Dubai-based Beehive has become the first P2P lending platform to be authorised and regulated by the Dubai Financial Services Authority (DFSA).
Beehive launched in 2014 and was founded by serial entrepreneur, Craig Moore, along with Rick Pudner, former Group CEO of Emirates NBD. The platform claims to have registered almost 4500 investors, who have funded in excess of AED 75m across more than 150 loans since its launch.
Until now the platform was not officially regulated as rules governing the industry in Dubai did not exist. The new regulation is a first for the region and may catalyse sector growth of the Fintech industry. Beehive said the new regulation will provide added protection and peace of mind for P2P investors.
The United Arab Emirates (UAE) wants to boost its global profile in the Fintech sector. Regulation is another vital step towards the UAE’s vision of becoming a Fintech hub, attracting talented financial innovators and entrepreneurs.
As part of being officially authorised and regulated by the DFSA, Beehive said it would now set up offices in the DIFC.
Moore, Beehive founder and CEO, said: "We're delighted to be regulated by the DFSA. This regulation reinforces Beehive as one of the fintech leaders in the region and we feel this greatly expands the opportunity to further help SMEs and the wider economy."
Pudner, Beehive chairman, added: "Peer to peer lending is going from strength to strength and has become a valid alternative for SME funding in the Middle East. This is an exciting time for fintech in the region and it's great to see regulators getting behind innovative business models that can have a positive impact on the economy."
Salmaan Jaffery, chief business development officer for the DIFC Authority, commented on the regulatory approval of the platform; “I’d like to welcome Beehive to the DIFC. Their presence reinforces how the DIFC is leading the way in the region for innovation and developing the fintech sector. We are sure that Beehive will prosper here, thanks to our unrivalled ecosystem and world-class regulation.”