Description:
The UAE’s embedded finance sector is experiencing rapid growth, with projections indicating a 16.1% annual increase to $1.56 billion in 2024. Factors driving this expansion include strong government support, technological advancements, and rising consumer demand. The industry is expected to maintain steady growth, reaching approximately $550 billion by 2029.
Governmental Support and Technological Advancements
The UAE government’s initiatives, such as the Future and Dubai International Centre (IFC), have created a favorable regulatory environment for fintech innovation. Technological progress is evident in partnerships like that between Al Etihad Payments and Core42, aimed at implementing Open Finance. The acquisition of Embedded by Mitgo Group further demonstrates the sector’s dynamism.
Sectoral Growth and Regulatory Environment
Embedded lending, payments, and insurance have gained popularity, particularly in e-commerce. The sector’s growth spans various industries, including retail, logistics, and healthcare. Regulatory modifications supporting e-commerce and digital solutions, such as Buy Now Pay Later (BNPL) and unified payment gateways, align with broader economic strategies to enhance digital adoption and consumer convenience.
