Home / Business / Fintech start-up Stripe enters the Middle East with the launch of the UAE.

Fintech start-up Stripe enters the Middle East with the launch of the UAE.

One of Silicon Valley’s most valuable private fintech companies has chosen Dubai for its first expansion to the Middle East and North Africa.

Online payments company Stripe is expanding to the Middle East just weeks after a recent funding round that pushed the company’s value to $ 95 billion, making it one of the world’s most valuable private fintech companies.

“The opportunities for startups in the UAE are enormous,” Matt Henderson, Stripe̵

7;s business leader in Europe, the Middle East, Africa told CNBC’s Hadley Gamble on Monday in an exclusive interview. “

Stripe was started in 2010 with two brothers from Ireland competing directly with PayPal, Adyen and Square, a software platform that enables businesses to accept payments online.

The co-founders Patrick and John Collison, who are 32 and 30, respectively, are worth more than $ 11 billion.

Why Dubai?

“The UAE has clearly a booming digital economy,” Henderson told CNBC. Businesses that operate online in the UAE can now use Stripe to accept payments online. already

Gym management software Glofox, already a global user of Stripe, said in a statement that Stripe was launched in the United Arab Emirates. “It could be a catalyst for global brands like us to expand the products and services we can offer to the fitness business in the region.”

Benefits of bringing Stripe’s technology to Dubai, Henderson added: “There are a lot of local businesses that are yet to go public and one way to help them grow and help them appeal to investors is to open them up. These new markets “

Passengers follow Sheikh Zayed Road through commercial and residential buildings in Dubai, UAE.

Christopher Pike | Bloomberg | Getty Images

Global blocking measures accelerate e-commerce and the United Arab Emirates is no exception. According to the International Trade Administration, the UAE’s e-commerce market is expected to be worth $ 27.1 billion by 2022.

“We’ve seen more than $ 600 million in investment in startups in the UAE last year,” Henderson told CNBC. “The ingredients are for a much bigger path.”

“You have a mix of talent, investment and entrepreneurship too,” he adds. “So we see there will be a lot of exciting emerging technology businesses in the United Arab Emirates.”

Careem ride-hailing app shows on iPhone at mall in Dubai.

Christopher Pike | Bloomberg | Getty Images

The United Arab Emirates is home to many regional success stories.

The Dubai-headquartered Ride-hailing Careem app was acquired by Uber for $ 3.1 billion in 2019, and Anghami, the first legal music streaming platform in the Middle East and North Africa, announced last month that They will be the first Arab technology company to be listed on New York’s Nasdaq.

Road to IPO?

Stripe is Silicon Valley’s most valued private equity firm after nearly tripling its valuation in less than a year. Better value for both Uber and Facebook before it went public.

Former Bank of England Governor Mark Carney sits on Stripe’s board with Christa Davies, chief financial officer of Aon insurance company.

Elon Musk, Tesla founder and billionaire investor Peter Thiel, was an early investor in Stripe.

There is even a rumor that Stripe is for public listings. But Henderson told CNBC: “We are really focused on our growth mode, our investment mode and serving our users.”

Henderson said the company aims to maintain “A culture of saving, and we endeavor to conserve our own resources and do things automatically as we can.”

While it is not yet known how many Stripe will increase the number of employees in the UAE, it is still unknown. But it has plans to stick with a capital-efficient model, Henderson added: “I think that has served us well.”

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