By Bloomberg Intelligence
The Middle East-Africa (MEA) region is ripe for a new breed of complex fintech startups, in our view, as the industry becomes more prominent — including Islamic Fintech, InsurTech, RegTech and blockchain-based solutions. Moreover, changes in technological advances, regulation and customer preferences are forcing the region’s large banks to take a lead in digital transformation.
The MEA region
MEA fintech startups are expected to more than double between 2020-22, albeit from a low base, given limited funding, talent and tailored regulation. Foundations for a stronger growth outlook were nevertheless made in 2018, given new regulatory frameworks, government support, more venture-capital investment and banking partnerships.
Investment into Middle East fintech via venture capital are expected to grow to 2 billion dollars in 2022 to fund about 465 startups. Strong momentum will start from 2019. Even though the UAE showed a fast growing number of fintech startups, the level of investment in the region is still modest. In more than 90 billion dollars by 2017 invested in fintech startups globally since 2010, only 1% was allocated to companies in Middle East and Africa, according to a report by Accenture and Fintech Hive.