Revolut Enters UAE With Licenses for $38.5B Remittance Market

Digital banking giant Revolut enters UAE remittance market with new licenses, setting stage for fintech expansion across Gulf region

Key Takeaways

• Revolut secures UAE banking licence after receiving in-principle approval for Stored Value Facilities and Retail Payment Services licences from the Central Bank of the UAE, opening access to a $38.5 billion remittance market.
• Strategic hiring expansion underway with Revolut appointing Ambareen Musa as Gulf CEO and actively recruiting across technology, operations, and marketing roles to prepare for market entry.
• UAE fintech market set for major disruption as the sector grows toward $5.71 billion by 2029, with industry observers warning traditional banks face competitive pressure from Revolut’s digital-first model.

Introduction

Revolut’s arrival in the UAE represents a watershed moment for the Gulf’s financial services sector. The global fintech giant has secured in-principle regulatory approval from the Central Bank of the UAE, clearing the path for its 60 million customers worldwide to access one of the world’s largest remittance markets.

The company received approval for Stored Value Facilities and Retail Payment Services licences, marking a significant regulatory milestone. This development validates the UAE’s growing reputation as a progressive fintech hub and signals intensified competition for traditional banks and exchange houses.

Key Developments

Revolut established its regional foundation in 2022 by relocating 140 staff to the Dubai International Financial Centre, many from its Ukraine office. The company has since been building its local presence while navigating regulatory requirements that previously prevented UAE residents from opening accounts.

The fintech has appointed Ambareen Musa, founder of Middle Eastern financial comparison platform Souqalmal.com, as CEO for its Gulf operations. Musa brings extensive experience in regional financial services and digital innovation to lead the expansion strategy.

Revolut’s recruitment efforts have accelerated, with the company actively seeking professionals across technology, operations, customer service, and marketing. Last month, Revolut executives gathered with potential hires in Dubai’s Al Quoz district as part of their talent acquisition strategy.

Market Impact

The UAE remittance market presents substantial opportunity, with outward remittances totaling $38.5 billion in 2023. The India-UAE corridor alone accounts for $21.6 billion annually, making it a primary target for Revolut’s services.

Digital adoption among UAE consumers creates favorable conditions for Revolut’s entry. Nearly 89% of UAE consumers use digital-first bank accounts, while 57% of remittance users prefer digital apps for international transfers. Despite this trend, nearly half still rely on traditional exchange houses and banks, leaving significant market share available.

The UAE fintech sector attracted approximately $265 million in funding during 2024, representing one-third of all startup investment in the country. The market is projected to grow from $3.16 billion in 2024 to $5.71 billion by 2029, reflecting a compound annual growth rate exceeding 12%.

Strategic Insights

Revolut’s expansion strategy targets becoming one of the top three financial apps in the UAE market. The company plans to offer its full product suite, including digital bank accounts, international money transfers, cryptocurrency trading, and budgeting tools.

Local competitors are preparing for increased competition. Wio Bank, one of the UAE’s first platform banks, and Mamo, which focuses on peer-to-peer and SME payments, represent the homegrown fintech sector that will face direct competition from Revolut’s global scale and resources.

Traditional financial institutions acknowledge the competitive pressure. Exchange houses and conventional banks must adapt to customer expectations for multi-currency accounts, real-time notifications, and transparent fee structures that Revolut has popularized globally.

Expert Opinions and Data

“Receiving these in-principle approvals from the Central Bank of the UAE is a pivotal step for Revolut in the region,” stated Ambareen Musa, CEO for Gulf operations. “We are committed to setting a new standard for financial services worldwide, and eagerly anticipate bringing Revolut to the dynamic UAE market.”

Industry observers expect significant market disruption. The Central Bank’s licensing decision signals regulatory confidence in digital-first financial models and enhances the UAE’s reputation as a progressive fintech hub.

Gautam Jain of SC Ventures by Standard Chartered views Revolut’s entry positively, explaining that “it will start creating new business models and helping consumers being served in a different way. The banks will wake up and, if not match, try and better what Revolut is doing.”

Prakash Sunkara, CFO at Wio Bank, acknowledges the competitive dynamic, telling industry observers that Revolut’s entry fosters “competition within the ecosystem and providing better services for our customers.” However, some traditional players remain confident. Hasan Al Fardan, CEO of Al Fardan Exchange, previously stated that fintechs have had “no material impact” on his business operations.

Conclusion

Revolut’s regulatory approval marks a transformation point for the UAE’s financial services landscape. The company’s global scale, combined with local expertise through its Gulf leadership team, positions it to capture significant market share in the region’s growing fintech sector.

The competitive pressure will benefit consumers through improved services and innovation across the ecosystem. Both established institutions and emerging fintechs must now adapt to elevated customer expectations for digital-first financial services, creating a more dynamic and responsive market environment.