UAE FINTECH MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2022 - 2027)

UAE FINTECH MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2022 - 2027)

The UAE is a highly developed economy, home to global hubs of Dubai and Abu Dhabi. The UAE’s National Vision 2021, which calls for the country to become the economic and commercial capital for two billion people by ‘transitioning to a knowledge-based economy and becoming ‘among the best in the world in entrepreneurship’ shows its commitment to wider digital transformation. In terms of digital competitiveness, the UAE is ranked first in the Arab region (13th globally), according to IMD’s World Digital Competitiveness Ranking 2020 Report. Two leading UAE financial free zones, Abu Dhabi Global Market and Dubai International Financial Centre are the key flagship examples of the UAE’s financial services and fintech success. According to the World Bank, it is the easiest place to do business in MEA. In addition, it is the third highest country in MEA (after especially in the more digitally advanced economies, such as Ghana, Kenya, and Uganda). Covid-19 has amplified the uptake of e-payments and the growth of local fintech solutions. The market is expected to grow annually by 12% (CAGR 2021-2026).

The Covid-19 pandemic and the corresponding health measures have changed customer behaviour immensely. As people sought to make less physical contact, the demand for contactless paying services grew strongly in 2020. As a result of the country’s advanced economy from an economic development context, coupled with its strong and growing ecosystem for region, with Dubai and increasingly Abu Dhabi being a hub for the region for it, its status as a premier global fintech hub is evident. National and local strategies combined with the growing innovation in the UAE will help the already undisputed leader in fintech and wider hub for the region also gain its presence and prestige among the global players.

The UAE drives remittances because of its largely expatriate population, forming around 90 per cent of the country’s total population, coupled with its hub status. Blockchain has also been an important subsector in the UAE as well as cryptocurrencies. Islamic Finance fintech has grown and the UAE now has the third largest number of Sharia compliant fintech after Malaysia and the UK. The economy grew to be an undisputed regional hub with Dubai, which is home to two-thirds of the Fortune 500 companies’ MEA regional offices; fintech reflects its wider economic development. It is home to at least 400 fintech, which is the second largest in MEA after Israel.

Key Market TrendsFintech Start-ups

It is worth noting that UAE has produced quite a few Startups although its proportion is relatively small in comparison to the world’s share. At present, the UAE is home to only one unicorn – Emerging Markets Property Group (EMPG), funded by OLX Group, KCK Group, and Exor Seeds. Out of a total of 2300 start-ups, 400 are the number of FinTech start-ups in UAE.

Islamic Finance

Islamic finance will continue to grow and fintech is a strong and growing component of that. In an industry worth more than USD 2.1trillion the UAE plays a strong part in that. MEA-specific UAE and UAE with Islamic fintech are in the top five countries with the most Islamic fintech. Given the importance to much of the world’s Muslim population, including the UAE region, Islamic finance and fintech go hand in hand. There will be growing partnerships, innovations, and collaborations in the sector.

Competitive Landscape

Companies across the world have huge investments in this segment of the market. In UAE the FinTech market has many companies fragmented over minor shares. Tabby, Yalla Compare, Sehteq, Beehive FinTech, Souqalmal, Sarwa, Mamo Pay, Now Money are amongst the FinTech Companies.

Adoption of FinTech platform and up-gradation to new Technology leads to increasing competition amongst the company. Innovation and technological advancement taking a pace as the COVID-19 and urbanization strike general people to the adoption of the new ease in payment and contactless payment gateways.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Tabby
Yalla Compare
Sehteq
Beehive FinTech
Souqalmal
Sarwa
Mamo Pay
Channel VAS
Zinna
Now Money

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