UAE fintech growth enters a new era driven by AI, digital assets and open finance

The UAE’s fintech sector is entering a new phase propelled by artificial intelligence, digital assets, tokenisation, open finance and faster cross‑border payments, industry leaders say. The Emirates now hosts more than 1,670 AI, fintech and innovation firms within the DIFC cluster — which together have raised over $4.2 billion — while domestic payment platforms such as Aani have surpassed 12.5 million users with transfers settling in roughly three seconds. Regulators and market pilots are already testing tokenisation in real estate: the Dubai Land Department’s tokenised‑title pilot attracted 224 investors from more than 40 countries and sold out in under two minutes.

“The foundational move was regulatory. DIFC’s Innovation Hub and ADGM’s RegLab gave startups a place to test new models under real supervision, and the UAE was the first market in the region to treat fintech as core infrastructure to build around. That clarity attracted capital,” said Jamal Habahbeh, Partner and Head of Financial Services at KPMG Middle East.

Habahbeh pointed to a sequence of regulatory and infrastructure initiatives that have created the current ecosystem. He noted the emergence of national rails such as the Jaywan domestic card scheme and developments in digital‑asset regulation, including the establishment of VARA as a dedicated virtual‑assets regulator, the licensing of the region’s first dirham‑backed stablecoin and the issuance of the Digital Dirham as legal tender in January 2024. “Looking ahead, one trend we may see is tokenisation moving from pilot to infrastructure, with real estate leading the way,” he added.

Regulatory sandboxes and market pillars

Executives and advisers emphasise that regulatory sandboxes and testing licences have been central to the UAE’s progress. The market now operates with multiple supervised testing frameworks — RegLab, DIFC’s Innovation Testing Licence and the DFSA’s tokenisation sandbox — which allow firms to trial AI‑driven finance, tokenised assets and new payment models before scaling. A 2025 banking law further brought virtual‑asset payments under Central Bank oversight, while VARA’s issuance rulebook distinguishes fiat‑referenced from asset‑referenced tokens.

• Cluster scale: DIFC hosts 1,670+ AI, fintech and innovation firms, collectively raising over $4.2 billion.
• Payments reach: Aani serves more than 12.5 million users; transfers settle in roughly three seconds.
• Digital assets: The Digital Dirham was issued as legal tender in January 2024; a regionally licensed dirham‑backed stablecoin operates alongside VARA rules.
• Tokenisation proof point: Dubai Land Department pilot drew 224 investors from 40+ countries and sold out in under two minutes.

Outlook: infrastructure, embedded finance and institutionalisation

Industry figures expect the next wave of fintech growth to be less about consumer brand recognition and more about the infrastructure that underpins banks, retailers and platforms. Nigel Green, CEO of deVere Group, said the UAE has moved from being an attractive regional market to a place “to build regional and, increasingly, international businesses,” noting that “AI will improve lending, wealth management and fraud detection. Embedded finance will become standard. Cross‑border payments will become quicker and cheaper.”

Ouarda El Ghannouti, Director – Tax at Baker Tilly, added that DIFC’s Innovation Hub has been instrumental in assembling regulators, financial institutions, investors and tech companies into a functioning ecosystem. She highlighted growth opportunities across AI‑enabled finance, embedded banking, regtech and more efficient cross‑border settlement over the next five years.

With regulatory frameworks maturing and practical pilots proving investor appetite, the UAE appears set to transition tokenisation, stablecoins and AI from experiments into everyday settlement and credit‑decision tools — underpinning a broader shift toward open finance and cross‑border digitalisation.