UAE Finance Industry

Over the years, the UAE’s finance industry has evolved significantly and quickly. As such, it rides global trends, but only a few have a significant or lasting impact. We have compiled a list of notable trends that have steadily continued to rise. Current trends indicate a strong emphasis on sustainability and digital innovation, among other things.

Besides, the UAE has been targeting economic diversification for years now. This is supported by the recent rise in IPO activity. Local mammoths like Lulu Group and Talabat have tossed their IPOs into the rung, spurring consumer attention and interest. The local finance industry has emerged as a force to be reckoned with. Whether you’re scoping trends in the UAE finance industry or looking to grow your career, here’s where to focus.

Green Finance and Sustainability Integration

Within the Middle East, the UAE finance industry is a pioneer in sustainability. Initiatives such as the UAE Green Bond program are working to align with the UAE’s Net Zero by 2050 strategy. The strategy itself emphasizes programs targeting the transport, power, construction, and agriculture sectors, among others. Besides, governmental support has motivated banks and corporations to direct investments toward renewable energy and sustainable projects.

This focus on sustainable finance has encouraged the UAE finance industry to embrace environmentally responsible financial practices. It is worth mentioning that the country has been expanding it’s non-oil investments heavily in recent years. Thus, it is transforming traditional banking models. A noteworthy mention is the banking giant Emirates NBD committing funds to sustainable projects like Neom Green Hydrogen Park. Further, the nation touched a record $10.7 billion in green bond sales, signalling a 170% increase from before.

Digital Banking Transformation

The UAE finance industry leads the region as a powerhouse. Within it, the banking sector has seen a surge in digital transformation. However, the recent adoption of AI based financial solutions, and blockchain for secure transactions are changing things up. These changes are being thoughtfully implemented via employee training programs across banks.

Additionally, digital wallets like Apple Pay are reshaping the consumer banking experience. Meanwhile, the surge in IPOs will soon increase the need for credentialed specialists in the industry. In fact, the local banking sector is expected to reach $175.7 billion by 2029.

Circling back to digital banking itself, there has been a rise in ‘buy now pay later’ (BNPL) transactions. The UAE finance industry has always been impacted by digital payment methods. As smartphones become the norm, this trend has only intensified. A Zawya article revealed that 2024 saw an increase in online purchases. Further, it stated that cash payments account for as little as 10% of payment methods.

Record Banking Growth

The UAE finance industry has served as the region’s financial hub for decades now. With around 60 national and international banks active in the country, we can understand why. However, the UAE’s banking sector reached a historic milestone in July 2024, with capital reserves exceeding AED 502.6 billion. This growth would have been impossible without the government’s support. It can be credited in part to the nation’s increased IPO activity. However, we should also acknowledge the Golden Visa and longer-term visas for increased investments and trade.

A WAM report revealed a 10.5% growth in banking capital and reserves between 2023-2024. Further, we’d like to highlight that Abu Dhabi has the largest sovereign fund in the world. Valued at $1.7 trillion, the stable financial environment it provides enhances innovations and funding. The UAE finance industry is poised to thrive more in the coming years.

RegTech: The Rise of Fintech

The global fintech boom has manifested in the UAE finance industry, thanks to clearheaded government reforms. These new regulations support fintech innovation like digital payments, blockchain solutions, and neobanking (like ENBD’s Liv app or Mashreq’s Neo). Thus, the UAE strengthens its position as a regional hub for financial innovation.

RegTech refers to regulatory technologies to monitor and report on compliance. As the nation invests in RegTech, intercountry transactions are expected to get safer and easier. As the UAE finance industry thrives, qualified specialists are increasingly viewed as valuable assets to a business. An MBA in Finance would aid smart professionals in comprehending, breaking into, and succeeding in the sector with ease.

Financial Inclusion

Perhaps we cannot fully understand the UAE finance industry without understanding what digital inclusion is. Digital financial inclusion is the process of ensuring that everybody has access to digital banking and services. Regardless of community, class, or location. Financial inclusion has been a key facet of the nation’s industry progress. The UAE handled it with aplomb through a series of regulatory initiatives. Together, they incentivize cost-effective services and banking solutions. Gradually, digital and mobile banking solutions have been bridging gaps.

Secondly, the country has been actively updating laws to support the growing number of SMEs. CBUAE reported that SMEs represent 94.4% of companies running in the UAE in 2022. Apart from cultivating a vibrant SME ecosystem, the UAE finance industry offers customized solutions to support them. An interesting point to note is that specialists with Master’s level qualifications could benefit from catering to SMEs.

The Perfect Credential: An MBA in Finance

These five trends are a few among others, like Islamic banking. Given the rapid disruptions in the market, there is a continuous need for skilled professionals in the UAE finance industry. An MBA in Finance would be the perfect entry point into the rapidly growing, exciting UAE finance industry. It would help learners gain advanced, specialized knowledge and expertise.

Over the past decade, we have equipped thousands to succeed in the UAE finance industry. Armed with an MBA in Finance from York St John University, they have taken the industry by storm. We’re quite proud of what our UK-accredited, fully online programs have achieved. Further, they teach learners to be leaders, often resulting in promotions or management roles. If you’re ready to elevate your career in the UAE finance industry, connect with our experts today. Applications are open for the upcoming intake.

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