The financial industry in Dubai is having difficulty navigating more complicated laws. This has contributed to the growth of RegTech, cutting-edge technology that addresses compliance issues. RegTech companies guarantee compliance with national and international laws by offering software solutions for risk management, KYC processes, and AML compliance. This is essential for the thriving finance sector in Dubai. The RegTech business is being driven by Dubai’s aspirations to become a global financial hub and its changing regulatory environment. Dubai’s leadership in this field is further cemented by the emphasis on financial innovation. Read this blog to know more!

In order to increase regulatory awareness, Moltazim, a Saudi-based RegTech Compliance solution, unifies all laws, regulations, and government agencies onto a single platform. Through cloud-native software product engineering solutions, the platform assists in guiding each company to the relevant regulations. Each entity will be guided to the relevant regulations by utilizing the activities listed in the commercial registration. By streamlining and automating the compliance process through RegTech for FinTech, Moltazim offers a straightforward route to regulatory compliance, making rules more comprehensible and quantifiable.

The first RegTech business to receive a license in the DIFC is Amani AI. From identity and age verification to KYC and AML compliance, video onboarding, biometric login, right-to-work, and rent checks, the organization offers an extensive array of solutions to expedite the onboarding process. By using software product engineering services, the company is creating a complete RegTech ecosystem in Dubai.

Azakaw is a cloud-based platform that is next-generation, comprehensive, adaptable, and AI-enabled. It is situated in the United Arab Emirates and helps transform compliance into a competitive advantage and increase profitability. The platform of the FinTech software development company provides risk management, audit management, complaint handling, transaction monitoring, audit compliance, and business compliance.

(Source: IBS Intelligence)

The Growing Demand for RegTech

According to Juniper’s most recent RegTech research, global spending on regtech by financial institutions and other businesses is expected to rise from $83 billion in 2023 to $124 billion by 2028. Corporations are adopting a variety of innovative technologies to facilitate compliance as a result of more complex regulatory requirements. The usage of shared blockchain ledgers to enhance anti-money laundering measures and fraud compliance at bitcoin exchanges are examples of new strategies.

The global regtech market is expected to develop at a compound annual growth rate (CAGR) of 23.6% from 2024 to 2032, from a valuation of USD 12.82 billion in 2023 to USD 15.80 billion in 2024 and USD 85.92 billion by 2032. The market is expanding due to a number of factors, such as the quick uptake of cutting-edge technology and the necessity for companies to comply with ever-more-complex regulatory requirements. Dubai FinTech regulations are witnessing a better alignment as they continue to invest in RegTech.

How RegTech is Empowering Dubai’s Growing FinTech Ecosystem

The amazing rise of software development services in Dubai and its RegTech market can be attributed to the increased complexity of regulations and the increasing demand for risk management and compliance. Dubai has been fortifying its financial regulatory framework, and companies are seeking cutting-edge technological solutions to effectively maneuver across this complex terrain. RegTech firms in Dubai also provide cutting-edge software and solutions to help businesses comply with regulations, carry out KYC (Know Your Customer) procedures, and manage financial risks. The RegTech market is expected to be crucial in assisting firms in adhering to both local and international rules as the financial industry in the United Arab Emirates continues to grow and regulatory compliance for FinTech startups becomes mainstream.

Regtech’s broad reach allows it to be applied in a variety of use cases and financial services industries in Dubai, ranging from identity verification to comprehensive transaction monitoring and screening. Regtech solutions are a huge help with AML compliance, which includes following rules and submitting accurate reports. It’s a great way of simplifying compliance with RegTech.

Here’s how RegTech solutions are streamlining operations for startups and fintech companies in Dubai – 

  1. Customer Identity Verification
    “The purpose of the joint guidance was to encourage financial institutions to use technology to assist with the collection and verification of customer identity,” stated Bryan Stirewalt, CEO of the Dubai Financial Services Authority, during a webinar organized by the Dubai International Financial Centre.

    Banks and other financial institutions have made significant strides in know-your-customer (KYC), anti-money laundering, and customer onboarding thanks to regtech applications. Grand View Research, a consulting firm, projects that the worldwide regtech market will grow to US$55.28 billion by 2025. Regtech businesses and software services company in Middle East, which are part of the growing fintech sector, provide technology that frequently combines artificial intelligence (AI) and robotic process automation (RPA) to assist financial institutions in meeting regulatory obligations more quickly and effectively than they could with conventional compliance procedures.
  2. Detecting Financial Frauds
    Through the introduction of AML law, the UAE has lately reiterated its commitment to combating financial terrorism. It has moved in the direction of regulatory technology in order to meet the expanding AML regulations and lessen the risks related to financial crimes. A National Committee to supervise the application of the AML laws was also established under UAE supervision. “goAML” is the name of the AML reporting platform it developed.

    The UN Office on Drugs and Crimes (UNODC) created this platform, which functions primarily as a tactical reaction to stop organized financial crimes like money laundering. The financial intelligence unit of the United Arab Emirates gathers intelligence and information from across the nation in order to monitor questionable activities and stop new crimes by gathering and evaluating the data, encouraging the implementation of digital transformation services.
  3. Automating License Application Process
    The Financial Services Regulatory Authority of the United Arab Emirates has deployed Artificial Intelligence (AI) to assist in automating the license application process, while the Department of Economic Development is working to digitize the way businesses see and obtain licenses. 

    The AI-powered licensing system, known as “RegBot,” was developed in partnership with Nexus FrontierTech and utilized natural language processing (NLP) to assist applicants in registering a new venture capital (VC) fund. The Abu Dhabi Global Market (ADGM) unveiled it. For example, the RegBot will ask the applicant to submit more information if they don’t give enough details about their risk management procedures with respect to a regulatory requirement. It will ultimately reduce compliance cost for FinTech Dubai.

RegTech is All Set to Make Waves in Dubai’s Economy

The changing regulatory environment in the financial sector is driving the Dubai RegTech market. Dubai is always improving its financial laws to comply with global norms and fight financial crimes, such as financing frauds and money laundering. As a result, there is an increasing need for regulatory technology solutions that aid financial institutions in effectively adhering to these requirements. Cloud-based RegTech solutions for FinTech Dubai are becoming the need of the hour.

Furthermore, a number of financial institutions have moved to Dubai as a result of its ambitious goal of becoming a worldwide financial hub; these institutions all need reliable RegTech solutions in order to deal with the complicated regulatory landscape. The market expansion is additionally enabled by Dubai’s dedication to innovation within the finance industry.

If you are looking to introduce RegTech to improve outcomes in Dubai, Tntra is your best choice. With over 100+ domain experts and engineers, our team is well-versed in building solutions that make you a leader in RegTech. 

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