Fintech hubs in the MENA region are putting money into the industry, but they must maintain momentum

• ByStartupStory     |    November 28, 2022

According to a report by the international strategic consulting firm Strategy&, the fintech industry in the Middle East and Africa region (MENA) has already raised $1.73 billion in the first half of 2022. The industry raised $2.5 billion in investment in 2021.

The report, titled “Fintech in the Middle East: Building on the Momentum,” emphasized the necessity for focused efforts in both the public and private sectors to boost the growth and sustainability of the fintech sector in the Gulf.

According to the research, an increasing number of businesses in the industry are working toward successful initial public offerings. This is also being helped by the GCC region’s investment in the sector, which has taken the form of the creation of fintech centers that actively promote the expansion of startups and smaller businesses.

The report mentioned that “some of the GCC fintech hubs are now so large that they are on the global fintech map.”

Some of the key developments in the region include:

1. From one in 2018 to four in 2022, the GCC will have more fintech hubs. These include the Dubai International Financial Center’s FinTech Hive, Bahrain’s FinTech Bay, the Abu Dhabi Global Market (ADGM), and Fintech Saudi (DIFC).
2. Fintech investments totaled $448 million over 108 transactions in the MENA area in 2021. The largest number of fintech “exits” in a single year was four. An exit from the fintech industry can take the form of an IPO, SPAC, merger, or acquisition.
3. Fintech startups are increasingly on the verge of becoming unicorns. The first unicorn in the area was the digital transformation and e-payment platform Fawry in 2020.

Government-sponsored accelerators and incubators, national fintech plans, regulatory sandboxes, and rules all assist them.

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