One of the most valuable private fintech companies in Silicon Valley chose Dubai for its first expansion into the Middle East and North Africa.
Stripe, the online payments company, is expanding into the Middle East, just weeks after its last round of financing, which raised 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 huge,” Matt Henderson, Stripe’s business leader for Europe, the Middle East and Africa, told CNBC’s Hadley Gamble on Monday in an exclusive interview. “The opportunity for Stripe is also very big.”
Stripe, started in 2010 by two brothers from Ireland, competes directly with PayPal, Adyen and Square. Its software platform allows companies to accept payments online.
Co-founders Patrick and John Collison, aged 32 and 30 respectively, are each worth more than $ 11 billion.
Why Dubai?
“The UAE clearly has an expanding digital economy,” Henderson told CNBC. Companies operating online in the UAE can now use Stripe to accept payments online.
Glofox gym management software, already a global Stripe user, said in a statement that the launch of Stripe in the UAE “can be a catalyst for global brands like ours to expand the products and services we can offer to fitness companies in the region. “
The benefit of bringing Stripe technology to Dubai, adds Henderson, is that “there are many excellent local businesses that have not yet gone global. One of the ways that will help them grow and therefore help them to resonate with investors is opening up these new markets. “
Passengers drive along Sheikh Zayed Road, passing commercial and residential properties in Dubai, United Arab Emirates.
Christopher Pike | Bloomberg | Getty Images
Blocking measures around the world have helped to accelerate e-commerce, and the UAE is no exception. According to the International Trade Administration, the UAE’s e-commerce market is estimated at $ 27.1 billion by 2022.
“We saw more than US $ 600 million in investments in start-ups in the United Arab Emirates last year,” Henderson told CNBC. “The ingredients are there for a much, much greater trajectory.”
“You have this combination of talent, investment and entrepreneurship too,” he added. “So we see that there are going to be a lot of exciting emerging technology businesses in the UAE.”
The Careem app is displayed on an iPhone at a shopping mall in Dubai.
Christopher Pike | Bloomberg | Getty Images
The UAE has several regional success stories.
The Dubai-based Careem app was purchased by Uber for $ 3.1 billion in 2019. And Anghami, the first legal music streaming platform in the Middle East and North Africa, announced last month that it will be the first Arab technology company to list on the New York Nasdaq.
Way to IPO?
Stripe is reportedly the most valuable private company to leave Silicon Valley, after its valuation almost tripled in less than a year. It’s worth more than Uber and Facebook before it went public.
Former Bank of England governor Mark Carney sits on Stripe’s board, along with Christa Davies, chief financial officer of insurance company Aon.
Tesla founder Elon Musk and billionaire investor Peter Thiel were the first investors in Stripe.
Despite rumors that Stripe is ready for a public listing, Henderson told CNBC: “In fact, we are really focused on growth mode, investment mode and really serving our users.”
Henderson said the company’s goal is to maintain “a culture of frugality, and we try to conserve our own resources and do things in the most automated way possible”.
While it is not yet known how many Stripe employees will add in the UAE, the company plans to maintain its capital efficiency model, said Henderson, adding, “I think this has served us well.”