FINTECH IN THE – AN OVERVIEW

OCTOBER 2017 FINTECH IN THE MIDDLE EAST – AN OVERVIEW Financial technology (fintech) is transforming the delivery of financial services across the Middle East. Fintech sandboxes and Government driven initiatives support a growing base of fintech startups. Regional and international are developing digital platforms and smart solutions and are coming together to create projects such as the Emirates , which is expected to change the off-line payments landscape in the UAE.

Across the Middle East, fintech is driven legislative reforms to capitalise on fintech. both by technology-enabled innovation The central banks of , Bahrain, UAE that improves existing financial services, and have adopted specific initiatives but also provides routes for unbanked to regulate digital payment services, while populations to access financial services. Lebanon, the DIFC and Bahrain have introduced crowdfunding regulations. Government support and tech Dialogue is underway between regulators in developments, together with high the region, especially amongst the GCC, smartphone penetration, have contributed regarding the challenges and opportunities to the development of startups in presented by the evolution of fintech. Middle East and the GCC in particular. Across the Middle East, legislation is in As of 2016, it has been reported that place to recognise e-commerce and digital 84 per cent of all Middle East fintech signatures, with more recent e-commerce startups are payments and regulations covering electronic payments crowdfunding‑related and the UAE, Egypt in certain jurisdictions, such as Kuwait. Jordan and Lebanon account for However, most e-commerce regulations 73 per cent of all MENA-based fintech still contain significant exclusions for startup with the majority being in the UAE certain types of transactions, limiting the (State of Fintech report 2016, Wamda use of e-contracts and electronic Research Lab and Payfort). communications in these areas. The UAE’s electronic communications laws, for Whilst the market is currently dominated example, exclude transactions in real by payments and crowdfunding and estate, negotiable instruments and matters home‑grown innovation/collaboration by for which a notarisation is required, financial institutions, we expect other areas requiring wet ink signatures in respect of to catch up quickly given the opportunities many transactions. This could constrain in the market and support from local the ability to roll out blockchain‑based governments, particularly in the UAE. smart contract solutions for certain sectors at a time when such initiatives are driving From a regulatory perspective, the the next generation of fintech startups. development of Middle East startups is being accelerated through regulatory Despite the fintech developments taking sandboxes in the UAE and Bahrain, which place, Middle East fintech remains in its have permitted a bespoke, firm‑specific early stages, as of January 2017, having licensing regime for a limited testing reportedly attracted only 1% of the US$50 period. These sandboxes also allow billion invested in fintech globally since 2010 governments to learn about new (source: Accenture) and half of all MENA- technologies and to shape regulations based startups were founded after 2012. accordingly. There are currently three sandboxes across the Middle East: In this report, we aim to show that the the Dubai International Financial Centre Middle East has great potential for future (DIFC), the Abu Dhabi Global Market investment in fintech and that, despite (ADGM), and Bahrain. We set out a challenges in the region, these are mitigated comparison of these initiatives on page 17. by significant development and modernisation happening across the region. MENA governments and regulators are increasingly acknowledging the need for

2 CLIFFORD CHANCE FINTECH IN THE MIDDLE EAST – AN OVERVIEW Lebanon

Jordan Kuwait

Bahrain Score for regulatory environment: 1. Specific local regime 2. No specific local regime – some local Egypt UAE guidance/regulatory policies 3. No specific local regime – legislation expected 4. No specific local regime now or anticipated in the near future

Oman Level of current regulator activity l Most Active l Active l Least Active

Blockchain-enabled Payment Crowdfunding Other financial services and Services/Mobile crypto-currencies Wallets

1 2 1 1 l UAE (ADGM and DIFC sandboxes)

l OMAN 4 1 4 4

l JORDAN 4 1 3 3

l EGYPT 4 1 3 3

l LEBANON 2 1 1 4

l KUWAIT 4 1 4 4

1 4 1 1 l BAHRAIN (CBB sandbox)

l SAUDI ARABIA 4 2 3 2

This report does not cover Qatar or Israel.

CLIFFORD CHANCE 3 FINTECH IN THE MIDDLE EAST – AN OVERVIEW The following table sets out a number of common legal concerns for those considering investing in fintech in the Middle East. These concerns can be mitigated or even resolved by either more recent developments in the market or available structures.

Legal systems and enforcement

Uncertainty: The Middle East has historically been slow to Mitigants/solutions: There are many specific licensing adapt to international standards or make modernising changes regimes created in the Middle East which can counteract to legal systems, leaving some uncertainty regarding the issues around uncertainty, such as the financial regulatory enforcement of rights and obligations. In many cases, this can regimes in the UAE financial free zones. These free zones be due to linguistic or cultural approaches or through the provide for an English common law approach in respect of necessity of prioritising core structural reforms to promote their own court system, which allows for greater certainty in economic and social stability. commercial transactions. In addition, Shari’a laws are applied to varying degrees across Regarding Shari’a developments, Islamic finance is keeping the Middle East (for example, Shari’a is considered to be a pace with modern finance and could by analogy be extended to source of law in both the UAE and Egypt, but is applied as the fintech. The market-leading Islamic Finance practice at Clifford law in Saudi Arabia). Such laws can provide restrictive penal Chance has been involved in some of the most innovative provisions for wide-ranging matters relating to “decency”, structures in recent years to provide equivalent finance and such as broad restrictions for online content considered insurance products to consumers and investors seeking Islamic offensive to public morals. This can restrict, or add uncertainty compliance. Our experience tells us that modern financial to, certain technological developments. services solutions are recognised as necessary by Shari’a scholars for many reasons. The innovation we see across the Islamic finance world parallels the innovation taking place within fintech. One recent example is the issuance of a Shari’a standard on trading in gold by AAOIFI in November 2016, shortly followed by several gold-linked ICOs issued in the UAE.

Financial services regulation

Limited specific regulations: Only three out of the eight Mitigants/solutions: As noted above, the financial regulatory jurisdictions covered in this report have specific regulations in regimes in the UAE financial free zones have created specific place which target fintech developments other than payment licensing regimes for fintech firms to be provided with a testing services. In addition, where such regulatory regimes are in place, licence following the “sandbox” models in other jurisdictions. such as the UAE financial free zones, attempts to scale an In addition, certain regulatory hurdles are prevalent in most existing fintech business can be difficult as it is not possible to other jurisdictions; fintech startups will always face a long time access new consumer markets (such as operations outside of period and extensive capital investment before obtaining a the free zones in the UAE) without an additional local licence. banking licence. However, partnership opportunities with In some jurisdictions, a lack of a specific licence for the existing banks are well-promoted in the Middle East and a relevant activity permits the fintech firm to operate unlicensed, recognised method of receiving regulatory support, such as in but in others, it brings the spectre of a Central requiring a the UAE, with many banks offering digital platforms and banking licence for the relevant activity to ensure it falls within supporting collaboration with fintech startups. their purview. Overseas licensing options also exist, including a recent In some instances, the trust and legitimacy provided through example of a mobile wallet provider obtaining a licence in having a financial services licence is required to access new as a stored value facility, to support its access to markets and consumer bases. Middle East markets.

Governmental support

Difficulty of engagement: Language barriers and limited Mitigants/solutions: Governments and supporting resources have historically caused many firms to struggle in departments, especially across the UAE, have been very arranging the right audience to facilitate their introduction to responsive and quick to move with the times in their support markets in the Middle East. of fintech. This is reflective of fintech falling within central principles of Government agendas for the future advancement of technology and innovation, and acknowledgement of the need to diversify from natural resources. The young demographic of the Middle East means that there is a ready acceptance of new technologies in the region. From our recent experience, Governmental authorities have committed resources to establishing networks and cooperations in the fintech space, and have been willing to work with prospective and incumbent participants.

4 CLIFFORD CHANCE FINTECH IN THE MIDDLE EAST – AN OVERVIEW Foreign ownership laws

Barrier to foreign entrants: Some jurisdictions, such as the Mitigants/solutions: In several jurisdictions, such as Saudi UAE and Qatar, only permit a non-national (or non-GCC) Arabia, foreign investment is growing and restrictions have shareholder to hold 49% of a company. As a result, investors been lifted in a few areas, (most recently) engineering. may be unwilling to invest capital to establish a presence in the However, in practice many investors still choose to invest with absence of a trusted local partner or network. local partners for commercial reasons. UAE free zone incorporation is also a solution in many circumstances. Challenges may come in subsequently operating outside of the free zone to visit and contract with customers, and a careful cross-border analysis is required in each case.

Cyber and privacy laws

Perceived heightened risk and sensitivities: Cyber risks Mitigants/solutions: Many regions across the Middle East are “top of the agenda” items for the management of have the tools to be well-equipped to protect themselves as organisations across the globe as cyber events continue to well as any other jurisdiction. In addition, we see that local make world news and cause significant disruption and firms consistently use international data hosting services within reputational harm. There can be a heightened sense of the EU, such as Amazon Web Services. Therefore, we see this concern in the Middle East due to geographical proximity to issue as a global threat which firms can mitigate through tools regional instability, and media reports have highlighted business available across the world, rather than a region-specific issue. across the region as susceptible. Linked to this, privacy laws The lack of comprehensive data protection regimes can are often intended to protect national security and can be assist with keeping compliance costs down on initial setup, limited in scope in certain jurisdictions. Moreover, terrorist whilst ensuring sufficient disclosures on uses of data are financing is a particular concern in the region, and specific laws made to customers and counterparties. Firms should retain to combat this may inadvertently restrict the growth of the access to international solutions to ensure enhanced fintech sector. protections for the safekeeping and integrity of data to international standards.

Intellectual Property (IP) protection

Undeveloped IP regime: IP protection laws exist throughout Mitigants/solutions: Entrepreneurs may consider obtaining the Middle East; and brand rights are well recognised. It is now patents in more developed jurisdictions (US, Europe, Japan) as possible to obtain patents that cover the whole of the GCC. well as in the GCC. This will give more effective protection However, the regime of examination and enforcement remains against international infringement. In addition, innovators can nascent in respect of copyright, industrial design and patents use other means of protecting their intellectual property, such compared with some other jurisdictions. Fintech entrepreneurs as protection of trade secrets and digital rights may, as a result, be reluctant to invest capital for development management technologies. in the Middle East. Regular confirmations of IP assignments from contractors and Intellectual property is a particular concern for fintech engineers employees on termination is recommended and should be because of the prevalence of open source code, use of manageable for many firms. third‑party developers, and the collaborative environment.

AML Regimes and Sanctions Risks

Compliance costs: Local operations can require significant Migrants: Many local fintech initiatives are being developed in costs in KYC/CDD checks and mitigrating compliance risks. the regtech space. Strategies of local Authorities to adopt techology, including the Dubai Blockchain Strategy, will enhance transparency and focus on the prevention of money landering and other financial crime.

CLIFFORD CHANCE 5 FINTECH IN THE MIDDLE EAST – AN OVERVIEW UAE platform for entrepreneurs to test and develop financial products, as they have a Fintech is a hot topic in the UAE, As both a growing bespoke licensing regime which applies to particularly in Dubai and Abu Dhabi. The jurisdiction and a hub for the the relevant fintech operations, following Dubai International Finance Centre (DIFC) the regulatory model. Middle East, there is a very has set up FinTech Hive, while the Abu Dhabi Global Market (ADGM) has created active market in the UAE for The April 2017 interim report on global the FinTech RegLab. With technology and fintech and many regulatory fintech hubs published by Deloitte, listed entrepreneurialism taking centre stage initiatives, especially from the the ADGM RegLab high on its list of the and with large investments currently being world’s best fintech hubs, and stated it financial free zones which made, the UAE can be expected to host was the leading hub in MENA. However, the next generation of fintech solutions have established regulatory at the time this report was published, the developed in the region. In this regard, sandboxes for startups. DIFC Fintech Hive was only listed as being the UAE can be considered both as an planned, and was therefore not covered active fintech jurisdiction in itself and as a by the report. However, entities established hub for the Middle East. in the ADGM and the DIFC, The ADGM has an impressive set of links Fintech startups in the UAE began in the must still be licensed in the to other networks, including a fintech payments and crowdfunding sectors and jurisdictions in which they bridge with MAS in Singapore, and offers have grown to service the wide potentially greater benefits for sandbox want to provide products entrepreneurial and SME base across the participants through a dynamic free zone and services. Fintech Middle East, which is eager to reach an regulatory team. However, the DIFC increasingly mobile population. entrepreneurs will still have to currently has a broader base of Blockchain and other money transfer navigate a number of international and regional financial technologies are now leading the way in institutions within the free zone and via the different regulations ‘onshore’ a second wave of development DFSA, has been the first to create a in the UAE. These are issued supported by government initiatives such regulated activity for crowdfunding (beyond as the Dubai Blockchain Strategy, which by the UAE Central Bank for the sandbox testing licences). traditional banking and will apply technology to pave the way for new electronic platforms to generate “Onshore” implications financing activities, the efficiencies across Dubai. Many banks Entities established in free zones, such as Emirates Securities and have rolled out digital platforms and the ADGM and the DIFC, must still be innovative electronic solutions, including Commodities Authority (SCA) licensed in the jurisdictions in which they the Emirates Digital Wallet initiative, which for securities and investment want to provide products and services. is being introduced by the UAE Banks The free zones do not currently provide a activities, and the UAE Federation and is set to revolutionise passport to any other jurisdiction. This Insurance Authority for payments across the country. means fintech entrepreneurs will still have insurance (including to navigate a number of different Other sectors also have the potential to insurance-based investment regulations ‘onshore’ in the UAE, issued thrive, including “robo” wealth advisory by the UAE Central Bank for traditional contracts commonly sold by startups, which are responding to the banking and financing activities, the IFAs in the UAE). demand for easy access investment Emirates Securities and Commodities options by UAE residents considering Authority (SCA) for securities and pension planning and advice on investment activities, and the UAE ” international options. Insurtech is also ripe Insurance Authority for insurance (including for development, as the UAE hosts global insurance-based investment contracts and regional insurers backed by commonly sold by IFAs in the UAE). reinsurance in several markets across the world, such as the Lloyd’s platform in the Of these regulators, only the UAE Central DIFC, although there is a low insurance Bank has published onshore regulations penetration in this area compared with which target a particular sector of the nations with equivalent available wealth. fintech industry – namely, payment services. In January 2017, the UAE Regulatory developments Central Bank established a new licensing and future challenges framework for stored value facilities Free zones offering certain digital payment services, The table on page 17 compares the which is due to be implemented by ADGM and DIFC financial free zones. Each 1 January 2018. Currently, the licensing of these financial free zones provides a scope is uncertain, as a number of

6 CLIFFORD CHANCE FINTECH IN THE MIDDLE EAST – AN OVERVIEW implementing rules are required. For on the platform, covering fitness and example, it is not entirely clear if these propriety tests for investments and analysis regulations cover all payment services of business proposals for investment The UAE Central providers, such as website payment opportunities. Operators must also conduct Bank has created a new gateways (acting purely as intermediaries pre and post-fundraising monitoring for licensing regime for between merchants and regulated credit material changes to business, and take payment services and card acquirers), or only those offering steps to stop companies raising funds from stored value facilities, such as issuing other crowdfunders. There must also be no the DFSA has, in the e-credits. However, a number of payment regulated and unregulated crowdfunding DIFC, issued a markets participants are currently services by the same entity (which could comprehensive set of engaging with the Central Bank’s limit the ability for campaigns to include rules for operators of payment services and policy team, who non‑equity benefits, such as first offerings have been receptive to hearing of products). Business continuity plans are debt and equity presentations from firms and working with also needed and operators must ensure, on crowd‑funding them in order to understand if, and to the debt side, loan agreements are legally platforms. what extent, the regulations apply. This enforceable. In addition, a separate retail phase appears to offer a real opportunity endorsement is needed to offer the for payment services firms to meet platform to non-institutional investors. There ” Central Bank regulation in a way which are also detailed provisions regarding works for their business. disclosure requirements for companies rising funds. In January 2017, the SCA announced an initiative to support fintech by eventually Therefore, it remains to be seen if firms introducing its own regulatory sandbox in with limited resources and a small, albeit a manner which may also compete with increasing, target market, will be able to the free zone initiatives. The SCA intends comply with these requirements in a to “bring together fintech companies, cost‑effective way. One firm, Beehive, has companies that offer innovative financial already become regulated to operate a services, financial institutions, and crowd-funding platform, with certain telecommunications and internet regulatory waivers granted by the DFSA. companies to test and launch modern technological initiatives in the securities While regulated status will certainly sector.” It is currently receiving suggestions enhance the profiles of operators such as from market participants on how best to Beehive and their ability to attract achieve this objective, and has asked fundraisers and investors, the alternative is participants to set out the support which a limited licensing regime onshore, where would be needed from the SCA. We do firms currently continue to operate largely not have any further information on the unregulated. Certain crowdfunding nature of and timing for these regulations activities could fall within the remit of the yet, but it is expected they could cover Central Bank and/or the SCA, and issuers fintech in the securities sector, including of credit and securities using the platform the provision of automated investment will be subject to regulation (for example, services (robo-advice) and automation the prohibition on UAE LLCs issuing within securities exchanges, such as shares to the public). 2017 regulations clearing and settlement services (to from the SCA restricting promotion and complement the recent regulations on introducing activities in respect of central clearing parties). securities could severely affect a number of operations. However, we have not seen Crowdfunding evidence of prominent crowdfunding The DFSA has recently issued a new set of operations with licences from either the rules which apply to crowdfunding Central Bank or SCA. The lack of specific platforms wishing to operate in or from the regulations/policy and gaps in the UAE DIFC. These rules are relatively regulatory perimeter (such as the Central comprehensive, and impose a significant bank not specifically regulating the set of requirements on crowdfunding intermediation, rather than the issuance, of operators in the DIFC. Under new “COB” credit/loans) could provide some comfort rules, operators must include detailed around a “tolerated practice”, but rules disclosures of risks (such as expected may be tightened in the future. Rewards failure rates) and 18 other core disclosures and charity-based fundraising could also

CLIFFORD CHANCE 7 FINTECH IN THE MIDDLE EAST – AN OVERVIEW be restricted by laws regulating the raising However, other stored value providers of donations in the UAE. have sought to structure around the Both the DFSA and regulatory hurdles. For example, using ADGM FRSA have issued Payments Beam Wallet, a mobile wallet app in the UAE, for certain transactions, users pay statements on ICOs and Gateways and local banking partners for “Beam Credits” at the point of sale, we expect extensive Partnership with local banks is a common generated specifically for that purchase. platform for fintech firms in the Middle scrutiny for firms seeking This type of structure could permit Beam East, including the UAE, because of the to use such methods of to avoid any stricter regulations which limited number of acquiring could apply to the issue of credit, by engaging investors in the banks and the desire for local banks to providing a service similar to selling a gift financial free zones. Most digitise quickly and establish new card for a specific merchant, as is channels to reach customers. recently, the Governor of common amongst retailers. the UAE Central Bank has Depending on the result of regulatory AML considerations warned investors of the engagement, partnering with a local bank Any payment services operation needs to risks of investing in can be an effective way to seek be alert to the fact that, while a licence regulatory clarity by engaging in services unregulated virtual may not be required for operations, their which, as may be confirmed by the currencies ahead of activities remain financial in nature and relevant regulator, rely upon the bank’s require customer due diligence/KYC and expected new licence for the relevant parts of the oversight, from an anti- regulations. payments transaction chain and leave and counter-terrorism financing other aspects within the fintech firm’s perspective, in many jurisdictions across responsibility. For example, in most the Middle East. ” jurisdictions in the Middle East, the mere provision of software to enable an online Blockchain and crypto-currencies payment gateway to operate between a merchant and acquiring bank would not Initial Coin Offerings (ICOs) are not be within the regulatory perimeter of the specifically regulated “onshore” in the relevant central bank. UAE, but are subject to certain licensing requirements where the units offer a right The Emirates Digital Wallet initiative, in an underlying commodity (in which along with the introduction of ApplePay trading does require a licence (gold has in the UAE, is also likely to drive the UAE been an example applied to date in the further towards a cashless society for off- UAE)). However, there has been some line payments. uncertainty as to whether the UAE Central Bank intends to regulate “virtual Stored value facilities currencies” and specific regulations covering crypto-currencies are expected Certain firms have found the need to seek in the near future from the Central Bank, a licence in a relevant jurisdiction outside perhaps as part of implementing the Middle East to provide legitimacy for measures for the 2017 licensing their operations and pave the way to Initial Coin Offerings framework expected later this year. The obtaining local regulatory comfort through Central Bank may grapple with the same (ICOs) are not specifically assurance on the standards applied. issues faced globally on the practicalities regulated “onshore” in the of trying to regulate crypto-currencies UAE, but are subject to One prominent example is CASHU, which because of their dynamic and uncertain provides stored value cards across the certain licensing legal form, although it may instead focus Middle East for those without a credit on ICO elements which will fit within requirements where the card and enables them to make online existing supervisory frameworks, such as units offer a right in an transactions. In 2016, CASHU became the operation of an exchange. underlying commodity regulated under the stored value facilities licensing regime of the Monetary Authority (in which trading does In November 2016, the Supreme of Singapore (MAS). This licence commits Legislation Committee for the require a licence (gold has CASHU to creating a safer, more secure Government of Dubai announced been an example applied prepaid services market as a result of the discussions on future legislation on to date in the UAE)). adoption of new standards. The MAS crypto-currencies in cooperation with the regulatory framework also provides Dubai Electronic Security Centre, which CASHU with the flexibility to work with could result in there being specific Dubai ” local regulators across different territories.

8 CLIFFORD CHANCE FINTECH IN THE MIDDLE EAST – AN OVERVIEW regulations in addition to those issued by a regulatory perspective, such matters will the UAE Central Bank. fall within existing systems and control requirements for financial institutions. The Dubai has recently In the financial free zones, the DFSA has SCA-driven automation across exchange created emCash, the issued a warning statement to investors in institutions in the UAE, through processes crypto‑currency to respect of ICOs that such crypto‑currency such as clearing and settlement, also has be adopted by the investments should be treated as high risk the potential to introduce this technology and with unique risks which may be broadly across the industry. Government of Dubai to difficult to identify. The DFSA clarified that, permit fast and cheap per onshore UAE regulations, it does not We expect there to be a proliferation of digital transactions. regulate ICOs and also that it would not smart contract opportunities in the near license firms undertaking such activities. future through international developments, This development such as the R3 initiative in the derivatives reinforces the strong In the ADGM, the FRSA has gone further space. Automated processes for contract focus of Dubai on and issued regulatory guidance to clarify formation and performance, through the adopting technology and for investors that whilst ICOs (or electronic implication of standard terms crypto‑currencies) would not be regulated and systems for operating standard becoming the world’s in themselves, elements of certain ICO processes being run on blockchain, may “smartest” city. offerings, which can include activities of be taken up by international banks in their operating an exchange, offering securities operations in the UAE, and by local banks ” or units in a fund and dealing in that may be equally keen to optimise and derivatives, can fall within the regulatory adopt international approaches. perimeter. In such case, the activities would be regulated in the usual way. The Automation in contracts will bring new FRSA also confirmed that many aspects challenges for UAE laws and regulations, of ICOs, including spot transactions in particularly with regard to notarisation or virtual currencies, may not be regulated Arabic translation requirements. Extensive activities and investors must be aware of testing will need to be built into the the lack of regulatory oversight. operation of such processes to ensure certainty in contractual engagement. The Most recently, the Governor of the UAE first generation of smart contracts is Central Bank has been reported in the expected to largely involve contractual local press to have said the Central Bank wrappers around automated systems considers digital currencies pose high rather than incorporating code into or as risks to investors and present money the contract terms. The UAE Law of laundering risks. The comments may Electronic Commerce and Transactions have sought to clarify that the Central may be particularly helpful in matters Bank is not regulating a number of digital such as execution and enforcement. currency exchanges and ICOs marketed There are provisions providing for the in the UAE. recognition of electronic contractual engagement, and which expressly Blockchain and smart contracts recognise the ability of automated Dubai has embraced blockchain as a systems to create contractually binding core element of the Smart City Initiative, engagements between each other. both through the Dubai Blockchain However, the exclusions within the Strategy and its support of the Global Electronic Transactions Law may also Blockchain Council. In common with present challenges. Currently, approaches internationally, the use of transactions for land, negotiable blockchain in fintech is likely to be rolled instruments and other matters which out in a controlled environment initially. require legal notarisation (amongst others) are excluded from the operation of the Specific regulations covering law. Therefore, a broad class of crypto‑currencies are expected in the transactions still require wet ink signature, near future from the Central Bank, contrary to the intentions behind many perhaps as part of implementing smart contract initiatives. measures for the 2017 licensing framework expected later this year. Such as those found in certain cross-border trade and settlement arrangements. From

CLIFFORD CHANCE 9 FINTECH IN THE MIDDLE EAST – AN OVERVIEW BAHRAIN payments without the use of credit or debit cards or cash. The system is still at Bahrain is actively developing a fintech The Central Bank of an early stage of implementation; the industry involving different governmental Bahrain (CBB), the intention is for it to be integrated with authorities. The Central Bank of Bahrain other payment infrastructures handling regulator for the financial (CBB), the regulator for the financial retail payments in Bahrain. sector, has launched a sector, has launched a regulatory sandbox to test fintech solutions and is working regulatory sandbox to test Crowdfunding fintech solutions and is with local players to develop innovative retail payment systems. Bahrain’s Bahrain recently adopted an ad hoc working with local players Economic Development Board is focusing regulatory framework for crowdfunding for to develop innovative on attracting foreign investments in conventional and Shari’a compliant retail payment systems. this sector. markets. Requirements include: • The operator of the crowdfunding This enables both Regulatory sandbox platform must have minimum capital of CBB‑licensed financial Following a public consultation process, BD50,000. the CBB launched a regulatory sandbox institutions and other • Only small and medium-sized for fintech companies in Bahrain in June businesses with paid-up capital not firms to test their 2017, which was subsequently amended exceeding BD250,000 can raise funds in August 2017. This enables both products and through the crowdfunding platform. services. CBB‑licensed financial institutions and other firms to test their products and • Only expert and accredited investors services. The sandbox application process (as defined in the relevant regulations) ” is open to existing CBB licensees are allowed to provide financing (financial institutions with technologically through this platform. It is unavailable to innovative initiatives) and other companies, retail investors, in light of the higher whether Bahraini or foreign. The latter may risks implicit in the activity. include financial sector companies as well • Quantitative limitations are also in place as technology and telecom companies for, amongst other things, the maximum intending to test an innovative product or amount which can be borrowed by each service; professional service firms which borrower and the maximum exposure partner with, or service, financial that each lender might have in relation to institutions; or any other type of applicant a single borrower. working within the financial services industry deemed acceptable by the CBB. The CBB has also put into public This sandbox is similar to initiatives in the consultation proposed regulations for UAE (see the chart on page 17). equity-based crowdfunding. In particular, the CBB is considering a regime of E-wallet initiative licensing offers for equity-based The Benefit Company, a Bahraini provider crowdfunding made through a registered of payment settlement services, has crowdfunding platform as an alternative launched the National Mobile Electronic to equity offerings generally contemplated Wallet (BenefitPay), in a joint initiative with in securities regulations. the CBB. This allows customers to use their smartphones to make or receive

10 CLIFFORD CHANCE FINTECH IN THE MIDDLE EAST – AN OVERVIEW EGYPT service providers for merchants. They facilitate cashless financial transactions There is a growing number of fintech between merchants and end-users/ startups in Egypt, driven by the Egyptian consumers and enable merchants to Government and the Central Bank of send, receive and manage financial data Egypt’s (CBE) intention to upgrade and send it to banks. Some of the online payment systems and move towards a payment gateway providers offer card cashless economy. The most mature payment instalment plans to card users/ sector is the provision of payment holders on behalf of a bank which services, mobile cash and smart wallets. enable merchants to track and settle all transactions. Mobile wallets In 2016, the CBE issued new regulations Looking ahead for cashless payments using The Egyptian Government and the CBE smartphones. Only licensed banks can The Egyptian are working closely with ministries and apply to provide mobile wallets and to act other governmental authorities to develop Government and the as an issuing bank to take cash deposits and encourage fintech companies to Central Bank of Egypt in exchange for issuing electronic money, integrate into the financial system. In but fintech startups can work in are working closely with February 2017, the President issued partnership with the banks to provide the ministries and other legislation setting up the National Council necessary infrastructure and technology. for Payment. Its members include the governmental authorities These services are available to banked President, the head of the CBE and the to develop and and unbanked customers and can be head of the Financial Supervisory used to transfer money, pay telephone encourage fintech Authority. Its role is to promote the move and other utility bills, and make companies to towards cashless payments. An donations. Mobile wallets are regarded as e-commerce law has been under integrate into the consumer‑friendly and easily accessible. discussion, and a wave of financial financial system. regulatory reform to respond to the Payment services growth in digital credit lending and Egypt has seen widespread growth in crowdfunding is expected to ” online payment gateway services as be introduced. fintech companies act as payment

CLIFFORD CHANCE 11 FINTECH IN THE MIDDLE EAST – AN OVERVIEW JORDAN launched eFAWATEER.com in 2015. This is an electronic bill presentation and Fintech in Jordan is in its infancy, but is The Central Bank of payment system (EBPP). It is owned by slowly growing. Local firms are Jordan is embedding the CBJ and managed and operated by implementing systems to settle bills Madfoo’atcom. It enables consumers to fintech products into electronically and make payments view and pay all types of bills governmental services through smartphones. Meanwhile, the electronically through local banking Jordanian Government is seeking to and the banking sector. channels, including internet banking, reduce the amount of cash in circulation This creates many ATMs and mobile banking. by digitising Jordanian money. It is opportunities for fintech actively encouraging the introduction of The CBJ is overseeing the application fintech in various public and private companies to set up in of this system to ensure that all relevant sectors in Jordan, and is pushing public the country. parties are complying with its and private entities to implement and regulations. It requires all banks to use apply fintech in their day‑to-day services. eFAWATEER.com as the only electronic ” The Central Bank of Jordan (CBJ) is means of allowing customers to view and embedding fintech products into pay their bills from their bank accounts. governmental services and the banking sector. This creates many opportunities The Jordanian Government wants all for fintech companies to set up in payments of governmental bills (including the country. water, electricity, gas, fines and taxes) to be made through Madfoo’atcom by the Regulation end of 2017 as part of its vision to digitise Under the Electronic Transactions Law 4, Jordanian money. introduced in 2015, e-payment is an acceptable method of payment and Mobile wallets electronic signatures are an acceptable The majority of Jordanians do not have means of concluding commercial bank accounts and use cash to settle transactions. The CBJ regulates their bills and make payments. However, e-payment and other forms of online the CBJ aims to provide the “unbanked” payment services. with access to financial services, and has introduced an electronic mobile wallet In anticipation of the rise of fintech in that enables people to make payments Jordan, the CBJ has gradually issued from their mobile wallets to any other regulations and instructions for fintech person with a mobile wallet. Mobile providers and the use of fintech, wallets can also be used to withdraw particularly by local banks and financial money from ATMs, pay bills and make services providers. A new regulation, person-to-person or person-to-merchant which aims to regulate third-party transfers. Customers do not need a payment processors, is due to be smartphone or a bank account, and can issued this year. open a mobile wallet at any local telecoms operator or its licensed agents. Madfoo’atcom To encourage Jordanians to start using electronic payments, the CBJ partnered with fintech company Madfoo’atcom and

12 CLIFFORD CHANCE FINTECH IN THE MIDDLE EAST – AN OVERVIEW LEBANON enters into an agreement with the institution which includes the likely risks Fintech has had a significant impact on associated with the e-signature and Fintech has had a the Lebanese financial sector as local procedures to be followed to significant impact on the banks have introduced mobile and online ensure safety. banking, payment and deposit platforms Lebanese financial sector and money transfer platforms. as local banks have Crowdfunding introduced mobile and The Banque du Liban (BDL) regulates The CMA regulates crowdfunding as electronic banking while the Capital “any activity directed towards the general online banking, Markets Authority (CMA) regulates public aimed at funding [SME] or startup payment and deposit crowdfunding. The Lebanese authorities companies through public investments in platforms and money are keen to develop fintech activity while various equities or shares in transfer platforms. ensuring financial security and stability, these companies.” a balance which is not easy to maintain in the jurisdiction. In order to obtain a crowdfunding licence, ” the CMA will conduct “Know Your Regulation Customer” verification and investigate relations between the crowdfunding Specific BDL regulations from 2000 operation (the institution) and the (Circular 69) cover all the operations and underlying companies. The institution activities concluded, performed or must also demonstrate compliance with promoted through electronic means by several systems and control requirements banks and other financial institutions; and provide documents on technical rules these require a specific licence. Circular for its electronic systems. 69 prohibits the issuance or use of “electronic money” by any party. Limiting the institution’s role to facilitating the process of securing the necessary Circular 69 also prohibits the performance crowdfunding for investment, the CMA of banking operations via mobile and prohibits it from providing advice of any fixed electronic devices amongst kind to the investors or the company; customers of different banks, unless receive deposits of any kind whatsoever; these operations are limited to the receipt use the electronic platform to offer any of transfer requests from the customer, financial products or derivatives to the and provided that the operations are not public, other than equities and shares; or instantly performed through the to trade, directly or indirectly, in equities application or software used by the and shares on the electronic platform customer’s devices but in the usual and designed to provide the conventional way (i.e. through the SWIFT crowdfunding service. system adopted amongst banks). Before granting a company access to its Non-banking institutions can obtain a electronic platform, the institution must licence for electronic fund transfer ensure that the fundraising company operations. The requirements permit submits corporate identification close and continuous monitoring by BDL documents, audited financial statements, of the ownership of the licensed a feasibility study covering the period of institutions. BDL also requires that the the next three years, a term sheet to be institution be in possession of an efficient presented to the investor identifying the internal control system to face current basic terms of the investment, and an and prospective risks, as well as an investment agreement to be signed with accounting system linked to the approved the investor. Placements shall be electronic transfer system (in a way that deposited in an escrow account to be permits the electronic retrieval of all released upon reaching the targeted incoming and outgoing transfers). capital, or otherwise returned to the investors with the accrued interest. BDL requires that, for the admission of an electronic signature of the client, the client

CLIFFORD CHANCE 13 FINTECH IN THE MIDDLE EAST – AN OVERVIEW KUWAIT Electronic signatures To address the legal A small number of fintech startups are Under the ET Law, an electronic signature is binding and admissible as evidence if it challenges and new operating in Kuwait, mainly in the payments sector; to date, there have complies with the provisions of Law opportunities created by been limited regulatory developments. Decree No. 39 of 1980 on Evidence in the digital revolution, the However, to address the legal challenges Civil and Commercial Matters, and is Kuwaiti national assembly and new opportunities created by the certified by an electronic certification entity approved by the local authority. issued Law No. 20 of digital revolution, the Kuwaiti national assembly issued Law No. 20 of 2014 The relevant authority will specify the 2014 (Regarding (Regarding Electronic Transactions) (the standards required and set the Electronic Transactions) ET Law) in January 2015. technical specifications. (the ET Law) in January 2015. The aim is to emulate traditional Privacy and data paper‑based transaction processes in a protection regulated, efficient and secure digitised Personal data must be protected by ” system. The ET Law governs electronic both governmental authorities and contractual agreements and electronic non‑governmental bodies, which are signatures, and covers electronic also required to take certain steps to payments. Under the ET Law, no person ensure the confidentiality of such is obligated to accept or approve information. The ET Law also imposes electronic transactions without their responsibilities on entities that collect consent. Consent may, in certain personal data. They may not disclose instances, be implied by the actions of any personal data or information which is individuals. However, consent and kept or documented on electronic data approval of electronic transactions must processing systems related to a person be explicit and unequivocal with regard (including financial status) without the to governmental entities and authorities. approval of the person to whom the data relates, or after obtaining a court order Electronic payments granting permission to disclose the Electronic payment is an acceptable information. On obtaining consent, payment method so long as it complies entities responsible for the collection of with the ET Law and the provisions set personal data must ensure that the data out by the Central Bank of Kuwait (CBK) is used for the purpose for which it has in Law No. 32 of 1968 (the Banking Law). been collected, is correct and updated The ET Law also states that financial regularly, and is sufficiently protected institutions carrying out electronic from loss or disclosure. It is unclear, at payments must ensure the safety and this stage, whether “personal data” security of customer services and relates to individuals only or also extends maintain banking confidentiality. The CBK to corporate entities. is given the authority to issue instructions to banking and financial institutions under its jurisdiction in relation to the regulation of electronic payments.

14 CLIFFORD CHANCE FINTECH IN THE MIDDLE EAST – AN OVERVIEW OMAN This, therefore, means that fintech transactions such as payments made The fintech sector continues to develop in through the use of apps or e-wallets, Any services the Sultanate of Oman. In line with would be subject to the ETL. The ETL provided by financial consumer demand, financial institutions requires all electronic transactions to have taken a cautious but optimistic view institutions (including follow certain evidentiary and towards fintech. While fintech has the transactions implemented authentication standards and security potential to alter and grow the financial measures. It also places a requirement on using fintech) will also be services sector in Oman, progress has the Information Technology Authority, in subject to the Consumer been slow due to a lack of consumer collaboration with the Central Bank of awareness and confidence. Protection Law, which Oman, to issue procedures and systems sets down rules designed for organising electronic payments. Regulation to balance the respective In the absence of specific fintech laws, The AML Law also has implications for rights and obligations of existing legislation is applicable. This fintech institutions in that it sets out certain consumers and their procedures which must be followed by includes the Commercial Code of Oman, suppliers with an the Civil Transactions Law of Oman, financial institutions in all their transactions Omani Banking Law, the Electronics (including fintech transactions) to prevent appropriate allocation of Transactions Law (ETL), the Anti-Money money laundering and terrorism financing. any risks. Laundering and Terrorism Law (AML Law) and the Consumer Protection Law. Finally, any services provided by financial Notwithstanding the possible application institutions (including transactions ” of these laws to fintech transactions, implemented using fintech) will also be there is as yet no clear case law that subject to the Consumer Protection Law, provides clarity in terms of how a which sets down rules designed to particular fintech transaction may be balance the respective rights and considered, as it is not expressly obligations of consumers and their covered under the existing laws. suppliers with an appropriate allocation of any risks. While aspects of fintech are All fintech transactions are subject to the regulated by these general laws, there is ETL, which governs all forms of electronic a need for a comprehensive regime which transaction. Any act or contract drawn governs fintech in Oman. There is no up, fully or partially, using electronic indication that a regulatory initiative for the information communicated via electronic fintech sector is on the horizon. means is an “electronic transaction” under the ETL.

CLIFFORD CHANCE 15 FINTECH IN THE MIDDLE EAST – AN OVERVIEW SAUDI ARABIA investor in the fintech space for years to come, as typified by Softbank’s Based on economics and demographics, Based on US$1 billion investment in US financial Saudi Arabia has the potential to be a economics and technology startup SoFi in 2015 and its future fintech hub. Saudi Arabia is the US$1.4 billion investment in Indian fintech demographics, Saudi largest economy in the MENA region and company PayTM in 2017. Arabia has the potential has a large, young population (about half are under the age of 24) and one of the to be a future fintech Future initiatives hub. Saudi Arabia is the highest penetrations of smartphones in the world (65 per cent). It is also generally Vision 2030 recognises that small and largest economy in the accepting of new technologies and medium-sized businesses are key to the MENA region and has a innovative ways of doing business. Saudi development of the fintech sector. In large, young population Arabia’s “Vision 2030” and the National 2016, the Small and Medium Enterprises Authority was set up with the aim of (about half are under the Transformation Program 2020 were launched in 2016, and are intended to set encouraging young entrepreneurs through age of 24) and one of the out the blueprint for the development of business-friendly regulations, easier highest penetrations of the Kingdom over the next decade. One access to funding, international smartphones in the world of the key aims of Vision 2030 and the partnerships and a greater share of national procurement and (65 per cent). National Transformation Program 2020 is to reduce Saudi Arabia’s reliance on oil by government bids. developing other sectors of its economy. ” Technology is at the heart of this strategy. Another important element of Saudi Arabia’s fintech ambitions is the Sadad King Abdullah Financial District, a massive new business area in the heart The Saudi Arabian Monetary Agency of Riyadh which is almost complete. It is (SAMA) is very conscious of the need to expected that fintech will be at the heart adopt fintech initiatives. “Sadad” – the of the new district, as is the case in its national (and widely used) Electronic Bill regional competitors, Dubai’s DIFC and Presentment and Payment (EBPP) system Abu Dhabi’s ADGM. – was established by SAMA in 2004. It aims to facilitate and streamline bill It is also expected that there will be payment transactions between regulatory initiatives in the fintech sector consumers and merchants, and that will enable and encourage further between consumers. developments. We understand there are plans in discussion between SAMA and Global ambitions The Saudi Capital Markets Authority (the One important element of Saudi Arabia’s CMA) to create a regulatory sandbox, fintech ambitions is its willingness to initially for incumbent firms, to promote invest in fintech ventures throughout the fintech innovation in Saudi Arabia in the world. The principal vehicle for these coming years. investments is the Public Investment Fund (PIF), which was relaunched as part It is therefore clear that there is a of Vision 2030 as the world’s largest willingness and ambition to embrace the sovereign wealth fund. One of the PIF’s fintech sector, as well as the economic flagship investments was its 2017 and social fundamentals to facilitate investment in the US$100 billion its expansion. “Softbank Vision Fund” established by Softbank. This Fund is likely to be a key

16 CLIFFORD CHANCE FINTECH IN THE MIDDLE EAST – AN OVERVIEW As noted above, the following table provides some background and comparisons on what the three formal fintech sandboxes in the Middle East are, and their features.

Middle East fintech sandbox comparisons

ADGM Free Zone DIFC Free Zone Bahrain

Fintech initiative The RegLab, created in 2016, The DIFC announced its FinTech Following a public consultation applies a bespoke regulatory Hive initiative in January 2017. process, the CBB launched a regime to each applicant agreed The DFSA offers an Innovation regulatory sandbox for fintech with the ADGM Financial Services Testing Licence (ITL) which is companies in Bahrain in June 2017. Regulatory Authority (FSRA). The similar to ADGM’s RegLab, as a This enables both CBB‑licensed FSRA reviews applications and licensee is allowed to test its financial institutions and other firms determines, in conjunction with the fintech product within a sandbox to test their products and services. applicant, which existing rules environment subject to a Certain regulatory requirements apply and which are waived and/or bespoke regulatory regime for a would be relaxed during the testing modified in relation to that particular period of six to 12 months. period (not including matters such applicant. The FSRA also imposes as AML rules). Both the ADGM RegLab and the a set of restrictions or conditions FinTech Hive follow an incubator Following admission to the specific to the applicant’s proposed model, which provides fintech sandbox, testing the technology activity. The RegLab offers a entrepreneurs with sufficient in a controlled environment ‘Developing Financial Technology freedom to develop and test can begin. The testing may be Services’ (DFTS) licence to fintech fintech projects while balancing limited in terms of the number of startups for a limited time, after the risk they pose to the volunteer customers and/or the which they either need to upgrade financial system. net value amount of transactions to a full licence or wind down (to be decided by the CBB on a their activities. case-by-case basis).

Support Access to co-working space, A similar support network to the Access to the virtual working available established financial institutions and ADGM would be provided, space. Assignment by the CBB investors through the network of including mentorship from its of a contact person to each of collaborators, (see below), and a network with insider knowledge the Applicants to guide them bench of mentors to support the and feedback from targeted user through the application and Abu Dhabi fintech ecosystem, who groups in the DIFC, workshops testing process. Government are drawn from various and panel discussions, and agencies such as Tamkeen stakeholders including professional profile-raising opportunities with facilitate the setting up of services firms in the UAE. potential partners and investors. businesses, with technical back- A workspace in the DIFC for two up, fully-funded training and employees is provided salary subsidies. throughout the programme.

Licensing Up to two years (extendable). Six to 12 months (extendable). The sandbox trial lasts for period nine months with a maximum extension of three months.

Current activity In May 2017, the ADGM announced The FinTech Hive accepted On September 7, 2017 the CBB the admission of the first cohort of applicants from 17 April 2017 announced the first two entrants five applicants to its RegLab, until 28 May 2017, and on into its fintech regulatory including two local UAE companies 21 August announced 11 finalists sandbox: a London-based foreign providing mobile banking technology from the UAE and across the exchange cash management for low-income migrant workers, an world selected for the solution for businesses; and a automated escrow service to cater programme, covering a broad Dubai-based account and to small businesses, and a US range of sectors from payments remittance service for low-income robo‑advisory platform. Applications and crowdfunding to regtech workers in the Gulf Cooperation for the second round of firms and robo-advisory platforms. Council countries. closed on 14 August 2017. The programme will culminate Currently, 22 fintech startups are in a demonstrations day in being reviewed. November 2017, where finalists will present their solutions to an audience of venture capitalists and financial industry executives.

CLIFFORD CHANCE 17 FINTECH IN THE MIDDLE EAST – AN OVERVIEW Middle East fintech sandbox comparisons

ADGM Free Zone DIFC Free Zone Bahrain

Applicants To be licensed, firms must be ready Applicants must have a business The sandbox application for either a live test or an model, product or service that process is open to existing CBB enhancement of an existing uses new, emerging or existing licensees (financial institutions operation. Established fintech technology in an innovative way, with technologically innovative startups cannot apply. and brings new benefits to initiatives) and other companies, consumers or industry. whether Bahraini or foreign. The DFSA‑licensed firms can apply latter may include financial sector for modifications and waivers of companies as well as technology their licence to conduct the and telecom companies intending testing of new fintech products to test an innovative product or and services. Applicants must service; professional service firms have a well‑defined prototype or which partner with, or service, service implemented in at least financial institutions; or any other one market, and be looking to type of applicant working within grow in the MEASA region. the financial services industry deemed acceptable by the CBB.

Application Prospective applicants would first The application process would The application shall include, Requirements meet with the ADGM RegLab Team be broadly similar to the ADGM. amongst others, the following to explain the proposal and seek However, applicants may content: guidance for the application experience a process of • A brief description of the process. A detailed application engaging with the DIFC fintech applicant organisation, including form would then be required team and separate engagement its financial standing, technical including information on the with the DFSA. and business domain expertise. Applicant’s resources, experience The FinTech Hive notes • A brief description of the financial and track record, a fit and proper applicants should have a service to be experimented on in questionnaire, details of the fintech minimum alpha or beta product the sandbox. proposal, CVs, and structure and to demonstrate and are organisational charts. • A description of how the prepared to share access to applicant has met the The ADGM notes its RegLab as a programme partners under a eligibility criteria, relating to “onestop shop” for applications, confidentiality agreement. innovation, customer benefit linking into its FRSA. The applicant’s senior and technical soundness, with DFTS applicants also must management team and supporting evidence. establish a commercial presence in developer would commit to • A disclosure of the boundary the ADGM, pass certain fitness and being based in Dubai throughout conditions for the sandbox propriety tests, and sign up to the 12-week programme. such as start and end dates, milestones and a reporting Applications for the 2017 target customer types, schedule over a two-year period programme are now closed. customer limits, transaction (after which applicants are thresholds, cash holding limits, expected to either apply for a full and so on. FRSA licence or wind down). A standard application template A standard application template is available. is available.

18 CLIFFORD CHANCE FINTECH IN THE MIDDLE EAST – AN OVERVIEW Middle East fintech sandbox comparisons

ADGM Free Zone DIFC Free Zone Bahrain

Fintech The ADGM has been quick to set As well as establishing its own The Bahrain Economic collaborations up several networks for international international cooperation Development Board (EDB), fintech resources and cooperation to agreements, such as with the incubator and ecosystem builder ensure it is providing the know-how, SFC in Hong Kong in August Singapore Fintech Consortium talent and capability necessary to and, most recently, the (SFC) and a Dubai-based asset support the entrepreneurs and Malaysian Securities management and advisory firm developers within its RegLab. For Commission, the DIFC will be have partnered to develop a example, in March 2017 it signed an able to leverage its existing fintech (financial technology) MoU with MAS in Singapore to work network of international MoUs ecosystem and regulatory together on fintech initiatives; in and DFSA-licensed financial framework for Bahrain. The May 2017 joined the R3 consortium institutions. In particular, it has framework role is part of a wider on distributed ledger technology announced a fintech partnership partnership collaboration that (blockchain); in June 2017 signed network which “brings together aims to transform Bahrain into the an MoU with Techpreneur Africa to local, regional and international region’s fintech powerhouse. accelerate the development of financial experts and institutions, The agreement has been fintech across the Middle East and to help identify the needs and announced as including support Africa; in July 2017 announced an opportunities of the financial in developing related commercial MoU with the Qianhai Authority in services sector”. and legal infrastructure required to Hong Kong for the promotion of The international banks directly initiate, nurture and sustain investment and cooperation in involved in the FinTech Hive Bahrain’s fintech ecosystem. fintech, and in August 2017 include Citi, HSBC and Standard It aims to pave the way for announced a fintech cooperation Chartered, and UAE banks increased interaction between agreement with the Australian Emirates NBD, RAKBANK and fintech firms in the Middle East via Securities and Investments Mashreq. The DIFC has also Bahrain, and those in Asia via Commission. There joined various international Singapore, and to facilitate the are many others. associations, such as the Global entry of Singaporean fintech Blockchain Council, and sought companies into the Kingdom. to cross-integrate with other Other initiatives under initiatives such as its support of consideration include a dedicated Islamic finance. fintech hub, an incubator/ accelerator platform, and fintech‑focused venture capital.

CLIFFORD CHANCE 19 FINTECH IN THE MIDDLE EAST – AN OVERVIEW CONTACTS Authored by:

Dubai

Jack Hardman, CFA Senior Associate T: +971 4503 2712 E: [email protected]

Saudi Arabia

Yasser Al-Hussain Daniel Royle Counsel Counsel Head of Banking & Finance T: +966 11 481 9756 T: +966 11 481 9770 E: daniel.royle@ E: yasser.alhussain@ cliffordchance.com ashlawksa.com

20 CLIFFORD CHANCE FINTECH IN THE MIDDLE EAST – AN OVERVIEW Kuwait Bahrain

Rob Little Laurent Levac Simone Del Nevo Steven Ray Brown Counsel Senior Associate Senior Associate at ASAR – Senior Associate and Managing T: +965 22922700 T: +965 22922700 Al Ruwayeh & Partners Attorney of Bahrain office at E: [email protected] E: [email protected] T: (+973) 17 533 182/3 ASAR – Al Ruwayeh & Partners E: [email protected] T: (+973) 17 533 182/3 E: [email protected]

Egypt Jordan

Mahmoud Bassiouny Ahmed Agamy Khaled A. Asfour Rakan R. Kawar Head of Finance & Projects Senior Associate Managing Partner Associate T: + (202) 2796 2042 (ext. 103) T: (202) 2796 2042 (ext. 764) T: +962 79 867 1640 T: +962 79 840 5555 E: mahmoud.bassiouny@ E: ahmed.agamy@ E: [email protected] E: [email protected] matoukbassiouny.com matoukbassiouny.com

AMNCC Lebanon Oman

Elie Chamoun Cyril Chamoun Mansoor Malik Asad Qayyum Partner Associate Senior Partner Senior Associate T: 961 1 331 737 T: 961 1 200 177 Al Busaidy, Mansoor Jamal & Co Al Busaidy, Mansoor Jamal & Co E: e.chamoun@ E: cyril.chamoun@ (Barristers and Legal Consultants) (Barristers and Legal Consultants) amncc-lawfirm.com amncc-lawfirm.com T: +968 2482 9200 T: +968 2481 4466 E: mansoor.malik@ E: asad.qayyum@ amjoman.com amjoman.com

CLIFFORD CHANCE 21 FINTECH IN THE MIDDLE EAST – AN OVERVIEW This publication does not necessarily deal with every important topic nor cover every aspect of the topics with which it deals. It is not designed to provide legal or other advice. www.cliffordchance.com

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