Over the past year, the UAE market has surged to an estimated value of $3.56 billion, with projections suggesting it could reach $6.43 billion by 2030. This growth — driven by a compound annual rate of over 12 per cent — reflects the country’s commitment to becoming a global fintech hub.
Fueling this expansion is a wave of investor confidence. In 2024 alone, UAE fintech startups secured $265 million, representing nearly a third of all startup funding in the country. The UAE also led the MENA region in overall startup investment, raising $1.1 billion across 207 deals, outpacing regional peers like Saudi Arabia.
Consumer behaviour is also shifting dramatically. A staggering 89 per cent of UAE residents now use digital-first bank accounts, signaling a mainstream adoption of fintech solutions.
Seeking to seize this opportunity, Revolut, the global financial app with over 60 million customers worldwide, has received in-principle approval for its Stored Value Facilities and Retail Payment Services (Category II) licences from the Central Bank of the UAE. This significant achievement signals Revolut’s plans to launch in the UAE, with the aim of offering a comprehensive product experience to retail customers.
The UAE represents a pivotal growth market for Revolut, driven by its dynamic economy, high digital adoption rates, and strategic position as a global financial hub.
Revolut’s outsider status creates a fascinating double-edged dynamic in the Middle East, analysts say.
Ali Nanji (left) and Saad Maniar
“For me, the real story isn’t “Will Revolut beat the banks?” It’s “Will banks move fast enough to close the experience gap while doubling down on what makes them trusted locally?” said Ali Nanji, Regional Sales Director - Middle East, Backbase.
On the positive side, they can leverage a pure challenger narrative that resonates with customers frustrated by slow, fee-heavy traditional banking processes. Their global multi-currency support and borderless accounts offer genuine advantages for the region’s massive expatriate populations and frequent business travellers – segments that local banks have often underserved.
More importantly, as an outsider unencumbered by legacy systems, Revolut can rapidly iterate and launch new features. This agility allows them to stay ahead of customer expectations in ways that many regional institutions struggle to match.
However, their outsider status also presents fundamental barriers that go beyond typical market entry challenges. The most significant is their inability to offer Sharia-compliant services, which isn’t just a product gap – it’s essential for mass-market adoption across GCC countries. Local banks don’t just offer Islamic finance as an option; it’s core to their value proposition for the majority of regional customers.
Additionally, Revolut faces integration challenges with domestic payment ecosystems like UAE’s UAEPASS and Saudi’s mada system. “Without access to these payment rails, Revolut can’t offer seamless domestic transfers, bill payments, and government services integration that customers expect. Perhaps most strategically, regional governments are actively prioritizing homegrown fintech ecosystems through initiatives like FinTech Saudi and DIFC FinTech Hive. This creates regulatory and market incentives that favor local challengers over foreign entrants,” Nanji said.
Revolut’s entry into the UAE market is a game-changer, offering customers unparalleled control over their finances through its intuitive interface and dashboard. “As a pioneer in fintech, Revolut’s existing customer base in the UAE will surely benefit from its innovative products and services targeted to the regional requirements. I am excited to see this forward-thinking company bring its expertise to the region,” said Saad Maniar, CEO of Baker Tilly in the UAE.
