2019 MENA FinTech Venture Investment Report
February 2020

FinTech is one of the hottest startup industries in the Middle East and North Africa (MENA), and has taken the top spot by number of deals in both 2018 and 2019. However, what are the underlying trends? What are the top countries in the region for FinTech, which industry verticals are most popular, and what are the key drivers that propel this industry forward? This report provides a deep-dive into the FinTech industry and venture funding in the MENA region, the first of its kind, with key insights based on the industry-leading data of the MAGNiTT platform. 

 

Two of the most common FinTech industry verticals were Payments & Remittances and Wealth Management, which have historically seen a large portion of total venture capital deals. The report includes, aside from data-driven trends, expert insights from various industry experts, from investors to startups.

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Speaking about the rise of payment gateway startups, Abdulaziz Al Jouf, founder and CEO at payment solutions startup PayTabs, states, “The biggest catalyst of payment gateway adoption in the MENA region is a no-brainer: it is the consumer. Internet adoption in the region, especially in the GCC, is led by smartphone and social media penetration, and is made possible by increasingly faster internet speeds. The MENA consumer is among the most digitally savvy in the world.”

 

Mark Chahwan, CEO at wealth management startup Sarwa, reiterates this point, stating that they see the same trend in the wealth management vertical: “What we currently see in terms of disruptions in the region is not simply due to technological progress, but mainly driven by market demand and clients’ needs. The financial industry in the Middle East has been known to be one of the most expensive in the world, and the market is demanding better services at better prices. This unlocks a lot of opportunities for improvement.”

 

This opportunity has been recognized by many entrepreneurs, investors and governments across the region, with a 38% compound annual growth rate (CAGR) between 2012 and 2018 as a result. This not surprising, as the total FinTech market in the MENA region is estimated to be worth $2B this year, and is expected to grow to $2.5B by 2022. Of course, this will attract both regional and foreign interest from startups, scaleups, and investors, leading to an increase in competition.

 

 

 

 

This, and much more, is included in the full report.

 


Want to see a sample of the full report first? Click here.


 

The contents of the 100+ page report are:

 

Executive Summary: Key insights into the state of the funding ecosystem, including a foreword by MAGNiTT's founder and CEO Philip Bahoshy

FinTech Adoption Drivers: Main drivers of FinTech adoption in the region, explaining why we have seen such a surge in FinTech funding over the past few years

Funding Overview: High-level overview of the funding landscape, including total funding, deals, and funding stage information

Country Deep-dive: Historical review of all MENA countries by FinTech deals, including a deep-dive into the FinTech ecosystems in the UAE and Egypt

Industry Vertical Deep-dive: Historical review of all FinTech verticals and countries, including a deep-dive into the Payments & Remittances and Wealth Management FinTech verticals

Funding Institutions: Ranking of most active investors in FinTech startups in the region, including (corporate) venture capital firms, angel groups, accelerators, and others

Exits: Details on top FinTech exits in 2019

Top Deals: Breakdown of top FinTech deals across the MENA region in 2019

Top International FinTech Trends: Insight into the top international, non-MENA, FinTech trends in industry verticals and countries

Looking Forward: Based on the recent trends, international trends, and other factors, forward looks regarding industry verticals and MENA countries

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