United Arab Emirates Embedded Finance Business and Investment Opportunities Databook – 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q2 2024 Update

United Arab Emirates Embedded Finance Business and Investment Opportunities Databook – 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q2 2024 Update

According to PayNXT360, the embedded finance industry in the country is expected to grow by 16.1% annually to reach US$1,564.6 million in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 28.6% from 2024 to 2029. The country's embedded finance revenues will increase from US$1,564.6 million in 2024 to reach US$5,501.1 million by 2029.

The embedded finance sector in the UAE is rapidly expanding, driven by strong government support, digital advancements, and increased consumer demand. Key developments include strategic partnerships like Al Etihad Payments’ collaboration with Core42 for Open Finance, and Mitgo Group’s acquisition of the embedded finance platform Embedded. These advancements, coupled with favorable regulatory changes and a focus on e-commerce, position the UAE as a leader in financial technology innovation and integration.

Growth in the Embedded Finance Sector

In the UAE, the embedded finance industry has grown significantly over the last few months. This growth is due to strong government support and rapid digital advancements. Specifically, embedded lending, payments, and insurance have become more popular, especially with the increase in e-commerce and consumer demand for smooth financial transactions. The sector is poised for further expansion in the coming months, bolstered by initiatives like the Central Bank's Open Finance framework, which will enhance integration and innovation across financial services.

Key Developments in the Embedded Finance Sector

Product Launches and Innovations

Mitgo Group's Fintech Services for Affiliate Publishers: MarTech giant Mitgo Group launched a new business division offering fintech services for affiliate publishers. The company plans to become a conduit for more than 7% of the affiliate marketing transaction volume, which is estimated to exceed $1.5 billion in the next three years given the sector's growth. As a first step, Mitgo acquired the UAE-based embedded finance platform Embedded to complement its technology stack and enter this new market.
Al Etihad Payments' Open Finance Implementation: In 2024, Al Etihad Payments (AEP), a subsidiary of the Central Bank of the UAE (CBUAE), signed a partnership with Core42, a G42 company, to commence the implementation of Open Finance within the UAE. This marks the beginning of the Open Finance era in the country, one of the nine initiatives within the CBUAE's Financial Infrastructure Transformation (FIT) Programme.

Strategic Partnerships

Al Etihad Payments and Core42: Al Etihad Payments, a subsidiary of the Central Bank of the UAE, partnered with Core42 to implement Open Finance in the UAE. This collaboration marks a significant step towards enhancing the integration of financial services, facilitating smoother access to financial products for consumers and businesses alike.

Mergers and Acquisitions

Mitgo Group and Embedded: Mitgo Group, a German marketing technology provider, acquired the UAE-based embedded finance platform Embedded. This partnership enables Mitgo to offer integrated financial solutions to its affiliate customers, enhancing their service offerings and expanding their market reach.

Regulatory Changes

1. Open Finance Implementation: Al Etihad Payments, a subsidiary of the Central Bank of the UAE, partnered with Core42 to begin implementing Open Finance in the UAE. This initiative is part of the Financial Infrastructure Transformation (FIT) Programme and aims to enhance the integration of financial services, allowing for more seamless access to financial products and services.
2. Supportive Government Initiatives: The UAE government continues to promote FinTech innovation through initiatives like Dubai Future and the Dubai International Financial Centre (DIFC). These efforts create a favorable regulatory environment for embedded finance, encouraging experimentation and growth within the sector.
3. Focus on E-commerce and Digital Services: The government has recognized the growing e-commerce market and the demand for integrated financial solutions, such as Buy Now, Pay Later (BNPL) options and integrated payment gateways. This focus aligns with broader economic strategies to enhance digital adoption and consumer convenience.
These developments reflect the UAE's commitment to fostering a robust embedded finance ecosystem, positioning the region as a leader in financial technology innovation.

This report offers a comprehensive, data-centric analysis of the embedded finance industry. It covers lending, insurance, payment, wealth and asset-based finance sectors and provides a detailed breakdown of market opportunities and risks across various sectors. With over 75+ KPIs at the country level, this report ensures a thorough understanding of embedded finance market dynamics, market size, and forecast.

It breaks down market opportunities by type of business model, consumer segment, and distribution model. In addition, it provides detailed information across various segments in each sector of embedded finance. KPI revenue helps in getting an 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 of emerging business and investment market opportunities.

Scope

This report provides in-depth, data-centric analysis of Embedded Finance industry in United Arab Emirates. Below is a summary of key market segments:

United Arab Emirates Embedded Finance Market Size and Forecast

• Embedded Finance by Key Sectors
Retail
Logistics
Telecommunications
Manufacturing
Consumer Health
Others

• Embedded Finance by Business Model
Platforms
Enabler
Regulatory Entity

• Embedded Finance by Distribution Model
Own Platforms
Third Party Platforms

United Arab Emirates Embedded Insurance Market Size and Forecast

• Embedded Insurance by Industry
Embedded Insurance in Consumer Products
Embedded Insurance in Travel & Hospitality
Embedded Insurance in Automotive
Embedded Insurance in Healthcare
Embedded Insurance in Real Estate
Embedded Insurance in Transport & Logistics
Embedded Insurance in Others

• Embedded Insurance by Consumer Segments
B2B
B2C

• Embedded Insurance by Type of Offering
Embedded Insurance in Product Segment
Embedded Insurance in Service Segment

Embedded Insurance by Business Model
Platforms
Enabler
Regulatory Entity

• Embedded Insurance by Distribution Model
Own Platforms
Third Party Platforms

• Embedded Insurance by Distribution Channel
Embedded Sales
Bancassurance
Broker’s/IFA’s
Tied Agents

• Embedded Insurance by Insurance Type
Embedded Insurance in Life Segment
Embedded Insurance in Non-Life Segment

• Embedded Insurance in Non-Life Segment
Motor Vehicle
Fire and Property
Accident and Health
General Liability
Marine, Aviation and other Transport
Other

United Arab Emirates Embedded Lending Market Size and Forecast

• Embedded Lending by Consumer Segments
Business Lending
Retail Lending

• Embedded Lending by B2B Sectors
Embedded Lending in Retail & Consumer Goods
Embedded Lending in IT & Software Services
Embedded Lending in Media, Entertainment & Leisure
Embedded Lending in Manufacturing & Distribution
Embedded Lending in Real Estate
Embedded Lending in Other

• Embedded Lending by B2C Sectors
Embedded Lending in Retail Shopping
Embedded Lending in Home Improvement
Embedded Lending in Leisure & Entertainment
Embedded Lending in Healthcare and Wellness
Embedded Lending in Other

• Embedded Lending by Type
BNPL Lending
POS Lending
Personal Loans

• Embedded Lending by Business Model
Platforms
Enabler
Regulatory Entity

• Embedded Lending by Distribution Model
Own Platforms
Third Party Platforms

United Arab Emirates Embedded Payment Market Size and Forecast

• Embedded Payment by Consumer Segments
B2B
B2C

• Embedded Payment by End-Use Sector
Embedded Payment in Retail & Consumer Goods
Embedded Payment in Digital Products & Services
Embedded Payment in Utility Bill Payment
Embedded Payment in Travel & Hospitality
Embedded Payment in Leisure & Entertainment
Embedded Payment in Health & Wellness
Embedded Payment in Office Supplies & Equipment
Embedded Payment in Other

• Embedded Payment by Business Model
Platforms
Enabler
Regulatory Entity

• Embedded Payment by Distribution Model
Own Platforms
Third Party Platforms

United Arab Emirates Embedded Wealth Management Market Size and Forecast

United Arab Emirates Asset Based Finance Management Industry Market Size and Forecast
• Asset Based Finance by Type of Asset
Hard Assets
Soft Assets

• Asset Based Finance by End Users
SME’s
Large Enterprises

Reasons to buy

• In-depth Understanding of Embedded Finance Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028).

• Insights into Opportunity by end-use sectors – Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.

• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate embedded finance strategy; assess market specific key trends, drivers, and risks in the industry.

• Get Sector Insights: Drawing from proprietary survey results, this report identifies opportunities across embedded lending, embedded insurance, embedded finance, and embedded wealth sectors.

•Get insights at segment level, by the distribution model and by business model in key embedded finance segments

•Insights into the asset based finance market size and by type of assets, by end users.