The Middle East fintech industry is seeing significant growth and investment opportunities, with total funding of approximately $2 billion, according to recent fintech research conducted by red_mad_robot.
Local retailers play a vital role in spurring this growth as the Middle Eastern fintech market is dominated by companies such as the BNPL platform, actively used by merchants to enhance business processes.
The growth forecast is also corroborated by Business Wire which expects BNPL payments to grow by 29,1 per cent to hit $12,256 billion in 2028.
The substantial growth can also be attributed to the increasing tech-savviness of consumers who eagerly embrace digital banking services and non-cash payment methods. Furthermore, government authorities in the Middle East, including central banks and regulators, are committed to developing the fintech sector by establishing necessary infrastructure such as accelerators, incubators and fintech hubs.
Over the past two-three years, the region’s fintech startups have received total funding of approximately $2 billion through 140-160 deals, with 40-43 per cent of a total share in the UAE.
Saudi Arabia and Egypt account for 46 per cent of the fintech companies in the region, with six projects in the former and nine in the latter.
Notably, top fintech companies have attracted investments into the region, improving the business environment and showcasing great potential for future growth.
