$3.45 Billion Fintech Market in the Middle East by 2026

Fintech in the Middle East

Fintech in the Middle East

Pioneers Investors – The outbreak of the Covid-19 pandemic has led to a high demand for digital services, in light of the increased pace of investment in emerging companies that provide innovative technological services, as the Fintech market in the Middle East and Africa is expected to reach a record level of $3.45 billion by 2026, According to Forbes, citing a report by the research firm Market Data Forecast.

Investments by venture capital firms in FinTech in the MENA region, according to the magnitt report, reached their highest level in three years in the first quarter of the year, up 163 percent year-on-year and nearly 70 percent compared to the last quarter of the year. year 2020.

In Saudi Arabia, FinTech transactions more than tripled year-on-year, while total financing rose by 2,000 percent. While the UAE maintained its position as a regional hub for financial technology, with more than 166 emerging companies in the field based in the UAE, according to data for the first quarter of 2021.

The average funding awarded to each Fintech firm was approximately $3 million in the first quarter of the year. While the average FinTech deals in both the UAE and Saudi Arabia exceeded this figure, Bahrain and Lebanon recorded the two largest deals since the beginning of the year. US-based sector investors represent 20 percent of active investors in the field.

According to the “Statista” report, China is currently the largest financial technology market in the world due to its leadership position in digital payments, which totaled $2.5 trillion in 2020, while the United States is the second globally in creating new ideas.

The global fintech market size is expected to grow to $124.3 billion by the end of 2025, at a compound annual growth rate of 23.84 percent, according to research firm Valuates.

Fintech startups in the Middle East and North Africa have raised more than $243 million in funding through 32 investment rounds since the beginning of 2021, according to Forbes Middle East calculations.

The Saudi Tamara Company was able to achieve the largest financing since the beginning of 2021, by obtaining about 116 million dollars, which represents about 48 percent of the total collected by the region’s companies, while the Tunisian Expensya company came again after collecting 20 million dollars in financing, and the Egyptian PayMob 18.5 million dollars.

The total funding received by the top 10 FinTech startups in the region is about $211.3 million. Saudi Arabia, the UAE and Egypt topped it in terms of the number of investment rounds and the value of financing.