How to Get Fintech Licence in UAE in 2025

The United Arab Emirates is no longer just a regional fintech player—it’s gone global. In 2022, fintech funding in Dubai’s DIFC alone soared past USD 615 million, and the number of active fintech firms jumped by 36%, reaching 686 companies. Fast forward to 2023, and the momentum didn’t just hold—it exploded. The UAE pulled in a staggering USD 1.3 billion in fintech investment across 54 deals, earning its spot as the sixth-largest fintech market in the world.

What’s driving this surge? A cocktail of pro-innovation government policies, world-class infrastructure, and startup-friendly incentives like 0% corporate tax on profits up to AED 375,000, and 100% foreign ownership in designated free zones. The country has also rolled out cutting-edge fintech sandboxes, regulatory testbeds, and digital-first banking frameworks—making it a prime destination for neobanks, payment platforms, robo-advisors, Web3 ventures, and everything in between.

But here’s the catch: the UAE’s regulatory terrain is not plug-and-play. With multiple jurisdictions like DIFC, ADGM, and VARA, each with their own rules, capital requirements, and licence categories, setting up a fintech company can feel like assembling IKEA furniture without the manual.

How to Start a Fintech Company in UAE - Step by Step

Step 1: Define Your Fintech Business Model

Before diving into the nitty-gritty of the application process, the very first step in how to start a fintech company in UAE is to clearly define your business model. This is crucial because the nature of your fintech operations directly influences the type of UAE fintech license you will need and which regulatory jurisdiction is most suitable.

Ask yourself: what kind of fintech company setup in UAE are you aiming for? Here are some common categories to consider:

• Digital payments or money remittance: If you plan to handle electronic payments or transfer funds, you’ll need a licence tailored to payment services.
• Digital banking or lending: For fintech ventures offering digital banking, credit, or lending services, the licensing requirements are more stringent and often require partnerships with established financial institutions.
• Crypto exchange or virtual assets: With the increasing popularity of cryptocurrencies, companies looking to operate crypto exchanges or manage virtual assets must comply with specific regulations, especially under jurisdictions like the ADGM and DIFC.
• Investment advisory or robo-advisory: If your fintech startup provides automated investment advice or wealth management solutions, you’ll need a fintech licence in UAE that covers asset management and advisory services.
• Crowdfunding platforms: For businesses that facilitate crowdfunding or peer-to-peer lending, licensing will focus on investor protection and compliance with financial laws.

Your choice here will determine whether to pursue a DIFC fintech license, an ADGM licence, or a mainland UAE licence. Each jurisdiction offers different regulatory frameworks, costs, and benefits for fintech company setup in UAE.

Step 2: Choose the Right UAE Jurisdiction

When it comes to securing a UAE fintech license and successfully completing your fintech company setup in UAE, choosing the right jurisdiction is absolutely pivotal. The licensing landscape in the UAE revolves primarily around three distinct options, each with unique regulatory environments, costs, and strategic advantages:

Dubai International Financial Centre (DIFC)

The DIFC fintech license is a top choice for fintech startups aiming for international reach and sophisticated financial services. Operating under an independent common law framework regulated by the Dubai Financial Services Authority (DFSA), DIFC is ideal for businesses involved in:

• Digital payments and money remittance
• Digital banking and lending
• Crypto and virtual asset trading
• Asset management and capital markets

DIFC boasts the famous Fintech Hive accelerator and provides access to over 400 global financial institutions, making it a fintech hotspot. The regulatory framework includes innovative licences such as the Innovate Licence and FinTech Testing Licence, which support experimental fintech models through regulatory sandboxes.

Abu Dhabi Global Market (ADGM)

The fintech license in UAE offered by ADGM is another heavyweight contender, governed by the Financial Services Regulatory Authority (FSRA). ADGM operates its own independent legal and regulatory system, heavily influenced by the UK’s FCA standards, making it extremely fintech-friendly.

ADGM is particularly strong in sectors like:

• WealthTech and InsurTech
• Digital banking
• Crypto and virtual assets

ADGM’s RegLab sandbox environment encourages innovation, and its close ties to global banks and venture capital firms create a fertile ecosystem for scaling fintech startups.

Mainland UAE

Mainland licences fall under the federal laws of the UAE and are regulated primarily by the Central Bank of the UAE and other local authorities. This jurisdiction suits fintechs focused on:

• Serving the local UAE market
• Operating in AED (dirham)-based economy
• Targeting government contracts or local corporate clients

Though mainland setups may come with stricter compliance requirements and sometimes higher capital thresholds, they offer direct market access and the ability to trade anywhere in the UAE without restrictions typical of free zones.

Why Jurisdiction Choice Matters

Your jurisdiction choice is more than just a checkbox—it shapes your entire fintech journey in the UAE. It impacts:

• The specific fintech license in UAE you apply for
• Capital and compliance requirements you must meet
• The timeframe and complexity of the licensing process
• Market access—whether you’re targeting local, regional, or global customers
• Eligibility for cutting-edge regulatory sandboxes and fintech innovation hubs
• Access to trusted banking partners to open your essential fintech bank account in UAE

Navigating these factors can quickly become overwhelming, especially if you’re new to the UAE’s complex regulatory landscape. This is where Binderr Concierge shines. Binderr doesn’t just connect you to service providers; it offers a human-led, personalised corporate support experience that guides you through choosing the ideal jurisdiction, securing the right UAE fintech license, and fast-tracking your fintech company setup in UAE.

Step 3: Incorporate Your Fintech Company in UAE

Once you’ve defined your fintech business model and chosen the right jurisdiction for your fintech company setup in UAE, the next crucial step is to incorporate your company formally. Incorporation is the legal foundation of your business, giving you a recognised entity to operate under your UAE fintech license and access vital services like a fintech bank account in UAE.

Incorporation involves registering your fintech company with the relevant authorities in your chosen jurisdiction—whether that’s the Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM), or mainland UAE. The process includes:

• Submitting the necessary paperwork and business documents
• Meeting capital requirements specific to your fintech licence category
• Appointing directors and shareholders as per jurisdiction rules
• Drafting and submitting your company’s Memorandum and Articles of Association
• Receiving your company’s registration certificate and trade licence

Each jurisdiction has its own timeline and documentation specifics, which can get complex fast, especially if you’re setting up a fintech entity with specialised regulatory requirements.

Step 4: Prepare Your Licence Application

Once your company is incorporated, it’s time to tackle one of the most critical (and heavily scrutinised) steps: preparing your fintech licence application. Whether you’re applying for a DIFC fintech license, an ADGM fintech licence, or a Central Bank-regulated licence on the mainland, the quality and completeness of your submission will make or break your approval chances.

This step can be especially complex for startups entering the UAE market for the first time, which is exactly why many founders choose to work with experts like Binderr Concierge to ensure a smooth, fully compliant process.

Key Documents and Requirements

Here’s what most regulators—DFSA (DIFC), FSRA (ADGM), or the Central Bank—expect in your application:

• Detailed Business Plan and Financial ForecastsYour business plan must clearly outline your fintech model, target market, pricing structure, revenue streams, and competitive advantage. It should be supported by 3–5 years of financial projections, showing viability, sustainability, and scalability under different growth scenarios.
• AML/KYC and Compliance PoliciesUAE regulators take financial crime prevention very seriously. You’ll need to provide robust Anti-Money Laundering (AML), Know Your Customer (KYC), and Counter-Terrorist Financing (CTF) frameworks that align with UAE laws. This is essential for obtaining a fintech license in UAE, especially in high-risk areas like crypto or cross-border payments.
• Fit and Proper Test for Key PersonnelYou must demonstrate that your founders, directors, and senior executives are "fit and proper"—meaning they have clean financial and legal backgrounds, relevant experience, and no history of regulatory breaches. Their CVs, background checks, and professional references will be reviewed.
• IT and Cybersecurity FrameworksAll fintech companies must show how they will safeguard client data, transactions, and infrastructure. Regulators expect clearly documented IT architecture, cybersecurity protocols, data encryption standards, incident response plans, and third-party risk management processes.

Risk Management and Governance StructuresDefine your internal control mechanisms—how you identify, monitor, and mitigate operational, financial, regulatory, and tech-related risks. Strong governance practices, board oversight, and independent audits can significantly improve your chances of approval.

Step 5: Submit Your Application to the Regulator

Once your documents are in order, it’s time to formally submit your application for a UAE fintech license. The regulator you submit to will depend entirely on the jurisdiction you’ve chosen for your fintech company setup in UAE:

• DFSA (Dubai Financial Services Authority) — for those applying under the DIFC fintech license route.
• FSRA (Financial Services Regulatory Authority) — the regulator of Abu Dhabi Global Market (ADGM).
• Central Bank of the UAE — for fintech firms setting up on the mainland and operating in areas like payment services, lending, or crowdfunding.
• VARA (Virtual Assets Regulatory Authority) — for crypto-focused fintechs based in Dubai World Trade Centre.

Many regulators also offer Innovation Testing Licences (also called sandbox or experimental licences), especially through DIFC and ADGM. These allow early-stage fintechs to test their products in a controlled environment before full-scale approval. It’s an excellent pathway if your model is unproven or you’re trialling something disruptive like a DeFi product, AI-led trading system, or new cross-border remittance protocol.

Step 6: Meet Capital and Operational Requirements

After submission, regulators will assess whether you have the financial and operational muscle to back your licence. In most cases, your approval will be conditional on meeting these minimum requirements:

Capital Requirements (Indicative Ranges)

Minimum paid-up capital depends on your licence type, business activity, and chosen jurisdiction. For reference:

• Innovation Testing Licence (DIFC/ADGM): from USD 50,000 to USD 200,000
• Full Regulatory Licence (e.g. payments, lending, asset management): from USD 250,000 to over USD 2 million
• Crypto Exchange Licence (VARA or FSRA): typically starts around USD 500,000 to USD 1 million+, depending on volume and custody risks

These funds must be deposited in a corporate fintech bank account in the UAE, which can be a sticking point for startups—especially those in higher-risk segments like crypto, remittances, or digital lending.

Operational Requirements

In addition to capital, you must also:

• Secure a physical office in your chosen jurisdiction (free zone or mainland)
• Hire key personnel such as a compliance officer, MLRO (Money Laundering Reporting Officer), and potentially a local director
• Implement internal controls around compliance, audit, IT, and governance
• Set up your tech stack to comply with cybersecurity and data localisation standards

Step 7: Opening a Fintech Business Bank Account in the UAE

One of the most underestimated hurdles in the fintech company setup in UAE journey is opening a business bank account. While getting your UAE fintech license is a significant milestone, securing a fully functional fintech bank account in UAE can be just as challenging—and often takes just as long.

Why? Because fintechs are considered high-risk by traditional banks. Whether you're launching a crypto exchange, a digital lending platform, or even a remittance service, your business model typically involves handling client funds, processing transactions, and operating under strict regulatory frameworks—all red flags for risk-averse compliance departments.

The Harsh Reality: Delays and Denials Are Common

A recent industry whitepaper revealed some sobering statistics:

• Average time to open a business bank account in the UAE: 63 days
• 30% of fintech startups fail to open a UAE bank account at all
• Venture-backed fintechs with complex shareholding structures wait up to 105 days or more

Even startups with a DIFC fintech license or ADGM authorisation aren’t immune. Banks often apply the same level of scrutiny regardless of licensing, especially when crypto, cross-border payments, or non-resident shareholders are involved.

• How to Improve Your OddsTo increase your chances of success, approach banking like a pitch—not a formality. Here’s how to do it right:
• Engage With Banks EarlyInitiate conversations before you submit your licence application. Banks like to see that you’re thinking ahead and treating compliance seriously.
• Prepare a Solid Documentation PackThis should include:

• Your regulatory licence (or confirmation of application)
• Business plan and financial forecasts
• Detailed ownership structure (including UBOs)
• Enhanced due diligence (EDD) documents like AML/KYC policies
• Sample transaction flows, client onboarding procedures, and risk assessments

• Be Transparent About Your ModelExplain your fintech activity clearly—how you make money, how you manage risk, and how you stay compliant. If your licence permits certain activities, highlight how your operations stay within those boundaries.

Target Fintech-Friendly BanksSome banks in the UAE are now actively building fintech onboarding programs—particularly digital banks and neo-banking platforms. These institutions tend to offer quicker onboarding, less bureaucracy, and APIs for smoother integration.

Step 8. Launch and Ongoing Compliance

Once your fintech licence is in hand and your bank account is active, you’re ready to launch. But your regulatory obligations don’t stop there.

To remain compliant, you’ll need to:

• Submit regular financial and activity reports to your regulator (e.g. FSRA, DFSA)
• Maintain robust AML/KYC systems and keep documentation updated
• Renew your licence annually and meet Economic Substance Regulations (ESR) where applicable
• Ensure ongoing VAT registration and filing, if relevant
• Keep your IT systems secure and aligned with data protection norms like DIFC’s DP Law or ADGM’s DPL 2021

Neglecting compliance? That’s how fintech dreams die early. Hire professionals, document everything, and stay two steps ahead of your regulator.

Estimated Costs for UAE Fintech Company Setup

Setting up a fintech company in the UAE comes with wide cost variations depending on jurisdiction, business model, and the level of regulatory oversight involved. Here's a ballpark breakdown:

💡 Tip: For leaner fintech models—especially crypto or Web3 ventures—RAK DAO and DWTC provide lower startup costs and faster onboarding compared to DIFC and ADGM.

UAE Fintech Licence Setup Timeline

Total Estimated Timeline: 4 to 9 months

• Lean, crypto-native startups (e.g. setting up in RAK DAO or DWTC): 3–5 months
• Fully regulated fintechs (DIFC, ADGM with FSRA/DFSA licence): 6–12 months

Key Takeaways and Next Steps

The UAE fintech scene is booming. Government initiatives are supportive, VCs are active, and the MENA fintech market is projected to double to $266.9 billion by 2027.

The UAE already hosts over 25% of all MENA fintech firms.

By obtaining your licence now, you position your company at the centre of this massive regional opportunity. Yes, it’s a journey—one that demands patience, strategy, and grit. But the reward?

• 2025 is the year to build fintech in the UAE. The ecosystem is strong, the regulators are proactive, and the capital is flowing.
• But don’t wing it. Carefully match your business model with the right jurisdiction—whether that’s DIFC, ADGM, DWTC, or RAK DAO.
• Take advantage of innovation hubs like the DIFC Innovation Hub and ADGM RegLab—they’re built to help startups succeed.
• Expect 6–12 months from concept to full operation. That’s realistic if you include licensing, compliance, hiring, and banking.
• A rock-solid business plan (3–5 years), strong compliance setup, and experienced advisors are not optional—they’re your ticket in.

Banking is a bottleneck. UAE banks are cautious. Start the process early, especially if you’re high-risk or crypto-related.

Bottom Line

Setting up a fintech company in the UAE in 2025 is no longer reserved for the big banks and VC-backed unicorns. With free zones like DIFC and ADGM offering clear, progressive frameworks, and crypto-friendly jurisdictions like DWTC and RAK DAO rolling out the red carpet for Web3 startups—the UAE has evolved into a sandbox with bite.

But let’s be honest:The regulations are dense.The licensing landscape is complex.And compliance? Absolutely unforgiving.

That’s where Binderr Concierge comes in. It helps you choose the right structure, match with the best free zone or regulator, fast-track your company formation, and even find fintech-friendly banks that actually want your business.

Ready to start?Book a free consultation with Binderr and get your UAE fintech journey off the ground—without the red tape.