- Submits applications to Central Bank of the UAE to become an electronic-money institution, thereby enabling it to offer remittance services within the country.
- Aims to capture a market characterised by a significant expatriate population and a burgeoning remittance industry.
UK-based fintech firm Revolut Ltd is making significant strides in its international expansion by seeking licenses to operate in the Middle East, specifically in the United Arab Emirates (UAE).
The company has submitted applications to the Central Bank of the UAE to become an electronic-money institution, thereby enabling it to offer remittance services within the country.
The initiative marks a crucial step toward Revolut’s long-term objective of acquiring a full banking license, akin to the one recently granted by UK regulators after extensive efforts.
With a customer base of nine million in the UK, Revolut boasts a substantial advantage over traditional banks such as Metro Bank Holdings Plc. However, the company recognises the necessity of geographic diversification to increase its user base further.
Revolut’s foray into the UAE is indicative of this strategy, as it aims to capture a market characterised by a significant expatriate population and a burgeoning remittance industry.
Hiring staff
The establishment of an office in the UAE in 2022 and the recruitment of a workforce of 140, many of whom were displaced from Ukraine due to the ongoing conflict, highlight the company’s commitment to this region.
Nik Storonsky, Revolut’s CEO, has been an ardent advocate for expansion into the Gulf region. Historically, the lack of necessary licenses has prevented UAE residents from opening accounts with Revolut.
However, the current licensing efforts signal a turning point for the company.
In addition to its ambitions in the UAE, Revolut is also exploring opportunities in neighbouring Saudi Arabia, further solidifying its intent to become a global banking entity.
The company is actively seeking to bolster its presence in the UAE by hiring key personnel, including a head of finance and a head of legal for the region, as well as filling various roles in compliance and product development. This recruitment drive underscores Revolut’s strategic focus on establishing a robust operational framework in the Middle East.
Revolut’s expansion aligns with broader UK governmental efforts to strengthen trade relations with the UAE, which is home to substantial sovereign wealth.
As UK ministers seek to attract UAE investment in British projects, Revolut’s initiatives may serve to facilitate these diplomatic and economic engagements.
The company has previously leveraged similar opportunities, as evidenced by its banking license acquisition in Mexico following UK-Mexico trade discussions.
The firm is also planning to expand in India, another strategic market for the UK’s trade plans.