UAE fintech funding surges 92% in 2023 defying global slowdown

UAE fintech funding surges 92% in 2023 defying global slowdown

The UAE’s financial technology sector has defied a global slowdown in investment, with funding raised nearly doubling in a year, a new report said.

Total fintech investment in the UAE in 2023 surged by 92% from the previous year, while the amount of capital invested globally from Seed through Series I plunged by 48%, according to Innovate Finance, the UK’s industry body for fintech.

The UAE pulled in $1.3 billion in funding across 54 deals, marking an “exponential” increase for the country compared to last year, the industry body said in its “Fintech Investment Landscape 2023” report.

With the significant increase, the UAE landed in the top ten list of most funded fintech markets last year, climbing from the 24th to the sixth position.

Friendly environment

The growth in the UAE is due to the country’s fintech friendly environment.

The UAE, like Singapore, has “demonstrated a commitment to creating a supportive environment for fintech,” said Steve Lemon, Partner at Volution VC, in the report.

In comparison, other countries like India recorded a 63% fall in investment, UK a decrease of 65%, France a decline of 56% and Germany a drop of 66%.

The total capital raised by fintech firms globally in 2023 reached $51.2 billion spread across 3,973