The UAE’s embedded finance sector is experiencing rapid growth, driven by government support, technological advancements, and increasing consumer demand. This burgeoning industry is projected to reach $1.56 billion by 2024, with an impressive compound annual growth rate of 28.6% from 2024 to 2029. By 2029, embedded finance revenue in the UAE is expected to soar to approximately $550 billion.
The government’s proactive approach in fostering fintech innovation has created a conducive environment for the sector’s expansion. Initiatives such as the Future and Dubai International Centre (IFC) are supporting this growth, while acknowledging the rising demand for integrated financial solutions in the e-commerce landscape.
Technological advancements are playing a crucial role in shaping the industry. The partnership between Al Etihad Payments and Core42 to implement Open Finance marks a significant milestone, representing one of nine initiatives under the Central Bank of the UAE’s Financial Transformation Programme. This collaboration aims to improve the integration of financial services and enhance access to financial products for both consumers and businesses.
Government Support Fuels Innovation
The UAE government’s initiatives have been instrumental in creating a favorable regulatory environment for embedded finance. By recognizing the expanding e-commerce landscape and the increasing demand for integrated financial solutions, authorities have encouraged experimentation and growth in the sector. This support has paved the way for innovative offerings such as ‘Pay Now, Pay Later’ options and unified payment gateways.
Technological Advancements Drive Sector Growth
Strategic alliances and technological innovations are propelling the embedded finance sector forward. The implementation of Open Finance in the UAE, through the partnership between Al Etihad Payments and Core42, signifies a new era in financial services integration. This initiative, part of the Central Bank’s Financial Transformation Programme, aims to streamline access to financial products for both consumers and businesses, further accelerating the growth of embedded finance in the country.
