The Middle East and North Africa (MENA) region has seen significant growth as a fintech hub for investors and tech innovators in the last few years.
Recently, a report by Magnitt pointed out that the fintech industry in the region has tripled to around $1.68 billion in H1 2022 compared to the previous year, making it the highest-funded sector across emerging venture markets. In funding and deals, UAE sits as the leading market for venture capital. Fintech investments in the region reached $819 million in H1 2022.
With increased digitalization in retail and ecommerce, the MENA region, according to the report, has the highest consolidation of funding, with around 99% focused on the UAE, Saudi Arabia, Bahrain, and Egypt.
The report stated that funding dropped by 52% in the second quarter of 2022, while deals fell by 44%. According to advisory firm Startup Genome, the value created by startups reached $3 trillion in 2020.
The top sub-sector in investments this year was payment solutions. The space alone attracted around 42% of fintech investments with an annual funding growth rate of 152%.
Meanwhile, more than 45 startups with at least a $1 billion valuation are expected to emerge from the MENA region by 2030, led by Saudi Arabia, a Saudi Arabia-based venture capitalist firm noted.
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