Dubai-based Alaan, a spend management platform for businesses in the Middle East, has received in-principle approval from the Central Bank of the UAE for its Stored Value Facilities and Retail Payment Services category-II licences. The announcement was made on September 3, 2026 and represents a major regulatory step for the fintech company. Once final approvals are granted, Alaan will operate under CBUAE supervision across a range of core payment activities.
A Significant Regulatory Milestone
The approval covers two key licence categories that enable regulated entities to hold customer funds and provide retail payment services. These categories are issued by the Central Bank of the UAE and are viewed as essential for fintech companies that want to expand their role in the payments ecosystem. For Alaan, the decision provides a clearer path toward becoming a fully regulated financial services provider in the country.
Subject to final regulatory clearances, Alaan will be able to hold customer funds, process cross-border payments, and issue corporate cards under CBUAE regulation. The approval follows close collaboration between the company and the central bank, reflecting a strong focus on compliance. It also lays the groundwork for broader financial products and services across the UAE market.
Expanded Product Capabilities
With the proposed licences, Alaan can move beyond its existing spend management tools and directly support regulated payment activities. Earlier this year, the company launched a cross-border payment product and what it describes as the region's first AI-native business account. These offerings are designed to help finance teams automate manual tasks and manage company spending more efficiently.
The ability to hold customer funds and issue corporate cards under one regulatory framework is expected to strengthen Alaan's value proposition for businesses of all sizes. It also reduces the need for companies to work with multiple providers for different payment functions. This integrated approach positions Alaan to capture a larger share of corporate payments activity in the Middle East.
Market Growth and Investor Backing
Alaan reports that it is trusted by more than 3,000 finance teams, including companies such as G42, Careem, Tabby, McDonald's, Lulu Group, and Al Barari. The company has recorded triple-digit year-over-year revenue growth since its launch in 2022. It is also recognised as a UAE Future 100 company, a distinction that highlights promising high-growth firms in the country.
The company has raised more than $55 million to date, including a $48 million Series A round led by Peak XV Partners. That Series A was among the largest such rounds in the region and provided significant capital for product development and regulatory initiatives. This funding base gives Alaan the resources needed to pursue its licensing goals and regional expansion.
Leadership and Strategic Vision
Parthi Duraisamy, Co-founder and CEO of Alaan, emphasised that the approval is not a one-time milestone but a foundation for how the company will operate going forward. He noted that once licensed, the Central Bank's standard becomes the standard the company builds everything to. This signals a long-term commitment to compliance, product quality, and operational discipline.
The in-principle approval positions Alaan to take on a deeper role in the UAE's regulated payments landscape while supporting its ambition to become the default spend management solution for Middle Eastern businesses. With strong client traction, substantial venture backing, and an expanding product suite, the company is well placed to convert regulatory progress into commercial momentum. As the final approvals are completed, Alaan's next phase will be closely watched by both competitors and enterprise finance teams across the region.