Ziina, a UAE-based financial platform supporting consumers and entrepreneurs, has secured the Stored Value Facility (SVF) licence from the UAE Central Bank, enabling it to expand its range of financial services.
With the SVF licence, Ziina can provide comprehensive financial services, including business and consumer accounts, peer-to-peer payments, bill pay, external payment link issuance, QR codes for remote point-of-sale transactions, and prepaid card services.
Ziina also plans to serve as a principal member of networks such as Visa and Mastercard, offering Banking Identification Number (BIN) sponsorships. These services are designed to support over 557,000 businesses, improving operational efficiency and promoting growth.
With SMEs representing 94 per cent of all companies in the UAE and contributing 63.5 per cent to the non-oil gross domestic product (GDP), their role in the economy is vital. Despite their importance, SMEs frequently experience cash flow challenges, primarily due to delayed client payments. Ziina will now look to address these challenges, equipping businesses with the tools necessary to improve operational efficiency and promote growth.
“Securing this licence is a monumental step for us, reinforcing our commitment to the highest standards of compliance and security,” explained Faisal Toukan, CEO and co-founder of Ziina. “The UAE’s Central Bank has outlined a bold vision for financial technology, and we are thrilled to work closely with their team to support this vision.
“This regulatory approval allows us to expand our services further, strengthening our role as a dedicated financial partner for SMEs – the true backbone of the UAE’s economy – by offering them a fast and secure way to send, receive, and grow their money.”
Driving digital economy growth
Ziina obtaining the licence also aligns with the UAE Central Bank’s strategy to drive innovation, enhance financial inclusion, and support economic growth, emphasising the country’s commitment to becoming a global leader in the digital economy.
The UAE is already quickly moving towards a cashless society, as 60 per cent of consumers plan to go cashless by 2024. The digital payments market in the MENA region is projected to reach $9billion by 2028 according to GlobalData, a 124 per cent increase from 2021, driven by convenience and accessibility.
Current trends in the UAE show a strong preference for credit cards and digital wallets, especially for online transactions, and the popularity of payment options like Buy Now Pay Later is rising, aligning with the expanding e-commerce sector.
As part of the UAE’s ambitious Digital Economy Strategy, the country aims to double the digital economy’s contribution to its GDP from 9.7 per cent in 2022 to 19.4 per cent within the next decade.
Ziina’s growth is fueled by the UAE’s robust infrastructure, extensive connectivity, and dynamic entrepreneurial environment. The Central Bank’s nine-pronged Financial Infrastructure Transformation (FIT) Programme, which includes initiatives like a domestic card scheme and an instant payments platform, aims to support financial inclusion and enable a cashless society through digital payments.
Alongside securing the licence, Ziina is also reportedly in the process of raising a substantial financing round from institutional investors. This funding is intended to support Ziina’s growth strategy throughout the Middle East, further strengthening its ability to offer essential financial services to the region’s economic landscape.