Author: Sharon Lewis

The year has seen a flurry of activity across the tech landscape in the Middle East, but especially so for fintech. Startup investors, both private and government-backed, have flocked to this sector in the UAE, just like they have across the world. The UAE, along with Saudi Arabia, accounted for two-thirds of fintech funding dollars across the MENA region in H1 this year. As of early 2021, the UAE had over 400 fintech companies. The country is looking to become one of the top five fintech hubs globally as well. Dubai and Abu Dhabi startup investors, as well as a…

There’s a lot of buzz doing the rounds for fintech startups in the Middle East, but not too much is known about the faces behind these companies – fintech startup founders. Founders and founding teams are often the make-or-break of the startup world. The exponential growth of a company, its culture and its longevity depend on their leadership. Crucially, it’s not the company that VCs tend to bet on, but rather their founders. Especially in this side of the world, fintech startup founders in the Middle East should be credited for laying the groundwork for a fintech boom. In the…

The fintech industry in the MENA region has had a blockbuster year so far. MENA venture investors have pumped record-level funds into this sector this year, leading to uptick both in number of rounds as well as total deal value. Fintech startups in the MENA region have claimed a sizable chunk of investor dollars this year so far. According to an August report, one in every four deals in the MENA region went to fintech startups, as did 29% of funds raised. This amounts to US$600 million raised across 52 deals as of August 2021. Within the sector, payments and…

Crypto investments have been gathering attention in the Middle East, and developments in this space have been especially accelerated in the UAE over the past few years. According to a 2021 YouGov survey, one in four people in the UAE see crypto assets as an exciting investment opportunity, with 44% comfortable to invest over 5% of their portfolio in crypto. Crypto was especially popular amongst 18-24 year olds and Emirati locals, the survey also found. Both these demographics, while interested in buying crypto, are not too keen on regulation either (just 10% of 18-24 year olds and 7% of Emiratis…

The Dubai Silicon Oasis Authority (DSOA) has launched an early-stage startup programme called SANDBOX, according to a recent announcement. SANDBOX is a 12-month programme aimed at supporting early-stage tech startups to scale and raise funds. The programme was announced at the GITEX Future Starts tech event in Dubai. SANDBOX will be run by the Dubai Technology Entrepreneur Campus (DTEC), a wholly owned tech hub and co-working space by the DSOA. DTEC is home to over 1,000 startups from 75 countries, the startup noted. AED 9,500 company setup fee for SANDBOX The programme will follow a rolling application process that will…

The death of branch and traditional banking was a top theme at the Digital Banking Summit – Fintech Surge 2021. Held at Dubai World Trade Centre, the conference saw a number of panels featuring founders, executives, regulators and fintech experts, discussing the implications of the growing fintech landscape on banking. Some speakers suggested that branch banking, while not likely to die, would be forced to evolve. The industry was “at a tipping point… where the branch banking experience won’t disappear, but it will change,” Philip King, Global Head of Retail Banking at Abu Dhabi Islamic Bank(ADIB), said. King noted that…

In June last year, Careem became one of the earliest super apps to debut in the Middle East. Just months into the pandemic, CEO and Co-founder of the company Mudassir Sheikha announced the launch on Twitter. “Excited to launch the first version of the Careem Super App. It’s live in Dubai and a few other cities…” the tweet said. https://twitter.com/MudassirSheikha/status/1268581655444434946 Super apps have been wildly successful in Asia (with China in the lead), but not so much outside of it. For instance, as this CNBC report points out, the mix of factors that led to the initial spurt of growth…

Digital banking is becoming increasingly competitive in the UAE, with new players, new banking models, and an eager market. Studies indicate that 72% of UAE residents use digital banking services at least once a week, with nearly a fourth using these services at least once a day. Meanwhile, although the country did have some early adopters in the space of digital banking, these were largely traditional banking incumbents (mainly Emirates NBD and Mashreq Bank). Now, UAE digital banks are not only growing in number, but also in terms of new players. Currently, there are two independent UAE digital banks building…

Financial districts of both emirates – the Abu Dhabi Global Market (ADGM) and the Dubai International Financial Centre (DIFC) – have been heavily active in promoting fintech within the country, and setting the stage for more fintech startups to emerge. This includes a number of sandboxes both the ADGM and DIFC. In Abu Dhabi, venture capital players can look to fresh changes to ease the flow of VC dollars into the emirate, while the 2021 edition of its global fintech startup roadshow Fintech Abu Dhabi is currently underway. Meanwhile, the Dubai World Trade Centre Authority announced that it would be offering…

The Middle East fintech sector is undergoing a period of incredible transformation. From fintech funding upsurges, to rising fintech adoption, growing financial inclusion and a growing number of homegrown startups, Middle East fintech is evolving rapidly and in many directions. This largely has to do with policy-level support and regulatory nudges, especially in the UAE, Bahrain and Saudi Arabia. The wider GCC region is pushing for economic diversification and an ever so slight shift to a more open economy than before. In this context, technology has asserted its dominance, especially in the space of banking and financial services. As the…

The Abu Dhabi Global Market (ADGM) recently held a webinar on the “New ways of VC Financing in ADGM.” The webinar discussed the VC landscape in terms of ADGM’s VC Managers Framework and perspectives from investors. Dr. Bhaskar Dasgupta, Associate Director of Business Development, ADGM, noted that the financial centre had close to 300 startups, with more to soon enter the pipeline. He also noted that there were over 110 firms at Hub71, a startup ecosystem platform in Abu Dhabi, as well. Moreover, the ADGM was also home to about 20 VC firms, along with angels, PE funds and sovereign…

Open banking in the Middle East has become one of the latest buzzwords to come out of the region’s accelerated fintech agenda. Many countries in the region already had a sturdy traditional banking ecosystem. Now, with a growing incentive to make banking more inclusive and leverage emerging tech opportunities in this space, open banking is gaining increased attention in the Middle East. Open banking in the Middle East is still a niche fintech segment, but Bahrain, the UAE and Saudi Arabia are driving adoption in this space. And while growing digitisation, cashless economies and public-private collaborations have all had a…

Paytech in the UAE is one of the top emerging opportunities being eyed by startups, financial institutions and investors. Demand for finance apps in the country was already on the uptake. In Q1 this year, demand for these apps climbed 60% in the UAE, in line with a surge of over 200% since Q1 2019. And along with banking and investment apps, paytech is at the forefront of this growth. According to the Fintech News UAE Fintech Report 2021, US$18.5 billion was processed in digital payment transactions in 2020. Meanwhile, 88% of in-person transactions were contactless. The report notes that…

The Arab Monetary Fund (AMF) has recently issued guidelines regarding distributed ledger technology (DLT) and blockchain in the Middle East for financial services. Under the “Strategies for Adopting DLT/Blockchain Technologies in Arab Countries” guide, the Arab Regional Fintech Working Group has issued directives on the financial applications of blockchain. It is aimed at bolstering financial and banking services, digital financial transformation and financial inclusion. With an elaborate overview of DLT and blockchain initiatives in different countries, the guide covers implementation of such applications in the financial sector, alongside action plans and an evaluation matrix as well. It also discusses integrating…

It has been a year of wins so far for MENA-based fintechs, with a handful of top funded fintechs in the Middle East securing deals as well. Middle Eastern fintech startups having already raised record levels of VC funding in H1 this year. The funding, the highest ever raised by MENA fintechs in six months, was raised mostly by fintechs in the UAE, Egypt and Saudi Arabia. The region also saw a handful of substantial ticket sizes in the earlier seed stage rounds. With governing bodies across the region looking to propel the industry forward, and more homegrown companies beginning…

Cash usage is declining amongst growing Saudi fintech adoption, according to the findings of Fintech Saudi’s National Fintech Adoption Survey. Fintech Saudi announced the results of the National Fintech Adoption Survey, which it conducted in early 2021. The survey assesses the state of Saudi fintech adoption amongst individuals and companies. Conducted by Saudi Central Bank (SAMA) and the Capital Market Authority (CMA), the survey covers five key areas of focus — cash usage, fintech activities, banking relationship, open banking, environmental, social and governance goals. “Given the importance of financial technology, we need to understand the extent to which individuals and companies…

In August last year, Fawry made headlines as Egypt’s first tech company to lay claim to unicorn status. The financial services company, which offers its solutions to consumers and businesses both, processes three million transactions daily, it claims on its website. The company made US$5 billion in transaction volume last year. Fawry was founded by Egyptian entrepreneur Ashraf Sabry. Sabry was previously a System Engineer and Industry Consultant at IBM, following which he spent seven years as Vice Chairman and COO at Raya Holding before founding Fawry in 2008. The company had raised US$122 million in private equity (data according…

Record levels of VC funding made their way to fintechs in the MENA region, amidst a global fintech investment boom. Global fintech investment in H1 this year reached a record US$98 billion, according to KPMG’s biannual fintech investment report Pulse of Fintech. Fintech deals hit new benchmarks across M&A, PE, and VC deals, the KPMG report said. M&A deals contributed US$40.7 billion across 353 deals for the period, while corporate venture capital reached US$20.8 billion globally. PE deals, meanwhile, accounted for US$5 billion of fintech investments, outdoing an annual high of US$4.7 billion it saw in 2018. In the MENA…

The Arab Monetary Fund (AMF) recently released the second edition of The Arab Region Fintech Guide. The report discussed the current state of fintech in Arab countries. It features contributions from various central banks in the Arabian peninsula, as members of the Arab Regional Fintech Working Group. The second edition of the report covers a total of ten Arab countries, versus an initial four – UAE, Bahrain, Saudi Arabia, and Egypt – in the previous version. It gives an expansive overview of  fintech in Arab countries. This includes current fintech activities, regulatory bodies, and key developments to promote fintech in…

The first half of 2021 has been eventful for Saudi fintech startup funding. H1 saw deal sizes ranging from as little as US$670,000 to a hefty US$110 million. Moreover, ranking second by funding in the MENA region, VC funding increased by 64% year on year in Saudi Arabia during H1. Of these transactions, Saudi fintech startup funding accounted for every fourth deal in the country. A separate report also points out that there are 30 fintech companies under the supervision of the Saudi Central Bank. Much beyond their original target of three, this highlights shifting top-level priorities when it comes…