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

Summary of Fintech

The MEA region is home to over 1.7 billion people across diverse economies at varied stages of infrastructure development and financial inclusion. Based on our estimates, we can say that the regional Middle-East and Africa’s Fintech industry is forecasted to be a $310.08 billion industry in 2029 from $157.5 billion in 2023 with a CAGR of 11.77 %.

Fintech adoption differs greatly – leading markets like the UAE and Israel rival advanced economies while fragmentation persists elsewhere. Still the unbanked population exceeds 350 million, presenting opportunity.

Strengthening fintech requires more private-sector participation and greater efforts to fill gaps in the fintech ecosystem. Ascending upward is essential and difficult given the fragmented regional market. There needs to be easier access to capital— including through increased venture capital (VC) funding. The MEA region’s fintech players need more liquidity– which the favorable macroeconomic context can provide.

Trends reflect platformization, blockchain modernization and sustainability action. Challenger neobanks aim to compete on customer experience as incumbents lag digitally. Pandemic impacts strained hydrocarbon dependent economies but stimulus funding aids recovery.

Mobile money innovation began here through Kenya’s pioneering M-Pesa wallet. Now use cases expand across lending, savings and business solutions as smartphones spread. Interoperability infrastructure emerges to connect schemes.

Recent Trends and Insights

Digital banks like TymeBank and NymCard target underserved segments with low cost operating models. Incumbents lag on agility. Partnerships aim to stimulate small business lending and clean energy finance. Startups like Amenli, Dinghy and OkHi provide flexible, usage-based microinsurance for gig workers. Claims leveraging automation and analytics.

The financial services business in the Middle East faces numerous problems, including the economic impact of the epidemic and the tightening of monetary policy to suppress inflation. The industry is still as robust as it was before the pandemic, despite this.

Currently— there are more than 470 fintech unicorns in the world and 40 more were added in the first quarter of 2022. According to a recent estimate— fintech growth in Africa alone might reach eight times by 2025 if penetration levels catch up to those of market leaders.

Account aggregators allow consumers to easily share verified financial data with third parties to access more services. UAE and Saudi Arabia enable APIs. Crypto wallet adoption is growing quickly. Central bank digital currency pilots begin testing. Enterprise blockchain projects modernize trade finance, supply chain tracking and remittances.

Startups like Sabi – apply machine learning to alternative data like satellite imagery, sensors and mobile usage to predict yields, credit risk and income. Carbon tracking tools also emerge.

Product Insights

Banks like FAB and Absa enable integrated wealth management, financial planning tools and third-party app marketplaces within existing mobile apps rather than via partnerships.

A growing number of a few companies are having successful initial public offerings (IPOs). In particular— Many countries, within the MEA and GCC regions, have moved decisively into fintech. Some of these fintech hubs are now so large that they are on the global fintech map.

Startups like MNT-Halan and FlexxPay underwrite consumer and small business loans leveraging alternative data like mobile top-up history. Provide faster decisions and distribution. Standard Chartered piloted an eBill solution to automate supplier finance in Dubai. Startup Marco Polo builds enterprise blockchain trade network improving working capital access.

BIMA offers hospital cash plans on-demand to gig workers. Pula covers smallholder farmers against weather risks based on crop data. WorldRemit links global senders to mobile redemption options leveraging African fintech partnerships and mobile money innovation. Reduces fees and settlement times.

Middle Eastern governments have showed an interest to take on major reforms and launched initiatives to privatise assets, increase public-private partnerships, monetise infrastructure assets and drive financial inclusion. In addition to this they are also supporting fintech friendly regulations and initiatives to foster home-grown startups and entrepreneurs in the region but also to attract global players.

Key Companies

Some major players within this vast domain of industry are

• Securrency
• Fawry
• MadfooatCom
• Optasia
• MNT-Halan
• Tabby
• PayTabs
• Tamara
• HyperPa

Regional Analysis

The MEA region spans vastly differing levels of stability, resources and infrastructure. Financial inclusion gaps persist – over 45% remain unbanked in the Middle East, exceeding 65% across Africa.

Fintech development mirrors access disparities. Israel and UAE lead global standing across funding, innovation and adoption. Sub-Saharan Africa sees high mobile money usage enabling lending and small business solutions as smartphones spread. North African nations contend with cash intensity but augment infrastructure and regulations.

Investments concentrate on payments, lending and process automation so far given high mobile ownership and underpenetrated SME finance needs. Insurtech and sustainability solutions have breakout potential.

Partnerships predominate for market entry and distribution where fragmentation exists. Pan-African collaboration aims to harmonize mobile money interoperability and regulatory frameworks.

As connectivity and data-driven credit assessment improve, embedded finance could profoundly expand access and efficiency. Convergence around everyday platforms provides distribution while blockchain and alternative data address structural hurdles.

Market Segmentation

By Type:

• Ecommerce platforms and mobile apps
• AI-powered product recommendations and personalized shopping
• AR/VR for virtual try-ons and interactive displays
• IoT solutions for supply chain and inventory management

By End User:

• Retail chains, franchise brands
• Grocery stores and supermarkets
• Direct-to-consumer brands
• Online marketplaces

By Enterprise Size:

• Large retailers
• Small and mid-sized stores
• D2C startups

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 fintech industry 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.