The UAE’s investment technology sector, which leverages technology to make investing more accessible and user-friendly, is predicted to see an unprecedented growth – projected at 145 percent – in the next two years, riding piggyback on the country’s improved investment climate, driven by big-ticket company listings and far-reaching economic diversification initiatives, according to a new study.
The volume of investments in the sector is projected to reach close to $325 million by 2025, a jump of 145 percent from the current level, while the number of companies in the sector is estimated to surge to 386 from 294 during the period.
“We attribute such a trend [in the UAE] to the government measures aimed at attracting foreign investment, which are considered a key part of the country’s long-term economic development plans,” the report by UnaFinancial, a global fintech group of companies operating in the Middle East, Asia and Europe, said.
“The growing standard of living in the UAE and acceleration of mass digitalisation are important factors too,” the report pointed out.
The report said a series of stock exchange listings by several high-profile companies in recent years, coupled with the supporting government policies to develop the domestic financial sector in a big way are leading to entry of several global companies into the country.
“From online brokerage platforms to investment management apps, these companies are making it easier for people to invest their money with just a few clicks,” UnaFinancial said.
Investment technology sector in the UAE
The attractiveness of the UAE for foreign and private investment is facilitated by the growth of living standards, an increasing availability of work and resident visas and a shift in the geographical focus of investors due to global instability and other factors.
The index of life quality in Abu Dhabi rose by 60 points in the global ranking in just a year, according to data by Numbeo, a provider of global databases for consumer prices and quality of life.
“The digital financial ecosystem is also rapidly developing in the country, influenced by the favourable regulatory environment and still untapped demand potential,” UnoFinancial said.
The report said after 2020, the UAE’s investment technology market gained the greatest popularity, thanks to the improved investment climate in the wake of the country’s economic diversification drive.
Additional drivers included growing capital markets, the increase in population and GDP, and the COVID-19 pandemic, which accelerated widespread digitalization,” it said.
The volume of UAE’s investment technology market, estimated by Tracxn at $127.7 million at the end of 2022, exceeded the 2020 value by nearly 7 times, the report said.
The number of investment technology companies in the UAE was at 294 by the end of 2024.
UnaFinancial to further drive the sector growth with new app in UAE
UnaFinancial said it also plans to add to the high decibel growth momentum in the investment technology sector in the UAE with the launch of a digital finance app.
“The app will include an online investment platform, enabling clients to acquire and trade multiple asset classes like equities, forex, bonds, commodities and derivatives,” the company revealed.
The digital finance app will become the first product in the Middle East for UnaFinancial, which has been developing fintech services in APAC and Europe since 2015.
The group has also disclosed that it is looking to raise up to $15 million to launch the app.
The Singapore-headquartered fintech group of companies has been developing easy-to-use digital financial solutions in the Middle East, Asia and Europe, through its AI-based, machine learning and data driven technologies and processes.
The group claims its fintech solutions provide precise and comprehensive risk management, comfort and speed for customers.
Source : ArabianBusiness