United Arab Emirates

Few would have predicted that one of the brightest stories in global fintech would come from the Middle East and North Africa, yet in less than a decade the region has turned into a centre of momentum. While investment across Europe and North America has cooled of late, funding in the MENA region passed USD 2 billion in 2024 with the number of active firms climbing beyond 1,500. Saudi Arabia, the UAE, and Egypt are at the forefront, creating new unicorns and attracting global investors to a market that offers the conditions fintech startups need to succeed at scale. This article looks at why MENA has emerged as one of the most promising regions in the world for fintech growth, and what sets it apart from established hubs elsewhere. Capital flows and investor appetite Much of the region’s momentum comes from how capital is being deployed. Gulf sovereign funds and large family groups have made fintech part of their wider investment strategies, often backing firms at a speed and scale that founders elsewhere struggle to match. In Saudi Arabia alone, fintech startups raised about USD 1.3 billion across 2023 and 2024, with deals such as stc Bank’s USD 200 million round setting new benchmarks for the sector. The UAE has followed a similar course, with Dubai-based funds leading a significant share of Gulf fintech rounds in 2024. This depth of liquidity shortens the path from seed to growth stage, cutting out the long pauses and down rounds that are common in Europe and North America. Average deal times in the Gulf are often measured in weeks rather than months, which changes the rhythm of building a company and gives startups in the region a rare advantage. Regulation and supportive frameworks The other reason startups have gained pace in the region is the way regulators have opened the door while keeping oversight firm. In Saudi Arabia, the central bank has played a leading role, issuing three digital bank licences and running a sandbox that has now approved more than 50 new models in payments, lending, and wealth tools. That mix of permission and supervision has allowed firms to test at scale without losing the confidence of customers or investors. Elsewhere, Dubai’s DIFC and Bahrain have taken a similar course, giving early stage companies structured routes to trial products under watch before moving into full licences. Open banking is also being phased in, with Saudi Arabia mandating rollout across banks by 2025. These steps give smaller firms access to data once held tightly by incumbents and make it clearer how startups can grow within the system without the regulatory grey areas seen in other markets. Demographics and consumer demand The strength of the region’s fintech market also rests on its demographics. More than half of the population is under 30, and smartphone penetration in Gulf states sits above 90 percent. That combination of youth and digital access has created a consumer base ready to adopt new financial services at speed. In Saudi Arabia, where about 70 percent of adults were outside the formal banking system only a decade ago, the use of digital wallets has grown by more than 40 percent year on year. Buy-now-pay-later services have also surged, with adoption rates among the highest in the world. This shows how quickly consumer behaviour is changing. Egypt is seeing the same effect, with mobile payments now processing transactions in the billions each year. For fintech founders, it means the region offers a customer base that’s both young and highly engaged with new ways of managing money. Government agendas and infrastructure Fintech growth in the region is also being shaped by government strategies that treat digital finance as part of wider economic reform. In Saudi Arabia, Vision 2030 set a target of raising cashless transactions to 70 percent by the end of the decade, and programmes like Fintech Saudi have already helped hundreds of startups move from pilot to market. Public backing has also included direct funding, incubators, and links between regulators, banks, and universities to build a stronger talent base. The UAE has taken a parallel route, with DIFC and ADGM both promoting fintech hubs that connect early stage firms with capital and licensing support. Bahrain has positioned itself as a first mover in regional open banking rules, drawing in cross-border entrants. These initiatives mean startups can access clearer licensing routes, stronger institutional backing, and a deeper pool of skilled talent, all of which make it easier to build and scale. Global positioning and cross-border growth Beyond domestic policy, the regional fintech story has an international dimension. Saudi Arabia has pushed forward on cross-border payments, with the central bank linking systems to the UAE and experimenting with digital currencies for trade settlement. Several Gulf-backed fintechs have already expanded into Egypt, Pakistan, and parts of Africa, using the region’s location as a bridge between large neighbouring markets. Global comparisons highlight the scale of this progress. While London and Singapore remain established hubs, MENA’s fintech revenue is forecast to grow at more than twice the global average, reaching a projected annual rate of 35 percent through 2028. For founders, that means the dual benefit of a fast-growing home market and a base from which to reach neighbouring economies in Africa and South Asia. From local momentum to global reach Fintech in the region has moved to the centre of global growth. Capital is flowing at record pace, regulation is structured but open, consumer demand is strong, and governments are backing the sector as part of wider economic reform. Saudi Arabia, the UAE, and Egypt stand out, yet the effect is regional, with scale that stretches beyond national borders. For founders and investors, this is a market where growth today connects directly to influence over how financial systems in MENA, Africa, and South Asia develop in the years ahead.

Legal consequences of drug trafficking in the UAE Drug trafficking refers to the international trade of drugs. It involves production, manufacture, packaging, transportation and regional distribution of drugs, sometimes carried out by organised criminal groups. The United Arab Emirates considers drug trafficking as a serious crime as it threatens public safety and morality. The country has issued strict legislations against drug trafficking and offenses can lead to lengthy imprisonment, ranging from years to life, deportation and/or substantial fines. What is the UAE Drug Law? The Federal Law Decree No. 30 of 2021 on Combating Narcotics and Psychotropic Substances is the primary law in the UAE (“Law”) against drug trafficking. Additionally, the Cabinet Decision No. 43/2024 (“Cabinet Decision”) lays down laws regarding the treatment of a non-resident foreigner when caught at the Ports of the UAE with possession of narcotic drugs or psychotropic substances. Prohibitions and Penalties for UAE Residents and Citizens Article 10 of the Law prohibits the import, export, transportation, production, manufacture, possession or acquisition of certain drugs listed in Schedule 1, 2, 4(1) and 5. This includes both synthetic drugs such as Alfentanil, Cocaine Morphine etc., as well as certain naturally occurring substances such as kava, Khat leaves, ergot etc. It is however permissible to carry out authorized and controlled medical uses and scientific research on the substances mentioned under this article, with the knowledge of the specialized scientific authorities. Article 10 of the Law absolutely prohibits the import, export, transportation, production, manufacture, possession or acquisition of certain drugs listed in Schedule 3, 6, 7 and 8 of the Law, except under strict authorization. Article 14 of the law states that certain drugs (as listed under schedule 4(2)) can be grown, brought in, imported, exported, owned, possessed, and acquired under strict authorization, in accordance with this law. This article pertains to naturally growing narcotics substances, and includes cannabis, opium, peyote and any other plant that produces Narcotics or Psychotropic Substances, in all stages of their growth, as well as their seeds. As per articles 57 and 58, violation of these laws can lead to hefty fines and imprisonment and the gravity of the penalties will be proportional to the quantity of drugs involved. However, if the offender is proven to have been involved in the trafficking or promotion of these drugs, or involved in an organised gang, they may be subject to the death penalty. What are the consequences of an individual abusing their authority? As per Article 59, if a person authorised to possess and acquire one of the substances mentioned in the Schedules, violates the purpose for which he is authorised, he will be sentenced to imprisonment for a period of at least five years and fined a minimum of AED 100,000. If the violation involves trafficking of drugs, they may be subject to the death penalty. Travel Ban and Seizure of assets To ensure that authorities are able to carry out investigations regarding the crime, they are authorized to impose travel bans on the individual and to freeze assets of the individual, or his family members, if the assets or funds are found to have been acquired through the crime. The court may order the freezing of the funds or prohibiting disposal or management thereof or travel ban until the completion of the trial. In case of crimes related to drug trafficking, if the perpetrator belongs to an organised gang that has committed such crimes in more than one emirate of the country or the effects of such crime extended to more than one emirate, judicial warrants issued by the Public Prosecution will be valid in all emirates of the UAE. Prohibitions and Penalties for Non-Residents of UAE If a non-resident of the United Arab Emirates is caught at one of the country’s ports in possession of narcotic drugs or psychotropic substances, he will be subject to Cabinet Decision No. 43/2024. As per the law, possession of these banned substances for the purpose of personal use, without authorization, will lead to a fine, deportation or permanent debarment from the country. The severity of the penalties is dependent on the type of drug, the quantity of the drugs in possession and whether the offender has previously committed the same offense. The fines may be between AED 10,000 and AED 100,000. The offender will be added to the list of permanently banned individuals, until the payment of the fine. Conclusion There has been a significant change in the way offenses related to drugs are treated in the United Arab Emirates. However, although penalties regarding possession of drugs for personal use have become less severe over the past few years, drug trafficking continues to be a major crime, involving severe penalties. Author: Dr. Hassan Elhais

In the UAE, family law is stipulated under three main regulations, namely, the Federal Decree Law No. 41 of 2024 on the Issuance on the Personal Status Law, governing Muslims across the country, the Federal Decree Law No. 41 of 2022, governing non-Muslims in the UAE, except in the emirate of Abu Dhabi, and the Abu Dhabi Law No. 14 of 2021, governing non-Muslims within the emirate of Abu Dhabi.  Gifts under the UAE Law The Federal Decree Law No. 41 of 2024 on the Issuance on the Personal Status Law (“Federal Personal Status Law”) has extensive provisions regarding gifts given at the time of betrothal and marriage. Article 11 of the Federal Personal Status Law defines betrothal as a man’s request to marry a woman, along with a promise of marriage. Thus, betrothal is a formal engagement of a couple that leads to a marriage, but is not considered a marriage by itself. Although a common ceremony, it is not mandatory. In accordance with Article 13, all presents exchanged during the betrothal period will be considered a gift, unless the fiancé states that what he presented is part of the dowry. Status of the gifts on the termination of the betrothal In case of termination of the engagement, all gifts that are valued above AED 25,000 must be returned, unless they were consumable or perishable by nature. However, this rule does not apply to engagements that were ended due to death, or for other reasons that were beyond the control of both parties. In case of gifts that were given to the fiancée as part of dowry, in the event of the termination of the betrothal, all such gifts must be returned.  If either party withdraws from the engagement, or dies before the marriage, the heirs of the fiancé have the right to reclaim any money or gift, or value of the gift, in case the gift no longer exists. If the fiancée used the dowry, or part of the dowry, to buy a trousseau for the marriage as per custom, and the betrothal was terminated by the fiancé, without any fault or reason on the part of the fiancée, then the fiancée has the option to either return the dowry, or deliver the items purchased in their current state, unless there is an agreement to the contrary. However, if the engagement was terminated by the fiancée, or without any fault on the part of the fiancé, then the fiancée must return the dowry or its equivalent, or its value at the time of receipt. Dowry As per Article 45 of the Federal Personal Status Law, dowry is the property paid by the man to the woman, under the marriage contract. This is an obligatory requirement of a marriage. The value of the dowry is determined by Federal Law No. 21 of 1997 Determining the Dowry in the Marriage Contract and the Expenses thereof (“Dowry Law”). The Dowry law provides a ceiling to the dowry to be demanded and/or paid to the wife at the time of marriage. As per Article 1 of the law, the advance dowry in the marriage contract cannot be more than AED 20,000 and the deferred dowry cannot be more than AED 30,000. The law also states that a wedding cannot last more than one day and no more than 9 camels can be slaughtered in the wedding ceremonies. In case of violations of the law, the marrying couple will not be granted the government’s marriage grant. Article 45 (2) of the Federal Personal Status Law states that the dowry is the woman’s property and she will have the sole right to dispose off the dowry in any way that she deems fit. Any provision in the marriage contract that breaches this right of the wife will be deemed as invalid. Postponement of the dowry Article 46 of the Federal Personal Status Law allows the parties to a marriage to agree to postpone the payment of all or part of the dowry. The parties may decide on a particular date for the dowry to be delivered or set a condition upon which the dowry must be paid. The condition for the payment of dowry may include the irrevocable separation of the spouses, or the death of one of the spouses. The Wife’s Right to Refrain from Intercourse and Moving into the Marital House As per Article 50 of the Federal Personal Status Law, a wife may refuse to move into the marital house until she receives her due dowry and until the husband provides her with an appropriate house in accordance with the husband’s financial capability. Furthermore, if the wife accepts to consummate the marriage before receiving her due dowry, it remains a debt owed by the husband and she may request it at any time she wishes, but she does not have the right to refuse thereafter if he provides her with an appropriate house. Conclusion: The family laws for non-Muslims under Federal Decree Law No. 41 of 2022 and Abu Dhabi Law No. 14 of 2021 does not provide for any dowry. However, dowry is an integral part of the Muslim marriage contract, under the Federal Personal Status Law. Although parties can decide on providing the dowry before, during or after the marriage, it is an absolute right of the wife and she is free to dispose off the dowry as per her wishes. Author: Dr. Hassan Elhais

Joint ventures are a common way to enter the Dubai market, particularly in sectors where foreign ownership is restricted or local licensing is required. Most are structured either through a jointly owned company or a contract between independent parties. Each approach has its own risks and legal implications, from who controls decisions to how disputes are handled and what happens if one side wants out. This article sets out the key structural choices, where issues tend to arise, and what should be in place from the start. Start with the right structure Most UAE joint ventures fall into two categories: incorporated or contractual. Each carries different risks, especially when third-party liability or licensing is involved. An incorporated JV, usually set up as an LLC, creates a separate legal entity. The company signs contracts in its own name, holds assets, and limits the personal liability of its shareholders. This setup works better for longer-term ventures, regulated activities, or where a standalone licence is required. A contractual JV avoids incorporation. The parties remain independent and operate under a commercial agreement that sets out who does what and how profits or losses are shared. These are often used for one-off projects or when licensing and cost constraints make a separate company impractical. Liability and enforcement differ too. An incorporated JV can enter contracts and bring claims in its own name. In a contractual setup, enforcement rights depend on how responsibilities are allocated and who holds legal standing. Control and equity rarely match exactly In sectors with foreign ownership limits, legal shareholding and day-to-day control are often split. A local partner might hold 51% on paper but take no active role. In other cases, the party making key decisions may not appear in the official filings at all. These gaps need to be managed clearly from the start. The joint venture agreement should spell out who is responsible for operations, who controls spending, and how decisions are made. These terms should match what appears in the trade licence and constitutional documents. If they differ, the official record usually takes precedence in court. Side agreements or nominee arrangements are sometimes used to reflect the real balance of control. Whether they hold up depends on how they’re written, how well they’re supported by the documents, and the forum in which they’re tested. In the UAE, offshore nominee agreements that contradict local filings or conceal effective control often carry less weight. Defining exit and deadlock procedures Well-drafted joint ventures set out how each party can exit and what happens if decisions cannot be reached. This includes clear procedures for buyouts, valuation, and fallback steps when agreement is not possible. Exit clauses should define when a party can leave, how the valuation is handled, who oversees it, and how the transaction is completed. The process should work even if one side does not cooperate. Deadlock provisions need to go beyond general intent. The agreement should lay out what happens if board or shareholder decisions cannot move forward. Common solutions include third-party mediation, external valuation, or structured buy-sell mechanisms. Avoid open-ended terms. Language like “mutual agreement” or “best efforts” often lacks enforceability. More useful are practical, time-bound steps that provide a path forward when formal consensus breaks down. Licensing, governance and director risk Joint ventures that operate in regulated sectors, such as healthcare, education, media or financial services, often need approvals beyond the trade licence. These can include activity-specific permits, federal clearances, or local authority sign-offs. If these are missed, the company may not be allowed to operate as intended. Director appointments also carry specific legal weight. Under UAE law, board members are personally liable for company conduct. Even if a director acts on instruction from a partner, liability still rests with the named individual. That includes nominee directors or informal representatives once their names appear on public records. Regulatory filings such as UBO declarations, economic substance reports and real ownership registers now make it harder to separate formal records from real control. If agreements or internal practices do not align with what’s filed, those differences typically surface during compliance reviews, renewals, or legal proceedings. To reduce exposure, governance terms, decision rights and public records all need to match. Any gap between them creates risk, especially when one party holds influence without accountability. Disputes, enforcement and forum choice Disputes often stem from mismatched expectations around control, capital and decision rights. One party funds the venture, the other handles operations, and the agreement never clearly sets out who decides what. Deadlock provisions, quorum rules and veto rights are either missing or vague. That’s when deals stall. Most joint venture agreements refer to arbitration which is usually DIAC or the ADGM Arbitration Centre. But urgent issues like asset freezes, account access or injunctions still depend on action through the Dubai Courts. If a partner moves funds or blocks a key decision, court intervention is often the only real option. To enforce rights quickly, the agreement must do more than name a forum. It should set out what triggers action, who can act, what evidence needs to be produced, and how each party secures standing. Delays often come down to gaps in how roles were recorded or who is officially recognised to represent the company. Forum choice only works if the practical steps like timing, filings and access have been built into the structure from the start. How The Knightsbridge Group can help The Knightsbridge Group has over 20 years of experience advising on joint ventures and corporate structuring across the UAE. We help founders, shareholders and legal teams put clear agreements in place, align decision-making with regulatory requirements, and plan for control, exit and enforcement from the outset. Whether you're setting up a new venture, taking on a local partner, or reviewing an existing arrangement, we provide practical, sector-specific advice backed by deep regulatory and licensing insight. To speak with an expert, contact us at [email protected].