Fintech start-up Stripe enters the Middle East with UAE launch
One of Silicon Valley’s most valuable private fintech companies has chosen Dubai for its first expansion into the Middle East and North Africa.
Online payments company Stripe is expanding into the Middle East, just weeks after its latest funding round, which pushed the company’s value to $95 billion, making it one of the most valuable private fintech firms in the world.
“The opportunity for start-ups in the UAE is enormous,” Matt Henderson, Stripe’s business lead for Europe, Middle East, Africa told CNBC’s Hadley Gamble on Monday in an exclusive interview. “The opportunity for Stripe is very large as well.”
Co-founders Patrick and John Collison, who are 32 and 30 respectively, are each worth over $11 billion.
“The UAE has clearly got a booming digital economy,” Henderson told CNBC. Businesses operating online in the UAE can now use Stripe to accept online payments.
Gym management software Glofox, already a global user of Stripe, said in a statement that Stripe’s launch in the UAE “can be a catalyst for global brands like ours to expand the products and services we’re able to offer to fitness businesses in the region.”
The benefit of bringing Stripe’s technology to Dubai, Henderson adds, is that “there are a lot of great local businesses that haven’t yet globalized. One of the ways that will help them grow and therefore help them to resonate with investors is opening up these new markets.”
Commuters drive along Sheikh Zayed Road past commercial and residential properties in Dubai, United Arab Emirates.
Christopher Pike | Bloomberg | Getty Images
Lockdown measures across the globe helped accelerate e-commerce, and the UAE is no exception. According to the International Trade Administration, the UAE’s e-commerce market is forecast to be valued at $27.1 billion by 2022.
“We’ve already seen just last year more than $600 million of investment into start-ups in the UAE,” Henderson told CNBC. “The ingredients are there for a much, much bigger trajectory.”
“You’ve got this combination of talent, of investment, and entrepreneurship as well,” he added. “So we see that there’s going to be a lot of exciting emerging technology businesses in the UAE.”
The Careem ride-hailing app is displayed on an iPhone at a shopping mall in Dubai.
Christopher Pike | Bloomberg | Getty Images
The UAE is home to several regional success stories.
Ride-hailing app Careem, headquartered in Dubai, was bought by Uber for $3.1 billion in 2019. And Anghami, the first legal music streaming platform in the Middle East and North Africa, last month announced they will be the first Arab tech company to list on New York’s Nasdaq.
Stripe is reportedly the most valuable private company ever to come out of Silicon Valley after its valuation nearly tripled in less than a year. It is worth more than both Uber and Facebook were before they went public.
Former Bank of England governor Mark Carney sits on Stripe’s board, along with Christa Davies, the chief financial officer of insurance company Aon.
Despite rumors that Stripe is primed for a public listing, Henderson told CNBC: “We’re actually just really focused on growth mode, investment mode, and really serving our users.”
Henderson said the company aims to maintain “a culture of frugality, and we try to conserve our own resources and do things in as automated a way possible.”
While it’s not yet known how many staff Stripe will add in the UAE, it plans on sticking to its capital efficient model, Henderson said, adding: “I think that has served us well.”
- The postcard that came home after 60 years
- Dogecoin spikes 300% in a week, stoking fears of a cryptocurrency bubble
- Covid infection rate is approaching the highest level so far, WHO chief warns
- Democrats, after slamming Trump for upending ‘norms,’ now eyeing sweeping changes of their own
- At least four people hospitalized with gunshot wounds, police say
- Losing languages, losing worlds
- Premier League and FA Cup team news, previews and more – live!
- Covid-19 Pushes India’s Middle Class Toward Poverty
- ‘This is it. If we don’t amp up, we’re goners’: the last chance to confront the climate crisis?
- Arsenal star Pierre-Emerick Aubameyang is recovering after contracting malaria
Common Symptoms Of COVID-19
The CDC has a collection of nine Roche antibody assays designed to provide rapid results from COVID-19 rapid antigen test. If you are a potential carrier of the human papilloma virus (HPV) and are looking for HPV testing kits for the home, it is important…
Things You Never Knew About The Best Water Purifier
Things You Never Knew About The Best Water Purifier: We all know the importance of having a water purifier at home, but not many people know the things they need to know before buying one. Most of the time, we miss out on the most…
Med hub smart pill, a device for patients having medicines intake in the daily schedule.
Med hub smart pill: The drug prescribed by a doctor will be effective if it would be taken at the right time suggested by the doctor because it is necessary for our healing process. When a patient takes too many medicians in a day also…
10 Best Effective Plants to Fight Pollution – Diwali Edition
Effective Plants to Fight Pollution: Few more months and the most awaited festival of the year will be here. We Indians love our festivals, and the biggest festival of India, especially north India, is Diwali. It is a massive affair here. It generally falls in…