United Arab Emirates Alternative Lending Market Business and Investment Opportunities Databook – 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics - Q2 2024 Update

United Arab Emirates Alternative Lending Market Business and Investment Opportunities Databook – 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics - Q2 2024 Update

According to PayNXT360, the alternative lending in the country is expected to grow by 28.7% on an annual basis to reach US$362.3 million in 2024.

Medium to long term growth story of alternative lending in United Arab Emirates remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 19.8% during 2024-2028. The alternative lending market in the country will increase from US$281.4 million in 2023 to reach US$745.0 million by 2028.

The alternative lending sector in the UAE is rapidly expanding, driven by rising demand for flexible financial solutions, notable innovations like BNPL and digital mortgages, and strategic investments from major players. Key developments include significant acquisitions, seed funding rounds, and favorable regulatory changes such as the new Bankruptcy Law and the UAE's removal from the FATF grey list. These factors collectively enhance the sector's growth prospects and attractiveness to investors, positioning it for continued success in the coming years.

Growth in the Alternative Lending Sector

The alternative lending sector in the UAE has seen significant growth. This growth is fueled by growing demand for flexible financing solutions, especially among SMEs and consumers who are looking for innovative credit options. Sub-segments like buy now, pay later (BNPL) services and digital mortgage platforms are becoming popular, showing a trend towards more accessible and technology-driven lending models. Looking ahead, the sector is expected to continue expanding, fueled by ongoing investments from venture capital and tech conglomerates and favorable regulatory conditions that support the growth of fintech innovations.

Key Developments in the Alternative Lending Sector

Product Launches and Innovations

• Beehive's Expansion Under New Ownership - In May 2023, e&, a leading tech conglomerate in the UAE, acquired a majority stake in Beehive, an SME-focused lending platform. This acquisition aims to address the significant credit gap faced by SMEs in the GCC region and enhance Beehive's offerings to support small businesses more effectively.

• Halo's Seed Funding for Digital Mortgages - In February 2023, Halo, a digital mortgage service provider, raised a significant amount in its seed funding round, led by Watheeq Proptech Venture and Hambro Perks Oryx Fund. This funding is intended to bolster Halo's capabilities to meet the increasing demand for home mortgages in the UAE amid rising real estate prices.

• Growth of Buy Now Pay Later (BNPL) Solutions - The BNPL model has gained considerable traction among UAE consumers, leading various players to launch innovative solutions in partnership with retailers. This trend is expected to continue, with new entrants aiming to capitalize on the growing demand for flexible payment options in both online and offline shopping environments.

Strategic Partnerships

Halo Partners with Watheeq Proptech Venture and Hambro Perks Oryx Fund

In February 2023, Halo, a digital mortgage service provider, secured significant seed funding led by Watheeq Proptech Venture and Hambro Perks Oryx Fund. This partnership is designed to bolster Halo's offerings in the rapidly growing mortgage market, enabling the company to better meet the increasing demand for home financing solutions amid rising real estate prices in the UAE.

Tabby Collaborates with Retailers for BNPL Expansion Tabby, a leading player in the Buy Now Pay Later (BNPL) space, has formed multiple partnerships with both online and offline retailers to expand its offerings. These collaborations are aimed at enhancing consumer access to flexible payment options, driving the adoption of BNPL solutions across various demographics in the UAE.

Mergers and Acquisitions

• e& Acquires Majority Stake in Beehive - In May 2023, e&, a leading tech conglomerate in the UAE, announced that its enterprise arm had acquired a majority stake in Beehive, an SME-focused lending platform. This acquisition aims to tap into the substantial SME credit gap in the GCC region, estimated at US$250 billion. With this strategic move, e& seeks to leverage Beehive's expertise to enhance its offerings and better serve the financing needs of small businesses in the UAE and neighboring countries like Saudi Arabia and Oman.

• Halo Raises Seed Funding from Venture Capital Firms - In February 2023, Halo, a digital mortgage service provider in the UAE, secured a seven-figure seed funding round led by Watheeq Proptech Venture and Hambro Perks Oryx Fund. This investment will enable Halo to capitalize on the growing demand for home mortgages in the UAE, driven by rising real estate prices. The seed funding round highlights the increasing interest from venture capital and private equity firms in the alternative lending space, as they recognize the strong growth potential in the regional market over the next five years.

Regulatory Changes

• New Bankruptcy Law Implementation - The new Bankruptcy Law, set to take effect on May 1, 2024, introduces significant changes to the regulation of restructuring and bankruptcy in the UAE. This law aims to enhance the legal framework surrounding insolvency, providing clearer guidelines for businesses and lenders, which is expected to positively impact the alternative lending landscape by improving recovery rates for creditors and fostering a more stable lending environment.

• FATF Grey List Removal - On February 23, 2024, the UAE was removed from the Financial Action Task Force's (FATF) ""grey list"" of jurisdictions under increased monitoring. This development reflects the UAE's strengthened anti-money laundering (AML) and counter-terrorist financing (CTF) measures, which are crucial for enhancing the credibility and attractiveness of the financial sector, including alternative lending. The removal is anticipated to boost investor confidence and facilitate greater capital inflow into the alternative lending market.

• Regulatory Fee Waivers for Sustainable Debt Securities - In February 2024, the Dubai Financial Services Authority (DFSA) announced a waiver of regulatory fees for issuers wishing to list sustainable-related debt securities. This initiative aligns with the UAE's commitment to sustainable finance and could encourage alternative lending platforms to explore green financing options, thereby diversifying their offerings and attracting environmentally conscious investors.

This report provides a detailed data-centric analysis of the Alternative Lending industry, covering market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of Alternative Lending market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunity by type of payment instrument, loan types, and consumer behavior. In addition, it provides a snapshot of marketing objective and industry spend dynamics in United Arab Emirates. KPIs in both value and share term help in getting in-depth understanding of end market dynamics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Scope

This report provides in-depth data-centric analysis of Alternative Lending industry in United Arab Emirates through 125 tables and 150 charts. Below is a summary of key market segments:

United Arab Emirates Economic Indicators
• Gross Domestic Product at Current Prices
• Population
• Unbanked Population
• Unemployment Rate
• Loan Default Rate

United Arab Emirates Alternative Lending Market Size and Forecast
• Transaction Value
• Average Transaction Value
• Transaction Volume

United Arab Emirates Alternative Lending Market Size and Forecast by End User
• End User - Business
• End User - Consumer

United Arab Emirates Alternative Lending Market Size and Forecast by Finance Models
• P2P Marketplace Consumer Lending
• P2P Marketplace Business Lending
• P2P Marketplace Property Lending
• Balance Sheet Consumer Lending
• Balance Sheet Business Lending
• Balance Sheet Property Lending
• Invoice Trading
• Debt Based Securities
• Equity Based Crowd Funding
• Real Estate Crowd funding

United Arab Emirates Alternative Lending Market Size and Forecast by Payment Instrument - Transaction Value, Volume and Average Value
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money

United Arab Emirates Alternative Lending Market Size and Forecast by Payment Instrument to Model
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money

United Arab Emirates Alternative Lending Market Size and Forecast by Loan Types
• B2C Loans
• Personal Loan
• Payroll Advance
• Home Improvement
• Education/Student Loans
• Point of Sale
• Auto Loans
• Medical Loans
• B2B Loans
• Lines of Credit
• Merchant Cash Advance
• Invoice Factoring
• Revenue Financing

United Arab Emirates Alternative Lending Analysis by Consumer Attitude and Behaviour
• By Age
• By Income
• Gender

Reasons to buy

• Gain a thorough understanding of the Alternative Lending market dynamics: Market opportunities, significant trends, and forecasting (2019 – 2028) are listed. To stay ahead of the curve, comprehend market trends using important KPIs like Value and Share.

• Insights by Industry: Evaluate new opportunities across multiple industries, and obtain market dynamics by industry in order to swiftly catch up with the latest and upcoming developments in Alternative Lending markets.

• Market-specific strategies: With our unique blend of quantitative forecasting and cutting-edge insights, we can identify growth sectors that are focused on particular opportunities and analyse market-specific risks as well as significant trends in the Alternative Lending industry.

• Through industry intelligence, forward-looking research of Alternative Lending market spend, and key opportunities in United Arab Emirates, develop proactive and profitable company plans.