Digital Economy : Fintech leads in Growth
With 1 in 4 deals being in the fintech space and pulling nearly 30% of all the funding raised, the sector is poised for strong activity with the new liquidity
1. Fintech investments forge the way
FinTech stood out head and shoulders above other sectors on funding volume and value. With 1 in 4 deals being in the fintech space and pulling nearly 30% of all the funding raised, the sector is poised for strong activity with the new liquidity. Within FinTech, while Payments/Remittances secured maximum number of deals, lending accounted for the largest share of money raised.
Funding Split by Sectors, 2021, $ Bn
Funding Split by FinTech Sectors, 2021, # of deals, $ Bn
2. Consumer adoption of fintech is on a rise as well
Our Voice of Consumer analysis shows FinTech to have strong adoption and the highest future willingness to use. Already adoption is very high in payments and remittances at more than 40-50%. Other fintech sectors such as lending and insurtech are more nascent currently but future intent to use is 5x current levels.
MENA Digital Economy – Current Adoption & Future Intent, In %, 2021
3. Egged on by a favorable regulatory environment, Multiple regional players have raised funding recently
The financial free zones – the Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) have promoted the growth of regional fintech through various avenues such as regulatory sandboxes, accelerators, events, etc. This has allowed regional fintech companies to innovate at a fast pace and partner with leading companies to create new products and services. Numerous regional players have raised funding recently this year.
Funding details of Regional Fintech Companies
Note(s): 1. This is not an exhaustive list