UAE financial sector sees PhonePe license approval and NBE banking acquisition

The United Arab Emirates' financial landscape is seeing significant shifts as both international fintech and established banking institutions undergo regulatory transitions.

Indian fintech firm PhonePe has received in-principle approval from the Central Bank of the UAE (CBUAE) for two payment licenses. These clearances cover Stored Value Facilities (SVF) and Retail Payment Services and Card Schemes (RPSCS). This marks the company's first regulatory clearance outside of India. PhonePe plans to integrate its architecture with national networks like Aani and Jaywan to support the UAE's digital economy goals.

Separately, the National Bank of Egypt (NBE) has received preliminary approval from the CBUAE to acquire the UAE-based branches of Banque Misr. This restructuring follows a regulatory examination of Banque Misr’s UAE operations initiated in August. The transition aims to ensure business continuity and protect customer rights. The move comes after US Treasury concerns regarding Banque Misr’s UAE operations and potential risks to the financial system.