GCC fintech start-ups to attract $2 bln in private funding: research

Investments in Gulf-based fintech start-ups are expected to reach $2 billion in the next decade, compared to $150 million invested in the last ten years, according to a new study by MENA Research Partners (MRP) released today.

The UAE and Saudi Arabia are expected to play a key role in unlocking the GCC growth potential and shaping the regional fintech sector, the research noted.

“Both countries will be at the heart of the evolving fintech transformation, powered by many factors, including adopting a top-down approach for creating advanced infrastructures for the smart cities of the future, having the highest online connectivity per capita in the region, and representing 45 percent of the regional economies,” the study said.

The MRP research indicates that 35 percent of the total investments in fintech startups in the Middle East and North Africa (MENA) over the past ten years were made in 2017; or $52.5 million out of the $150 million invested between 2008 and 2018, were completed last year.

“This momentum is expected to prevail over the next few years, albeit at a much higher pace. This will be driven by many factors, not the least being the GCC governments’ initiatives,” the study added.

MRP also estimates that the number of fintech companies in the MENA will more than double in the next three years, to reach around 260 start-ups from the current 130.