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The Rise of Fintech Sector in the UAE

UAE’s Fintech Sector Surges Amid Global Decline

In a noteworthy departure from the global downtrend in financial technology investments, the United Arab Emirates (UAE) has defied the odds by securing the sixth position globally in fintech funding, experiencing a remarkable 92% surge in investments in 2023. Innovate Finance attributes this success to the fintech-friendly regulations in the UAE and the increasing adoption of digital banking tools in the region.

Resilience in Early-Stage Investments

Despite economic challenges affecting major fintech hubs like the UK and the US, early-stage fintech investments have remained robust, with over $4 billion in seed funding reported by Innovate Finance.

Global Fintech Landscape and Trends

Globally, the fintech industry cautiously entered 2023, witnessing a slowdown in larger deals above $100 million, signaling a shift in growth-stage valuations and a more cautious approach to capital issuance. The average deal size decreased to $12.9 million from $15.5 million in 2022 but still exceeded the average from 2012-2020.

The top global deals in 2023 accounted for over $9 billion, representing around 18% of the total global investment in the sector. Notable companies like Stripe, Rapyd, Xpansiv, BharatPe, and Ledger secured significant funding during the year, showcasing the resilience and prominence of the UAE in the global fintech landscape despite challenging economic conditions.

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