With an enabling framework for a vibrant fintech ecosystem already in place, it is only a matter of time, and awareness, before Abu Dhabi’s fintech market attracts more global talent and grows further, according to Hobeng Lim, director of Capital Markets Supervision at the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA).
“All the critical enablers are in place and we will continue to streamline our frameworks and listen to the market on what their needs are and take it from there. Once you build a new framework, it takes time to mature so you need events like the FinTech Abu Dhabi Festival to raise awareness of this globally,” said Lim.
“With the enabling pieces in place, with time in the market will grow and the market will come to Abu Dhabi,” he continued.
Abu Dhabi is working on attracting global start-ups through initiative such as ADGM’s Fintech Abu Dhabi Festival, which will see 100 fintech start-ups network and potentially set up offices in the nation’s capital.
But 85 percent of the 70 start-ups selected through The Search (an international roadshow that visits global fintech hubs and assesses solutions to include as part of the FinTech100, a list of the most sought out start-ups from around the world) so far are located outside the UAE.
“This highlights the importance of the FinTech Abu Dhabi event in bridging Abu Dhabi and the global fintech ecosystem and bringing these to Abu Dhabi,” said Lim.
Start-ups selected in FinTech100 will be invited to Abu Dhabi and given the opportunity to network with investors and showcase their products. The Search is one of the initiatives hosted by ADGM under the Fintech Abu Dhabi Festival.
Hobeng Lim, director of Capital Markets Supervision at the Abu Dhabi Global Market Financial Services Regulatory Authority.
Over the past few years, Abu Dhabi has focused on nurturing fintech talent and developed a three-factored framework to create “a vibrant fintech scene”, outlined Lim.
“The first factor is accessible funding, where ADGM enjoys very strong support from the Abu Dhabi government and investors. Other examples of some important funding programmes are Abu Dhabi sovereign wealth funds that provide funding to tech start-ups through Mubadala Investment Company, Abu Dhabi Investment Office (ADIO), and Abu Dhabi Catalyst Partners,” said Lim.
Lim also mentioned private sector investors and numerous venture capital companies as examples of funding avenues.
“World class infrastructure” is the second enabler Lim mentioned, giving the example of ADGM’s tech ecosystem Hub 71, accelerators such as Plug and Play and venture capitalists.
“But what has supported Abu Dhabi’s fintechs the most, in terms of infrastructure, is ADGM Digital Lab, an open API digital platform that enables financial institutions and fintech firms to test and co-develop fintech solutions in a neutral environment supervised by the FSRA,” said Lim.
“It basically helps fintech prototypes develop quickly and cheaply, without going through very lengthy procurement processes,” he continued.
The third enabler mentioned by Lim is enabling regulations which he said can “support rather than impede innovation”.
“We at the FRSA strive to be technology-inclusive yet risk-proportionate. I believe many regulators struggle with technology but we strive to have a close-contact industry, to understand how the technology works, what the pain points, and so on,” said Lim.
“Then we try to create regulations that are enabling and allow businesses to innovate, yet we still control for the risks,” he continued.
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