The UAE fintech market is expected to exceed $2.2 billion by 2028, and Istanbul is set to enter the top 20 cities in the world for fintech investment growth in 2024-2025. Regulators are accelerating the launch of instant payments and open banking, while non-bank players are taking up to 15-20 percent of transactional income from banks.

A new fintech race is unfolding in the Persian Gulf and Eastern Mediterranean: the UAE and Turkey are simultaneously strengthening open banking regulation, stimulating the launch of B2B payment platforms, and actively attracting startup hubs. Against the backdrop of global growth in digital commerce, this directly affects the ecosystems of Kazakhstan, Uzbekistan, Georgia, and Azerbaijan, which are building their payment and e-commerce solutions with a focus on integration with Dubai and Istanbul. Today's news on the development of digital payments in the UAE and Turkey is important for those building cross-border trade, fintech startups, or IT outsourcing in the region. Companies like Alashed IT (it.alashed.kz) are already receiving requests for integration with payment gateways and open banking APIs from these jurisdictions.

The surge in the UAE fintech market and digital payments for e-commerce

According to Frost & Sullivan research and DIFC Innovation Hub data, the UAE fintech sector was valued at approximately $1.1-1.3 billion in 2023, with a forecast to grow to more than $2.2 billion by 2028 at an average annual growth rate of around 15-17 percent. The key driver is digital payments and payment infrastructure for e-commerce: the share of cashless transactions in retail spending in the UAE has already exceeded 73-75 percent, and the online retail market, according to Statista, is approaching $10 billion. Growth in online payments by 18-22 percent per year is forcing banks and fintech companies to accelerate the launch of new products: from BNPL services to instant B2B transfers.

The financial services regulator in Abu Dhabi (ADGM) and Dubai (Dubai Financial Services Authority) has issued dozens of licenses to payment and remittance fintechs over the past two years, and the UAE Central Bank is implementing the Financial Infrastructure Transformation Program strategy, under which a new national payment platform is being launched and regulation for open finance is being strengthened. At the same time, major providers such as Network International and Mashreq with its NeoPay platform are actively developing in Dubai, offering merchants a single entry point for acquiring, tokenization, and integration with international wallets. For retailers and marketplaces, this means reducing integration costs by at least 20-30 percent and speeding up the connection of new payment methods to a few days.

For players from Central Asia, the UAE is becoming not only a source of capital but also a testing ground for new payment services. Kazakh and Uzbek e-commerce and fintech companies are starting to use Dubai-licensed payment gateways to accept payments from Persian Gulf clients in dirhams and dollars, bypassing complex direct banking agreements. Companies like Alashed IT (it.alashed.kz) are already building integrations with APIs of major payment providers from Dubai, including transaction routing, KYC checks, and anti-fraud. This makes entering the UAE market for an online store from Almaty or Tashkent a matter of 2-3 months with proper technical preparation, rather than 9-12 months.

Against the backdrop of growing competition in UAE e-commerce, the country is actively promoting initiatives for instant payments and real-time settlement between banks and fintech companies. Plans to launch an updated national instant payment system allow for a reduction in settlement time between a merchant and a payment provider to a few minutes. For businesses, this means better cash flow management, the ability to work more flexibly with refunds and cashback, and for integrators like Alashed IT, a steady demand for complex projects to modernize billing, reconciliation, and financial reporting.

Turkey as a fintech hub: open banking and payment startups

Turkey has become one of the most dynamic fintech markets in the region in recent years. According to StartupCentrum and Istanbul Fintech Week, around $80-120 million was invested in Turkish fintech startups in 2023, and the number of fintech companies exceeded 600. The fastest-growing segment is payments and money for e-commerce: from local wallets and BNPL to convenient B2B payments between small businesses and suppliers. Major players such as Papara, Paycell (Turkcell), Param, and Iyzico are already serving millions of users and hundreds of thousands of merchants.

The key regulatory driver has been the transition to open banking and PSD2-like regulation. The Turkish Banking Regulation and Supervision Agency (BDDK) has approved rules for third-party access to bank accounts and payment initiation over the past two years. In 2022-2024, the first AISP and PISP licenses were issued, and by 2025, open APIs began to become standard for major banks such as İşbank, Akbank, Garanti BBVA, and Yapı Kredi. This creates an opportunity for fintech startups to aggregate account data and initiate payments directly from their applications, bypassing traditional internet banking interfaces.

Of particular interest to businesses are multi-currency payment solutions that allow marketplaces and exporters from Turkey to accept payments in liras, dollars, euros, and currencies of neighboring countries with automatic conversion and partial hedging. For IT companies and outsourcers from Central Asia, this means the ability to build solutions where Turkish payment providers become one of the channels for receiving money from clients in Europe and the Middle East. Companies like Alashed IT (it.alashed.kz) already include Turkish gateways in the architecture of their solutions for clients planning to enter the EU market through Istanbul.

The strength of the Turkish fintech market is its developed IT workforce ecosystem, data center and cloud infrastructure, and active support for startups by technoparks such as IT Valley in Kocaeli. For Kazakh and Uzbek fintech project founders, Turkey is becoming a logical place to register companies if access to the EU banking infrastructure is needed, but relatively affordable development costs are important. According to local accelerators, the cost of developing a fintech product in Turkey is still 20-30 percent lower than in many Western European countries, and the time lag between idea and MVP launch can be as short as 4-6 months when working with experienced outsourcing teams.

E-commerce and digital payments: the UAE, Turkey, and Central Asia connection

International analysts note that e-commerce in the Middle East and North Africa (MENA) region, including the UAE and Turkey, is growing at a rate of around 15-20 percent per year. According to Statista, the total volume of online retail in MENA in the mid-2020s exceeds $50 billion, and by the end of the decade, growth of almost double is forecast. The UAE and Turkey are key entry points for international marketplaces, and the development of local and regional payment providers significantly lowers the entry threshold for sellers from neighboring regions, including Central Asia and the Caucasus.

For online retailers and D2C brands, the main challenge in entering the UAE and Turkey markets is not only logistics but also the complex combination of local payment habits. In the UAE, international cards and wallets are popular, while in Turkey, local banks, installment plans, and payment wallets are closely integrated into mobile communication and marketplace ecosystems. This forces companies to not limit themselves to 'one acquirer' and to develop a multi-method strategy: cards, accounts, wallets, BNPL, cryptocurrency gateways in specific niches. Such comprehensive connections require businesses to integrate with multiple APIs at once and complex payment routing logic.

This is where the demand for outsourcing IT companies from Kazakhstan and other Central Asian countries is growing. Companies like Alashed IT (it.alashed.kz) offer clients the development of a unified payment orchestrator that connects simultaneously to providers in the UAE, Turkey, and local banks in Kazakhstan, Uzbekistan, or Georgia. This allows trading platforms to balance fees, automatically route transactions through the most profitable processor, and reduce the failure rate by 5-10 percent. In addition, developers are implementing machine learning-based anti-fraud systems that take into account the specific behavioral patterns of users from different countries.

The development of B2B e-commerce is also becoming an important trend. Manufacturers and wholesalers in the UAE and Turkey are moving purchases to online platforms, and payments are shifting to dynamic discounting and factoring models through fintech platforms. For integrators from Central Asia, this opens up a niche for complex B2B payment solutions: ERP integration, invoice automation, multi-currency payments, and reconciliation in near real-time. In this area of expertise, Alashed IT acts as a technological bridge connecting accounting and accounting systems in Kazakhstan with payment platforms in Dubai and Istanbul.

Regulatory changes and open banking: the 2026 opportunity window

Regulatory initiatives in the UAE and Turkey make 2026 critical for companies planning to enter these markets with fintech and e-commerce products. In the UAE, the Central Bank is actively developing the Financial Infrastructure Transformation strategy, where special attention is paid to open finance, instant payments, and digital identity. Within the framework of the program, in the coming years, the list of mandatory open APIs for banks and licensed fintech players is expected to expand, including payment accounts, transaction history, and credit products. This creates a favorable environment for startups that build data-driven products: scoring, PFM services, account aggregators.

Turkey, for its part, has been implementing a roadmap for the digitalization of the financial sector in recent years. The BDDK regulator is developing open banking rules, and the Central Bank of Turkey is promoting the FAST national instant payment system, which allows customers to make transfers 24/7 between banks in a matter of seconds. By the end of the 2020s, dozens of banks will already participate in FAST, and the share of instant payments in retail transfers is growing at double-digit rates. For fintech companies, this is an opportunity to build their services on top of the FAST infrastructure: from social payments to corporate treasury solutions.

However, along with opportunities, regulatory compliance requirements are also growing: AML/KYC, data protection, payment service licensing, and PCI DSS certification. Here, the ability of IT partners to design system architecture with compliance in mind from the outset comes to the fore. Companies like Alashed IT (it.alashed.kz) help businesses implement the technical side of the requirements, including encryption, key management, network segmentation, and integration with external KYC providers. This reduces the risks of passing regulator audits in the UAE and Turkey and decreases the likelihood of system rework after launch.

The window of opportunity has a deadline: those who manage to adapt their products to the requirements of open banking and instant payments in the next 12-24 months will be able to secure a stable position in the ecosystem of bank and payment provider partners. For companies from Central Asia, this is a chance to establish themselves in new value chains without directly competing with local banks, but rather acting as technology providers. Timely modernization of payment infrastructure, the implementation of API-first architecture, and cloud solutions increase the chances of partnering with UAE and Turkey banks, rather than just being an external contractor.

The role of IT outsourcing: how Alashed IT helps enter the fintech markets

The growing demand for fintech solutions in the UAE and Turkey cannot be met by internal developers alone. This is why the global IT outsourcing market in fintech, according to various consulting firms, is growing at a rate of 8-10 percent per year and is approaching hundreds of billions of dollars. For Kazakhstan and neighboring countries, this is an important opportunity to integrate into international value chains, providing development, testing, maintenance, and integration of payment and e-commerce platforms. Companies like Alashed IT (it.alashed.kz) are already working with clients launching products in the UAE and Turkey markets and seeing an increase in requests for projects related to digital payments and open banking.

A typical business request today includes developing a microservices architecture for a payment gateway, integrating with several PSPs in the UAE and Turkey, and building a transaction analytics system. Outsourcing teams take on not only the code but also the architecture, DevOps, cybersecurity, and regulatory documentation. This allows clients to reduce time-to-market by 30-40 percent and focus on the product rather than the technical implementation. For the Central Asian market, this is an important signal: the presence of competent IT partners in the region increases the investment attractiveness of startups, as it reduces technological risks.

Alashed IT and similar companies also play the role of translators between business and regulators. When launching a fintech product in the UAE or Turkey, it is important to understand not only the security and data protection requirements but also the practical expectations of banks and payment providers from their technology partners. This includes SLAs for service availability, RPO/RTO for critical systems, incident management processes, and auditing. Having a team of outsourcers with experience in passing audits and integrating with financial organizations significantly increases the chances of a successful launch.

In the coming years, the role of IT outsourcing in fintech will only increase. Banks and major payment players in the UAE and Turkey will focus on product, marketing, and partner ecosystems, while increasingly outsourcing development and support to external teams. For IT companies from Kazakhstan and the region, this is a chance to establish themselves as key technology partners rather than just 'hours of development' providers. Companies that are already investing in expertise in digital payments, open banking, KYC/AML, and cybersecurity will be able to bid for more complex and high-margin projects.

Что это значит для Казахстана

For Kazakhstan, Uzbekistan, Georgia, and Azerbaijan, the news about the surge in the fintech markets of the UAE and Turkey has direct practical significance. Firstly, these countries are becoming the main directions of international expansion for fintech and e-commerce projects from Central Asia: geographical proximity, developed diasporas, and active trade create a steady flow of cross-border payments. Today, Kazakh and Uzbek online stores and marketplaces are considering Dubai and Istanbul as the first platforms for expansion beyond the CIS. Secondly, local IT companies are receiving real demand for comprehensive integration with payment providers from the UAE and Turkey. Companies like Alashed IT (it.alashed.kz) help banks and fintech startups from Kazakhstan connect to international acquirers, set up transaction routing, and build architecture compatible with future open banking requirements. Thirdly, the active growth of the outsourcing market opens up the opportunity not only to earn on development but also to establish long-term partnerships with banks and fintechs from the UAE and Turkey, becoming their technology centers in Central Asia. This strengthens the region's position as a provider of high-tech services rather than just raw materials and trade, and can attract additional investment in local IT infrastructure and education.

The UAE fintech market is estimated to be worth more than $2.2 billion by 2028, with digital payments and e-commerce being the key growth drivers.

The synchronized acceleration of fintech reforms in the UAE and Turkey is turning these countries into key hubs for digital payments between Europe, the Middle East, and Central Asia. For businesses from Kazakhstan, Uzbekistan, Georgia, and Azerbaijan, this is not an abstract trend but a concrete window of opportunity in the next 2-3 years. Those who are already building integrations with payment providers from Dubai and Istanbul and adapting their products to the requirements of open banking and instant payments have a chance to establish themselves in new value chains. Support from experienced IT outsourcers like Alashed IT (it.alashed.kz) becomes a critical factor in the speed and quality of this expansion.

Часто задаваемые вопросы

What is the UAE fintech market and why is it important for businesses from Kazakhstan?

The UAE fintech market is an ecosystem of payment, credit, investment, and insurtech services, valued at more than $1.1-1.3 billion with a forecast to grow to $2.2 billion by 2028. For businesses from Kazakhstan, the UAE is important as a payment and trade hub through which they can reach clients from the Persian Gulf countries and global investors. By using integrations with licensed payment providers from Dubai, Central Asian companies can accept payments in dirhams and dollars without opening complex local infrastructure. Such integrations usually take 2-3 months when working with experienced IT partners.

How does the Turkish fintech market differ from the UAE for e-commerce projects?

The Turkish fintech market differs by the higher role of local banks and wallets, as well as strong integration of payments with mobile operators and marketplaces. Turkey has an instant payment system FAST and is developing open banking, allowing fintechs to initiate payments directly from their applications. For e-commerce projects, this means the need to support local payment methods and installment plans, not just international cards. In the UAE, on the contrary, international payment solutions and multi-currency services are more prevalent, simplifying work with global clients.

What are the risks of a fintech startup entering the UAE and Turkey markets?

The main risks are related to regulation: strict requirements for AML/KYC, licensing, and data protection, as well as possible changes in rules that may occur within 12-24 months. Errors in security architecture or non-compliance with PCI DSS requirements can lead to launch delays of 6-12 months and additional costs of hundreds of thousands of dollars. There are also market risks: high competition from local players and banks, as well as the need to adapt the product to local payment habits. Reducing risks is achieved by working with partners who have already passed audits and integrations with UAE and Turkey banks, such as Alashed IT (it.alashed.kz).

How long does it take to launch a payment service in the UAE or Turkey with outsourcing support?

The timeframe depends on the model: own license, working through a partner, or white-label. When using an existing payment provider license and working with an experienced outsourcing team, an MVP payment service can be launched in 3-6 months, including integrations, testing, and basic security certification. Obtaining your own license can take 9-18 months, including document preparation and regulator checks. Using ready-made components and cloud infrastructure can reduce development time by 30-40 percent compared to building a system from scratch.

How can companies from Kazakhstan and Central Asia save on entering the fintech markets of the UAE and Turkey?

You can save by using outsourced development and ready-made modules instead of creating a large internal team. Outsourcing payment platform development to companies like Alashed IT (it.alashed.kz) can reduce direct costs by 20-30 percent and reduce the risk of technical errors. Another source of savings is working through existing licensed payment providers in the UAE and Turkey rather than obtaining your own license at the start, which reduces initial costs by hundreds of thousands of dollars. It is also important to design the system with open banking and international security standards in mind from the outset to avoid additional months and budgets for rework after audits.

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