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Financial Services - Industry - MEA Market, Share and Trends 2023-2028

Report ID:

FSIND1M

|

Industry:

Summary of Financial Services

The MEA region is home to over 1.7 billion people across diverse economies - from emerging markets to advanced hubs. Financial assets hit $8.7 trillion in 2022. Digital transformation accelerates while financial inclusion efforts progress unevenly. Middle East & Africa’s regional financial services market size grew from $1206 billion in 2023 to $1977.69 billion in 2029 at a compound annual growth rate (CAGR) of 8.56 %.

Gulf nations anchor developed markets with the UAE, Saudi Arabia and Qatar advancing digital innovation. Israel and South Africa lead technology disruption. Kenya built world-leading mobile money adoption through M-Pesa while Nigeria fertilizes fintech innovation.

Many nations contend with large underbanked populations and infrastructure gaps. Yet mobile phone proliferation drives opportunity - Sub-Saharan Africa averages over 70% penetration. Regulators increasingly support stackable, modular regulation for market stimulation.

The one area that is likely to continue to be a growth constraint for financial services in the MEA region is the regulatory environment. Financial services leaders will need to navigate through uncertainty and near-term challenges and will ultimately be focusing on what's coming next.

Pandemic impacts strained economies reliant on oil, tourism and commodities. Stimulus funding aided recovery with real GDP averaging over 5% in 2022. Trends point to platformization and embedded finance across underpenetrated segments from SME banking to microinsurance.

Recent Trends and Insights

Kenya and South Africa boast the world's highest fintech use for accessing financial services. Cryptocurrency also grows - Chainalysis estimates MEA crypto transaction volume doubled since 2020 to over $500 billion.

The launch and growth of digital financial services in the Middle East have led to an unprecedented opportunity to promote financial inclusion in the region. Mobile wallets and digital payment cards can help unbanked populations gain access to credit. This shows the region’s strong interest in the field of ‘Digital Financial Inclusion’.

Pioneered via Kenya's M-Pesa, mobile wallets now see expanded use cases for lending, savings and business solutions. Interoperability infrastructure is emerging. Incumbents adapt product bundles for mobile distribution channels. UAE and Saudi Arabia invested billions in smart city infrastructure expansion, now home to MENA's most advanced digital banking and payments ecosystems.

Telcos like— MTN and Orange provide mobile financial services bundled with connectivity. Commercial banks, retailers and other non-financial players embed financial offerings. Gulf nations plan economies less dependent on oil revenue, increasing focus on ESG assets, green bonds and carbon exchanges. Distributed ledger pilots track and trade carbon credits.

Product Insights

Banks like: First Abu Dhabi Bank and Absa overhaul online platforms with spending insights, financial tips and third-party app integration. Customer service engages with AI and chatbots more frequently these days to resolve customer queries faster and in a much reliable manner.

Discovery and Allianz test pay-as-you-go insurance for Uber drivers. South Africa insurtech Pineapple raised $15.5M for its flexible coverage. Kenyan startups like Lami and Turaco embed microinsurance into e-commerce journeys.

UAE's CBDCs facilitate real-time cross-border B2B payments. Standard Chartered piloted an eBill solution to automate supplier finance in Dubai. Israel scales up DeFi lending. Nigeria's Farmcrowdy and Kenya's Apollo Agriculture blend mobile platforms, IoT sensors and alternative data to serve smallholder farmers. Weebi and Tulaa enable digital procurement.

Chipper Cash, OPay and MFS Africa facilitate mobile remittance flows through wallet integrations. WorldRemit links global senders to African mobile money redemption.

Banks in the Middle East have a substantial advantage to gain market share in the digital space. In order to move away from a transactional banking mindset to one focused on customer experience, banks will need to focus on operational efficiency, understand customer data and fully utilize analytics and artificial intelligence (AI) to build AI into the core of digital services.

Key Companies

Some major players within this vast domain of industry are

  • Ernst & Young Global Limited
  • Deloitte Touche Tohmatsu Limited
  • McKinsey & Company
  • AKMC Management Consultancy
  • Decision Management Consultants
  • Oliver Wyman
  • Kearney
  • Beehive
  • Meem

Regional Analysis

Financial services in the MEA region span vastly differing levels of stability, resources and infrastructure. Challenges exist around financial inclusion, gender gaps, digital skills shortages and regulatory fragmentation.

Sub-Saharan Africa sees high mobile money usage - Kenya leads with 87% adoption, advancing credit and small business solutions. West Africa payments modernization is uneven but accelerating through centralized switches like GIM-UEMOA connecting banks, telcos and fintechs.

North African nations contend with large informal economies but augment infrastructure - Egypt links mobile wallets to national payments switch. Gulf countries anchor advanced financial centers where regulators closely govern licensing, capital and consumer protection. Israel has over 500 fintech startups, trailing only the U.S. and UK globally.

Across borders, partnerships predominate for market entry over M&A, except South Africa which sees both domestic and pan-African consolidation. Commercial banks still dominate assets but non-bank competition rises from telcos, retailers and specializing fintechs.

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 financial service 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.

We value your investment and offer free customization with every report to fulfil your research needs.

Frequently Asked Questions

The MEA Size of the Financial Services Industry is USD 1206 Billion in 2023 and is expected to grow to USD 1977.69 Billion by 2029

The CAGR of the Financial Services Industry Market in MEA is 8.56%

The United Arab Emirates region accounts for 26% of the total market share of the Financial Services Industry Market

The key players in the Financial Services Industry Market in MEA are Qatar National Bank, Standard Bank Group Ltd, Emirates NBD Bank, Saudi National Bank and First Abu Dhabi Bank. These industry leaders collectively contribute to shaping the landscape of this market and driving growth within the industry.

The factors driving the Financial Services Industry Market in MEA are Economic Diversification, Financial Inclusion Initiatives, Infrastructure Development, Cross-Border Transactions and Cross-Border Transactions. These factors contribute to the overall growth of this industry, establishing it as a key player in the interconnected global economy.

Summary of Financial Services

The MEA region is home to over 1.7 billion people across diverse economies - from emerging markets to advanced hubs. Financial assets hit $8.7 trillion in 2022. Digital transformation accelerates while financial inclusion efforts progress unevenly. Middle East & Africa’s regional financial services market size grew from $1206 billion in 2023 to $1977.69 billion in 2029 at a compound annual growth rate (CAGR) of 8.56 %.

Gulf nations anchor developed markets with the UAE, Saudi Arabia and Qatar advancing digital innovation. Israel and South Africa lead technology disruption. Kenya built world-leading mobile money adoption through M-Pesa while Nigeria fertilizes fintech innovation.

Many nations contend with large underbanked populations and infrastructure gaps. Yet mobile phone proliferation drives opportunity - Sub-Saharan Africa averages over 70% penetration. Regulators increasingly support stackable, modular regulation for market stimulation.

The one area that is likely to continue to be a growth constraint for financial services in the MEA region is the regulatory environment. Financial services leaders will need to navigate through uncertainty and near-term challenges and will ultimately be focusing on what's coming next.

Pandemic impacts strained economies reliant on oil, tourism and commodities. Stimulus funding aided recovery with real GDP averaging over 5% in 2022. Trends point to platformization and embedded finance across underpenetrated segments from SME banking to microinsurance.

Recent Trends and Insights

Kenya and South Africa boast the world's highest fintech use for accessing financial services. Cryptocurrency also grows - Chainalysis estimates MEA crypto transaction volume doubled since 2020 to over $500 billion.

The launch and growth of digital financial services in the Middle East have led to an unprecedented opportunity to promote financial inclusion in the region. Mobile wallets and digital payment cards can help unbanked populations gain access to credit. This shows the region’s strong interest in the field of ‘Digital Financial Inclusion’.

Pioneered via Kenya's M-Pesa, mobile wallets now see expanded use cases for lending, savings and business solutions. Interoperability infrastructure is emerging. Incumbents adapt product bundles for mobile distribution channels. UAE and Saudi Arabia invested billions in smart city infrastructure expansion, now home to MENA's most advanced digital banking and payments ecosystems.

Telcos like— MTN and Orange provide mobile financial services bundled with connectivity. Commercial banks, retailers and other non-financial players embed financial offerings. Gulf nations plan economies less dependent on oil revenue, increasing focus on ESG assets, green bonds and carbon exchanges. Distributed ledger pilots track and trade carbon credits.

Product Insights

Banks like: First Abu Dhabi Bank and Absa overhaul online platforms with spending insights, financial tips and third-party app integration. Customer service engages with AI and chatbots more frequently these days to resolve customer queries faster and in a much reliable manner.

Discovery and Allianz test pay-as-you-go insurance for Uber drivers. South Africa insurtech Pineapple raised $15.5M for its flexible coverage. Kenyan startups like Lami and Turaco embed microinsurance into e-commerce journeys.

UAE's CBDCs facilitate real-time cross-border B2B payments. Standard Chartered piloted an eBill solution to automate supplier finance in Dubai. Israel scales up DeFi lending. Nigeria's Farmcrowdy and Kenya's Apollo Agriculture blend mobile platforms, IoT sensors and alternative data to serve smallholder farmers. Weebi and Tulaa enable digital procurement.

Chipper Cash, OPay and MFS Africa facilitate mobile remittance flows through wallet integrations. WorldRemit links global senders to African mobile money redemption.

Banks in the Middle East have a substantial advantage to gain market share in the digital space. In order to move away from a transactional banking mindset to one focused on customer experience, banks will need to focus on operational efficiency, understand customer data and fully utilize analytics and artificial intelligence (AI) to build AI into the core of digital services.

Key Companies

Some major players within this vast domain of industry are

  • Ernst & Young Global Limited
  • Deloitte Touche Tohmatsu Limited
  • McKinsey & Company
  • AKMC Management Consultancy
  • Decision Management Consultants
  • Oliver Wyman
  • Kearney
  • Beehive
  • Meem

Regional Analysis

Financial services in the MEA region span vastly differing levels of stability, resources and infrastructure. Challenges exist around financial inclusion, gender gaps, digital skills shortages and regulatory fragmentation.

Sub-Saharan Africa sees high mobile money usage - Kenya leads with 87% adoption, advancing credit and small business solutions. West Africa payments modernization is uneven but accelerating through centralized switches like GIM-UEMOA connecting banks, telcos and fintechs.

North African nations contend with large informal economies but augment infrastructure - Egypt links mobile wallets to national payments switch. Gulf countries anchor advanced financial centers where regulators closely govern licensing, capital and consumer protection. Israel has over 500 fintech startups, trailing only the U.S. and UK globally.

Across borders, partnerships predominate for market entry over M&A, except South Africa which sees both domestic and pan-African consolidation. Commercial banks still dominate assets but non-bank competition rises from telcos, retailers and specializing fintechs.

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 financial service 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.

We value your investment and offer free customization with every report to fulfil your research needs.

Frequently Asked Questions

The MEA Size of the Financial Services Industry is USD 1206 Billion in 2023 and is expected to grow to USD 1977.69 Billion by 2029

The CAGR of the Financial Services Industry Market in MEA is 8.56%

The United Arab Emirates region accounts for 26% of the total market share of the Financial Services Industry Market

The key players in the Financial Services Industry Market in MEA are Qatar National Bank, Standard Bank Group Ltd, Emirates NBD Bank, Saudi National Bank and First Abu Dhabi Bank. These industry leaders collectively contribute to shaping the landscape of this market and driving growth within the industry.

The factors driving the Financial Services Industry Market in MEA are Economic Diversification, Financial Inclusion Initiatives, Infrastructure Development, Cross-Border Transactions and Cross-Border Transactions. These factors contribute to the overall growth of this industry, establishing it as a key player in the interconnected global economy.

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Featured Reports

Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

DeFi helps reduce dependency on traditional methods of transactions.

Creating a sustainable environment for driving multiple countries into a better tomorrow.

Understand how the U.S. discrepancy in accordance to their debt creates a havoc. 

Sustainable blockchain technology has immense benefit for the environment which cannot go unnoticed.

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rfc logo transparent

Featured Reports

Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

DeFi helps reduce dependency on traditional methods of transactions.

Creating a sustainable environment for driving multiple countries into a better tomorrow.

Understand how the U.S. discrepancy in accordance to their debt creates a havoc. 

Sustainable blockchain technology has immense benefit for the environment which cannot go unnoticed.

About Us

We are Ruskin Felix Consulting (RFC), a global strategic advisory firm. For over a decade, we have partnered with clients worldwide to solve complex business and technology challenges. Whether you need strategic advice, market research, or solutions to make important decisions, we’ve got you covered.

RFC Mentorship

At RFC, we believe that every great idea deserves a chance to shine. With our expert guidance, cutting-edge strategies, and meticulous attention to detail, we’ll work hand in hand with you to create strategies and guidance that helps you scale, build and develop your idea into a ready product in the market.