UAE Fintech Market Valued at USD 52 Billion in 2026 and Set to Reach USD 90 Billion by 2031

UAE Fintech Market Valued at $52 Billion in 2026 and Set to Reach $90 Billion by 2031

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UAE fintech market valued at $52bn in 2026 and forecast to reach $90bn by 2031 as digital payments, open finance and cross-border payment innovation accelerate growth.

Mordor Intelligence values the UAE fintech market at USD 52.07 billion in 2026, up from USD 46.67 billion in 2025.
The market is forecast to reach USD 90.06 billion by 2031, implying an 11.58% compound annual growth rate over the period.
Digital payments account for 56.88% of the UAE fintech market, driven by contactless, QR-based and instant payment adoption.
The CBUAE Open Finance Framework and Nebras initiative could add AED 80 to 90 billion in GDP by 2030, according to McKinsey estimates.
The Digital Dirham CBDC programme is advancing cross-border payment corridors with India and targeting real-time settlement for trade and remittances.
UAE fintech startups attracted around USD 265 million in funding in 2024, representing approximately one-third of total startup investment in the country.

How CBUAE Policy Frameworks Are Reshaping the UAE Fintech Market

The UAE's fintech market is built on deliberate policy choices, not commercial momentum alone. The Central Bank of the UAE's open finance initiative - the Nebras project - enables regulated data sharing between banks, fintechs and third-party providers, creating conditions for more personalised and competitive financial services. The Abu Dhabi Global Market (ADGM) complements this with specialised fintech licences and innovation sandboxes that allow startups to test new products with live customers under regulatory supervision.

The Aani instant payments platform, supported by more than 70 financial institutions, provides the real-time payment infrastructure underpinning the UAE's cashless economy. Alongside it, the Digital Dirham - the UAE's central bank digital currency (CBDC) programme - is introducing a programmable, sovereign digital layer to domestic and cross-border payment rails. These structural foundations explain why the UAE consistently outpaces its regional peers in fintech investment, adoption and regulatory readiness.

A $52 Billion Market on an Accelerating Growth Curve

A new market study by Mordor Intelligence values the UAE fintech market at USD 52.07 billion in 2026, rising from USD 46.67 billion in 2025. The report projects further growth to USD 90.06 billion by 2031, representing a compound annual growth rate (CAGR - the annualised rate at which a value grows over a defined period) of 11.58%. The study covers 2020 to 2031 and characterises the sector as fragmented, with banks, fintechs, payment companies and technology providers competing across multiple service lines.

The headline figure reflects a broad definition of fintech market size, capturing transaction values across digital payments, lending, insurtech and investment platforms. Other research applies narrower measures but points to similar growth trajectories. Emirates NBD, citing Research and Markets data, estimates fintech assets under management will grow from USD 3.16 billion in 2024 to USD 5.71 billion by 2029. UAE fintech startups attracted around USD 265 million in funding in 2024 - roughly one-third of all startup investment in the country - according to Emirates NBD Group Head of Strategy, Analytics and Venture Capital Neeraj Makin.

Digital Payments - the Market's Dominant Segment

Digital payments are the largest and fastest-growing component of the UAE fintech market. Mordor Intelligence reports they accounted for 56.88% of total fintech market size in 2025, supported by instant mobile transfers, a large remittance corridor and rapid adoption of contactless and QR-based payment systems at the merchant level. Global payments company Thunes reports that contactless payments represent around 84% of all transactions in the UAE, with mobile wallets embedded in everyday settings from metro stations to luxury retail.

The UAE is also making significant progress on payment interoperability. Foreign wallet schemes including India's UPI, WeChat Pay and Alipay are accepted at thousands of UAE merchants, allowing travellers to pay with familiar apps while merchants settle in local currency. A national policy target of 90% cashless transactions by 2026 reinforces the direction of travel, and Thunes projects UAE payments sector revenues will reach USD 27.3 billion by 2028.

Two subsegments are growing faster than the overall market. Buy now, pay later (BNPL) - which allows consumers to split purchases into interest-free instalments - is forecast by Mordor Intelligence to expand from USD 4.25 billion in 2025 to USD 11.49 billion by 2031, at an 18.03% CAGR. Insurtech - technology-enabled insurance distribution and underwriting - is projected to grow at 13.91% annually to 2031, driven by API-enabled micro-policy issuance and embedded insurance partnerships such as Wio Bank's collaboration with the Shory insurance platform.

Open Finance, Regulatory Sandboxes and the Digital Dirham

The regulatory architecture supporting UAE fintech is among the most advanced in the region. The CBUAE's Open Finance Framework enables regulated data sharing and payment initiation between banks, fintechs and authorised third-party providers, all subject to customer consent. A Wamda analysis explains that the Nebras initiative goes beyond basic open banking to cover a broader set of financial data and services. McKinsey estimates cited in that report suggest the UAE's transition to open finance could add the equivalent of 1 to 5% of GDP - around AED 80 to 90 billion - in additional economic output by 2030.

The ADGM and Dubai International Financial Centre (DIFC) provide English common law frameworks, specialised fintech licences and formal innovation testing regimes. ADGM's RegLab and the Dubai Financial Services Authority's (DFSA) Innovation Testing Licence allow startups to test live products - such as remittance tools, digital wallets and lending applications - under supervisory oversight and with consumer protection safeguards in place. Thunes characterises the UAE regulatory environment as among the most fintech-ready in the world.

The Digital Dirham CBDC programme is adding a further dimension to the country's payment infrastructure. According to Thunes, the Digital Dirham is designed to introduce a programmable, sovereign digital layer to domestic payment rails as part of the CBUAE's broader Financial Infrastructure Transformation (FIT) programme. Cross-border CBDC payment corridors are already being tested with India, targeting instant, round-the-clock settlement for trade and remittance flows. Mordor Intelligence also highlights regulatory clarity around AED-backed stablecoins as an emerging catalyst for B2B invoice settlement and corporate liquidity management.

Cross-Border Payments and the UAE's Role in MENA

Cross-border payments and remittances are a structural pillar of the UAE fintech story. The country's large expatriate workforce, active trade corridors and global aviation connectivity generate high volumes of multi-currency flows that increasingly settle through digital channels. Mordor Intelligence estimates the UAE accounts for approximately 24% of total MENA digital payments transaction value. The broader MENA digital payments market is forecast to reach USD 462.41 billion by 2031, at a CAGR of 10.92%.

The Aani instant payments platform, with participation from more than 70 financial institutions, provides the real-time backbone for peer-to-peer and merchant payments and is being extended for cross-border services. Combined with ISO 20022-compliant messaging standards - which carry richer payment data across borders - and AED-backed stablecoin frameworks for corporate settlement, the UAE is building a multicurrency payments gateway linking Asia, Africa, Europe and the Americas. Thunes describes the UAE as "rapidly becoming a global payments hub," and notes that its infrastructure is designed for interoperability well beyond the domestic economy.

The wider MENA fintech market context adds further perspective. Mordor Intelligence values the regional fintech market at USD 6.35 billion in 2026, forecast to reach USD 11.46 billion by 2031 at a 12.52% CAGR. Within that landscape, the UAE hosts around 329 active fintech companies and captures the largest share of regional digital payments flows - a position reinforced by high per-capita income, a large expat base and a consistent record of regulatory innovation.

What Clients are Asking their Advisors

What is the Nebras open finance project in the UAE?

Nebras is the Central Bank of the UAE's open finance initiative, which enables regulated data sharing and payment initiation between banks, fintechs and third-party providers, subject to customer consent. It goes beyond standard open banking to cover a broader set of financial data and transactions. McKinsey estimates cited by Wamda suggest the framework could add the equivalent of AED 80 to 90 billion to the UAE economy by 2030.

How do international fintech companies get a licence to operate in the UAE?

International fintechs can apply for specialised licences through the Abu Dhabi Global Market (ADGM) or the Dubai International Financial Centre (DIFC), both of which operate under English common law frameworks. Innovation testing regimes - ADGM's RegLab and the Dubai Financial Services Authority's Innovation Testing Licence - allow firms to trial live products with real customers under supervisory oversight before seeking full authorisation.

How does the UAE buy now pay later market compare to the overall fintech market?

Buy now, pay later (BNPL) is a fast-growing subsegment within the UAE fintech market, allowing consumers to split purchases into instalments. Mordor Intelligence values UAE BNPL at USD 4.25 billion in 2025 and forecasts it will reach USD 11.49 billion by 2031 at an 18.03% compound annual growth rate - notably faster than the overall fintech market CAGR of 11.58%.

What are the main risks to UAE fintech growth forecasts through 2031?

Mordor Intelligence characterises the UAE fintech market as fragmented and low in concentration, meaning no dominant players have yet emerged to consolidate the sector - which can limit scale and increase operational complexity. Cross-border compliance obligations, evolving anti-money laundering and sanctions screening requirements, and intensifying competition from regional markets such as Saudi Arabia represent the main structural headwinds.