Dubai Partners Focus on Islamic FinTech

Announcements, Group, Innovation | July 17, 2017 By:

The Dubai International Financial Center (DIFC) and the Dubai Islamic Economy Development Center (DIEDC) have signed a memorandum of understanding (MoU) to develop Dubai as a global hub of Islamic FinTech.

The collaboration is part of DIFC’s commitment to Islamic finance under the 2024 Strategy (which aims to triple the organization in size)  and in line with the organization’s vision to create ‘Dubai: The Capital of Islamic Economy.’

Earlier this year, DIFC launched the FinTech Hive accelerator, which is intended to identify the best technology entrepreneurs and startups through a competitive process. The accelerator contributes to Dubai’s efforts to become the global hub of Islamic FinTech by providing a platform that brings financial firms and technology companies together in one collaborative, disruptive innovation supply chain.

The agreement includes an initiative to mentor participants in the field of Islamic finance technology in conjunction with institutions such as Emirates Islamic Bank, Dubai Islamic Bank, and Abu Dhabi Islamic Bank.

“With the global Muslim population expected to grow by 73% between 2010 and 2050, there will undoubtedly be a subsequent increase in the demand for Islamic Finance services both in the region and beyond,” said DIFC CEO Arif Amiri. “We are continuously investing in our world-class ecosystem at DIFC and that includes an infrastructure that is compliant and in line with best practice for Islamic Finance institutions. FinTech Hive at DIFC is committed to revolutionizing financial technologies across all core sub-sectors, and Islamic Finance is no exception. This MoU is an important and progressive step for FinTech, for the Islamic economy and for FinTech Hive at DIFC.”

“According to the State of the Global Islamic Economy Report 2016, commissioned by the Dubai Islamic Economy Development Centre, Islamic finance assets valued at around US $2 trillion are projected to reach US $3.5 trillion by 2021,” said DIEDC CEO Abdulla Mohammed. “However, within the maturing Islamic economy landscape, several segments still need to be tapped. These include mobile banking and payment systems, as well as small and medium business  financing. We are confident the FinTech Hive at DIFC will go a long way towards developing these high-potential segments, and are committed to supporting the accelerator programme to guarantee its success.”