UK financial technology company Revolut is working to expand its partnership base in the UAE, having secured key licences from authorities to bring it a step closer to launching full-scale operations in the Emirates.
The London-based company, which serves more than 75 million clients globally, obtained stored value facilities and category-2 retail payment services licences from the Central Bank of the UAE on Wednesday. Stored value facilities are payment systems that allow users to digitally store assets – fiat money, tokens, cryptocurrency and even rewards points – for future use. Retail payments services include merchant acquisitions and domestic and cross-border fund transfers.
The licences are "important milestones", but Revolut's focus at the moment is "building and preparing our local product offering for launch ... to ensure we have the right products, infrastructure, operational capabilities and customer experience in place", a company representative told The National.
"As part of our long-term commitment to the market, we continue to engage with a broad range of stakeholders across the ecosystem," the representative added, without naming potential partners.
Revolut does not have a timeline for its potential launch, but said it would offer its full suite of services to clients in the UAE. "Competition is ultimately positive for consumers because it drives innovation, raises standards and expands choice. Our focus is not on competing with any one provider," the representative said.
The UAE continues to enhance its financial system by integrating and adopting the latest technology to further promote the use of smarter, more convenient payment and banking methods.
The central bank, along with financial centres such as Abu Dhabi's ADGM and the Dubai International Financial Centre, have introduced regulations and programmes to encourage the adoption of such technology. This makes the Emirates "one of the most forward-looking financial markets globally", Revolut chief executive Ambareen Musa said.
Revolut received its initial licence from UAE authorities in September last year. The company was founded in 2015 by Nikolay Storonsky and has no physical branches. Mr Storonsky was also among the wealthy high-profile figures to depart the UK and move to the UAE.
The country is already home to digital financial services including Emirates NBD's Live, Mashreq Neo and Wio Bank. The entry of more players is expected to lower remittance fees, speed up money transfers, raise the bar for digital financial services and improve customer service standards in the banking sector, experts said.
"The UAE's position as a global hub for financial services innovation is built on the strength of our regulatory environment and the confidence international companies continue to place in our long-term vision," said Mohammad Alhawi, undersecretary at the UAE Ministry of Investment.
