Could Ziina's Expansion Boost UAE's Cashless Economy Goals?

So, Ziina, which is a leading financial platform in the UAE, has just secured the Stored Value Facility (SVF) license from the UAE Central Bank. This is a big deal because it allows Ziina to expand its range of financial services significantly. Essentially, it reinforces Ziina's position as one of the few privately-owned fintech companies in the UAE with such authorisation.

The UAE Central Bank's strategy focuses on driving innovation, enhancing financial inclusion, and supporting economic growth. This license aligns perfectly with these goals and highlights the UAE's commitment to becoming a global leader in the digital economy.

With this SVF license, Ziina can now offer a wide array of financial services. This includes business and consumer accounts, peer-to-peer payments, bill payments, external payment link issuance, QR codes for remote point-of-sale transactions, and prepaid card services. Additionally, Ziina will be a principal member of networks like Visa and Mastercard, enabling it to offer Banking Identification Number (BIN) sponsorships. These services aim to support over 557,000 businesses in the UAE, helping improve their operational efficiency and promoting growth.

SMEs (Small and Medium Enterprises) play a crucial role in the UAE economy, making up 94 percent of all companies and contributing 63.5 percent to the non-oil GDP. However, many SMEs face cash flow challenges, often due to delayed client payments. Ziina's expanded services are designed to address these issues, equipping businesses with the necessary tools to improve efficiency and growth.

The UAE is also moving rapidly towards a cashless society, with SMEs being key players in this transition. By 2024, it's expected that 60 percent of consumers in the UAE will prefer cashless transactions. The digital payments market in the MENA region is projected to grow significantly, reaching US$9 billion by 2028, driven by convenience and accessibility. Trends in the UAE already show a strong preference for credit cards and digital wallets, especially for online transactions, and the popularity of options like Buy Now Pay Later is on the rise, aligning with the expanding e-commerce sector.

Faisal Toukan, the CEO and Co-Founder of Ziina, highlighted the importance of the license, stating that it reinforces their commitment to compliance and security. He mentioned that the UAE’s Central Bank has a bold vision for financial technology, and Ziina is excited to support this vision. This regulatory approval allows Ziina to expand its services further, strengthening its role as a dedicated financial partner for SMEs, which are the backbone of the UAE’s economy.

Moreover, this development aligns with the UAE’s Digital Economy Strategy, which 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. The UAE is committed to becoming a global hub for digital innovation and economic growth, supported by robust infrastructure, extensive connectivity, and a dynamic entrepreneurial environment.

Additionally, the UAE Central Bank's 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 is also 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 and contribute to the region’s economic landscape.