One of Silicon Valley’s most valuable private fintech companies has chosen Dubai for its first expansion to the Middle East and North Africa.
The online payment company Stripe is expanding into the Middle East, a few weeks after its latest round of financing, which increased the value of the company to $ 95 billion, making it one of the most valuable private fintech companies in the world.
“The opportunity for start-ups in the UAE is enormous,” Matt Henderson, Stripe’s business leader for Europe, Middle East, Africa, said in an exclusive interview with CNBC’s Hadley Gamble on Monday. “The opportunity for Stripe is also very big.”
Stripe, started in 2010 by two Irish brothers, competes directly with PayPal, Adyen and Square. The software platform allows businesses to accept online payments.
Co-founders Patrick and John Collison, aged 32 and 30 respectively, are each worth more than $ 11 billion.
Why Dubai?
“The UAE clearly has a thriving digital economy,” Henderson told CNBC. Businesses operating online in the UAE can now use Stripe to accept online payments.
Glofox, which is already a global user of Stripe, said in a statement that the launch of Stripe in the UAE could be a catalyst for global brands like us to offer the products and services we can to fitness companies in the region, to extend. . “
Henderson adds that the advantage of bringing Stripe’s technology to Dubai is that there are many good local businesses that have not yet globalized. One of the ways that will help them grow and thus help them to appeal to investors is to open up these new markets. ‘
Commuters drive along Sheikh Zayed Road past commercial and residential properties in Dubai, United Arab Emirates.
Christopher Pike | Bloomberg | Getty Images
Closing measures around the world have helped accelerate e-commerce, and the UAE is no exception. According to the International Trade Administration, the United Arab Emirates’ e-commerce market will be valued at $ 27.1 billion by 2022.
“Last year, we saw more than $ 600 million in businesses in the UAE,” Henderson told CNBC. “The ingredients are there for a much, much larger trajectory.”
“You also have this combination of talent, investment and entrepreneurship,” he added. “So we see that there are going to be a lot of exciting technology ventures in the UAE.”
The Careem Driving app is displayed on an iPhone in a shopping mall in Dubai.
Christopher Pike | Bloomberg | Getty Images
The UAE is home to several regional success stories.
The professional app Careem, headquartered in Dubai, was purchased by Uber in 2019 for $ 3.1 billion. And Anghami, the first legal music streaming platform in the Middle East and North Africa, announced last month that it would be the first Arab technology company to list the Nasdaq in New York.
Way to IPO?
Stripe is said to be the most valuable private company ever to come out of Silicon Valley after its valuation nearly tripled in less than a year. It’s worth more than Uber and Facebook were before they saw the light of day.
Former Governor of the Bank of England Mark Carney is sitting on the board of directors of Christa Davies, chief financial officer of insurance company Aon.
Tesla founder Elon Musk and billionaire investor Peter Thiel were early investors in Stripe.
Despite rumors that Stripe is opting for a public listing, Henderson told CNBC: “We’re really just focused on growth mode, investment mode and really serving our users.”
Henderson said the company wants to maintain a culture of frugality, and we try to conserve our own resources and do things as automatically as possible. ‘
Although it is not yet known how many staff Stripe will add to the United Arab Emirates, he intends to stick to his capital-effective model, Henderson said, adding, “I think it has served us well.”