Policy as Infrastructure: How The UAE’s Regulatory Framework is Fueling Fintech Innovation

And welcome to the show today.

Thank you for having me.

Yeah, um, let's start with talking about FinTech now and the MINA region, and how did you start first Mina FinTech Association in general?

It's a great question, Ragda, and it's been like around 7.5, 8 years when the association was established.

Back in the days.

The idea was to ensure that we create a platform that has, which is not biased, which has less commercial interests.

And at the same time, a platform that brings together alignment between the regulators, the policymakers, the founders who are creating, you know, a solution in the fintech world and most importantly, ensuring that there's a conducive environment for growth in the sector here.

Yes, definitely, and I think you built also the most powerful fintech networks in the region.

What gap were you trying to fill with that?

So I wouldn't, I would say that it was never a gap per se, but the important thing is that the regulators in this market and policymakers in this market move at an accelerated pace.

Founders are also building sophisticated infrastructures and solutions.

Investors are quite active, but the important thing is that previously they were sitting in different rooms.

So it was important to bring them together and that alignment takes the industry really forward.

Yeah, uh, so Namir, also before we continue with some reciting news as well, FinTech TV and the Amina Fintech Association. are officially now partners, let's say, or collaborating together.

We're thrilled to have you with us and this family too.

Let's talk a little bit about this partnership and what does it mean for the FinTech Society here in Dubai in the MIA region.

So let's be honest, like where does the region stand today?

Region is standing it out.

Around 6.6.35 billion dollars, the region is expected to go to almost $11 billion plus by 2031, so that's not far away right now, right?

That's one thing, which means that there's humongous opportunity ahead that needs to be covered.

The important thing is that the region needs to have a strong narrative.

And the region has been, you know, quite ahead, progressive in terms of ensuring that we're building the right platforms, the right regulatory frameworks, but I still kind of feel, my personal opinion that we are punching below the weight to what's the real opportunity there is for the MIENA region.

So for that you need to ensure that.

A good ecosystem is well built, yes, but a great ecosystem is also well told, and that's where FinTech TV is going to play a critical role.

Yeah, definitely, and we're very excited about that.

And now.

Let's go back to FinTech and the fintech investment in the region.

Naniina has crossed over $2 billion.

Now.

Let's talk about this number and also what is the next wave of capital going.

So I'll answer your question in two ways, right?

So one is where the capital is going and the one before is the number.

So the number I would say is not funding per se.

The number, the number is penetration.

So if you look at the global markets today, uh, fintechs are capturing around 3 to 5% of the banking revenues globally.

In specific to GCC, we're looking at 1 to 2%.

Now this gap is not a weakness here, this gap reflects the opportunity in the size ahead.

So that's important.

So that means that a lot of infrastructure needs to be established furthermore, and the opportunity is humongous for global players who are looking at the region, and of course FinTech TV is going to play an extremely critical role in making sure that this narrative and this opportunity gets communicated.

Second, where's the capital going?

Capital is going in a couple of places.

First thing I would say is that initially capital was going towards consumer facing platforms, payments, apps, uh, where you have to go and fetch and acquire the consumers.

Now, the capital is going towards infrastructure.

Investors are investing into platforms that are building the rails, stablecoin payment rails, stablecoin this year, digital assets and infrastructures.

This is where the capital is moving towards infrastructure.

Um, and the important thing is that a lot of this capital is going to go towards, uh, I would say organizations that are operating behind the scenes and serving millions and millions of users.

OK, that's really good.

So let me ask you this now.

What should the investors look for, uh, investors in the MINA region and New York as well, though, uh, when they are looking for investment here in the region.

If they're looking for investment here in the region, uh, then typically, uh, the important thing is, is a fundamental, I would say, thing that we all look at myself as well, is how do you achieve revenues.

Right, so if it's a young fintech, it's very important to ensure the economic sense is clear.

That's very critical for me.

You talked a little bit about regulation in general, and VA ADGNA is regulation now the UAE's biggest competitive advantage.

Do you think this is the advantage of being in the UAE, the regulation part of it?

Great question.

So here I'm going to answer this in a way.

One is that yes, it is, but that's not it.

There's a difference.

The way UAE has its strong frameworks.

Many other countries have a lot of regulations that might be similar.

The important thing is the intent and the approach.

UAE sees this as a strategic edge.

So over here policy operates as, uh, you know, as an infrastructure.

So I call it policy as infrastructure.

When you have this mindset of policy as infrastructure that results in acceleration and growth of the sector, not holding it back.

And why do I say that?

Because if you are operating over here in the region and those who are listening globally, if you are looking to enter into the region, it is very important to know that.

You need to be able to have access to the regulators and be free, be free to basically share your inputs and insights.

In this region and especially UAE, you would find regulators open to feedback, open to consultations, open to responses from the founders and the innovators, and the important thing is embedding it into the policies.

So that becomes policy as an infrastructure, not just policy that has been launched.

So that is a key edge for the region and especially.

Yeah, so Namir.

One message you can give to every FinTech leader now, and also policymaker in this region.

The important thing is that when you are building your platform here in the region, um, it's important to read the market.

The read the market does not mean you enter into the market and you are just present over here.

Their advice would be, when you enter into the market, learn how it operates, and that would make wonders for you.

For the investors, yes, I think investors have become far more sophisticated today versus what they were before.

Um, investors are deploying capital into young platforms as well.

Um, Investors have also played a critical role in improving the founder quality in the region as well.

So I think the investors are doing a great job already.

Our founders are doing a great job already.

It's about syncing them together and ensuring both are aligned toward the same objectives.

Yeah, thank you, Amir for joining us.

Thank you for having me, and I wish FinTech TV.

Uh, I would say strong growth in the region and most important UA.

Thank you.