Why regulation sits at the centre of the UAE’s fintech success story
Over the past decade, the UAE has steadily built one of the world’s most dynamic and successful fintech ecosystems, today punching above its weight on the global stage. Armin Ordodary, Managing Partner at regulatory consultancy Ordenco, explains how the country’s evolving regulatory framework has been a decisive factor in driving this success.
The story of the UAE’s fintech landscape is one of growth: what began as a handful of digital payment and remittance startups has evolved into a diversified ecosystem spanning diverse domains such as tokenisation, embedded finance, and digital asset infrastructure.
But behind this growth lies something deeper than innovation – regulation. The UAE has methodically reshaped its financial landscape through a robust framework designed to balance innovation with accountability.
From fragmentation to harmony
Unlike many markets governed by a single regulator, the UAE operates through a multi-layered model. The Central Bank of the UAE (CBUAE) regulates payments, stored-value facilities, and open finance initiatives. The Securities and Commodities Authority (SCA) supervises investment and crowdfunding activities.
Meanwhile, the Dubai Financial Services Authority (DFSA) and Abu Dhabi’s Financial Services Regulatory Authority (FSRA) oversee DIFC and ADGM respectively, each with tailored licensing regimes. Add to that VARA, Dubai’s dedicated virtual-assets regulator, and the UAE now offers one of the most comprehensive regulatory ecosystems anywhere in the world.
Far from creating red tape, this diversity has sparked competition and innovation. Through sandbox programmes, cooperation agreements, and harmonised standards, the UAE is building a system that encourages experimentation – in a responsible manner.
Compliance as competitive advantage
The full enforcement of the Payment Token Services Regulation and the expansion of the Open Finance Regulation in 2025 mark a turning point. Fintechs can no longer afford to treat compliance as an afterthought. Licensing, anti-money laundering readiness, data governance, and consumer protection must be engineered into the product itself.
The most successful fintechs are doing exactly that – using compliance to win investor confidence and accelerate scaling. Investors now actively prioritise governance, cyber resilience, and regulatory maturity when assessing valuation and risk.
How Ordenco is helping fintechs lead
At Ordenco, we’ve witnessed the evolution of the fintech landscape firsthand. The firm advises fintechs, payment providers, and institutional investors across the UAE and wider GCC on regulatory strategy, licensing pathways, and governance frameworks. Our approach blends deep legal expertise with strategic insight – enabling clients to navigate complex regulations, design compliant operating models, and build lasting alignment with regulators’ expectations.
As the UAE cements its position as a global fintech leader, one truth stands out: the companies that treat compliance as infrastructure rather than inconvenience will be the ones that endure.
