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The UAE is emerging as one of the world’s major financial and technological hubs, attracting capital, businesses, and opportunities from around the globe.
However, as an international financial center, the UAE faces threats from financial crimes such as money laundering, fraud, and terrorist financing. To maintain its excellent reputation and continue attracting global capital, the country has implemented strict regulatory requirements and precautionary measures.
The regulatory technology sector (RegTech) offers efficient, robust solutions to strengthen compliance, enhance risk detection, and assist financial institutions in combating financial crimes.
Read more about: What is Regtech?
The RegTech market in the UAE is growing rapidly, driven primarily by demand from financial institutions, healthcare providers, and other sectors that must comply with increasing regulatory requirements.
According to Globe Newswire, the RegTech industry in the UAE is projected to grow by 28.3%, reaching an estimated market value of USD 258.04 million by 2024.
This growth trend is expected to continue, with a compound annual growth rate (CAGR) of 18.7% from 2024 to 2029, potentially bringing the industry’s value to approximately USD 608.5 million by the end of this period.
Non-compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations can have severe repercussions for individuals and businesses operating in the UAE.
The UAE government addresses this issue stringently, as compliance lapses could jeopardize the country’s reputation as a secure, politically stable, and economically attractive destination.
With the UAE handling international transactions and welcoming thousands of businesses and visitors daily, compliance failures put companies at risk of financial penalties and criminal investigations.
UAE authorities, under its visionary leadership, strictly enforce compliance and monitor transactions and activities across various sectors, including brokers, real estate agents, dealers in precious metals and stones, trust and company service providers, auditors, and legal advisors.
The UAE has established a comprehensive AML legal framework anchored in Federal Decree-Law No. 20/2018, aimed at effectively combating financial crimes. This decree, along with supporting guidelines from the UAE Central Bank, outlines stringent AML and CTF requirements.
These measures are bolstered by initiatives like the goAML platform, a government system dedicated to AML reporting.
Additionally, the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) have adopted parallel AML regulations, adding layers of oversight.
Through DIFC’s Financial Crime Prevention Team and ADGM’s Financial Services Regulatory Authority, these institutions provide dedicated frameworks that complement federal mandates.
The UAE government actively promotes collaboration in the RegTech sector through programs like the Dubai Future Accelerators, which links technology firms with government bodies to develop innovative compliance solutions, according to Regtech firm Zigram.
Also, The demand for RegTech is also driven by the UAE's focus on digital transformation, aligned with the government’s ambition to become a global leader in digital innovation as RegTech solutions leverage AI and blockchain tools to enhance data analysis and enable real-time transaction monitoring.
According to IFC Review, esteemed entities such as ADGM have already adopted RegTech software, while institutions like DIFC organize activities, events, and workshops to highlight the importance of regulatory compliance through innovative technologies.
These initiatives underscore the UAE's dedication to fostering a secure, forward-thinking financial ecosystem.
Several major RegTech companies, both local and international, are active in the UAE, specializing in AML and compliance technologies. Some prominent names include:
A global provider of compliance and payments solutions, EastNets specializes in AML, fraud detection, and financial transaction monitoring. Serving a broad range of financial and government clients, EastNets enhances compliance efficiency and risk management capabilities.
Provides RegTech solutions focused on compliance automation and customer onboarding, helping financial institutions streamline regulatory processes and bolster operational compliance.
Delivers compliance solutions for digital assets, especially suited to businesses in cryptocurrency and fintech that navigate complex regulatory landscapes.
The UAE’s RegTech market reflects the government’s ongoing efforts to integrate advanced RegTech solutions, sustaining its reputation as a secure, compliant financial centre poised for continued growth.
Disclamer:
This post is for educational purposes only, and the Firm does not directly or indirectly provide these services.
