Alaan Secures CBUAE In-Principle Approval for Payment Licences

Alaan has secured in-principle approval from the Central Bank of the UAE for Stored Value Facilities and Retail Payment Services category-II licenses. This regulatory milestone allows the spend management platform to transition from a software layer to a regulated financial entity, enabling it to hold funds and issue cards directly within the UAE’s maturing fintech ecosystem.

What was announced

Alaan has received in-principle approval for two critical licenses from the Central Bank of the UAE (CBUAE): the Stored Value Facilities (SVF) and Retail Payment Services (RPS) category-II licenses. This regulatory advancement is a pivotal step for the company, which has operated as a spend management platform since its launch in 2022. Once final approvals are secured, the company will be authorized to hold customer funds, execute cross-border payments, and issue corporate cards under the direct regulation of the CBUAE.

The approval follows a period of significant commercial momentum for the UAE-based fintech. Alaan has reported triple-digit year-over-year revenue growth and recently expanded its product suite to include a cross-border payment solution and an AI-native business account. The platform currently serves more than 3,000 finance teams across the region. Its client roster includes major regional and international names such as G42, Careem, Tabby, McDonald's, Lulu Group, and Al Barari. To support this growth, Alaan has raised over $55 million in total funding, including a $48 million Series A round led by Peak XV Partners, which stands as one of the largest Series A investments in the Middle East fintech sector.

"This isn't a milestone we mark and move on from. Once licensed, the Central Bank's standard becomes the standard we build everything to"

Parthi Duraisamy, Co-founder and CEO of Alaan.

The companies involved

Alaan, co-founded by Parthi Duraisamy and Karun Kurien, has positioned itself as a dominant force in the Middle Eastern spend management sector. The firm’s growth is underscored by its inclusion in the UAE Future 100 and its ability to attract substantial venture capital, including a $48 million Series A round led by Peak XV Partners. This funding, part of more than $55 million raised to date, places Alaan among the best-capitalized fintechs in the region. The company’s platform is utilized by over 3,000 finance teams, including high-profile entities such as the technology conglomerate G42 and the regional "super-app" Careem. Other major clients include the buy-now-pay-later provider Tabby, global fast-food giant McDonald’s, and the diversified retail powerhouse Lulu Group. By securing the backing of the Central Bank of the UAE, Alaan moves into a more direct competitive posture with traditional banking institutions that have historically controlled corporate card issuance and fund management. The regulatory oversight from the CBUAE provides a framework for these activities, ensuring that the fintech operates under the same rigorous standards as established financial players.

What FF News has reported before

The UAE’s financial landscape is undergoing a rapid digital transformation, as evidenced by recent regulatory and technological shifts. FF News recently reported that XTransfer Gains In-Principle Approval for UAE Retail Payment Licence, highlighting a broader trend of specialized payment providers seeking formal recognition from the Central Bank. In the banking sector, the Commercial Bank of Dubai Becomes First UAE Bank to Launch Multi-Bank Payment Initiation, signaling a move toward open banking principles. Furthermore, the push for advanced technology is clear as First Abu Dhabi Bank Hosts Second SpeakEasy Forum to Drive Enterprise AI Adoption in UAE. The domestic payment infrastructure is also evolving, with Etihad Airways Becomes First Airline to Accept UAE Domestic Jaywan Card Payments, demonstrating the increasing integration of local payment solutions into major consumer-facing industries.

What this means

This regulatory approval marks a significant shift in the Middle Eastern fintech market, where the line between software providers and financial institutions is blurring. By gaining the ability to hold customer funds and issue cards directly, Alaan is challenging the traditional dominance of commercial banks in the corporate spend space. This move puts pressure on incumbent lenders to modernize their legacy treasury and expense management tools or risk losing high-value corporate clients to more agile, AI-native competitors. The central question for the sector is whether other regional fintechs can match this level of regulatory compliance, which is increasingly becoming a prerequisite for enterprise-level trust.