FinTech & Digital Transformation
We are working tirelessly to sustain an advanced, modern, future-ready financial system across the UAE.
FinTech Office Overview and Mission:
Launched by The Central Bank of the UAE in 2020, the FinTech Office aims to build a mature FinTech ecosystem in the UAE and position the UAE as the foremost FinTech hub regionally and globally. It works with key stakeholders to develop a FinTech ecosystem with five pillars: 1) Demand, 2) Capital, 3) Policy, 4) Talent, and 5) Infrastructure. The FinTech office has launched initiatives targeting each of the five pillars for which a range of initiatives are underway currently.
FinTech Strategy
The FinTech Office is mandated to implement the UAE’s FinTech strategy which is centred on innovation and collaboration. The FinTech Office will achieve this by working with industry and regulatory authorities to ensure a central role for innovation and digital transformation and the promotion of a culture of robust risk management. This commitment is backed by two key elements: effective and balanced regulations, and robust digital infrastructure. These form a solid foundation for the five core strategic focus areas that will engender continued FinTech innovation and development in the UAE.
Our FinTech Office follows five strategic focus areas that form the building blocks for a strong and sustainable FinTech industry in the UAE. The FinTech Office plays a key role in these focus areas:
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Regulatory interface
This interface between market participants and regulators within the CBUAE includes a regulatory sandbox, innovation hub, regional dialogue and industry surveys.
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Talent development
A facilitator to nurture talent to meet the growing needs of the FinTech sector — achieved through a talent development programme and career accelerator scheme.
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National and cross-border collaboration
The FinTech office maintains partnerships with key onshore and cross-border stakeholders through co-operative agreements, cross-border projects, international committees, taking part in the Global Financial Innovation Network and similar activities.
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Co-ordination and liaison
The FinTech office represents a platform to promote the exchange of ideas on innovative FinTech initiatives with key stakeholders. This includes committees that allow major stakeholders to meet and discuss ideas, and events and accelerators aimed at overcoming FinTech challenges jointly.
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Research and application
An initiator of industry research into the potential application and risks of FinTech solutions, this aspect includes cyber-security, distributed ledger technology (“blockchain”), trade finance, e-payment, artificial intelligence, and know-your-customer services.
Our FinTech Office works with industry stakeholders and other regulatory authorities in the UAE to maintain a progressive and secure FinTech sector. By achieving this, the UAE continues to attract international and regional FinTech companies, providing them with a platform where all market participants can collaborate and innovate together.
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ADGM
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DIFC
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HKMA
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Global Finance Innovation Network (GFIN)
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BIS innovation Hub (Project mBridge)
FinTech Regulatory Development
Guidelines for Financial Institutions adopting Enabling Technologies
CBUAE, with the SCA, DFSA, FSRA (collectively referred to as “Supervisory Authorities”), issued “Guidelines for Financial Institutions adopting Enabling Technologies” (“the Guidelines”). Their purpose is to provide a set of principles when using enabling technologies in financial services and accompanying guidance. The key principles are broad enough to cater to different business models, operating systems and financial services offered by existing organisations operating in, and new entrants to, the financial services sector. The key principles are accompanied by more detailed guidance for institutions to consider when using enabling technologies.
Sandbox initiatives
The CBUAE has developed regulations to introduce a co-sandboxing arrangement, which provides harmonised regulatory requirements and procedures for entities looking to launch a FinTech solution in both onshore and financial free zones.
Central Bank Digital Currency
The FinTech Office at the CBUAE is researching the impact of new technologies on the financial sector. One of the major development areas in this field involves central bank digital currencies (CBDC). The CBUAE was involved in two major projects with other international central banks and entities, which reflect its goal of understanding better how technology is shaping the financial industry.
Project ABER
Launched in 2018 to explore and evaluate the capabilities and challenges surrounding distributed ledger technology (DLT – also known as “blockchain”).
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mBridge
The CBUAE together with the Bank for International Settlements, Innovation Hub Centre in Honk Kong, the Hong Kong Monetary Authority, the Bank of Thailand, and the Digital Currency Institute of the People’s Bank of China have issued the first Multiple CBDC Bridge (mBridge) Project report - a major milestone of international trade payment project, and a step closer to making cross-border trade payments easier, safer and in real-time,
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Other CBDC Projects
Money and payment systems are evolving faster than ever - a result of the rapid development and increased accessibility of technology. Presently, 67 Central Banks around the globe are engaged in CBDC research, proofs of concept and pilot projects. To keep up with these developments, the CBUAE has engaged in CBDC research since 2018. In addition to the wholesale, cross-border CBDC projects ABER and MBridge, the CBUAE is examining different technologies options and implementation models actively for a retail domestic CBDC. This research focusses on selecting the most suitable technology and implementation model for the UAE to maximize the benefits and mitigate potential risks.
Payments and Settlements
Digital Infrastructure Development
A significant digital transformation is in progress at CBUAE, including the financial, monetary and financial services systems within the UAE. To support this, CBUAE has identified a number of focus areas in its digital transformation journey.
CBUAE conducted a series of workshops and research activities on the need for a nationwide platform to automate and streamline the onboarding and ongoing customer due diligence process for all customer segments.
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Open Finance will unlock opportunities for customers to access, understand, use, and switch financial services and products available in the UAE. The key development is that customers will be able to engage with financial services via third party providers (TPPs), rather than solely through the institutions that currently offer these products and services. This shift will act as a catalyst for digitization, innovation, embedded finance, interoperability in addition to enhanced competition, transparency, and service aggregation.
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Data sharing will empower customers to share personal and financial information with licensed TPPs, enabling personalized services such as financial planning, insurance quotes, and banking metadata analysis. Service initiation, on the other hand, will allow customers to initiate specific actions such as payments, account openings, and even foreign exchange deals via TPPs, delivering a more seamless and accessible financial experience. The global trend of opening data and services through APIs has gained traction across various industries, with notable examples including Open Banking, Open Energy, and Open Transportation. The CBUAE aim to adopt these principles and apply them across the financial services ecosystem in the UAE to create digital solutions that drive economic growth and empower individuals.
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Aligned with the UAE’s Strategic Plan 2023-2026, CBUAE is committed to spearheading the digital evolution of UAE financial services by leveraging an extensive network of fintechs (TPPs) utilizing APIs layered on top of financial services. Building on successful implementations in other countries, focused on Open Banking APIs, CBUAE seeks to expand into emerging areas like Open Insurance and explore innovative territories such as Open FX. To maintain customer trust, CBUAE will ensure a secure and well-regulated service framework supported by a streamlined licensing process. CBUAE will also create an API hub—a centralized platform for API aggregation available to all LFIs within scope. The Trust Framework will enable real-time authorization of licensed TPPs to actively participate in the Open Finance ecosystem.
This initiative aims to facilitate the development and operation of a secure, robust and scalable financial cloud infrastructure to support growth and innovation in the financial sector, and to extend the service and support to the MENA region.
CBUAE is working actively to explore and develop new initiatives to support the UAE economy and financial sector development.
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Last updated on: Wednesday 29 January 2025
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