MENA Fintech

MENA Fintech

The MENA fintech market encompasses the dynamic landscape of financial technology innovation across the region. It includes a diverse range of fintech solutions and services, such as digital payments, peer-to-peer lending, blockchain technology, robo-advisory services, and more. With increasing internet penetration, smartphone adoption, and a growing young population, the MENA region presents fertile ground for fintech growth.

The MENA fintech market is expected to grow at a steady rate of around 27.6%. this is mainly due to the supportive government initiatives and regulatory reforms aimed at promoting digital transformation and financial inclusion further fueling the expansion of the fintech market in MENA. As traditional banking methods give way to digital alternatives, fintech startups and established players alike are leveraging technology to meet the evolving needs of consumers and businesses, driving innovation, efficiency, and accessibility in financial services across the region. For instance, Saudi Arabia-based fintech Hakbah has raised 5.1 million USD in Series A funding, bringing the company’s funding raised to date to 9 million USD.

• Based on the deployment mode, the market is segmented into on-premises and cloud. Among them, the cloud is expected to grow at the fastest CAGR during the forecast period. Cloud deployment offers numerous benefits that are driving its adoption in the MENA fintech market. By leveraging cloud-based fintech solutions, financial institutions can achieve greater scalability, flexibility, and cost-effectiveness compared to on-premises deployments. Cloud solutions enable rapid deployment and scalability, allowing fintech firms to quickly adapt to changing market conditions and customer demands.
• Based on the application, the market is segmented into digital payments, insurance & loan, wealth management, and others. Among them, the digital payments category is expected to grow at the fastest CAGR during the forecast period. Due to rising smartphone penetration, government initiatives promote financial inclusion and changing consumer preferences. In countries like Saudi Arabia and the UAE, where cash usage is declining, digital payment solutions offer convenience, security, and efficiency for both consumers and businesses. Mobile payment apps, QR code payments, and contactless payment technologies are gaining traction, enabling seamless transactions across various sectors.
• For a better understanding of the market adoption of the MENA Wealth Management industry, the market is analyzed based on its worldwide presence in countries such as UAE, Saudi Arabia, Egypt, Kuwait, and the Rest of the MENA Countries. UAE is expected to dominate the fintech market owing to its advanced infrastructure, strong regulatory framework, and strategic geographic location. Initiatives like Dubai's FinTech Hive and the Abu Dhabi Global Market attract both domestic and international fintech players seeking growth opportunities. Furthermore, collaborations between fintech startups, financial institutions, and government entities are fostering ecosystem development and accelerating digital transformation across various sectors. As the UAE positions itself as a leading fintech destination, the sector is expected to continue thriving, supported by robust infrastructure, favorable regulations, and a dynamic business environment. For instance, in December 2022, the new real-time payment technology would launch in the UAE early the following year to speed up financial transactions. The new Instant Payment Platform (IPP) will debut in the first quarter of 2023 with a trial group of authorized financial institutions and will be implemented in stages.
• Some of the major players operating in the market include Investcorp, Emirates NBD Bank (P.J.S.C.), Tamara, Pepper, PayTabs, Tabby, NymCard, MashreqBank, ADIB, CBD NOW