Fintech regulation is tightening across the region as digital payments move from a back-office function to a mainstream industry. The Central Bank of the UAE (CBUAE) has imposed new restrictions on using WhatsApp for banking communications, a move that aims to curb fraud but may cause friction for consumers accustomed to the platform.
Smart regulation and the role of AI
Adrianus Schoorl, a partner at DLA Piper, said enforcement risk has increased significantly since the new CBUAE law was issued in September 2025. He argued that greater regulation does not necessarily mean greater friction, pointing to frameworks around emerging technologies, including the ADGM’s virtual assets regime and CBUAE’s AI guidance, as evidence of a model designed to accommodate innovation.
Financial institutions are integrating AI into various operations, such as compliance checks, customer verification processes, and support services. Tabby is one example, leveraging generative AI in these areas. However, Tariq, a participant in the discussion, emphasized that AI should assist rather than replace human oversight. He stressed that organizations cannot delegate accountability to technology, especially as AI increasingly influences consumer choices.
Mastercard’s regional legal advisor for Europe, the Middle East, and Africa, Emilia Law, noted that the UAE’s regulatory environment thrives on sustained collaboration between authorities and businesses. ‘There’s constant engagement,’ she observed, crediting this interaction for the region’s rapid advancements in innovation.
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For financial institutions, the immediate priority is understanding where AI is already being used. “AI is everywhere, and we do not always realise it,” Schoorl said. Organisations need to understand what they use, where, when, and why.
As fintech firms merge services like payments, loans, and digital wallets, traditional regulatory categories are becoming outdated. ‘People don’t wake up thinking about making a payment,’ explained Schoorl. ‘They focus on purchases.’ This shift is prompting regulators to align their approaches with consumer behavior.
Law highlighted how automated shopping—where AI handles product selection and transactions—could introduce new challenges regarding payment responsibility and consumer liability. She expects this trend to drive major changes in the industry within the next 12 to 18 months.
Pace noted the rise of diverse payment networks, including domestic systems and peer-to-peer transfers, alongside increasing blockchain adoption. He predicts the market will simplify, favoring a few dominant methods while prioritizing seamless compatibility between platforms.
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Regulatory Evolution
Schoorl argued that the evolving payment environment is pushing regulators to redefine how financial activities are classified. With fintech companies blending services like lending and transactions, oversight must adapt beyond outdated sector divisions.
Schoorl observed that fintech firms are shifting toward deeper consumer integration, aiming to participate in the entire financial lifecycle. The goal is to align with transaction flows and maintain relevance throughout a customer’s financial journey.
Finance in Focus 2026 was supported by partners Al Tamimi & Company, BSA Law, Hadef & Partners, Datasite, and Titanium Escrow, and took place on May 19, 2026 at The St. Regis Downtown Dubai.