Tarabut Gateway, a leading open banking platform, has officially been granted a licence by the Dubai Financial Services Authority (DFSA), allowing it to provide money services in and from the Dubai International Financial Centre (DIFC). This marks a significant milestone for both the company and the region’s burgeoning FinTech landscape, setting the stage for enhanced financial services in the UAE.
The move is the first time the DFSA, the independent regulator of financial services within DIFC, has authorised a company to provide account information services and payment initiation services. This approval is expected to help foster innovation in the financial sector, making it easier for businesses and consumers alike to engage with and benefit from open banking solutions.
DIFC Opens Doors to Open Banking Innovation
The licence granted to Tarabut Gateway by the DFSA is a major leap forward for the company and the open banking sector in the UAE. It allows Tarabut Gateway to operate under a well-defined regulatory framework, positioning it as a leader in the region’s rapidly growing FinTech ecosystem.
Abdulla Almoayed, the founder and CEO of Tarabut Gateway, expressed his enthusiasm, stating that the potential for open banking across the UAE and the broader Middle East is immense. “It is the commitment from regulators and authorities that helps companies like ours take those initial steps,” he noted in a statement following the approval.
Tarabut Gateway aims to revolutionize financial services by providing a platform that enables seamless interaction between different banking systems. Through Application Programming Interfaces (APIs), the platform connects banks, credit card providers, and other financial service companies, allowing customers to access their accounts and make payments across multiple platforms with ease.
Open banking platforms are becoming increasingly popular, giving consumers more control over their financial activities while facilitating a more efficient, user-friendly experience. Tarabut Gateway charges banks for its software under a “software as a service” model, enabling financial institutions to leverage its infrastructure for better service delivery.
Unlocking Financial Potential Across the Region
The approval of Tarabut Gateway’s operations in the DIFC highlights a broader trend in the region, where regulators are warming up to the advantages of open banking. In fact, the Abu Dhabi Global Market (ADGM) introduced its own framework for open banking just a year prior, which helped set the stage for further regulatory developments.
Open banking offers numerous benefits. For consumers, it allows for more choice and convenience by enabling them to manage all their financial accounts and transactions in one place. For financial institutions, it paves the way for greater product innovation and more personalized services. This shift is seen as a win-win for both customers and banks.
Salmaan Jaffery, the Chief Business Development Officer at DIFC, emphasized that the attraction of leading FinTech companies aligns with Dubai’s strategy to foster a global innovation ecosystem. “It can contribute to shaping and developing the future of finance,” he said. By offering a home to pioneering companies like Tarabut Gateway, DIFC aims to position Dubai as a central hub for the future of financial technology.
A Solid Foundation for Growth
Founded in 2017, Tarabut Gateway was created to bridge the gap between financial institutions and the rapidly growing FinTech sector. The company’s core offering is its open banking platform, which uses APIs to facilitate connections between different banking systems and services. This integration enables users to manage all their financial accounts in one place, enhancing their overall experience.
Tarabut Gateway’s infrastructure went live in December 2019, and the company has since expanded its partnerships with various banks and financial institutions across the region. The company’s growth has been supported by substantial investments, including a $13 million seed funding round in 2021 and an additional $12 million raised in a pre-Series A round led by Tiger Global.
These investments have helped Tarabut Gateway solidify its position as a leader in the open banking sector. The company now operates in multiple markets, including Bahrain and the UAE, and continues to expand its offerings to meet the needs of both consumers and financial institutions.
