UAE plays key role in the growth of FinTech sector in the region

Sajjad Ahmad, Deputy Business Editor

The two-day Dubai FinTech Summit highlighted new trends in the financial technology sector. Industry experts discussed the opportunities and challenges and explore new strategies in various panel discussions. The two-day Summit is hosted by DIFC was on May 8 – 9, themed ‘New Global Home to the Future of FinTech and Finance’, featured 5,000 global industry leaders including global policy makers, C-suite executives, entrepreneurs, investors and delegates.

The Summit has brought together over 100 exhibitors, 120 speakers and delegates representing over 50 countries. It was revealed during the event that the UAE is major diver of innovation and latest technologies due to its strategic location, world-class infrastructure and investor-friendly policies.

Philippe De Backer, Managing Partner and Global Practice Leader Financial Services at Arthur D. Little said, "The UAE has taken an extremely active approach to supporting the development of FinTech in the region and more broadly, both in terms of its ability to attract the right talent and capabilities as well as matching resources and infrastructure.

There are numerous initiatives led by different institutions which are clearly paying off and the success of the Dubai FinTech summit attests to the vibrancy and leadership of the UAE in the sector." He added, "Well beyond the usual initiatives which have proven their success in other parts of the world, the UAE is leading by creating the right ecosystem necessary for FinTechs to flourish by bringing at local and international levels all the necessary stakeholders.

Equally important is the foresight that the UAE leadership is demonstrating in understanding how to drive technology enabled business models." About the industry's challenges, Philippe De Backer said," As any new and fast developing sector, the FinTech industry faces the dual challenge of technology obsolescence and the business model relevance to targeted sectors.

We have seen in many markets particularly in North America, a number of firms well supported financially but where it is more technology in search of a business opportunity rather than trying to solve a business challenge and hence providing the right investment and deployment opportunity." "In the UAE, the opportunity for FinTech is to leverage its unique ecosystem in order to be a springboard for the broader region and strike the right partnerships more globally.

We have however a large number of newly founded FinTechs and the challenge will be to ensure that they can be brought to maturity and all the signs are very encouraging." On ADL support to Fintech sector, Philippe De Backer concluded," Ever since its founding in 1886, Arthur D. Little has always been built on two fundamental capabilities which are technology and innovation.

Very much in keeping with this tradition, ADL is helping FinTechs and other innovative technology enabled businesses in a variety of ways: consulting support as required to, helping FinTech through their entire life cycle from its inception to IPO and having individual partners being active in the fintech community and as advisors to a number of FinTechs."