Fintech business Beehive has become Dubai’s first peer-to-peer lending platform to be authorised and regulated by the Dubai Financial Services Authority.
New regulation will be the catalyst for driving industry growth for fintech in the West Asia region and could place the United Arab Emirates (UAE) as world tech leader, according to fintech business Beehive, which has become the first Dubai Financial Services Authority (DFSA) – regulated fintech.
According to statistics from Beehive, just 1 per cent of the world’s fintech investment originates in the Middle East, yet peer-to-peer (P2P) lending promised more than $300 billion in lending forecast by 2020.
Beehive founder and chief executive, Craig Moore, said the regulation of the Beehive was a victory for fintech, but also for small and medium-sized enterprises (SMEs) across the region.
“This regulation reinforces Beehive as one of the fintech leaders in the region and we feel this greatly expands the opportunity to further help SMEs and the wider economy,” he said.
“We’re delighted to be regulated by the DFSA.”
While the UAE had adapted well to the fintech revolution and had championed new tech offerings across Asia, Beehive chairman, Rick Pudner, said that increased regulation would be a key step to securing the future of the region, as it would attract talented entrepreneurs to the country.
“This is an exciting time for fintech in the region and it’s great to see regulators getting behind innovative business models that can have a positive impact on the economy,” he said.
“Peer to peer lending is going from strength to strength and has become a valid alternative for SME funding in the Middle East.”
Beehive has 4500 investors and was established in 2014.