Middle East and Africa Fintech Market Size, Share, Trends, COVID-19 Impact & Growth Forecast Report – Segmented By Technology (API, Artificial Intelligence, Blockchain, and Distributed Computing), Service (Payment, Fund Transfer, Personal Finance, Loans, Insurance, and Wealth Management), Application(Banking, Insurance, and Securities), Deployment Mode(Cloud, and On-Premises) and Country (KSA, UAE, Israel, rest of GCC countries, South Africa, Ethiopia, Kenya, Egypt, Sudan, and Rest of MEA) 2024 to 2029

Updated On: January, 2024
ID: 11203
Pages: 150

Middle East and Africa Fintech Market Size (2024 to 2029)

The fintech market in the Middle East and Africa (MEA) is expected to hit a CAGR of 21.42% from 2024 to 2029 and the regional market size is predicted to be valued at USD 47.68 billion by 2029 from USD 18.07 billion in 2024.

FinTech did not reach the Gulf region in its entirety until 2017 when regulators began implementing policies to encourage the growth of the sector. although the region was slower to adopt FinTech than others around the world, the sector is growing rapidly and, above all, in a sustainable way. The growing penetration of mobile banking in the Middle East and Africa is majorly propelling the growth of the MEA fintech market. As and when the usage of mobile banking is growing in the Middle East and African region, several Fintech start-ups have identified the trend and seized the opportunity by offering innovative solutions tailored to local needs, such as mobile payments and banking. On the other hand, the governments of MEA countries have also understood the changing scenario and adapted policies to support the fintech sector.

Middle East and Africa Fintech Market Drivers

The increasing investments for fintech start-ups in the MEA are further fuelling the growth rate of the MEA fintech market.

The start-ups have done quite well in the region in 2019, the Middle East and Africa (MEA) ecosystem received USD 517 million in funding from 354 deals, or 30% more than in 2018, according to an investment report from Mena Venture. For instance, In the Middle East and Africa, mobile money platforms such as M-Pesa in East Africa have seen success and revolutionized financial access. In particular, the UAE has been a driving force in remittances due to its largely expatriate population, which accounts for around 90% of the country's total population. According to the Milken Institute report, three-quarters of remittances were transferred through foreign exchange companies, mainly to India, Pakistan and the Philippines.

The increasing investments in technological solutions by banks and companies is boosting the fintech market growth in MEA.

Additionally, infrastructure-based technology and APIs are reshaping the future of the financial services industry, thus contributing to the growth of the Middle East and Africa fintech market. In addition, FinTech companies offer customized products at low cost due to emerging developments in the technology industry that generate higher expectations from customers, driving market growth on a large scale.

Several companies in the financial technology sector are increasingly implementing novel technologies like blockchain to increase their security and efficiency. Blockchain is a technology that comprises the use of a distributed database accessible to all users on a network, where each user can add a new data record (block), with a time stamp that cannot be changed. Blockchain technology maintains data authentication by limiting changes to older data blocks while allowing users to keep adding new data blocks, thus providing high security and transparency for companies operating in the fintech market. It improves trading accuracy, speeds up the settlement process, and reduces risk. According to the PwC FinTech report, around 77% of financial organizations and 90% of payment companies were supposed to integrate blockchain into their activities by the end of the year 2020.

Middle East and Africa Fintech Market Restraints

On the other hand, factors such as high rates of unbanked population in some of the Middle Eastern and African countries, complex and evolving regulatory frameworks in some countries and poor awareness and understanding of fintech services among populations are majorly hindering the adoption of fintech in the Middle East and Africa and hampering the MEA market growth. Inadequate digital infrastructure, including internet connectivity and mobile penetration, risks of cybersecurity and lack of interoperability between fintech platforms and traditional banking systems are further inhibiting the growth rate of the MEA market.

Impact of COVID-19 on the MEA fintech market

Coronavirus has had a positive effect on the financial industry around the world, owing to the increased digital transactions and the adoption of FinTech services in different parts of the globe. In May 2020, with many regional locks in play, 53% of respondents in the Middle East increased their online shopping to using their smartphones. E-commerce platforms KSA Bin Dawood and Danube have benefited from the increase, with their average sales up 200%, while in the UAE, Carrefour has seen a 59% increase in the number of new online customers since the start of the COVID-19 pandemic. What the local closures have done is force more urban consumers, previously resistant to change, to buy online. Having experienced the convenience, it is likely that the majority of respondents in the Middle East will continue to maintain their new shopping behaviors after the COVID-19 pandemic.




Market Size Available

2023 to 2029

Base Year


Forecast Period

2024 to 2029



Segments Covered

By Technology, Service, Application, Deployment Mode, and Country


Various Analyses Covered

Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

KSA, UAE, Israel, Rest Of GCC Countries, South Africa, Ethiopia, Kenya, Egypt, Sudan, Rest Of MEA


Market Leaders Profiled

PayPal Holdings, Inc., Ant Group, Afterpay Limited, Google Pay (Alphabet Inc.), Nexi SpA, Klarna Bank AB, Social Finance, Inc. and Avant, LLC


This research report on the Middle East and Africa fintech market has been segmented and sub-segmented based on the following categories.

Middle East and Africa Fintech Market Analysis By Technology

  • API
  • Distributed Computing
  • AI
  • Blockchain
  • Others

Of these, Artificial Intelligence (AI) dominated the market in 2023 with a 38.25% share and the trend is expected to continue until 2029. AI interfaces and chatbots have primarily redefined customer service, and their activity expansion will enable the AI-oriented fintech market to grow at an impressive rate until 2025.

Middle East and Africa Fintech Market Analysis By Service

  • Payment
  • Fund Transfer
  • Personal Finance
  • Loans
  • Insurance
  • Wealth Management

Middle East and Africa Fintech Market Analysis By Application

  • Banking
  • Insurance
  • Securities
  • Others

Middle East and Africa Fintech Market Analysis By Deployment Mode

  • Cloud
  • On-Premises

Middle East and Africa Fintech Market Analysis By Country

  • KSA
  • UAE
  • Israel
  • Rest Of GCC Countries
  • South Africa
  • Ethiopia
  • Kenya
  • Egypt
  • Sudan
  • Rest Of MEA

The UAE is anticipated to account for the leading share of the Middle East and African market during the forecast period.

The UAE stands out as a key player in the MEA fintech market due to the presence of advanced infrastructure, a supportive favorable regulatory environment, and an increasing number of initiatives by the government of UAE, such as Dubai's FinTech Hive and the Abu Dhabi Global Market. The growing smartphone penetration and increasing number of tech-savvy consumers are further boosting the fintech market growth in the UAE.

South Africa is expected to play a major role in the Middle East and African fintech market during the forecast period due to the presence of a growing fintech startup ecosystem and robust ranking sector. The fintech companies in South Africa have been working to address challenges such as financial inclusion and offer innovative solutions for payments, lending, and insurance. The South African Reserve Bank is putting efforts into promoting innovation in fintech and bringing consumer protection and financial stability across the nation.

Nigeria is another prominent player in the Middle East and Africa fintech market.


PayPal Holdings, Inc., Ant Group, Afterpay Limited, Google Pay (Alphabet Inc.), Nexi SpA, Klarna Bank AB, Social Finance, Inc. and Avant, LLC are some of the major players in the Middle East and Africa fintech market.

Please wait. . . . Your request is being processed

Frequently Asked Questions

What are the key drivers of fintech growth in the MEA region?

Key drivers include increasing smartphone penetration, a large unbanked population, supportive government policies, and rising demand for digital payment solutions.

What are the main challenges faced by fintech companies in the MEA region?

Major challenges include regulatory hurdles, cybersecurity threats, limited access to funding, and the need for greater financial literacy among consumers.

What role do fintech accelerators and incubators play in the MEA region?

Fintech accelerators and incubators play a crucial role in nurturing startups by providing mentorship, access to funding, and networking opportunities to help them scale and succeed.

What future trends are expected in the MEA fintech market?

Future trends include increased collaboration between traditional financial institutions and fintech startups, the rise of AI and machine learning in financial services, and the growth of digital identity solutions to enhance security and user experience.

Related Reports

Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1200

Didn’t find what you’re looking for?

Need something within your budget?


Call us on: +1 888 702 9696 (U.S Toll Free)

Write to us: [email protected]

Click for Request Sample