Blockchain - Industry - MEA Market, Share and Trends 2023-2028

Summary of Blockchain

The blockchain market in the MEA region is expected to grow from $ 2.4 billion in 2023 to $ 23.28 billion by 2029 at a CAGR of 42.65 % from 2023 to 2029. The BFSI industry is leading the market in terms of technology adoption and use cases wherein blockchain solutions are being implemented in payments, remittances, identity management, fund processing, dispute management, risk management and many other applications.

The blockchain industry in the Middle East and Africa (MEA) region is still in early stages of development but has seen rapid growth and adoption in recent years.  MEA governments are investing heavily in blockchain infrastructure and innovation hubs to drive economic diversification. The UAE and Saudi Arabia lead blockchain adoption.

Financial services is seeing the most blockchain adoption— with experiments in central bank digital currencies (CBDCs), cross-border payments, loyalty programs and remittances using blockchain rails.

Smart city applications like digital IDs, supply chain tracking and energy trading show strong potential for blockchain adoption across the region. Regulatory uncertainty remains a key challenge.

Recent Trends and Insights

MEA blockchain startups raised over $210 million in venture funding in 2022 that is a 200% annual increase as global crypto firms take interest in regional infrastructure projects. The MEA region is witnessing a surge in blockchain adoption, with successful use cases in various industries that are ranging from BFSI to healthcare and supply chain management.

Central banks across the GCC are piloting CBDCs for domestic and cross-border use. The Saudi Central Bank aims to have the world’s first multi-currency CBDC platform. The UAE leads global CBDC experiments – its Project Aber CBDC aims to settle transactions in under 2 seconds. The project could save banks $3 billion a year.

Blockchain is enabling financial inclusion for the unbanked in Africa – Kenya’s M-PESA mobile money service runs partly on blockchain and serves 50 million users. Dubai adopted blockchain-based digital IDs for residents and visitors in 2021. The ID gives access to over 5,000 public and private sector services in Dubai.

The BFSI sector is seen to be held back due to limitations and obsolete aspects of the mainframe computing technology; however, with the BFSI industry moving into the advanced age of real-time transaction processing— blockchain is a principal facilitating technology.

Product Insights

Enterprise blockchain platforms like Hyperledger Fabric, R3’s Corda and Quorum are preferred for commercial deployments in the region over public chains. Regional blockchain infrastructure providers like UAE’s Norbloc and Egypt’s Block Gemini offer plug-and-play solutions for institutions to build applications.

Startups like UAE’s Dltledgers and Saudi’s NU Tech are building blockchain middleware to help firms integrate the technology into existing systems. Crypto asset trading platforms like Rain in Bahrain and BitOasis in UAE facilitate retail participation in Web3 services.

Blockchain solutions is heavily implemented in payments, remittances, identity management, fund processing, dispute management, risk management and plenty other applications. IBM holds a prominent place in the market as a blockchain solution provider for various industries. For instance— with the help of IBM’s Blockchain platform, banks can create secure, low-cost, and high-volume cross-border payments. There are numerous examples of the successful implementation of blockchain in the BFSI sector.

Through APIs and torrent sites— some of these created ledgers can be accessed. In order to prevent tampering with current and also past transactions the database is cryptographically secured.

Key Companies

Some major players within this vast domain of industry are

• IBM
• Accenture
• Microsoft
• Chain, Inc.
• Circle Internet Financial Limited
• Deloitte Touche Tohmatsu Limited
• Digital Asset Holdings, LLC
• Global Arena Holding, Inc. (GAHI)
• Ripple

Regional Analysis

The UAE and Saudi Arabia account for over 50% of the MEA’s blockchain investments – smart cities and fintech adoption are government priorities. Africa sees grassroots crypto adoption – South Africa, Kenya, Nigeria and Ghana have the highest wallet ownership driven by freelancers getting paid in crypto.

Qatar, UAE and Saudi Arabia are global leaders in CBDC development – over 10 currency corridors are being explored for cross-border settlements using CBDCs. Government services like— customs clearance, health records, company registrations are being rapidly moved to blockchain platforms across the GCC.

The BFSI sector is expected to drive the MEA blockchain market during the forecast period. The adoption of blockchain technology in the banking, financial services and insurance (BFSI) industry offers a systematic client identification system based on distributed ledger technology. Blockchain allows banks and insurance companies to have a well-maintained decentralized data, which helps prevent hacking by cyber-criminals.

The MEA is poised to be a leading global blockchain hub as governments invest in infrastructure and enable adoption across sectors like finance, trade and governance. Regulatory clarity should further accelerate enterprise blockchain adoption.

Market Segmentation

By Type:

• Public blockchain
• Private blockchain
• Consortium or hybrid blockchain

By End User:

• BFSI
• Retail & e-Commerce
• Healthcare & Life Sciences
• Transportation & Logistics
• Government
• Media & Entertainment
• Travel & Hospitality
• Others

By Enterprise Size:

• Large Industries
• Small & Medium Industries

By Country:

• Saudi Arabia
• Iran
• United Arab Emirates
• Israel
• Egypt
• Iraq
• Qatar

Our Methodology

We have offered a well-founded review of Middle-east and Africa’s regional Blockchain Industry market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.