Speaking to The Byteline, Konstantin Vladimirovich Tserazov, a seasoned fintech expert and former Senior Vice President at Otkritie Bank, paints a new picture of the UAE’s rise as a fintech powerhouse.

With a career spanning strategic consulting for major international fintech firms and advisory roles across the CIS and Middle East, Tserazov has helped shape digital strategies, management systems, and innovative financial products.

He argues that the UAE is unearthing a new kind of treasure—one built on innovation, not just oil. “Forget black gold in the desert,” he says. “The UAE’s fintech scene is the real gem, fueled by smart rules and bold ambition.”

Here’s what he told us about what’s driving this boom.

What makes the UAE a lucrative and attractive destination for global fintech investments? Why are fintech leaders looking towards UAE and Dubai, more specifically?

There are many things, but one stands out: they're helping innovation with regularly updated rules. The Dubai International Financial Centre (DIFC) has been a big part of this, setting up clear and flexible guidelines that work for both the old-guard banks and the scrappy startups.

It's not just about ticking boxes, though. The government is actively saying, "Go for it!" That's a big draw for new businesses. Let's be honest: the UAE wasn't built yesterday. Dubai is already a significant financial hub with a huge leg up. Think ready-made infrastructure and a massive network of potential partners and customers waiting to be tapped. That makes it way easier for fintech companies to jump in.

The only setback is that traffic is tough in the DIFC district. Many investors I know live in Business Bay, which is ten minutes away by taxi, and using the Metro is reommended. Some opt for a villa. Real estate in the UAE is in hot demand, paving the way for these assets' extensive tokenization in 2025.

What has been one of Dubai's fintech industry's most significant growth drivers?

There are many, one being that the UAE is not shy about the whole crypto and token thing.

Setting up frameworks like the Virtual Assets Regulatory Authority (VARA) and making rules for stablecoins shows they're serious about the digital money issue. This has brought in a wave of companies working with blockchain, making the region a real player in fintech.

Beyond just crypto, the UAE is putting serious money into artificial intelligence (AI), like with the Dubai Multi Commodities Centre and Artificial Intelligence Centre (DMCC, AI Centre). This is a great move because it supports the fintech world, helping with things like making processes automatic, managing risks better, and giving people personalized financial advice.

Dubai has a big plan called D33, which aims to be one of the top financial centers by 2033. That kind of ambition creates a buzz and makes people want to invest for the long haul.

Are there any trends specific to this region compared to other parts of Asia or the rest of the world that set it up from a competitiveness perspective?

What sets the UAE apart is its unparalleled diversity—a convergence of talent and intellect from over 200 nations.

This isn't just cultural variety; it's an intellectual and entrepreneurial force multiplier. The fusion of these perspectives creates a dynamic energy that accelerates innovation, enabling the UAE to lead the charge in defining the future of finance.

It's worth considering pursuing an education in the UAE for fintech startups. The University of Birmingham Dubai (UoB) and the University of Sharjah (UoS) offer strong programs for data specialists.

Consider UoS and the American University of Sharjah (AUS) for those interested in advancing their AI skills. Notably, AUS provides excellent networking opportunities within the fintech sector.

Could you highlight some unique things happening in the UAE's fintech scene?

I'd highlight three:

Fintech that follows Sharia: There's a growing demand for financial tech that fits with Islamic law, and companies are creating solutions for that.

Digital IDs that work: The UAE is leading the way in creating solid digital identity systems that work smoothly with fintech, making things like signing up and doing transactions much easier and safer.

Being a crypto hotspot: Their open approach to crypto rules has drawn in many blockchain companies, especially through the DMCC.

Which countries do you view as credible competitors to Dubai for attracting fintech firms?

Of course, the UAE isn't the only player in town. They're up against serious competition: Singapore, which also has progressive regulations; Hong Kong, a long-time financial center facing some changes; London, a historical powerhouse dealing with Brexit; and even Riyadh, which is gaining momentum thanks to Saudi Arabia's Vision 2030.

I want to stress that there is a rising innovative 'tiger' in the triangle of UAE-Hong Kong-Singapore. My analysis of the regulations within this triangle gave me the insight that we see a real alternative to the well-established USD-centric financial system, surpassing even the BRICS in this regard.

But despite the competition, big names are taking notice. Revolut wants to grow in the UAE, State Street Global Advisors has reopened its office there, and Ripple has gotten the green light from regulators.

New tech companies are entering the business environment that the Abu Dhabi Global Market (ADGM) and DIFC created. ADGM signs numerous Memorandums of Understanding each year, with last week featuring agreements with Palo Alto Networks and Ma'an.

Do you have interesting anecdotes and additional insights you'd like to share relating to fintech in the region?

The most interesting thing about this whole fintech boom in the UAE is how it's become part of how the country brands itself.

Things like the UAE's digital dirham have gotten attention around the world. Plus, many startups say it's way easier to connect with the relevant people and investors here than in the West. The UAE has become a place where entrepreneurs can meet the decision-makers quickly, which speeds everything up.

After working closely with ultra-high-net-worth individuals (UHNWIs) in the UAE, I've come to a firm conclusion: 2024 marks the year the UAE became the undisputed center of the elite wealth management world.

Not just a good year, not just a strong showing—for three years running, the UAE has seized the top spot worldwide in attracting UHNWIs from every corner of the globe. This concentration of wealth creates a sustainable demand for exclusive, tailor-made investment solutions for individuals and the corporate sector. It's a fundamental shift in the global wealth landscape.

The UAE's fintech oasis isn't just a pipe dream. It's a carefully built system based on appropriate rules, a big vision, and a willingness to embrace the future of money. Sure, there will be challenges, but the UAE proves it can be a major force in the global fintech game, all thanks to a forward-thinking approach and a can-do attitude.

Konstantin Vladimirovich Tserazov's opinions are his own and do not reflect those of The Byteline