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MENA Fintech Market Size (2024 - 2029)

The MENA fintech sector is experiencing significant growth, driven by the rapid adoption of technology and the disruption of traditional financial systems by payment processors and fintech platforms. The region, particularly countries like the United Arab Emirates, Saudi Arabia, Bahrain, and Egypt, is a hub for fintech funding, with a substantial portion of investments directed towards payment solutions. Despite global economic challenges, MENA's fintech industry has demonstrated resilience, maintaining stability in its SEED valuation. The entrepreneurial ecosystem in MENA is poised to further expand the fintech market, addressing regional financial challenges and fostering the emergence of numerous high-value startups.

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Market Size of MENA Fintech Industry

MENA Fintech Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 1.51 Billion
Market Size (2029) USD 2.40 Billion
CAGR (2024 - 2029) 9.71 %
Market Concentration Medium

Major Players

MENA Fintech Market Major Players

*Disclaimer: Major Players sorted in no particular order

MENA Fintech Market Analysis

The MENA Fintech Market size is estimated at USD 1.51 billion in 2024, and is expected to reach USD 2.40 billion by 2029, growing at a CAGR of 9.71% during the forecast period (2024-2029).

The Middle East is witnessing a surge in its fintech sector. Payment processors, fintech firms, and platforms are disrupting the traditional financial landscape, penetrating both domestic and global markets. A key driver behind this growth is the region's swift embrace of technology.

According to a report, the MENA region, particularly the United Arab Emirates, Saudi Arabia, Bahrain, and Egypt, is the epicenter of fintech funding. These nations accounted for a staggering 99% of the region's investments. Within the fintech sector, payment solutions took the lead, capturing 42% of all investments and boasting a remarkable annual growth rate of 152%. The report also predicts the launch of over 45 fintech startups, each valued at USD 1 billion or more, in the Middle East by 2030, with Saudi Arabia spearheading this trend.

As of 2023, the MENA region boasted over 250 fintech startups, a number projected to surge beyond 250 by 2025. MENA's robust entrepreneurial ecosystem positions fintech as a key player in tackling the region's pressing financial hurdles.

In the face of a challenging global financial landscape, MENA's fintech industry showcased resilience, outpacing other sectors. Despite a global economic downturn marked by rising interest rates and technological disruptions, MENA's fintech sector witnessed a 47% Y-o-Y dip in total funding, settling at USD 484 million. However, the sector's SEED valuation remained steady, underscoring its stability.

MENA Fintech Industry Segmentation

Fintech is one of the most widely anticipated and quickly adopted fields of financial services as people adopt urbanization and smart connectivity. The MENA fintech market is segmented by service proposition and by country. By service proposition, the market is segmented into money transfer and payments, savings and investments, digital lending and lending marketplaces, online insurance and insurance marketplaces, and other service propositions. By country, the market is segmented into United Arab Emirates, Saudi Arabia, Bahrain, Qatar, Iran, Egypt, Israel, and Rest of the Middle East and North Africa. The report offers market sizes and forecasts for the MENA fintech market in terms of value in USD for all the above segments.

By Service proposition
Money Transfer and Payments
Savings and Investments
Digital Lending & Lending Marketplaces
Online Insurance & Insurance Marketplaces
Other Service Propositions
By Country
United Arab Emirates
Saudi Arabia
Bahrain
Qatar
Iran
Egypt
Israel
Rest of MENA
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MENA Fintech Market Size Summary

The MENA fintech market is experiencing significant growth, driven by the rapid adoption of technology and the disruption of traditional financial services by payment processors and fintech platforms. The region, particularly countries like the United Arab Emirates, Saudi Arabia, Bahrain, and Egypt, is at the forefront of fintech funding, with a substantial portion of investments directed towards payment solutions. This burgeoning sector is characterized by a robust entrepreneurial ecosystem, with a notable increase in fintech startups and a strong focus on digital payments, cross-border transactions, and digital banking services. The entry of global payment giants has further accelerated the adoption of digital wallets, with the UAE leading the charge towards a cashless society.

Despite global economic challenges, the MENA fintech industry has demonstrated resilience, maintaining steady valuations and attracting significant investment, particularly in the UAE. The region's strategic location, growing demand for fintech solutions, and favorable government policies, including incentives for green fintech initiatives, have made it an attractive destination for foreign direct investment. The market is moderately fragmented, with numerous players competing to capture market share. Strategic partnerships and innovations in payment technologies are enhancing the region's fintech landscape, positioning it for continued growth and expansion in the coming years.

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MENA Fintech Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Customers' Growing Need for E-Commerce and Mobile Banking Platforms

      2. 1.2.2 Rising Internet Penetration & Adoption of Smartphones will Continue to Lead the Growth of the Market

    3. 1.3 Market Restraints

      1. 1.3.1 Data Privacy Concerns

      2. 1.3.2 Increasing Cybersecurity Risks

    4. 1.4 Market Opportunities

      1. 1.4.1 Rising Investments in Fintech Startups

      2. 1.4.2 Robo-Advisors Will Continue to Grow in the Future

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Insights of Technology Innovations in the Market

    7. 1.7 Insights on Government Regulations and Industry Policies

    8. 1.8 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service proposition

      1. 2.1.1 Money Transfer and Payments

      2. 2.1.2 Savings and Investments

      3. 2.1.3 Digital Lending & Lending Marketplaces

      4. 2.1.4 Online Insurance & Insurance Marketplaces

      5. 2.1.5 Other Service Propositions

    2. 2.2 By Country

      1. 2.2.1 United Arab Emirates

      2. 2.2.2 Saudi Arabia

      3. 2.2.3 Bahrain

      4. 2.2.4 Qatar

      5. 2.2.5 Iran

      6. 2.2.6 Egypt

      7. 2.2.7 Israel

      8. 2.2.8 Rest of MENA

MENA Fintech Market Size FAQs

The MENA Fintech Market size is expected to reach USD 1.51 billion in 2024 and grow at a CAGR of 9.71% to reach USD 2.40 billion by 2029.

In 2024, the MENA Fintech Market size is expected to reach USD 1.51 billion.

MENA Fintech Market Report Snapshots

MENA Fintech Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)