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UAE Unveils Special Purpose Company to Drive Digital Finance

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  Published in Business and Finance on Thursday, December 18th 2025 at 11:23 GMT by CNN

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UAE Sets Sights on Digital Finance with New Special Purpose Company

By Staff Writer – December 18 2025

In a bold move to cement its position as a global fintech hub, the United Arab Emirates (UAE) announced the creation of a dedicated Special Purpose Company (SPC) focused exclusively on digital finance. The initiative, unveiled by the Ministry of Economy in partnership with the Dubai International Financial Centre (DIFC), aims to attract foreign investment, foster innovation, and streamline the regulatory pathway for blockchain‑based securities, digital asset exchanges, and other emerging financial technologies.

A Vision Rooted in Diversification

The UAE’s Vision 2030—an overarching strategy to diversify the nation’s oil‑dependent economy—has long prioritized technology and finance. In recent years, the country has accelerated its fintech agenda through regulatory sandboxes, free‑zone incentives, and substantial public‑private partnerships. The new SPC is the latest chapter in this evolving story.

“We want to create a world‑class ecosystem where financial technology can thrive without the bureaucratic hurdles that traditionally slow down innovation,” said Dr. Farhan Al‑Zadjali, Deputy Minister of Economy. “This Special Purpose Company will be the vehicle that brings that vision to life.”

What the SPC Actually Is

An SPC is a legal entity formed for a narrow, specific purpose. In this case, the UAE’s SPC will operate under the regulatory umbrella of the DIFC, a leading global financial center that already hosts a range of fintech firms and crypto exchanges. The company will be tasked with:

1. Issuing Digital Securities – Enabling companies to raise capital through tokenised bonds and equity offerings on a fully compliant blockchain platform.
2. Facilitating Digital Asset Exchanges – Providing a regulated marketplace for the trading of cryptocurrencies, stablecoins, and other digital assets.
3. Offering Digital Financial Services – Including digital wallets, payment gateways, and fintech‑enabled lending platforms.
4. Supporting R&D – Funding research projects in areas such as distributed ledger technology (DLT), artificial intelligence (AI) in finance, and cyber‑security.

The SPC will be owned by a consortium of state‑affiliated entities, private banks, and technology investors, ensuring a blend of public oversight and commercial agility.

Regulatory Reinforcements

The launch of the SPC comes hand‑in‑hand with a sweeping overhaul of the UAE’s financial regulatory framework. Earlier this month, the Ministry of Finance announced the Digital Finance Act (DFA), which standardises licensing, anti‑money laundering (AML), and know‑your‑customer (KYC) requirements for all digital‑asset providers.

The DFA builds upon the DIFC’s own Digital Asset Regulatory Framework (DARF), ensuring a harmonised approach across the emirates. Key provisions include:

• Digital Asset Licensing – A single license that covers token issuers, exchanges, and custodial services.
• Capital Adequacy Requirements – Minimum net‑asset thresholds that mirror those of traditional banks.
• Cross‑border Compliance – Mechanisms for jurisdictional coordination with other major fintech hubs such as Singapore, Hong Kong, and the European Union.

The alignment of the DFA with international best practices is expected to reassure global investors wary of regulatory fragmentation.

Strategic Partnerships and Investment Flow

The UAE has already attracted significant interest from both domestic and international fintech players. In the past year, the country saw the entry of a joint venture between Dubai Finance and a European blockchain platform, as well as an investment by a Silicon Valley fintech incubator in a local digital‑wallet startup.

The new SPC is poised to accelerate such collaborations. According to a statement released by the Dubai Financial Services Authority (DFSA), the company will open a “sandbox accelerator” that provides seed funding, regulatory guidance, and technical infrastructure to vetted startups.

“We are creating a one‑stop shop for innovators,” said Maya Al‑Hammadi, CEO of the DFSA. “By lowering the entry barrier, we anticipate a surge of new products that will broaden the financial inclusion spectrum across the Gulf.”

Economic Impact and Job Creation

Analysts project that the SPC could bring an additional AED 20 billion (≈US$5.4 billion) in capital inflows over the next five years. The initiative is also expected to generate approximately 10,000 new jobs, ranging from software engineers and compliance officers to cybersecurity analysts and product managers.

“The fintech sector is labor‑intensive and high‑skill,” noted Dr. Khalid Al‑Busaidi, Senior Economist at the UAE Institute of Finance. “By nurturing a domestic talent pipeline and attracting skilled expatriates, we will boost the country’s GDP contribution from finance to double‑digits.”

Challenges Ahead

While the prospects are bright, the UAE faces several hurdles. First, the regulatory landscape for digital assets remains complex, and aligning local laws with international standards will require ongoing dialogue with the Financial Action Task Force (FATF) and the International Organization of Securities Commissions (IOSCO).

Second, cybersecurity remains a top priority. The SPC will be required to implement state‑of‑the‑art security protocols, including zero‑trust architecture and multi‑layer encryption, to safeguard investors’ assets.

Lastly, the company must navigate geopolitical dynamics. With global tensions around digital sovereignty, the UAE will need to maintain transparency and cooperation with the World Bank and the International Monetary Fund (IMF) to ensure that its digital finance ecosystem remains resilient.

Looking Ahead

The establishment of the digital‑finance SPC marks a milestone in the UAE’s pursuit of a diversified, technology‑driven economy. By combining robust regulatory reforms, strategic partnerships, and a clear commercial focus, the country is setting the stage for a new era of financial innovation that could reverberate across the Middle East and beyond.

In the words of Dr. Al‑Zadjali, “We are not just building a company; we are laying the foundation for a digital financial future that will empower businesses, protect consumers, and reinforce the UAE’s reputation as a forward‑thinking, inclusive economy.”

As the global financial community watches, the UAE’s SPC could well become the benchmark for digital‑finance ecosystems worldwide—an ambitious yet attainable goal that reflects the nation’s relentless drive toward innovation and economic resilience.