Dubai is considered to be a leader of financial technology (FinTech) and innovation, not just in the Middle East but around the world. The city’s startups and tech developments have come a long way in the past few years. This progress makes Dubai a hub for European, Asian and African businesses. Now the city of UAE is placing its focus on boosting the fintech scene to become a Smart City and fintech capital of the world.

In order to become a smart city, Dubai Smart City Accelerator, a program powered by Startupbootcamp, is already took place, supporting innovative companies in the IoT and Connectivity, Urban Automation and Mobility, Artificial Intelligence, Blockchain, Open City Data, Sustainable Cities & Living, Smart Government, and Smart Retail industry.

Dubai as a FinTech Hub

In recent years, the fintech industry has largely been led by the US and European markets with limited mention of the UAE. The global fintech market continues to grow and disrupt the financial services sector, with the market value set to reach from US$127.66 billion in 2018 to US$309.98 billion by 2022, growing at an annual growth rate of 24.8 percent.

When it comes to the UAE, the country is home to one-third of fintech startups in the Middle East and North Africa (MENA), the largest community in the region. Looking at the numbers, the fintech companies in the region are expected to reach 1,845 by 2022, up from 559 in 2015 with an enormous growth of 230 percent.

However, the major potential hitch to the stimulation of UEA smart cities, and its position as a leading hub for fintech is the current financial and legal regulation in the region.

As of December 2017, fintech investment in the Middle East held a small proportion of the amounts being invested globally, and total fintech startups in the Middle East and North Africa were valued at US$66.6 million, according to Magnitt State of the Middle East and North Africa Funding report. However, the majority of investments and startups have been in the UAE.

Move to Smart Dubai

The Smart Dubai is an initiative to transform Dubai into a smart city, with a vision to make Dubai the happiest city on earth, which was launched by Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President & Prime Minister of the UAE. Launched in 2017, the initiative seeks to harness the power of AI, data and blockchain to drive Dubai’s economy and accomplish the ultimate goal of making it entirely paperless.

Moreover, under the initiative, Dubai plans to deploy free Wi-Fi in public areas. As of May 2015, there were over 200 free Wi-Fi spots set up in the region. In this context, palm-shaped devices offer free Wi-Fi to people on Dubai’s beaches and in parks. The Dubai smart city initiative also involves Dubai Design District where companies can provide smart solutions for customers and enable transactions such as licences, visas, customs and other government services; 5-D control room; Electric car charging stations; Smart parking; My Window to Dubai’ programme; I-Dubai; Smart metres and smart power grid, among others.

Furthermore, the UAE’s success stems from its commitment to becoming a global hub of fintech, supporting startups and encouraging the adoption of technology. Dubai’s Blockchain Strategy, for instance, delineates its ambition to move 100 percent of government transactions to the blockchain by 2020. In addition, by 2021, more than 50 percent of the country’s federal transactions will be powered by blockchain, which will foster a smart economy and create opportunities for entrepreneurship.