1. E-tail and Payments lead in maturity; other Fintech lags in usage
MENA digital consumption metrics are some of the most mature in the world, particularly in UAE and KSA, which translate to a booming digital economy. E-tail adoption is the highest at ~90% which is unsuprising. But the next wave of growth could potentially be from fintech with more and more consumers preferring to go cashless and using digital solutions for payments and remittances. Fintech is a critical enabler of the Digital Economy and while the initial growth is possible organically, growth in enablers is required to make the sector accelerate.
MENA Digital Economy Adoption1 – Sector Wise In %, 2021
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2. Insurtech and Lending growth is expected to be ~5 times higher in future
Though we see payments and remittances being the forefront of this growth currently, other fintech verticals such as Insurtech and Lending are nascent only for now. Their future potential is astounding at growth rates higher than 400%. These are definitely the sectors to keep track of.
MENA Digital Economy Adoption1 and Growth2 – Sector Wise, In %, 2021
Note(s): 1. Please select the categories you purchased/availed service online in the past 6 months. 2. Going forward, how likely are you to purchase/avail the following products/services through online channel? (Likely +Very likely)
3. North Africa countries are ahead in growth and behind in maturity compared to GCC countries
If we focus only on the nascent and small sectors marked above, the bulk of growth is expected to come from North African countries, namely Morocco and Egypt. These countries have more Inclination towards Mobility and Health-tech. While GCC countries have balanced usage across sectors with comparatively lower growth at 150-200% (which is still impressive in absolute terms).
Note(s): 1. Please select the categories you purchased/availed service online in the past 6 months. 2. Going forward, how likely are you to purchase/avail the following products/services through online channel?