- What, in your opinion, are the most significant achievements in the FinTech sector between the UAE and Israel within DIFC?
The establishment of bilateral relations between the two countries is hugely significant. The ability of Israeli FinTech firms, such as Rapyd, to use Dubai to attract global talent for their business and to use Dubai and the UAE as a base for their regional expansion – are the two most significant achievements within this sector.
- Can you elaborate more on this project?
Rapyd’s recent registration and upcoming authorisation by the Dubai Financial Services Authority (DFSA), the independent regulator of financial services conducted in or from DIFC, ushers a new era of cooperation and normality between Israel and the UAE. Rapyd’s interest in attracting top talent to Dubai has upended the regional talent conversation by demonstrating how quickly and efficiently technology firms can attract and onboard talent in Dubai. This implies the ability of global and regional firms to scale, which is critical in FinTech. Rapyd will also bring the future of FinTech to Dubai by providing local merchants with cutting-edge solutions to send, receive and simplify payments in the region and worldwide.
- According to you, what are the new opportunities that the Abraham Accords have brought?
Achieving normalcy in the relationship between Israel and the UAE (and other Abraham Accords signatories) is the paramount goal. This normalcy will further lead to opportunities in FinTech; payments; cybersecurity; travel and tourism; food technology and security; healthcare and biotech, among other areas. I expect an increase in capital flows into each country as investors become more comfortable in deploying capital into these areas and opportunities.
- What are the most promising opportunities for Israeli tech companies in the Gulf region?
Not surprisingly, Israeli tech firms have long viewed the US as its primary source of capital and growth since the US is the largest market in the world. A subset of Israeli tech firms possesses business models and technology that are highly relevant to emerging/growth markets. Opportunities exist in payments, identity verification, RegTech, cybersecurity, healthcare, food-tech and agriculture.
- What are the main trends in the sphere of FinTech innovations in the Middle East?
The fastest growing FinTech sectors in the Middle East are payments, Metaverse and distributed ledger-enabled businesses, such as Crypto, digital assets and NFTs. We are also seeing a deepening of payments’ volumes and the development of open banking platforms. Dubai and the UAE have taken the lead in developing new business models in the Metaverse and the Emirate has the ambition of becoming a world leader in Crypto, with multiple regulators, such as the DFSA, already in the process of establishing regulatory frameworks.
- What would be your prediction for the following year regarding the Gulf-Israel business cooperation?
I predict a steady increase in bilateral business relations and deals. I also see an acceleration in the number of Israeli FinTech firms coming to Dubai, particularly in the wake of firms, such as Rapyd and Thetaray, being registered here in DIFC.
- What would you say to an Israeli business considering moving to Dubai?
First, I would reiterate the important message of welcome and friendship. I would say that Dubai is open for business, and we, at DIFC, look forward to building deep and long-lasting friendships and partnerships with our Israeli counterparts. Second, I would suggest that it is important to understand the local business and cultural environment, like with any other new market in the world. Third, they should consider speaking to a qualified advisor, including law firms and other consulting firms. Fourth, I would strongly recommend them to visit Dubai and get familiar with the environment, including its world-class infrastructure. Lastly, I would suggest they exercise due diligence on the various areas in which they can establish business and carefully assess the pros and cons of each.
DIFC is nearly 20 years old and is the only financial free zone with independent English Common Law courts and legal system in Dubai. Some of the world’s largest and most reputable firms call DIFC home and more than 30,000 people from over 4,000 firms have made the decision to work at the Centre.
