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Velex Investments, a Dubai-based financial services company, has identified regulatory readiness as a critical but often overlooked factor in fintech valuations across the Middle East and Africa (MEA).
Investors Weigh Compliance and Licensing in Company Valuations
Operating across multiple jurisdictions is increasing the regulatory burden on fintech companies, with licensing, compliance, and cross-border requirements becoming more complex. Velex Investments notes that this shift affects how investors evaluate both risk and growth potential.
“Growth alone is no longer enough to drive valuations in emerging markets,” said Artur Mildov, Chief Visionary Officer at Velex Group. “Investors are placing more weight on whether a company can operate effectively within different regulatory frameworks.”
Firms with well-defined licensing strategies, integrated compliance functions, and clear legal frameworks are more likely to scale effectively, attract institutional partners, and maintain investor trust.
Velex Group has become a key player in the regional ecosystem, supporting entrepreneurs with cross-functional solutions. Its model combines three verticals: Velex Advisory, Velex Investments & Velex Hub, into an ecosystem for strategy, capital, digital infrastructure, and growth.
Lack of Regulatory Alignment Raises Risks for Fintech Firms
Firms without clear regulatory alignment often face slower market entry, operational delays, and closer scrutiny during due diligence, particularly when expanding across multiple jurisdictions with different licensing requirements.
“Legal structure directly impacts performance,” said Anastasia Goncharuk, Chief Legal Officer at Velex Investments. “Without appropriate licensing and compliance frameworks, even high-growth companies can face limits in execution and valuation. In MEA, structure contributes directly to returns.”
Fintech Growth Drives Need for Regulatory Systems
The firm reports rising demand for regulatory infrastructure alongside fintech growth in the region. The firm expects regulatory readiness to carry more weight in company assessments as MEA markets continue to develop, with a stronger link to both operational performance and long-term value.
