According to a report titled by MAGNiTT and Abu Dhabi Global Market (ADGM), Fintech in MENA has seen immense growth in a very short period of time with Fintech emerging as the top industry across MENA by deals in 2018 and 2019.
The number of Fintech startups across the Middle East and North Africa (MENA) has grown quickly over the past years, increasing quicker in numbers than many other industries. Since 2012, the number of Fintech startups has seen a compound annual growth rate (CAGR) of 39%.
The statistics also reveal that, similar to the number of Fintech startups, the UAE and Egypt account for the vast majority of Fintech deals in 2019 YTD. This has historically been the case as well, with the two countries accounting for 74% of all Fintech deals in 2019 to date.
Lastly, when looking at total funding of Fintech startups, the differences in the size of ecosystems becomes more apparent. The United Arab Emirates accounts for almost 70% of all funding in 2019 YTD, followed by Bahrain (9%) and Lebanon (9%).
Key findings from the report:
- $237 million invested in MENA Fintech startups 2015-2019 YTD
- 181 deals in MENA Fintech startups 2015-2019 YTD
- 1st ranking by number of deals 2018-2019 YTD
- Total funding still lags behind others, however, with the most investments at the early stage
- 6 key drivers of Fintech adoption and startup growth across the MENA region: consumer demographics, internet & payments adoption, consumer attitudes, regulatory sandboxes, Fintech funds & accelerators, private capital availability
- Regional initiatives include 9 regulatory sandboxes and 5 Fintech funds across MENA
- Payments and remittances is the top sub-industry within Fintech
- UAE is MENA’s largest Fintech hub with 39% yearly growth in Fintech startups since 2012
- 57% of Fintech investments in 2018 & 2019 YTD have been by accelerators