The Middle East and North Africa (MENA) region has seen significant growth as a fintech hub for investors and tech innovators in the last few years. Recently, a report by Magnitt pointed out that the fintech industry in the region has tripled to around $1.68 billion in H1 2022 compared to the previous year, making it the highest-funded sector across emerging venture markets. In funding and deals, UAE sits as the leading market for venture capital. Fintech investments in the region reached $819 million in H1 2022.
With increased digitalization in retail and ecommerce, the MENA region, according to the report, has the highest consolidation of funding, with around 99 percent focused on the UAE, Saudi Arabia, Bahrain, and Egypt.
The report stated that funding dropped by 52 percent in the second quarter of 2022, while deals fell by 44 percent. According to advisory firm Startup Genome, the value created by startups reached $3 trillion in 2020.
The top sub-sector in investments this year was payment solutions. The space alone attracted around 42 percent of fintech investments with an annual funding growth rate of 152 percent.
Meanwhile, more than 45 startups with at least a $1 billion valuation are expected to emerge from the MENA region by 2030, led by Saudi Arabia, a Saudi Arabia-based venture capitalist firm noted.
