMA, at the London Stock Exchange Group, also commented: “Innovation in the financial industry has become more important than ever with the continuous and fast pace of disruption in the industry pushing all players to find new ways of doing business.

“Fintech has been a cornerstone for financial innovation in recent years, introducing a growing range of new technologies that enable new business models, applications, processes, or products. The ‘Drivers of Innovation in Financial Services’ report provides an overview of innovation in the financial industry, as well as insights on new financial innovations that will shape the industry in the next five years.”

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FinTech Investment Dubai