Revolut Seek Expansion, Applies for UAE License

London-based financial services firm, Revolut, has submitted applications to the Central Bank of the United Arab Emirates to become an electronic money institution and offer remittances in the country.

According to people familiar with the matter, the goal is to eventually apply for a full banking license, similar to the one it recently received from regulators in the UK after years of work.

It was also learnt that Revolut has taken on a new investment from Abu Dhabi sovereign investor – Mubadala, and is also looking at ways to expand in neighboring Saudi Arabia.

Although Revolut and the UAE Central Bank both declined to comment or did not respond to requests for comment, experts have given their takes on the planned expansion. 

Marcel van Oost, FinTech writer and Angel Investor commented on the Mubadala investment saying, “Abu Dhabi sovereign investor Mubadala has taken a stake in Revolut for the first time, participating in a share sale that last month secured the London-based FinTech a $45bn valuation and netted at least $200mn for its founder and chief executive Nik Storonsky.

“The Middle Eastern fund was among investors such as Coatue, D1 Capital Partners and Tiger Global that took part in the sale of $500mn of shares by Revolut employees in August, according to three people with knowledge of the transaction.

“The size of Mubadala’s investment could not immediately be ascertained. It has also invested in Chime, and Klarna, but has not previously backed Revolut.”

Also explaining the reasons for Revolut’s expansion into the UAE, Marwan Hassaan, Head of Commercial & Global Growth at Munify, wrote a piece on a public LinkedIn group, Invenew. 

He wrote, “Why Did Revolut Choose UAE and Mubadala for Its Expansion? Here’s the inside scoop:

“1️⃣ Strategic Local Partnership: Mubadala Capital, the asset management arm of the Abu Dhabi Government’s sovereign wealth fund, offers Revolut a strong foothold in the UAE’s financial landscape. With its local expertise and established reputation, Mubadala helps Revolut navigate the UAE’s regulatory environment and build trust with customers.

“2️⃣ Access to Capital and Growth Support: Mubadala Capital brings not just financial backing but also strategic resources. This partnership ensures that Revolut has the capital and support needed to scale operations effectively in a new market.

“3️⃣ Untapped Market Potential: The UAE boasts a tech-savvy population and a relatively under-penetrated banking sector, making it an attractive market for fintech innovation. Revolut is capitalizing on the UAE’s growing demand for digital banking services, with Mubadala as a key ally in this growth journey.

“4️⃣ Gateway to the MENA Region: The UAE is not just a market—it’s a gateway to the entire Middle East and North Africa. With Mubadala’s regional expertise, Revolut can use the UAE as a launchpad for further expansion into other high-potential markets across MENA.

“In short: Revolut’s partnership with Mubadala Capital is a strategic move to secure a strong, well-supported entry into the Middle East, starting with the UAE.”