UAE Experiences Crypto Wave, Dominating H1 2023 FinTech Deals

During the first half of 2023, the UAE witnessed a significant surge in the crypto sector, which accounted for 42% of all FinTech deals according to a research done by Fintech Global. However, overall FinTech deal activity in the UAE declined by 54% compared to the previous year, with a total of 24 deals. Moreover, FinTech companies in the UAE raised a combined investment of $101 million during the same period, reflecting a substantial 72% decrease from H1 2022.

Tabby, a buy now pay later provider, secured the largest FinTech deal in H1 2023, raising $58 million in its Series C funding round. The company plans to expand its product line into next-gen consumer financial services and support its growing operations.

In the UAE, Blockchain & Crypto emerged as the most active FinTech subsector, accounting for 10 deals, representing 42% of the total deals. The country's crypto-friendly policies have attracted companies like Ripple, which relocated its headquarters to the UAE. The government's efforts to establish a comprehensive regulatory framework for cryptocurrencies further contribute to the growth of the cryptocurrency sector in the UAE. Additionally, KIKLABB, a government-owned licensing firm based in Dubai's Mina Rashid, now accepts digital currency payments on behalf of the Dubai Financial Services Authority.