The slow rise of neobanking in the Middle East

The slow rise of neobanking in the Middle East

This week's biggest financial news came from Abu Dhabi after investment firm ADQ, the holding company for some of the biggest assets in the UAE including Abu Dhabi Airport and bourse operator ADX, announced plans to set up a digital bank with an initial capital of $544 million after obtaining the legacy licence from First Abu Dhabi Bank (FAB).

The development is a big step forward for digital and neobanking in the Middle East, a sector that has gained momentum in the financial technology (fintech) sector around the world.

Neobanks are wholly digital, with no physical presence and are independent from the traditional banks. They comprise some of the world's biggest fintech startups, including Brazil's Nubank, which has amassed 36 million users, raised $1.4 billion in funding and is currently valued at