The fintech initiative coincides with the government’s innovation program, and with the whole ‘smart city’ strategy. It makes a compelling case for Dubai.
Saudi Arabia under the Vision 2030 strategy for economic diversification will being benefits for the whole region. “I think all the signs are pointed in the right direction and are aligned with the overall economic strategy. The dynamics of the region are changing but Saudi Arabia is in tune with those plans. The recent appointments of women to senior positions in the financial industry was a very good indicator of the way things are going,” she said.
Another reason Al-Mazrouei is confident there is a market for fintech in the region despite the growing number of centers focusing on it is the level of response DIFC got to its accelerator program. “It was overwhelming. We thought we’d get between 70 and 80 applicants, not 111 as we (did get),” she said.
On the tricky question of whether she and the DIFC would cooperate with other centers, rather than competing for business as seems to be the case now, Al-Mazrouei responds: “I am always willing to cooperate. But all the other centers are each doing it slightly differently. I think the accelerator program is unique in that we have offered them the opportunity to partner with 10 big financial institutions in the region.”
DIFC’s fintech initiative has the potential to add significantly to its expansion plans. Under the center’s 10-year strategy announced in 2014, it aims to triple the number of regulated financial firms in a decade, with a target set of 1,000 members. At the last estimate in June, that sat at 463 firms regulated by the Dubai Financial Services Authority (DFSA).
Between now and 2024, one could expect to see around 70 new fintech DIFC member firms via the accelerator scheme, assuming the target of 10 per year is met. “Fintech fits in well with the DIFC’s 10-year strategy. The aim is to triple the size of the DIFC by 2024 — in physical space, member firms and assets under management. The new fintech entrants will add to all three of those categories,” Al-Mazrouei said.
Of course, there is nothing to stop fintech firms applying to become immediate full members of the DIFC; they could also apply for a special innovation testing license, which gives them one-year membership of the DIFC on competitive terms, under regulation of the DFSA. If after one year they and the DIFC agree it is beneficial, they can move to full DIFC membership, Al-Mazrouei said.
Al-Mazrouei is a prime example of the new generation of Emirati women who are forging an executive path in the higher echelons of UAE business life. Her background seems to make her perfectly suited for the Hive job.
After education in the UAE and a degree in business information technology, she graduated from the Harvard Business School’s advanced management program in the US, and then came back to work in Dubai in IT-related posts for National Bonds, and for Dubai Holding, the government-owned conglomerate. At the DIFC, she spent time as the head of marketing and communications at the center, in addition to IT roles.
“I have experience in IT and in marketing, so it comes together well in this new role. I’m an engineer by background, so I understand technology. The combination works really well in the fintech space. Plus I have experience of international marketing and how it supports development,” Al-Mazrouei said.
Of the current elite global fintech hubs — New York, London and Singapore — Al-Mazrouei believes the UK capital is the one Dubai must seek to emulate. “I think we learned most from London, which I see as the center of global fintech. It’s the biggest and most innovative,” she said.