Start-up Ziina innovates with UAE Central Bank licence
Ziina, a pioneering fintech start-up, has recently announced its acquisition of the Stored Value Facility (SVF) licence from the UAE Central Bank. This achievement marks a significant milestone for Ziina, as it is one of the few privately-owned fintech companies in the UAE to secure such authorization. This development aligns with the UAE Central Bank’s strategy to foster innovation, promote financial inclusion, and support economic growth, thereby reinforcing the nation’s commitment to becoming a global leader in the digital economy.
The SVF licence will empower Ziina to offer a comprehensive suite of financial services. These include business and consumer accounts, peer-to-peer payments, bill pay, external payment link issuance, QR codes for remote point-of-sale transactions, and prepaid card services. Ziina will also serve as a principal member of networks such as Visa and Mastercard, offering Banking Identification Number (BIN) sponsorships. These services aim to support over 557,000 businesses, enhancing operational efficiency and fostering growth.
Small and Medium Enterprises (SMEs) constitute 94 percent of all companies in the UAE and contribute 63.5 percent to the non-oil gross domestic product (GDP). Despite their significant role in the economy, SMEs often face cash flow challenges, primarily due to delayed client payments. Ziina’s expanded services are designed to address these challenges, providing businesses with the necessary tools to enhance operational efficiency and stimulate growth.
Promoting financial inclusion and cashless transactions
The UAE is rapidly transitioning towards a cashless society, with SMEs playing a crucial role in this shift. As per estimates, 60 percent of consumers plan to go cashless by 2024. The digital payments market in the MENA region is projected to reach $9 billion by 2028, marking a 124 percent increase from 2021. This growth is driven by convenience and accessibility. Current trends in the UAE indicate a strong preference for credit cards and digital wallets, particularly for online transactions. The popularity of payment options like Buy Now Pay Later is on the rise, aligning with the expanding e-commerce sector.
Faisal Toukan, CEO and Co-Founder of Ziina, underscored the significance of the license, stating, “Securing this license is a monumental step for us, reinforcing our commitment to the highest standards of compliance and security. The UAE’s Central Bank has outlined a bold vision for financial technology, and we are thrilled to work closely with their team to support this vision. This regulatory approval allows us to expand our services further, strengthening our role as a dedicated financial partner for SMEs—the true backbone of the UAE’s economy—by offering them a fast and secure way to send, receive, and grow their money.”
Milestone achievement for fintech in the UAE
As part of the UAE’s ambitious digital economy strategy, the country aims to double the digital economy’s contribution to its GDP from 9.7 percent in 2022 to 19.4 percent within the next decade. This strategy demonstrates the UAE’s commitment to becoming a global hub for digital innovation and economic growth. Ziina’s growth is fuelled by the UAE’s robust infrastructure, extensive connectivity, and dynamic entrepreneurial environment. The Central Bank’s nine-pronged Financial Infrastructure Transformation (FIT) Programme, which includes initiatives like a domestic card scheme and an instant payments platform, aims to support financial inclusion and enable a cashless society through digital payments.
Ziina’s suite of financial services is designed to support businesses at every stage, fostering an ecosystem conducive to long-term success and growth. The Ministry of Economy projects that the number of SMEs will increase to over 1 million by 2030, further highlighting the importance of dependable financial services.
In addition to securing the licence, Ziina is reportedly in the process of raising a substantial financing round from institutional investors. This funding is intended to support Ziina’s growth strategy throughout the Middle East, further strengthening its ability to offer essential financial services to the region’s economic landscape.
