The MENA Fintech Market Report is Segmented by Service Proposition (Money Transfer and Payments, Savings and Investments, Digital Lending and Lending Marketplaces, Online Insurance and Insurance Marketplaces, and Others) and by Country (The United Arab Emirates, Saudi Arabia, Bahrain, Qatar, Iran, Egypt, Israel, and the Rest of Mena). The Market Sizes and Forecasts for the MENA Fintech Market are Provided in Terms of Value in USD for all the Above Segments.

As of 2024, there were 739 fintech companies in Turkey, which was the highest in the entire MENA region. The United Arab Emirates and Israel followed with 686 and 550 fintech companies, respectively. The majority of countries in the region had less than 100 fintech companies in operation. Fintech in MENA At its core, fintech not only assists consumers, but also companies and business owners to better manage their financial operations using specialized software. High smartphone and internet penetration in the MENA region in recent years has been a factor in driving the rise in fintech startups. Additionally, the region holds a sizeable youthful population who tends to be more flexible to change and early technology adopters. Burdensome and outdated regulations in the region have historically slowed down adoption and investment. However, a recent rapid change in the regulatory environment has been observed in different countries such as Egypt and Jordan, especially during the COVID-19 pandemic. The online banking penetration rate in Egypt was forecasted to expand to 12 percent by 2025. Despite being in their relative infancy, the region now has different levels of regulatory aspects that pertain to fintech specifically. Adding to this, the region hosts a high percentage of unbanked adults, which provides opportunities for fintech startups to step in and fill in the market gaps. Fintech in UAE The UAE holds one of the most mature fintech markets in the region, accounting for a large percentage of fintech startups. The country had the highest overall fintech readiness score among the MENA region, growth, making it a premium global fintech hub, while Saudi Arabia, Turkey, and Bahrain were emerging hubs. This is due to several factors, including the government’s efforts to foster startup growth, which makes the UAE a global hub for tech companies. Approximately 34 percent of firms in the UAE had a company-wide digital transformation strategy in place, with good progress in implementing it in 2019.

The Report Covers Fintech Companies in the Dubai Region and is Segmented by Service Proposition (money Transfer and Payments, Savings and Investments, Digital Lending and Lending Marketplaces, And Online Insurance & Insurance Marketplaces). The Report Offers Market Size and Forecasts for the UAE Fintech Market in Value (USD Billion) for all the Above Segments.

As of 2024, 39 percent of 136 fintechs surveyed in the United Arab Emirates were operating in the payments, e wallets and remittances sector. The UAE has also invested heavily in blockchain technologies, and out of the surveyed companies, roughly 7.3 percent were focused on blockchain and crypto services. UAE’s diverse fintech landscape The UAE has an extensive fintech market, home to the second highest number of fintechs in the MENA region. The country has become an attractive destination for startups to set up shop due to a variety of government initiatives and the country's high overall fintech readiness score, positioning it as a premier global fintech hub.
While payments currently dominate the country’s fintech sector, other industries are steadily emerging. Insurtech, for instance, which represents 11.76 percent of the fintech market and includes notable players like Bayzat. In addition to providing human resource and payroll SaaS solutions, Bayzat enables both individuals and businesses to purchase health insurance. The success of the sector can be attributed to government initiatives fostering startup growth and a regulatory environment that has adapted to accommodate fintech innovations.
A push to digitize Digitization has been a priority for many Gulf Cooperation Council countries, and the UAE is no exception. Similar to the broader GCC region, the UAE boasts one of the highest internet penetration rates and some of the fastest internet speeds globally, [896768] powered by a robust fiber optic network. This strong digital infrastructure has enabled digital sectors like fintech to thrive. Government-led initiatives, such as the Smart City projects implemented in Dubai and Abu Dhabi, leverage digital connectivity to enhance public services and promote sustainable living. Additionally, the UAE has digitized many government services, making them more accessible to residents. Other nations in the region are adopting similar strategies, with smart city projects and e-governance forming key components of initiatives like Saudi Arabia’s Vision 2030. A combination of advanced telecommunications infrastructure, state-sponsored digitization policies, and a young, tech-savvy population is driving greater connectivity across the region.

UAE Fintech Market size was valued at USD 2.97 Billion in 2024 and is projected to reach USD 11.68 Billion by 2032, growing at a CAGR of 8.73% during the forecast period from 2025-2032.

UAE Fintech Market: Definition/Overview

Fintech in the UAE is defined as the integration of technology into offerings by financial services companies, which improves the delivery and use of financial services. This technology revolutionizes various financial operations, from mobile banking and insurance to cryptocurrency and investment apps.

Furthermore, by fintech companies, a wide array of financial services is provided, disrupting traditional banking services. Digital payments, peer-to-peer lending, blockchain technology, and artificial intelligence-driven financial advisory services are included in these services. Through these innovations, financial inclusion is promoted and the way financial services are accessed and utilized by consumers and businesses is transformed.

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Islamic Banking Software Market Size 2024-2028

The islamic banking software market size is forecast to increase by USD 3.28 billion at a CAGR of 11.53% between 2023 and 2028.

The market is experiencing significant growth, driven by the increasing issuance of smart cards by Islamic banks and the adoption of blockchain technology. These trends are transforming the industry by enhancing security, efficiency, and transparency in Islamic financial transactions. However, challenges persist, including the lack of expertise, awareness, and training in Islamic banking software. 
Cloud-based solutions, artificial intelligence, and blockchain technology are transforming Islamic finance by streamlining processes, enhancing security, and enabling real-time transactions. Regulatory initiatives and fintech partnerships are further driving the adoption of advanced technology In the banking industry. Retail sector players are also leveraging Islamic banking software for asset administration and cellular banking services.
Addressing these challenges will require ongoing investment in education and technology to ensure the continued growth and success of the Islamic banking sector. The market analysis report provides a comprehensive overview of these trends and challenges, offering valuable insights for stakeholders seeking to capitalize on the opportunities presented by the market.

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The market caters to the unique needs of financial institutions offering Sharia-compliant products and services. Unlike conventional banking, Islamic banking operates on the principles of profit-and-loss sharing, asset-backed financing, and avoidance of interest. To meet the growing demand for automation and efficiency in Islamic banking operations, software providers offer solutions for risk administration, analytics and reporting, smart cards, and sukuk issuances. The market is expected to witness significant growth due to the increasing number of financial institutions offering Islamic banking services and the need for more sophisticated technology to manage complex financial transactions.

How is this Islamic Banking Software Industry segmented and which is the largest segment?

The islamic banking software industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Retail
  Corporate
  Others


Deployment

  On-premises
  Cloud


Geography

  Middle East and Africa



  APAC



  Europe



  North America



  South America

By Application Insights

The retail segment is estimated to witness significant growth during the forecast period.

The retail segment of the market caters to the unique needs of Islamic banks, offering compliant solutions for various retail banking products and services. These software platforms and modules facilitate savings accounts, current accounts, term deposits, personal loans, mortgages, auto loans, credit cards, and wealth management services, ensuring adherence to Islamic Shariah law. Automation and streamlining of retail banking procedures are achieved through these software solutions, providing consumers with a seamless experience.

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The Retail segment was valued at USD 1.51 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

Middle East and Africa is estimated to contribute 67% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market In the Middle East and Africa (MEA) is experiencing significant growth due to the region's large Muslim population, driving the demand for Sharia-compliant banking solutions. Notable institutions, such as Dubai Islamic Bank, have played a pivotal role In the debt capital markets, with SUKUK investments increasing from 14.2% in 2016 to 24% in 2022. This banking powerhouse has overseen 45 transactions worth over USD2 8 billion in Environmental, Social, and Governance (ESG) SUKUK deals, solidifying its position as a market leader. In Bahrain, ila Bank alburaq, an Islamic banking portal, ensures regulatory compliance by maintaining a distinct organizational structure for Shariah-compliant activities.

Asset-backed financing, automation, risk administration, analytics and reporting, integration skills, asset administration, cellular banking, fintech partnerships, data protection, cybersecurity, s

In 2024, Dubai was the most attractive financial center in the Middle East and North Africa (MENA) region with a Global Financial Centres Index score of 724 points. The private institute Z/Yen has constructed an index for financial center rating, in which a multitude of factors are integrated. Important areas of competitiveness are, among others, business environment, human capital, taxation, and infrastructure. Finance industry in MENA

The financial technology (FinTech) industry in the MENA region has been booming recently, especially with the increased smartphone and internet penetration rates. Fintech helps businesses by allowing them to manage their financial operations efficiently using specialized software. The acceleration of fintech adoption can be attributed to the large share of the young population who were adapting to change and high rates of new technology adoption. Fintech had the highest share of startup deals in the region at 16 percent in 2020 compared to other industries. The number of fintech companies in the Middle East region was forecast to reach 465 firms by 2022, though this value will likely be exceeded.

Fintech in the UAE

The United Arab Emirates (UAE) was a leader in adopting fintech technology in the MENA region. The number of fintech startups in the UAE was 400 in 2020. There were 15 Islamic fintech firms in the country in the same year. The free zones ADGM and DIFC in the emirates of Abu Dhabi and Dubai respectively were proactively embracing fintech. The country’s regulatory authority boosted the blockchain sector in 2020 and 2021. Local authorities implemented regulatory laws and legalized the crypto-asset activities. The Dubai Financial Services Authority announced a crypto framework, while the Securities and Commodities Authority legitimized crypto-asset activities and introduced a crypto framework.

The report covers MENA Wealth Management Market Growth and it is Segmented by Client Type (HNWI, Retail/ Individuals, Mass Affluent, and others), by Provider (Private Bankers, Fintech Advisors, Family Offices, and others), and by Country (Saudi Arabia, Algeria, Egypt, United Arab Emirates, and Others). The market Size and forecasts are provided in terms of value (USD million) for all the above segments.

The size of the United Arab Emirates Motor Insurance Market was valued at USD 1.40 Million in 2023 and is projected to reach USD 1.86 Million by 2032, with an expected CAGR of 4.12% during the forecast period. The motor insurance market encompasses a range of policies designed to provide financial protection for vehicle owners against losses related to accidents, theft, or damage. As a crucial component of the broader insurance industry, motor insurance typically covers two primary areas: third-party liability and comprehensive coverage. Third-party liability insurance is mandatory in many jurisdictions and covers damages caused to other vehicles, property, and injuries to other individuals in the event of an accident. Comprehensive coverage, on the other hand, offers broader protection, including damages to the insured vehicle from accidents, theft, vandalism, and natural disasters. The motor insurance market is influenced by various factors, including regulatory frameworks, economic conditions, and technological advancements. Regulatory requirements often dictate the minimum coverage needed, which can vary significantly across different regions. Economic conditions, such as disposable income and vehicle ownership rates, directly impact the demand for motor insurance. Additionally, the increasing adoption of telematics and connected vehicle technologies is transforming the market by enabling usage-based insurance models, where premiums are determined based on actual driving behavior rather than traditional risk assessments. Recent developments include: September 2023: Allianz entered into a binding agreement to sell its 51% stake in Allianz Saudi Fransi to Abu Dhabi National Insurance Company (ADNIC)., October 2022: To strengthen its position as a quality-focused auto insurer in the nation, Sukoon Insurance signed a strategic partnership with AG Cars, the multi-brand car service center network in the United Arab Emirates.. Key drivers for this market are: Government Initiative is Expected to Drive the Growth of the Market, Increasing Sales of Vehicle Across UAE is Driving the Market. Potential restraints include: Strict Regulatory Landscape is Expected to Restrain the Growth of the Market, High Costs of Product. Notable trends are: Growth of Fintech in UAE is Diving the UAE Motor Insurance Market.

The Middle East and Africa (MEA) Buy Now, Pay Later (BNPL) industry is poised for significant growth, with a market size projected to reach $XX million by 2033, registering a robust CAGR of 25.00% during the forecast period. This growth is driven by various factors, including rising e-commerce penetration, increasing smartphone adoption, and the growing popularity of BNPL offerings among consumers. Additionally, favorable government regulations and the presence of a large unbanked population further contribute to the expansion of the BNPL market in the MEA region. Key trends shaping the MEA BNPL industry include the increasing adoption of mobile-first BNPL solutions, the expansion of BNPL services into new segments such as healthcare and leisure, and the emergence of strategic partnerships between BNPL providers and retailers. Moreover, the growing focus on financial inclusion and the rise of fintech startups are expected to drive the adoption of BNPL services in the region. However, challenges such as regulatory concerns and potential risks associated with BNPL usage could potentially restrain market growth. Nevertheless, the strong growth potential and favorable market dynamics position the MEA BNPL industry for continued expansion in the coming years. Recent developments include: January 2022 - Lipa Later, a Kenyan BNPL startup, has secured USD 12 million in pre-series A funding to grow across Africa. This new capital, according to the firm, would allow them to supply their buy-now-pay-later services to their current pipeline of users, strengthen their presence in current markets (Kenya, Uganda, and Rwanda), and expand into new markets such as Nigeria, South Africa, Ghana, and Tanzania., February 2022 - Postpay, a UAE-based fintech, has struck a debt financing agreement with the Commercial Bank of Dubai (CBD) to expand its portfolio of financial products. This initial debt financing arrangement is just another example of how fintech and traditional banks are collaborating to harness their total knowledge and skills to improve the market's spectrum of financial products.. Notable trends are: Growth in E-commerce in Middle East and Africa is increasing.

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Digital Banking Platforms Market Size 2024-2028

The digital banking platforms market size is forecast to increase by USD 25.58 billion at a CAGR of 16.9% between 2023 and 2028. The market is experiencing significant growth due to the increasing use of smartphones, computers, and IoT devices for banking transactions. The convenience and accessibility offered by platforms have led to a rise in their adoption, particularly among younger generations. Additionally, the rise of artificial intelligence (AI) and machine learning technologies is enabling banks to offer more personalized services and improve customer experience. However, the market also faces challenges related to data privacy and security concerns, as well as the need for banks to adapt to evolving regulatory requirements. The implementation of blockchain as a service in banking, financial services, and insurance (BSFI) is another trend that is gaining traction, offering benefits such as increased security, transparency, and efficiency. Overall, the market is poised for continued growth as technology continues to transform the banking industry.

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Digital banking platforms have revolutionized the financial industry, offering unprecedented convenience and accessibility to customers. These platforms enable banking services to be accessed via smartphones, computers, and IoT devices, making transactions faster and more efficient. The advent of these platforms has led to a significant shift from traditional banking methods. Banks are increasingly deploying automated platforms to enhance productivity and reduce costs, providing income prospects for the financial sector. Internet connectivity plays a pivotal role in the functioning. With the widespread availability of high-speed internet, banks can offer online banking services, mobile apps, and digital wallets, enabling customers to manage their finances from anywhere, at any time. Cloud computing and cloud storage have further boosted the adoption. Banks can store customer data securely in the cloud, ensuring easy accessibility and reducing the need for on-premise infrastructure. This not only reduces costs but also enhances the user experience. Artificial intelligence (AI) is another key technology driving the growth.

Moreover, AI-powered chatbots and virtual assistants offer personalized services to customers, providing quick responses to queries and facilitating seamless transactions. Digital services offered include retail banking, inclusive banking, inter-account transfers, and telecommunication network bill payments. Fintech firms are also leveraging these platforms to offer innovative digital financial solutions. The deployment of platforms can be done through Software as a Service (SaaS) or on-premise models. SaaS offers the advantage of easy deployment and scalability, while on-premise models provide greater control and security. The use of digital banking platforms offers numerous benefits, including increased client loyalty, improved user experience, and cost savings. Banks can leverage these platforms to offer personalized services, streamline operations, and stay competitive in the digital age. In conclusion, digital banking platforms are transforming the financial industry by offering convenient, accessible, and efficient banking services. With the integration of IoT devices, AI, cloud computing, and other technologies, digital banking platforms are set to redefine the way we manage our finances.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Retail banking
  Corporate banking


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    India


  South America



  Middle East and Africa

By Type Insights

The retail banking segment is estimated to witness significant growth during the forecast period. In the retail banking sector, digital banking platforms have revolutionized the way consumers manage their finances. These automated systems enable productivity gains and cost reductions for both banks and their customers. With the shift to cloud computing and cloud storage, online banking has become a preferred choice for time-strapped individuals. According to research, an increasing number of customers prefer to conduct financial transactions online due to the convenience and time savings. Security, user-friendly login processes, site availability, seamless integration of various services, clear layout, and comprehensive information are essential features that retail users look for in digital banking platforms. The investment in application development and maintenance, system

In 2021, First Abu Dhabi Bank (FAB) ranked first by total assets among listed commercial banks in the United Arab Emirates (UAE), exceeding 272 billion U.S. dollars. Meanwhile, the total assets of Emirates National Bank Dubai (ENBD) amounted to just over 187 billion U.S. dollars. UAE banking sector amid the pandemic During the COVID-induced economic slump, banking and financial services, one of the key non-oil sectors in the United Arab Emirates, also felt the impact of the pandemic. In financial year 2020, banking profitability in the UAE declined by over 20 percent. However, the UAE banking sector is expected to rebound strongly within the next few years, given the extensive tax reforms introduced in the new UAE Federal Corporate Tax effective starting June 2023. Digital banking in the FinTech landscape Boasting the most progressive FinTech (financial technology) ecosystem in the Middle East and North Africa region, the United Arab Emirates has been at the forefront of digital transformation in the banking sector. FinTech features were most commonly used for account aggregation and peer-to-peer money transfers among banking customers in the UAE. In addition to traditional brick-and-mortar banks now also offering digital products and services to remain competitive, the emergence and success of challenger banks and neobanks, which target a wide range of tech-savvy customers, will likely reshape the UAE financial services sector for the years to come.

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Virtual Data Room Market Size 2024-2028

The virtual data room (VDR) market size is forecast to increase by USD 900.5 million at a CAGR of 8.09% between 2023 and 2028.

The market is experiencing significant growth due to several key trends. One of the primary drivers is the increasing need for continuous monitoring of compliance-related documents to ensure regulatory adherence. This is particularly relevant in industries such as finance, healthcare, and legal services. Another trend is the expanding market penetration In the Asia-Pacific region, where businesses are increasingly recognizing the benefits of using VDRs for secure document sharing and collaboration. The market is expanding as businesses increasingly rely on master data management solutions and data centers to securely store, manage, and share sensitive information during mergers, acquisitions, and other critical transactions. However, data privacy concerns continue to pose a challenge for the market, as organizations must ensure that sensitive information is protected while still allowing authorized users to access it. Overall, the market is poised for continued growth as more businesses adopt these solutions to streamline document management and improve security and compliance.

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The market is experiencing significant growth due to increasing demand for secure file sharing, compliance automation, and data management solutions. The market's size is projected to expand as businesses seek to streamline deal flow, reduce costs, and ensure regulatory compliance with data protection regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). VDRs offer advanced features like audit trails, data insights, data governance, business continuity, and cybersecurity, making them an essential tool for various industries, including investment banking, venture capital, private equity, and legal tech. Additionally, the flexible and remote work capabilities of VDRs have become increasingly valuable in today's digital business landscape.
Other trends driving market growth include data portability, cloud migration, efficiency gains, competitive advantage, access control, data retention, data analytics, data visualization, and regulatory compliance in sectors like property management, construction management, fintech, and enterprise software. Overall, the market is poised for continued expansion as businesses prioritize secure and efficient data management solutions.

How is this Virtual Data Room (VDR) Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  M and As and IPOs
  Enterprise activities
  Document warehousing


Deployment

  On-premises
  Cloud-based


Geography

  North America

    US


  Europe

    UK
    France


  APAC

    China
    Japan


  South America



  Middle East and Africa

By Application Insights

The M and AS and IPOs segment is estimated to witness significant growth during the forecast period. Virtual Data Rooms (VDRs) have gained significant market traction as more enterprises adopt this advanced technology for secure data sharing during mergers and acquisitions (M&A) and Initial Public Offerings (IPOs) due diligence. Both on-premises and cloud-based VDRs are utilized for this purpose. The increasing importance of VDRs in sectors like BFSI, telecommunications, and healthcare is driving market growth. Confidential document maintenance is crucial during M&A processes, and VDRs provide a secure online space for this purpose. The rise in international collaborations and the need for scalable document-sharing solutions further boost the demand for VDRs. Advanced features like AI-powered document tracking, document catalogs, granular access control, and audit trails enhance the functionality of VDRs.

Additionally, compliance with regulatory requirements and data security concerns are addressed through features like e-signatures, compliance and audit, and secure online space with watermarking and consulting services. VDRs also facilitate real estate transactions, project management, and data evaluation, among other business functions. Despite the benefits, concerns around data breaches and internet connection reliability persist, necessitating continued investment in data security and communication infrastructure. Overall, VDRs offer a cost-effective, secure, and efficient solution for managing sensitive data during strategic transactions and collaborations.

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As of 2024, the top six mobile telecommunication companies in the Middle East based on brand value were in Gulf Cooperation Council (GCC) countries. Of these six companies, Saudi Telecom Company (STC) led the list with a brand value of approximately 13.9 billion U.S. dollars. Many of these telecommunications providers have expanded their product offerings in recent years. For example, Etisalat in the United Arab Emirates also offers entertainment, healthcare, fintech, and cloud services. Mobile telecommunication market in the Middle East The mobile telecommunications market in the Middle East is developing, as in many parts of the world. The adoption of newer generations of mobile telecommunication technology is expected to more than double by 2025. The penetration rate of 5G technology in the Middle East and North Africa (MENA) region was expected to reach almost 50 percent by 2030. In the coming years, the number of smartphone subscribers is expected to increase by around 80 million from 2022 figures. In the GCC, price and network quality were the main factors in a customer’s choice of a network provider. Mobile communication and digitalization Mobile data traffic in MENA is set to more than double by 2028. This surge in mobile data traffic is poised to revolutionize various sectors, from e-commerce and entertainment to healthcare and education, reshaping people’s way of life. In terms of the region's healthcare sector, telecom and mobile communications contribute to advancement in telemedicine services, health management terminals, and financial services. Saudi Arabia had the largest digital health industry in the GCC region with revenues of more than one billion U.S. dollars in 2024.