The Fintech Times FINTECH Middle East & Africa 2024

THE 2024 MIDDLE EAST & AFRICA FINTECH REPORT

ECONOMIC DEVELOPMENT THROUGH FINTECH

WELCOME TO THE 2024 MIDDLE EAST & AFRICA FINTECH REPORT

It's truly remarkable to reflect on the journey since 2020 when The Fintech Times, under my leadership, expanded its coverage to the Middle East and Africa (MEA) region. Back then, Mark Walker and I conceived the idea of creating the first-ever Middle East and Africa fintech report for 2021. Now, in its fourth edition, it’s no longer a novelty.

The first three editions of the MEA reports aimed to make an impact by providing valuable insights to both the fintech community and those less

familiar with the MEA region. While summarising such a vast region and dynamic sector like fintech is always a challenge, we’re pleased with the feedback suggesting that the previous editions succeeded in doing so.

This latest fourth edition builds upon the foundation laid by the previous MEA reports, delving deeper into the evolving fintech landscape of the region and its broader economic opportunities and challenges. Personally, I’m proud of the new content, including graphics and

timelines, which will aid in understanding the developments in MEA.

I extend my thanks to my family and friends for their unwavering support. I’m also grateful to The Fintech Times team, especially Claire, Chris and Mark, whose dedication made this edition possible. Special appreciation goes to our supporters and partners for their invaluable contributions.

I sincerely hope you find value in the latest Middle East and Africa report!

Author Richie Santosdiaz, economic development advisor – emerging economies, The Fintech Times

Editorial director Mark Walker Editor in chief Claire Woffenden Art director Chris Swales

Special thanks also to our supporters and partners for helping make this report possible.

Published

by London | Dubai | New York

© The Fintech Times 2024. Reproduction of the contents in any manner is not permitted without the publisher’s prior content. ‘The Fintech Times ’ and ‘Fintech Times ’ are registered UK trademarks of Disrupts Media Limited. Disclaimer: This report was prepared by The Fintech Times and the main author to mainly educate the public on the growing trends of the fintech ecosystem in the Middle East and Africa region in the context of its relationship to economic development. Research findings of this report can be shared provided the report and their sources are acknowledged. Written: April 2024. Published: May 2024.

Seamless Evolution Unveiling tech advancements in MEA

Mark Dowdall Editor of

Seamless Xtra

Given the rapid advancement of technology across all facets of digital commerce, covering all things Seamless throughout the Middle East and Africa can be quite an eye-opener. With new innovations, greater products and a steady stream of partnerships and collaborations there is always something to report on, plenty to learn, and even experience first-hand while covering this beat.

To best describe the concept of being Seamless I am reminded by a quote from Hans Hofmann, a German-born American painter, renowned for his work as an artist in abstract expressionism around the mid1900s. Hofmann once said: “The ability to simplify means to eliminate the unnecessary so that the necessary may speak.”

While this could be seen as a nod to his craft of abstract painting it is equally something that can be applied today when we think about how technology is making once complicated processes quicker, more efficient and easier to execute than ever before. Increasingly, this is becoming evident, not only in banking and financial

services but also in other key areas of identity, retail, e-commerce, home delivery and even digital marketing. Carrying out essential everyday tasks has never been easier. With that in mind, here are some areas within the worlds of banking, fintech and e-commerce where ‘being seamless’, or not for that matter, can have a real impact.

Creating a Seamless digital ID system

From speaking to leaders in the banking industry, the evolution of digital identity systems is quite significant. Interestingly, this year marks two decades since the Federal Authority for Identity and Citizenship (ICA) was established in the UAE. In the time since, the Emirates ID has been modernised at various stages and is currently the only identity document aside from passports, accepted by all government agencies in the UAE. The thing to remember here is that in order to have a personal bank account in the country you are required to have a valid Emirates ID, which in turn, allows banks to better understand its customers and raise the standard of service.

While this may be seen as one of the more efficient systems in the region, elsewhere, in Egypt, digital KYC continues to be a barrier to significant progress in the financial services sector. Establishing an efficient, digital ID system has been earmarked by banking leaders as one of the key next steps

in improving financial services for its customers. In turn, ensuring it is seamlessly linked to the banking system provides its own set of challenges but, if executed, can be a key ingredient for future success.

The rise of real-time payment systems

One of the most exciting trends in Middle Eastern fintech right now is the rise of digital payments and mobile banking. The implementation of real-time payment systems, such as the Saudi SARIE Instant Payment has dramatically improved the speed and efficiency of financial transactions in the region.

Elsewhere, Qatar Central Bank launched a new instant payment system, earlier this year, that gets rid of the need for an IBAN during transactions. Governments are also starting to realise the benefits of fintech collaboration.

This is evident in Bahrain, for example, where government entities have recently started using digital wallet apps quite effectively to pay instantly for things like electricity, water and other utility bills. Delving further into digital wallets, instant wallet top-ups continue to be made more accessible through collaborations in the region.

One such example was the recent partnership between Mastercard and Checkout.com who teamed up to enable instant wallet top-ups for Dubai-based super app Careem. The integration with the financial technology arm of Careem is seeking to

address time delays that can come with conventional bank transfers, in the process making the user experience more seamless. These funds can then be used for a range of the app’s daily services including getting around, delivery and money transfer, among others.

The rise of the super app

Indeed, it is worth mentioning the rise of the ‘super app’. There has been a growing number of apps downloaded on people’s smartphones in recent years, yet with the ‘super app’ several services are combined into one, from payments and banking to lifestyle and shopping, creating a more seamless experience for customers. Proponents of the technology argue that the integration not only provides more convenience for users but also increases engagement and loyalty.

Banks, in particular, are facing a crucial moment where they must decide how best to respond to the phenomenon. Right now, they can stay laser focused on what they are doing and ignore the whole thing, they can partner with a super app or thirdly, they can try to build their own Super App. In the UAE, for example, Invest Bank believes in the idea of a specialised Super App revolving around a theme and has been developing a lifestyle platform on the cloud, a strategy that it says will help it provide tailor-made financial offers based on customer preferences and habits.

More broadly, ride-hailing firms and telecommunications firms across the region continue to enter the fintech space by adding payments services to their existing portfolios. Most recently, du boosted its financial services offering with the launch of du Pay, enabling it to offer a range of digital financial services and payment options, from international money transfers and peer-topeer (P2P) transfers to mobile top-ups and bill payments. Globally, we are even seeing food delivery firms like Deliveroo tap into online retail by partnering with major supermarket brands. Its launch of in-app shopping is evidence of the variety of routes available to today’s businesses looking to become the much-coveted ‘all-in-one’ app.

Seamless connections in the

metaverse?

There has been so much buzz generated around the rise of a new virtual economy called the metaverse in the last 18 months that

it has been difficult for even the most casual observer to ignore. By 2026, it is expected that at least one in four people will spend a minimum of one hour every day in the Metaverse for different purposes like work, shopping, education, and even entertainment. Aside from just being the virtual world, using the actual infrastructure to do business and access financial services such as decentralised finance and tokenisation offers exciting possibilities. Recognising its potential, funding in this space has now started to come in from investors in the region. Earlier this year, Adaverse became the first venture capital fund in Saudi Arabia to specialise in Web3 and blockchain early-stage investing, supporting local fintech Takadao with an undisclosed sum as part of plans to invest $10million in local Web3 startups in 2024.

From speaking to experts in the field, however, there is a consensus that much of the potential of the metaverse lies in its ability to create more seamless connections,

With AI changing the business landscape so rapidly, there is a clear need to have a thorough framework in place and it will be fascinating to see how it all plays out

especially between brands and their customers. By offering more limitless, immersive experiences the metaverse is a place where brands can attract and enable the customer to access their world anytime, anywhere, and at whatever time they wish. As highlighted by a recent, Bain & Co. report, the metaverse offers real and growing economic opportunities for businesses and the ones that engage in the metaverse’s early stages of development over the next five to 10 years are more likely to become the market winners.

Key areas of regulation

There is no doubt that regulation plays a key role across all industries in creating an environment that encourages innovation while at the same time maintaining a level playing field. Regulation, of course, can vary from region to region, making life more or less seamless depending on who you are and what you are trying to achieve.

While there are certain challenges that come with having to develop tailored products or services to local regulations, the Middle East region does have the benefit of being able to innovate quite quickly compared to other parts of the world and it is fair to say that the UAE and Saudi Arabia are moving ahead at a much faster pace than probably some of the other regulators around the world. Around the region, however, some of the common challenges I have been made aware of from conversations with fintech startups includes both ambiguity of regulations and arbitrary regulations, especially where innovation is breaking new ground.

In terms of financial services, one of the big issues I foresee over the next 12 months will be the continued transition to delivering sustainable finance, something that is in particular focus off the back of COP28. The financial world is seen as a key driver of energy and the greater shift to a greener world and sustainable finance will be integral to the progress that is made on a broader scale. With that being said, it is promising to see that most central banks have now implemented the initial framework in terms of identifying climate risk and sustainability risk and more broadly, reporting regulation is starting to be standardised. In turn, now is the time to for financial services firms to move beyond awareness and start to implement the foundations of a more sustainable approach.

The last thing I want to touch on is AI. There has been a lot of concern mooted globally, and around the region, over how AI will seamlessly be implemented in the coming years. Undoubtedly, regulation will play a key role in that. According to a recent study, the vast majority of UAE business leaders believe that regulations and standards around AI usage should be developed within their sector as it transforms the business landscape. Nearly nine in 10 believe that such policies would help businesses implement AI responsibly, and half worry about the possibility of legal and ethical consequences from not having an ethical AI framework in place. With AI changing the business landscape so rapidly, there is a clear need to have a thorough framework in place and it will be fascinating to see how it all plays out.

A JOURNEY INTO THE MIDDLE EAST AND AFRICA FOR A FINTECH FUTURE

Purpose of the report

This report provides an extensive analysis of the fintech landscape in the Middle East and Africa (MEA). It begins with a broad overview and then delves into specific aspects of the industry, offering a comprehensive view of the fintech ecosystem in the region.

Intended as a reference for MEA fintech and broader economic development, this report aims to be useful for both those unfamiliar with MEA and fintech, as well as experts in either field.

Report overview – Key highlights unique to 2024

The report is divided into four chapters, mirroring the structure of the 2023 edition. Notably, this edition includes innovative visual aids, such as images and charts, to elucidate key aspects of fintech – a departure from previous reports. Key highlights include:

■ Industry images and summaries

This section provides insights into the fintech landscape of MEA, including summaries and images of key fintech sectors such as payments, digital banks, gametech, and more – unique features of this report.

■ Overviews of fintech across 25 different countries

The report profiles and ranks 25 MEA countries based on their fintech hub status, accompanied by visual fintech timelines showcasing key developments and growth since 2020. These include:

■ Middle East, North Africa and Türkiye: Bahrain, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Türkiye, United Arab Emirates (UAE)

■ Africa: Algeria (new to this 2024 report), Democratic Republic of the Congo (DRC) (new to this report), Egypt, Ethiopia, Ghana, Kenya, Mauritius, Morocco, Nigeria, Rwanda, Senegal, South Africa, Tanzania, Tunisia, Uganda

These visual timelines offer readers a quick understanding of key fintech developments spanning from pre-2020 to the present day, highlighting growth trajectories and comparative data from previous editions.

■ Wider economic development images

Unique visuals provide insights into the economic and population landscapes of the MEA region, complementing the fintech-focused content. These address:

■ The geography of MEA and its six key regions with overviews

■ An economic and population overview

■ The MEA consumer

Chapters overview

Chapter One: Overview of the Middle East and Africa

This chapter delves into the intricate fabric of the MEA region, beginning with a comprehensive analysis of its geography and economy. It navigates through the financial services and tech sectors, ultimately zooming in on the transformative potential of financial technologies (fintech).

Despite the region’s rich diversity, characterised by nearly two billion people and a spectrum of economic statuses, common threads emerge, including a reliance on natural resources and traditional financial frameworks.

The chapter highlights the region’s youthful, tech-savvy population juxtaposed with persistent challenges such as inadequate digital infrastructure and widespread financial exclusion, painting a dynamic landscape ripe for fintech innovation.

Chapter Two: Fintech landscape in the Middle East and Africa

This section unpacks the multifaceted fintech terrain across the MEA region, dissecting various sub-sectors and their evolution. While historically centred around payments, money transfer, and remittances, the fintech sphere has diversified to encompass insurtech, gametech, regtech, wealthtech, investing, digital currencies, lending, and open and embedded finance.

With an estimated two-thirds of fintech solutions focused on key areas such as payments and lending, the MEA region boasts over 3,700 fintech companies, signalling a vibrant ecosystem poised for further growth and innovation.

Chapter Three: Fintech hubs of MEA

This segment conducts a detailed analysis of 25 prominent fintech companies across the MEA region, evaluating their contributions to wider economic development and technological advancements. Each company is scrutinised based on various indicators, including their individual fintech timelines and specific fintech criteria. Results are categorised into three tiers:

■ Tier-one ‘premier global fintech hubs’: UAE, Israel, Saudi Arabia and Türkiye

■ Tier-two ‘emerging fintech hubs’: Bahrain, Egypt, Kuwait, Qatar, Nigeria, South Africa, Mauritius, Kenya, Oman, Jordan, Tunisia, Ghana, Lebanon and Morocco (new)

■ Tier-three ‘early-stage fintech hubs’: Rwanda, Algeria, Senegal, Uganda, Democratic Republic of the Congo (DRC), Ethiopia, Tanzania

Chapter Four: Reflection and summary on the future of fintech in the Middle East and Africa and beyond

In the final chapter, the report reflects on the outcomes of the year’s fintech hub analysis, evaluating the validity of past predictions for the MEA region. With a focus on fostering financial inclusion through fintech, the chapter concludes with a synthesis of key insights and future prospects, underscoring the pivotal role of fintech in driving economic growth and societal advancement across the MEA region and beyond.

Contents Middle East and Africa Report 2024

Chapter One 10-33

Overview of Middle East and Africa

a. MEA overview: Geography 12-13

b. MEA overview: 14 Population and economy

c. Breakdown overview by six regions 15-17

d. Financial services overview 18-25

e. Tech and startup overview 26-27

f. The MEA consumer 28-29

g. Economic diversification and 30-32 digitalisation economic development

h. Summary: Key takeaways 33

Chapter Two 34-64 Fintech landscape in the Middle East and Africa

a. Overview of fintech in MEA 38-39

b. Key subsectors of fintech 40-43

1. Payments, money transfers 40-41 and remittances

2. Digital, challenger and neobanks 42-43

3. Gametech 44-45

4. Wealthtech and investing 46-47

5. Regtech 50-51

6. Digital currencies 52-53

7. Open finance 54-55

8. Lending 56-57

9. Insurtech 58-59

c. The rise of superapps 60

d. Wider fintech ecosystem 61-63

e. Key takeaways 64

Chapter Three 66-120 Fintech Hubs of MEA

Chapter Four 108-115

Reflection and summary

a. Reflection on the findings of the 108-111 hubs of Middle East and Africa

b. Predictions from 2023 – 111-113 did they materialise or not?

c. Summary and future on fintech 114-115 in the Middle East and Africa

Chapter Five 116-122

Appendix and endnotes

Chapter One Overview of the Middle East and Africa

The Middle East and Africa region is a tapestry of diversity, encompassing a rich array of landscapes, cultures, and economies. From the opulence derived from natural resources to the burgeoning tech hubs, MEA represents a convergence of prosperity and potential. This chapter serves as a foundational exploration of the MEA landscape, offering insights into its geographical expanse, demographic composition, economic dynamics, and technological advancements.

■ a. MEA overview – Geography

■ b. MEA overview – Population and economic

■ c. Breakdown overview by six regions

■ d. Financial services overview

■ e. Tech and startup overview

■ f. The MEA consumer

■ g. Economic development overview and relation to financial technologies

■ h. Digital infrastructure pertaining to fintech

■ i. Summary: Key takeaways

Geographical overview of the Middle East and Africa

3 continents –Asia, Africa and Europe (plus parts of Türkiye)

54 members of the African Continental Free Trade Agreement (AfCFTA) – All of AU members minus Eritrea are signatories

69 countries

~30 million sq km land area

a.Geographical overview

This section provides an illustrative journey through the geographical contours of the Middle East and Africa region. Through maps and annotations, readers will gain a nuanced understanding of MEA's spatial distribution, accompanied by key terminologies and acronyms essential for navigating the region's diverse topography.

MIDDLE EAST Bahrain, Qatar, UAE, Oman, Yemen, Saudi Arabia, Lebanon, Türkiye, Jordan, Iran, Iraq, Syria, Israel and Palestine

NORTH Algeria, Egypt, Libya, Mauritania, Morocco, Tunisia and Western Sahara

SOUTH Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia, South Africa, Zambia, Eswatini and Zimbabwe

CENTRAL Burundi, Cameroon, Central African Republic, Chad, Congo, Democratic Republic of Congo, Equatorial Guinea, Gabon and São Tomé and Príncipe

WEST Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, Gambia, Ghana, Mali, Guinea-Bissau, Guinea, Liberia, Niger, Nigeria, Senegal, Sierra Leone and Togo

EAST Comoros, Djibouti, Ethiopia, Eritrea, Kenya, Madagascar, Mauritius, Rwanda, Seychelles, Somalia, South Sudan, Sudan, Tanzania and Uganda

The Middle East

■ THE GULF COOPERATION COUNCIL (GCC) – with members including Kingdom of Saudi Arabia, Kingdom of Bahrain, Sultanate of Oman, State of Qatar, State of Kuwait and the United Arab Emirates (UAE) – is a political and economic union in the Arabian Gulf region

■ THE LEVANT REGION –Jordan, Syria, Lebanon, Israel and the Palestinian Territories (the West Bank & Gaza)

■ GULF REGION NON-GCC – Yemen, Iran, Iraq

■ TÜRKIYE

■ NORTH AFRICA – Algeria, Egypt, Libya, Mauritania, Morocco, Tunisia, Sudan and Western Sahara

Sources: The Fintech Times, Africanews, African Union, GCC Image: Richie Santosdiaz and The Fintech Times

Africa

■ AFRICAN UNION (AU) – continental union consisting of 55 member states located on the continent of Africa

■ CENTRAL AFRICA – Burundi, Cameroon, Central African Republic, Chad, Congo, Democratic Republic of Congo, Equatorial Guinea, Gabon, São Tomé and Príncipe

■ EASTERN AFRICA – Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Madagascar, Mauritius, Rwanda, Seychelles, Somalia, South Sudan, Sudan, Tanzania and Uganda

■ NORTHERN AFRICA – Algeria, Egypt, Libya, Mauritania, Morocco, Sahrawi Arab Democratic Republic and Tunisia

■ SOUTHERN AFRICA – Angola, Botswana, Eswatini, Lesotho, Malawi, Mozambique, Namibia, South Africa, Zambia and Zimbabwe

■ WESTERN AFRICA – Benin, Burkina Faso, Cabo Verde, Cote d’Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Tongo

■ SUB-SAHARAN AFRICA

– all of Africa minus North Africa

*Burkina Faso, Mali, Guinea and Sudan, as of Feb 2023, are suspended from the African Union

b.Overview of population and economy

Urbanisation rate +70% in Middle East urbanised +59% in Sub Saharan Africa rural v

Main languages spoken

■ Arabic (Middle East and North Africa)

■ Swahili (Eastern Africa)

■ French (various parts of Africa)

■ Portuguese (mainly Mozambique, Angola, Cape Verde & Guinea Bissau

Top 5 largest countries (population)

1. Nigeria +213 million (below)

2. Ethiopia +120 million

3. Egypt +110 million

4. Dem. Rep. of Congo +96 million

5. Iran +89 million

■ English (various parts of Africa)

■ Hebrew (Israel)

■ Turkish (Türkiye)

■ Farsi (Iran)

Top five largest cities (population – metropolitan)

1. Cairo, Egypt (right) 22.6+million

2. Kinshasa, DR Congo 17+million

3. Istanbul, Türkiye ~16million

4. Tehran, Iran ~16million

5. Lagos, Nigeria ~15.4million

POPULATION OVERVIEW

+$3 trillion Nominal GDP of Africa (2024 estimates) +$5 trillion Nominal GDP of Middle East (2024 estimates) ~Two

19 out of 20 poorest countries in the world are in MEA (mostly in Africa)

Economic breakdown

in MEA

One in four of world’s population lives in MEA

3.4 billion people by 2050

30% MEA population between 15-29 years old

65% MEA population under 30 years old

ECONOMIC OVERVIEW

Services

MEA countries

12 of 13

Natural resources like oil & gas, gold play a strong part across much of MEA Poorest country in the world (GDP per capita) Burundi $270

OPEC members are MEA countries

G20 Three MEA countries (Saudi Arabia, Türkiye and South Africa) are part of the G20 International trade, past and present plays a strong role in MEA’s economy

12% total global trade passes through Suez Canal

Financial services and tech are playing a growing role in the wider MEA context

$7.9billion revenue generated directly for Egypt in 2021 Egypt’s Suez Canal

Only Israel and UAE were ranked in the top 50 for startup ecosystem

MEA city ranking

Highest in top 20 financial services hub – Dubai (20th)

Dubai

■ Busiest port (Jebal Ali) in MEA (only one in top 10 globally)

■ Busiest international airport in the world

Source: The Fintech Times Middle East and Africa Report 2023 and 2024 Image: Richie Santosdiaz and The Fintech Times

c.Breakdown overview by six regions

I. Middle East

(not including North Africa)

Countries: Bahrain, Qatar, UAE, Oman, Yemen, Lebanon, Saudi Arabia, Jordan, Iran, Iraq, Syria, Israel, Palestine and Türkiye

Overview: Shared characteristics

■ Language and culture diversity - Nearly all speak Arabic (except Türkiye; note Arabic is an official language in Israel). The majority in the region has been influenced by Arab and Islamic culture.

Economic development and progress

■ GCC and Israel highly developed and affluent – the six nations of the GCC and Israel are some of the world’s richest countries in the world (generally oil and gas transformed the Arabian Gulf whereas in Israel and parts of the GCC notably Dubai was mainly services).

■ Türkiye is a high middle income economy.

■ Rest of the Middle East not mentioned above is low middle income or a low income economy – the majority of the Middle East is the very most low-middle income economies.

■ Challenges remain – political and economic are ongoing challenges in parts of the region.

■ The Gulf Coorporate Council (GCC) is an economic and political union consisting of the six Gulf nations – Saudi Arabia, Bahrain, Kuwait, Qatar, Oman and the United Arab Emirates.

■ Largest country (by population) – Iran, almost 88 million people.

■ Three largest country (by economy per GDP) in order – Saudi Arabia ($1trillion), Türkiye ($819billion), Israel ($488.5billion).

■ Largest cities (by population) include Istanbul (around 16 million inhabitants), Tehran (around 16 million inhabitants) and Riyadh (+7.7million).

Riyadh is the capital and largest city in the Kingdom of Saudi Arabia

II.North Africa

(also considered part of the Middle East)

Countries: Algeria, Egypt, Libya, Mauritania, Morocco, Tunisia and Western Sahara

Overview: Shared characteristics

■ Language and culture diversity – North African nations share Arabic as the primary language, deeply intertwined with Arab and Islamic cultural influences. Additionally, local cultures, particularly Berber heritage, have left a significant imprint, notably in Morocco, Tunisia, and Algeria. French influence persists, especially in the Maghreb, where it remains a language of commerce and education among the educated class.

Economic development and progress

■ Economically, the region largely represents the highest spectrum of low-middle-income economies, measured by GDP per capita.

■ Largest country (by population) – Egypt leads the region with a population nearing 110 million.

■ Egypt boasts the largest economy in the region, with a GDP exceeding $404billion. Following closely are Algeria with $163billion and Morocco with over $142.9billion.

■ Largest cities (by population) include Cairo (+22.6million inhabitants), Algiers (+2.8million) and Casablanca (around six million).

■ Despite economic progress, political and economic challenges persist in various parts of the region, impacting development and stability.

Hassan II Mosque in Kingdom of Morocco

III. South Africa (region)

Countries: Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia, South Africa, Zambia, Eswatini and Zimbabwe

Overview: Shared characteristics

■ The Southern African region exhibits a rich tapestry of languages and cultures, shaped by a history of colonisation. British influence prevails, leading to widespread English proficiency. Portuguese legacies are evident in Angola and Mozambique, while Dutch (South Africa) and German (Namibia) influences are present to a lesser extent. Beyond colonial impacts, the region is home to hundreds of distinct tribes, each maintaining cultural distinctiveness within their current borders. Notable examples include the Zulu people.

Economic development and progress

■ South Africa, Botswana, and Namibia stand out as relatively affluent nations with higher GDP per capita compared to their neighbours.

■ The remainder of the region encompasses economies primarily classified as low-middle income, with countries like Lesotho, Malawi, Mozambique, and Zambia falling into the low-income category.

■ Largest country (by population) – South Africa emerges as the most populous country in the region, boasting a population of 59.39 million.

■ South Africa leads the region in terms of GDP ($419billion), followed by Angola ($67.4billion) and Zimbabwe ($28.37billion).

■ Examples of largest cities (by population): Johannesburg (around eight million inhabitants), Cape Town (around 4.9million inhabitants) and Luanda (over 8.9million inhabitants)

IV.Central Africa

Countries: Burundi, Cameroon, Central African Republic, Chad, Congo, Democratic Republic of the Congo (DRC), Equatorial Guinea, Gabon, and Sao Tome and Principe

Overview: Shared characteristics

■ Language and culture: From the helicopter view Central Africa is pretty diverse. The British (i.e. Congo), French (i.e. Cameroon and Gabon) , Portuguese (i.e. Sao Tome and Principe), Belgians (i.e. DRC) and Spanish have left their legacies in this part of Africa.

Economic development and progress

■ Low income and low-middle income – The majority in this region would be classified as low-income nations; some of the poorest countries in the world are located here, in particular Burundi which is the world’s poorest country by GDP per capita

■ Two high middle income nations – Notably, thanks in part due to petroleum, both Gabon (French-speaking) and Equatorial Guinea (the only Spanish speaking country in Africa) are rarities in the region and are both high middle income nations not just in the region but one of the highest in Africa as a whole (Gabon is at over $8,000 per capita and Equatorial Guinea at over $7,500).

■ Largest country (by population) – DRC 95.89 million people

■ Three largest country (by economy per GDP) in order – DRC ($55.35billion), Cameroon ($45.34bilion) and Gabon ($20.22billion)

■ Example of largest cities (by population): Kinshasa (DRC with over 17 million inhabitants) and Douala (Cameroon with around three million inhabitants)

Dakar is the capital and largest city of Senegal

Luanda is the capital and largest city of Angola

Kinshasa is the capital and largest city of the Democratic Republic of Congo and also the world’s largest Francophone city

V. West Africa (Region)

Countries: Benin, Burkina Faso, Cape Verde, Côte d'Ivoire, Gambia, Ghana, Mali, Guinea-Bissau, Guinea, Liberia, Niger, Nigeria, Senegal, Sierra Leone and Togo

Overview: Shared characteristics

■ Language and culture – The region exhibits a rich tapestry of linguistic and cultural diversity, shaped by various colonial powers. French influence is prominent in countries like Cote d'Ivoire and Senegal, while British impact is evident in Nigeria and Ghana. Portuguese legacy is notable in Cape Verde and Guinea-Bissau. Additionally, Liberia has a unique history as a nation founded by freed American slaves.

Economic development and progress

■ Middle-income economies – South Africa, Botswana, and Namibia stand out as relatively affluent nations with higher GDP per capita.

■ Low-middle income economies – The remaining countries in the region fall into this category, reflecting varying levels of economic development.

■ The economic integration of these countries is influenced by their colonial past. The West African Economic and Monetary Union (WAEMU or UEMOA) comprises mainly French-speaking nations like Benin, Burkina Faso, Cote d'Ivoire, Guinea-Bissau, Mali, Niger and Togo

■ Largest country (by population) – Nigeria (over 213 million people)

■ Three largest country (by economy per GDP) in order – Nigeria ($440.8billion), Ghana ($77.59billion) and Cote D’Ivoire ($70.44billion)

■ Examples of largest cities (by population): Lagos (Nigeria over 15.4million inhabitants), Abidjan (Cote D’Ivoire with over 5.6 million inhabitants) Dakar (Senegal almost four million inhabitants)

VI.East Africa

(also considered part of the Middle East)

Countries: Comoros, Djibouti, Ethiopia, Eritrea, Kenya, Madagascar, Mauritius, Rwanda, Seychelles, Somalia, South Sudan, Sudan, Tanzania and Uganda

Overview

■ East Africa boasts a rich tapestry of linguistic and cultural heritage, making it one of the most diverse regions in Africa.

Shared characteristics

■ Language and culture: Various linguistic influences are evident, including:

■ Anglophone: English serves as an official language in countries like Uganda.

■ Francophone: Historical French influence is notable in nations such as Madagascar, Mauritius, and Rwanda. Mauritius uniquely embraces both French and English.

■ Others influences: – Italian heritage is seen in Eritrea, although Italian is no longer a major language. Several countries exhibit a mix of linguistic influences, for example: Comoros speaks Arabic, Comoran (related to Swahili) and French; Mauritius is a Francophone and Anglophone, Rwanda is Francophone but also becoming Anglophone).

■ Swahili influence – Swahili, serving as a lingua franca, holds significant influence in the region, particularly in countries like Kenya.

View of downtown Nairobi, the capital and largest city of Kenya

d.Financial services overview

The financial services landscape in the MEA region is multifaceted, encompassing a wide array of offerings such as payments and insurance. While sharing similarities with global trends, the MEA region also exhibits its own distinctive characteristics.

Overview

Globally, the financial services sector holds significant economic importance, with total assets exceeding $461trillion in 2022. Similarly, the MEA region showcases a diverse financial services industry, reflecting the varying economic landscapes across its territories.

The development of the financial services sector in MEA mirrors the progress of individual economies and their respective financial ecosystems. Notably, advanced banking sectors thrive in regions like the GCC in the Middle East, as well as in countries such as South Africa and Mauritius in Africa. Conversely, other parts of MEA feature less developed banking sectors, often characterised by dominance of public sector banks with government intervention in credit allocation and liquidity issues.

Reforms in the African banking sector, driven partly by structural adjustment policies (SAP) from international institutions like the World Bank and IMF, aimed to restructure and privatise statecontrolled banks. These reforms also targeted easing entry and exit restrictions, interest and capital controls, and enhancing supervisory and regulatory frameworks within the banking sector.

MEA, particularly the Middle East, exhibits an abundance of banks, leading to oversaturation in certain markets. For example, in 2019, the GCC (excluding Qatar) boasted approximately 120 private

and public banks catering to a population exceeding 50 million. This saturation has prompted banks in the GCC to explore expansion opportunities in emerging markets like Türkiye.

What are key financial centres in MEA?

Several financial centres in MEA play pivotal roles not only in their own economies but also regionally. These include:

■ Beirut: Historically renowned as the ‘Paris of the East’, Beirut served as a major financial centre in the Middle East, characterised by its embrace of Western culture and sophisticated banking regulations. However, the Lebanese Civil War in 1975 significantly altered its financial landscape.

■ Bahrain and Kuwait: Emerging as financial hubs following the challenges of the Lebanese Civil War, Bahrain and Kuwait have seen substantial growth in their financial sectors. In Bahrain, the financial industry represents over 27 per cent of GDP and is a significant employer in the country.

■ Mauritius: With the financial services sector contributing 13 per cent to the total GDP, Mauritius has established itself as a key financial centre. The ICT/ business process outsourcing (BPO) industry also plays a crucial role in driving economic growth, with a significant contribution to GDP and employment (7.4 per cent for last year and employing around 30,000 people with over 850 companies in the sector).

MEA boasts a diverse range of robust financial centres, including Casablanca, Johannesburg, Cape Town, Istanbul, Kigali, Nairobi,

Doha, Tel Aviv and Abu Dhabi, further enhancing the region's economic vibrancy and connectivity. However, when considering various metrics, Dubai emerges as the undisputed leader in the region. Over the past two years, Dubai has consistently ranked among the world’s top 20 vibrant financial centres, securing the 20th position in the Global Financial Centres Index (GFCI). Remarkably, it stands as the sole representative from the Middle East, Africa, and South Asia, alongside global financial powerhouses like London, New York City, Singapore, and Hong Kong. Notably, Dubai, along with Tel

Aviv (ranked 48th) and Abu Dhabi (the UAE's capital, placed 37th), is among the only MEA cities to feature in the top 50 rankings. At the heart of Dubai’s financial prominence lies the Dubai International Financial Centre (DIFC), established as a specialised economic zone. Hosting regional offices of two-thirds of Fortune 500 companies with MEA operations, Dubai has become a preferred destination for international banks such as HSBC and Standard Chartered, as well as payment giants Visa and Mastercard, and tech titans like Microsoft and Oracle. At its zenith, Dubai served as the regional base for two-thirds of Fortune 500 companies operating in MEA. It's estimated that DIFC alone contributes at least 12 per cent to Dubai’s GDP, underscoring its pivotal role in the Emirate’s economic landscape.

Besides Dubai, Abu Dhabi and Tel Aviv, other MEA cities in the top 100 included Casablanca (56th place), Mauritius (61st), Kigali (67th), Bahrain (76th), Johannesburg (82nd), Cape Town (83rd), Riyadh (84th), Doha (88th), Nairobi (95th) and Lagos (100th). Beyond the top 100, Istanbul (110th) and Tehran (112th) finalised the MEA representation.

The MEA region boasts a diverse array of financial institutions, including both native-born banks and regional branches of non-MEA banks. This rich tapestry of financial institutions reflects the region's vast population and the myriad opportunities it offers.

While multinational giants like HSBC, JPMorgan Chase, and the Bank of China are widely recognised, it's equally important to highlight the native-born MEA banks that contribute significantly to the region's financial landscape.

In this report, we present the top 20 largest banks in the entire MEA region, all of which are native to the region. These rankings are based on total assets in US dollars, using updated figures from 2023 sourced from the banks' individual investor relations reports. This list provides readers with insights into the prominent MEA banks and their standing in the global financial arena.

regional offices are often based in countries such as Dubai, Abu Dhabi (UAE), South Africa, Israel, Türkiye, Egypt, and Saudi Arabia, aligning with the geographic concentration of leading MEA banks.

Spotlight: Insurance industry in MEA

Delving into the realm of financial services, this report sheds light on the insurance industry as a representative example. By examining the insurance sector within the broader financial services landscape, one can discern similar patterns observed across the entire spectrum of financial services.

Focusing on the top 15 largest insurance companies in the MEA region, we find a parallel with the earlier analysis of the top 20 banks: the concentration of major players in specific countries. These top insurance institutions are primarily located in Israel, South Africa, Saudi Arabia, Morocco, Qatar, and Kuwait. While some significant players, such as Daman Health in the UAE and Misr Insurance in Egypt, are not among the top 15, they remain prominent within their respective countries or regions.

The list is predominantly composed of banks from large and developed, or relatively developed, economies in the MEA region, including South Africa, Israel, Saudi Arabia, UAE, Türkiye, and Egypt. Qatar, ranking first on the list, and Kuwait, ranking 11th, also have representation. Other countries such as Nigeria and Bahrain, while not featured in the top 20, boast a considerable number of local banks, alongside smaller financial institutions ranked by assets. It's worth noting that many leading financial institutions, whether included in the top 20 or not, tend to be clustered in specific countries within the region.

Additionally, it's essential to recognise that multinational banks like HSBC and Standard Chartered, while not headquartered in the MEA region, have significant operations within the region. Their

Furthermore, the top 15 insurers often feature other key players that did not make it onto the list, reinforcing the concentration of insurance industry leaders in select parts of the MEA region, mirroring the banking sector's dynamics.

In addition to regional players, the MEA region hosts several large global insurance brands, including MetLife, Zurich, AXA, Cigna, Munich RE, Aetna, and Bupa. However, similar to the overall financial services landscape, these global insurers also tend to operate primarily in the same countries mentioned earlier, with many establishing a presence in cities such as Dubai, Istanbul, Johannesburg, or Tel Aviv. This concentration reflects the strategic importance of these key locations within the MEA insurance market.

What distinguishes the financial services sector in the MEA region?

While it shares similarities with global financial markets in terms of the services provided to individuals and businesses, such as investment houses, lenders, finance companies, real estate brokers and insurance companies, there are notable differences that set it apart:

1 Government ownership of financial institutions

In the MEA region, it's common for financial institutions to be owned or partially owned by the government. Unlike the Western perception where government ownership might signal instability, in MEA, this is not necessarily associated with financial crises. For example, Angola has numerous state-owned companies, including financial institutions. Similarly, in the affluent GCC countries, such as Saudi Arabia and Qatar, government entities, including sovereign wealth funds and state pensions, have significant stakes in major banks like First Abu Dhabi Bank (FAB) and Qatar National Bank (QNB). These government interests extend to around 80 per cent of the region's largest lenders, as reported by The Financial Times.

2

Conservative lending practices

Banks in the MEA region tend to adopt a more conservative approach to lending. This conservatism was evident during the 2008 Global Financial Crisis when the MEA financial sector weathered the storm better than its Western counterparts. Despite experiencing the impact of the global recession, MEA banks, particularly those in the GCC (Gulf Cooperation Council) countries, maintained high levels of capital. They typically exceed the minimum capital requirements outlined in the Basel III agreements, which were established by the Basel Committee on Banking Supervision in response to the 2007-2009 financial crisis. This prudent approach to capital management contributes to the stability of the MEA financial sector, distinguishing it from other regions.

3

Growth of Islamic finance

Islamic finance is experiencing significant growth and plays an increasingly prominent role in the broader financial services landscape of the MEA region. Originating from the birthplace of Islam and serving much of the world's two billion Muslims, Islamic finance has its roots dating back to the seventh century but began formalising in the 1960s. It operates in accordance with Sharia, or Islamic law, guiding how businesses and individuals raise capital and determining permissible investment types. This system is often viewed as a unique form of socially responsible investment.

The Islamic finance industry has emerged as one of the fastest-growing sectors, although it still represents a relatively small share of global finance. By 2022, the global Islamic finance industry's asset size had increased by 11 per cent to $4.5trillion, with Islamic banking holding 72 per cent of the total industry's assets. Over the decade leading up to 2022, the industry experienced remarkable growth, expanding by 163 per cent, and is projected to reach $6.7trillion by 2027.

The top 10 Islamic Financial Institutions, ranked by Sharia-compliant assets, are predominantly from the Gulf Cooperation Council (GCC) countries. These include Saudi Arabia's AL Rajhi Bank, Saudi National Bank, Saudi British Bank, and Alinma Bank, as well as Kuwait Finance House, UAE's Dubai Islamic Bank, and Abu Dhabi Islamic Bank, along with Qatar's Qatar Islamic Bank and Masraf Al Rayan.

In terms of insurance, the lack of Sharia-compliant offerings may contribute to low penetration in the market. However, Takaful, a form of Islamic insurance where members contribute to a pool to guarantee each other, has the potential to enhance the uninsured rate in the Arab world. This Sharia-compliant insurance model, according to Investopedia, could address the needs of individuals seeking insurance coverage while adhering to Islamic principles.

4

Underdeveloped infrastructure

Much of the MEA region suffers from inadequate infrastructure to support the financial services ecosystem. These infrastructural deficiencies pose significant challenges for lenders who rely on data and information to offer services to end-users.

Direct infrastructure for financial services

One example is the lack of credit bureaus, which are vital for assessing creditworthiness. As of 2007, only four African countries had effective credit bureaus. In the MENA region, private credit bureau coverage for adults is estimated to be just over 20 per cent, with notable disparities among countries. While Israel boasts full coverage, most GCC countries exceed 50 per cent, whereas Iran surpasses 60 per cent. However, this still indicates significant room for improvement. Furthermore, basic financial services infrastructure such as ATMs is lacking, particularly in rural Africa, exacerbating financial exclusion. Despite the recognition of the importance of digital technology by many banks in Africa and the Middle East, a substantial portion have yet to develop comprehensive digital strategies, with fewer than a third of surveyed banks investing over $3million annually in digital transformation efforts.

Indirect infrastructure for financial services

Beyond the direct infrastructure, there's a significant gap in digital infrastructure that indirectly supports financial services. For instance, there's a relative scarcity of data centres across the region, leading to data being stored abroad. However, there has been a notable growth in the construction of data centres, even in affluent regions like the GCC. For instance, Saudi Arabia launched an $18billion plan in 2021 to build a network of large-scale data centres as part of its economic development strategy, Saudi Vision 2030. Additionally, the lack of registered IDs poses a challenge, particularly in Sub-Saharan Africa, where over half of the estimated one billion people globally without registered IDs reside. This absence of identification makes digital transformation and fintech advancements difficult to implement, hindering processes like know your customer (KYC). Despite the emphasis on digital experiences, infrastructure improvements remain essential to facilitate these advancements.

5

Financial exclusion for individuals

Despite advancements in some parts of the MEA region, many areas remain underserved or entirely excluded from the financial sector. Countries like South Africa, Mauritius, and Kenya have made progress in banking penetration and financial infrastructure, boasting high penetration rates of 85 per cent, 90 per cent, and 84 per cent, respectively. For instance, South Africa and Mauritius have a significantly higher number of bank branches per 100,000 adults compared to the Sub-Saharan African average. However, despite these improvements, a substantial portion of Africans, accounting for 52 percent, lack any form of bank account, including mobile money accounts. In certain African countries like the Democratic Republic of the Congo, Angola, and Ethiopia,

this rate is even lower, with figures ranging from 26 per cent to 35 per cent. Sub-Saharan Africa also grapples with low credit and debit card penetration rates, standing at three per cent and 18 per cent, respectively.

One of the primary challenges contributing to financial exclusion in Africa is the inadequate urbanisation, with many financial institutions primarily catering to urban areas, thereby neglecting rural populations. Moreover, poverty levels exacerbate the problem of financial exclusion, further widening the gap between urban and rural access to financial services.

Similarly, in the Arab world, there is a pressing need for greater financial inclusion, with almost 92 per cent of the population requiring adequate access to financial services. In this region, 60 per cent of the population remains unbanked, highlighting the urgency to address issues of financial exclusion and enhance access and resilience within the financial system.

6 Financial exclusion is a challenge for small and medium enterprises (SMEs) SMEs and micro small and medium-sized enterprises (MSMEs) play a crucial role in economies worldwide, contributing significantly to job creation and GDP. In the MEA region, these enterprises are equally essential across various income levels, serving as key drivers of economic growth. Here are some examples of their significance in specific MEA countries:

1 Saudi Arabia – SMEs constitute up to 99 per cent of all private businesses, employing 64 per cent of the workforce and contributing around 20 per cent of the country's GDP

2 Kenya – MSMEs contribute 98 per cent to the country’s total licenced entities, although only 20 per cent are officially licenced MSMEs, reflecting a substantial informal sector.

3 Egypt – SMEs make up more than 95 per cent of all non-agricultural private companies and employ about three-fourths of recent workers.

4

South Africa – SMEs account for 91 per cent of businesses, 60 per cent of employment, and contribute over half (52 per cent) of total GDP

5 Kuwait – SMEs make up 90 per cent of private labour, including labour and imports, an additional 45 per cent of labour, jobs, and domestic rates of less than one per cent, producing about 90 per cent of employment in Lebanon, and more than 95 per cent of total firm

6

UAE - SMEs comprise around 94.3 per cent for the country's commercial ventures, employ nearly 62 per cent of the population and produce about 75 per cent of the state’s GDP.

7 Algeria - MSMEs in represent a large part of the economic fabric (i.e. 99 per cent of around 1,200,000 companies in 2019 were SMEs); 97 per cent are micro-businesses as they employ less than 10 employees

8 Middle East and Central Asia - SMEs are the majority (96 per cent) of all registered companies in the region.

For the MEA region, access to finance for small and medium-sized enterprises (SMEs) and micro businesses remains a challenge. Nevertheless, the region has the lowest SME access to finance via the banking system. The average share of SMEs in total bank lending in Middle East, North Africa and Pakistan (MENAP) is around seven per cent (it is even lower in parts of the GCC at two per cent). This is also reflected in a survey from the World Bank Enterprise Survey where 32 per cent of firms in the MENAP region cite access to credit as a major constraint (higher than the global average of 26 per cent). It is estimated that SMEs in the Middle East have the highest rate of lack of financial access in the world.

Other sources show that MENA has a financing gap of 80 per cent and that SSA has one of 72 per cent. For more fragile nations and for female entrepreneurs the gap unfortunately widens.

With SSA, It is estimated annually SMEs there have a finance gap of $330billion. SMEs across the continent struggle to secure loans due to various factors, including their inability to provide the necessary information about their businesses to lenders (as highlighted earlier with the infrastructure bullet point). In Africa, 75 per cent of enterprises are financed by internal funds, and another 10 per cent use traditional banking loans. For instance, 79 per cent of informal businesses have never obtained a loan, and only 21 per cent have utilised a bank loan in South Africa. Moreover, only under 20 per cent of formal businesses have used a bank loan to start their business.

offered in the MEA region is underserved, both from a socioeconomic perspective and in terms of cultural context and financial literacy. Taking insurance as an example, many in the MEA region lack coverage, reflecting the broader theme of financial exclusion discussed earlier. According to data from Atlas, the insurance premiums market in MENA in 2018 was valued at $57billion.

In the affluent GCC region, research from management consulting firm Kearney indicates that it is one of the world’s fastest-growing insurance markets, with registered growth of nearly seven percent annually in gross written premiums over recent years. Despite this growth, the GCC countries collectively accounted for less than half (44.3 per cent) of the region’s premium market share. Much of the Middle East remains uninsured, particularly in less affluent regions beyond the GCC. Historically, certain types of insurance, such as life insurance, were not widely practiced in the affluent GCC. However, there is a noticeable shift in this trend. For example, in Dubai, health or medical insurance has been mandatory by law since 2014.

Presently, the UAE and Saudi Arabia are the two largest insurance markets in the GCC. According to the latest S&P Global Ratings GCC Insurers 2023 Report, Saudi Arabia surpassed the UAE as the largest market in the previous year, driven by a significant increase in gross written premiums (GWP). Projections from a ‘GCC Insurance Industry’ report by Alpen Capital suggest that Saudi Arabia will continue to lead the GCC insurance market, reaching a market share of 42.6 per cent by 2028.

Even with the rise of insurance technologies, or insurtech, there remains significant room for growth in the insurance sector across the MEA region

When examining the hurdles encountered by micro-enterprises in South Africa, access to both debt and equity markets emerges as a significant challenge. Furthermore, the absence of adequate business infrastructure, equipment, and limited awareness of government support programmes are impeding the capacity of MSMEs to expand and thrive in the country.

It's important to highlight that even basic necessities are often inaccessible to many MSMEs. For instance, the same survey revealed that only 16 per cent and 28 per cent of MSMEs had access to electricity from the national grid and water from public or municipal sources, respectively. These deficiencies underscore the pressing need for comprehensive support mechanisms to bolster the growth and sustainability of micro-enterprises in South Africa.

7 Underserved financial service products

As mentioned earlier in the discussion on financial inclusion for both individuals and businesses, the range of financial services

A report by Zurich highlights that the potential of the insurance market in MENA remains largely untapped. Insurance penetration, which measures the ratio of insurance premiums written to GDP, is among the lowest in the world for MENA countries. While some countries like Jordan, Lebanon, and Morocco have insurance penetration ratios above 1.5 per cent, others, including Algeria, Egypt, Yemen, and several GCC countries, have very low ratios.

In contrast, the uninsured rate in Africa is even higher. Despite having nearly 20 per cent of the world’s total population, the insurance industry in Africa represents less than three percent of insured catastrophe losses worldwide. Nigeria, with a population exceeding 200 million, has an insurance penetration rate of only 0.5 per cent. However, South Africa stands out with one of the world’s highest insurance penetration rates, reaching an estimated 80 per cent of the continent’s total gross premiums at its peak. Overall, only about three per cent of Africa's population is insured, the lowest rate globally.

Even with the rise of insurance technologies, or insurtech, there remains significant room for growth in the insurance sector across the MEA region. Digital transformation can streamline operations and enhance accessibility, contributing to wider financial inclusion.

e.Tech and startup overview

Overview

Global venture capital (VC) investment declined from $531.4 billion in 2022 to $344 billion in 2023, marking the lowest level since 2019. This downward trend was also observed in the MEA region, reflecting general declines across the board. The decrease can be attributed to the prevailing economic climate, ongoing political challenges, and other factors affecting the global tech and VC space.

Despite the decline in VC investment, the global tech industry remains robust, estimated to be worth at least $5.2trillion. The majority of this value is concentrated in North America (35 per cent), Asia (32 per cent), and Europe (22 per cent), leaving only 10 per cent for the rest of the world, including the MEA region. This percentage seems small considering that the MEA region is home to a quarter of the world's population. However, technology is increasingly playing a stronger role in the region and has significant potential to grow further, particularly in sectors like financial technology (fintech).

In previous versions of this report, the nascent stage of the region’s tech space was highlighted, evident in the lack of unicorns. Excluding Israel, often referred to as the ‘Startup Nation’, the MEA region has few unicorns. However, in recent years, there has been notable progress in both the tech and fintech sectors, with emerging unicorns in countries such as Nigeria, Egypt, Saudi Arabia, the UAE, Senegal and Türkiye.

While such figures may suggest limited potential for the MEA region, the day-to-day changes and opportunities in fintech paint a different picture. Similar to the financial services industry, the region's broader tech ecosystem exhibits varying levels of development and disparity, indicating opportunities for growth and innovation.

Tech hub

Where are the known tech hubs? As with other regions, tech activity and innovation in the MEA region are concentrated in specific areas. In the Middle East, the UAE stands out with the highest levels of activity across various metrics, including the number of tech companies and VC deals.

Dubai, in particular, has positioned itself as a regional and global tech hub, attracting multinational corporations like Google to establish their regional offices there. Notably, Dubai has been the birthplace of some of the first unicorns in the region, such as car-hailing app Careem and Souq.com, the online e-commerce portal that was acquired by Amazon.

While the UAE leads the way, other countries in the Middle East are catching up and developing their own robust tech ecosystems. Saudi Arabia, for instance, launched the LEAP tech trade show and conference two years ago and has made significant investments in AI, allocating $20billion for further advancement in this field. In Africa, tech activity and innovation are concentrated in certain countries, with Egypt, Nigeria, Kenya, and South Africa leading the pack. These countries also dominate the fintech space and the wider tech and startup scene on the continent.

Türkiye has experienced a remarkable surge in startup investments, with annual investments skyrocketing from $50million to $100million between 2010 and 2020 to over $1.5billion in 2021. This surge has led to the emergence of several unicorns, including gametech company Dream Games and fintech Papaya.

Israel, often referred to as the Startup Nation, boasts the most advanced tech hub in the MEA region and is considered one of the world's leading tech ecosystems. The country has the highest number of startups per capita globally and has produced numerous tech unicorns, such as , including eToro, Rapyd, TripActions, Moon Active, Compass, Next Insurance, and Melio. At least 77 Israeli-founded startups have achieved this status, many of which are fintechs. Much of the activity is centred around Tel Aviv, the largest city and commercial hub in the country.

Israel's innovative tech ecosystem is supported by government initiatives and has a highly skilled workforce. The country ranks second in the world in research and development (R&D) expenditure per capita, which amounts to around 4.1 per cent of its GDP. Israel also has the highest percentage of engineers and scientists per capita in the world, and boasts one of the highest ratios of university degrees and academic publications per capita.

Despite Israel's thriving tech industry, other parts of the region still have relatively underdeveloped tech ecosystems.

VC funding

MEA received over $9.3billion in VC funding last year, marking a decline similar to the global trend. However, this funding is not evenly distributed, with Israel alone accounting for $4.3billion, followed by the Middle East (excluding North Africa, Israel, and Türkiye) with $2.2billion, Africa with $1.9billion, and Türkiye with around $1billion.

Israel experienced a notable decrease in funding compared to previous years, dropping from $8.9billion across 677 deals to $4.3billion across 369 deals. The Gulf countries, excluding Saudi Arabia, reported a 47 percent year-on-year decline in funding, with the UAE down by 45 percent. Similarly, the Big 4 African countries –Kenya, South Africa, Nigeria, and Egypt – also witnessed declines in VC funding.

Spotlight: Sovereign wealth funds (SWFs)

The rise of sovereign wealth funds in the MENA region has garnered more attention recently, driven in part by the growing significance of technology and startups as catalysts for future economic development and diversification. These funds are increasingly focused on fostering entrepreneurship both presently and in the future.

Globally, there are estimated to be 176 sovereign wealth funds managing over $11.36trillion in assets. The Middle East, particularly the wealthy GCC countries, is home to 20 of these funds, collectively managing assets of around $4trillion. The top five largest sovereign wealth funds in the Middle East alone deployed over $73billion, with their investments in Western countries, such as Europe and the US, doubling in 2022 to $51.6billion.

Despite these challenges, there were significant achievements in 2023. Saudi Arabia saw a 33 per cent increase in funding, surpassing the UAE to become the largest value recipient for the first time, with $1.383billion. Saudi Arabia also produced a unicorn with buy now pay later (BNPL) platform Tamara, which secured the largest deal in MENA at $340million. However, the UAE still led in the number of deals and exits with 158 (Saudi had 125).

Fintech remained a vital sector in MENA, receiving $1.279billion out of the $1.9billion total funding, with 101 deals. In Africa, Kenya emerged as the leading VC investment destination, securing $800 million, followed by Egypt with $640million, South Africa with $600million, and Nigeria with $400million.

Notably, Francophone-speaking Africa, including countries like the DRC and Morocco, experienced growth. Besides the Big 4, other top African investment destinations included : Morocco ($88million), Benin Republic ($71 million), the Democratic Republic of Congo ($62 million), Ghana ($57 million), Senegal, and Rwanda at $44 million each; 11th was Tanzania ($25 million).

While some countries like Tunisia and Algeria appeared quieter in 2023, they had successful years in 2022. For example, Algeria's Yassir raised $150million in November 2022, one of the largest rounds raised in Africa that year, with investments from Silicon Valley-based Bond and accelerator Y Combinator.

A Financial Times article titled ‘The New Gulf Sovereign Wealth Fund Boom’ underscored the substantial growth in investment witnessed by these funds. Sovereign wealth funds have shown particular interest in specific sectors such as fintech, with Qatar’s fund among those actively seeking opportunities globally. Notably, the GCC countries play a significant role in this sector, representing a substantial portion of the global top ten both in terms of representation and assets controlled. Notable GCC funds that missed the top ten include the Investment Corporation of Dubai (12th place), Abu Dhabi Development Holding Company (14th), Mubadala Investment Company (18th place), and National Development Fund of Iran (16th).

Source: SWF Institute

f.The MEA consumer

Considering the diversity among the regions of the Middle East and Africa discussed earlier in this chapter, one might question how such a region, with its multitude of nations and diverse ethnicities, tribes, and socio-economic backgrounds, can exhibit similarities.

While it's challenging to make generalisations, it's evident that many aspects of the MEA region share common traits, particularly in the realm of financial services and, as highlighted in this report, fintech.

Spotlight: Remittances in MEA

Because of significant migration, the MEA region stands out as one of the busiest corridors globally for remittances – reflecting the flow of money sent and received.

Firstly, wealthy regions, notably the Gulf Cooperation Council (GCC), have attracted people from worldwide, including other MEA countries and beyond. For example, the UAE, with an expatriate population comprising nearly 90 per cent of its total population, hosts representatives from around 200 nationalities, with Egyptians constituting one of the largest groups, estimated at around five per cent of the total population. Remarkably, five of the six GCC nations rank among the world’s top 20 remittance outflows. Notably absent from this list are Israel (21st) and Bahrain (32nd).

Secondly, less affluent MEA nations benefit from remittances sent by their citizens working abroad, which significantly contribute to their economies. This is evident both in the top five global remittance volumes (with Egypt ranking fifth) and in terms of the percentage contribution to GDP (with Lebanon ranking fourth).

Recap – rise of digital behaviours in MEA during and post-pandemic

73%

MEA consumers shopped more online since Covid-19

30% in Africa will visit a bank branch less post-pandemic

82% of surveyed banking customers in the Middle East willing to start using fintech solutions in 2020

Africa

Middle East

93% reported an increase in their use of e-wallet and mobile banking in 2021. Covid-19 was one of the main factors for that

64% only started using online payments services during the pandemic

~40%

Increase usage of online banking in Africa

~40%

Increase usage of digital channels post-pandemic in Africa

69%

Cashless payments in the Middle East (2023)

64% in Middle East only started using online payments during pandemic

53% in Middle East are shopping more post-covid on their smartphones than pre-Covid

1

Many in MEA work in the informal economy

In much of MEA many, according to the International Labour Organization (ILO), are found on the edge of high vulnerability to poverty, low earnings, irregular incomes, and bad working conditions. Africa – 83% employment informal economy

SSA – 85% employment informal economy

And in the Middle East and North Africa….Nearly 2 out of 3 people hold a job in the informal economy

2 The population is young and growing fast in comparison to the rest of the world

MEA is a young and growing region.

In MENA nearly 50% of the population is 24 and under...

In SSA .70% of the population is under 30 years old

The Middle East and Africa consumer overview

3

Many in MEA work in the informal economy

Especially in the poorer parts of MEA youth unemployment is higher than the rest of the globe. This results in many of the poorer MEA residents having to immigrate and find work, especially in more affluent parts of MEA (notably the Arabian Gulf GCC) and beyond.

In MENA 25% is the youth unemployment rate.

In SSA over 30% of youth are not in employment, education nor training (world’s highest) – 2/3 of them are women

4 Many in MEA work in the informal economy

MEA has one of the world’s busiest corridors when it comes to migration of people, both immigrating and/or working as expatriates, as well being a recipient of those expatriates and/or immigrants. This is noted in particular with remittances

Top 5 MEA countries remittances outflow (value):

1. United Arab Emirates (2nd globally)

2. Saudi Arabia (3rd globally)

3. Kuwait (6th globally)

4. Qatar (11th globally)

5. Oman (19th globally)

Top MEA country – remittances inflow (value)

Egypt – (5th globally)

Top MEA country – remittances inflow (contribution to GDP % ) Lebanon – (4th globally)

5 Varied internet penetration and relatively high mobile usage

In terms of mobile adoption, in particular smartphones….. SSA – 51% of the population is now estimated to own a smartphone.

However, it still has the highest usage gap globally with 59% of the total population unconnected.

Also, only 25% of the population are connected to its mobile broadband service.

Generally, with internet, only around 40% of Africans had access to the internet.

MENA – are over 415million unique mobile subscribers

There are over 330 million mobile internet users

There is a 70% smartphone adoption rate

Generally, with internet, only around 61% of the MENA population had access to the internet

FACT Three-fourth of African internet traffic goes via mobile phone.

g.Economic diversification and digitalisation economic development

Overview

Examining the diverse economies, cultures, and socio-economic statuses across the MEA region, one might question how they share common ground. However, despite this diversity, economic development priorities emerge as a unifying factor. Such priorities are not unique to the MEA but are instead a global imperative, driving public sector agendas worldwide in pursuit of citizen well-being through economic growth and job creation.

The MEA region, encompassing a spectrum of nations and demographic compositions, experiences visible transformations and unmistakable economic development and diversification efforts. These changes present an exciting era for observers like myself, yet they may not be apparent to all, particularly those unfamiliar with economic development and diversification concepts. However, whether visiting the MEA or residing there, one cannot overlook these shifts. This report aims to shed light on such transformations, spurred by the growth of fintech, both directly and indirectly. Understanding economic development strategies is fundamental. Essentially, they represent a national or municipal outlook aimed at enhancing existing sectors while nurturing new ones. Their overarching goal is to stimulate economic growth, foster job creation, and enhance the lives of residents.

Why are these strategies vital in the MEA? Many MEA countries rely heavily on commodities and natural resources, such as oil in the GCC and parts of Africa like Nigeria. Given the volatility of oil prices

and the finite nature of natural resources, these nations require clear visions and strategic roadmaps to diversify their economies.

Each of the six GCC countries has crafted its own economic development strategies, such as Bahrain Economic Vision 2030, Kuwait Vision 2035, Qatar National Vision 2030, Oman Vision 2040, and Saudi Vision 2030. The UAE, for instance, has other national initiatives such as UAE Centennial 2071 and UAE Vision 2021, as well as regional initiatives like Abu Dhabi Vision 2030. These strategies focus on diversifying sectors, including technology, financial services, and tourism, to sustain growth and uphold living standards.

Moreover, various low- to high-income countries across the MEA region are leveraging economic development strategies to elevate living standards. By capitalising on their strengths and expanding into sectors like technology and financial services, these nations aspire to spur economic growth. Examples of these strategies include Egypt Vision 2030, Mauritius Vision, Rwanda Vision 2050, Jordan 2025, Uganda Vision 2040, Kenya Vision 2030, and Ghana Vision 2020. By diversifying their economies, these countries hope to uplift their nation's income and standard of living in the long term.

Governments in the region are also fostering entrepreneurship and nurturing homegrown startups. This involves incentivising entrepreneurship, promoting priority sectors like fintech, and supporting accelerator and incubation programmes. Initiatives to

IN GENERAL – DIGITAL ECONOMIC DEVELOPMENT

Government support generally across wider economic development transformations via national strategies

Digital economic development plays a strong part of this generally

22% of sub-Saharan businesses

said that they’d either started to use or increased their use of digital tech during 2020

The

potential for MEA remains huge and opportunities remain

$712 billion projected size of Africa’s digital economy by 2050 40% GDP per capita in MENA could rise by more than 40%

Source: Various including The Fintech Times, Mastercard, World Bank MENA Fintech Association, Kaspersky, Economist, McKinsey, World Economic Forum, World Population Review, Accenture Image: Richie Santosdiaz and The Fintech Times

encourage local hiring in the private sector and provide education and sector-specific training are also underway. Additionally, education and sector-specific training receive prioritisation, accompanied by incentives for aspiring entrepreneurs. For instance, the UAE recently introduced a unique initiative allowing locals to take a year off from their government jobs to launch their businesses. Furthermore, there are digital-specific initiatives, including those targeting sub-sectors such as fintech. These strategies often complement broader national or city-wide plans. Sub-digital initiatives focus on areas like artificial intelligence (AI), blockchain, and big data. While each initiative is tailored to meet the specific needs of its respective nation, they all share overarching economic objectives, including:

■ Diversification of economic sectors These initiatives aim to mitigate the risk associated with economies reliant on a single sector by fostering diverse economies with multiple sectors such as tourism, transportation, technology and fintech.

■ Drive innovation and entrepreneurship These initiatives promote innovation within the future economy, encouraging the development of local talent and ideas, and fostering entrepreneurship to propel these ideas forward.

■ Digital transformation Digital technology drives sectors like technology and fintech, and it's crucial for broader technology adoption to prepare for a digital future. The Covid-19 pandemic has underscored the importance of robust technology infrastructure globally.

■ Job creation and economic growth Job creation and economic growth serve as fundamental pillars of economic development. Therefore, these initiatives aim to formulate an overall economic development strategy to enhance the wellbeing of citizens.

In the context of fintech, a combination of market demand and government support has driven many countries to develop fintech and broader digital ecosystems. Regulatory sandboxes have also emerged across the region, and legislative changes have been prioritised in fintech to ensure consumer protection and foster a positive business environment in the MEA region.

Moreover, recognising the importance of talent and human capital, the region has witnessed the development of an ecosystem driven by economic development strategies and market demand. Although the region is still in its nascent stages compared to Silicon Valley in the US, the progress in the MEA region is notable. This progress has led to the proliferation of accelerators/incubators, venture capital companies, and an emphasis on university graduates, particularly those with expertise in coding and other high-demand skills.

In the context

of fintech, a

combination

of

market demand and government support has driven many countries to develop fintech and broader digital ecosystems

Digital economic development

In any scenario, there's usually a driving force, whether from the government or spurred by market demand. In the realm of digital transformation, the MEA region has experienced varied degrees of influence. As noted earlier, much of this impetus has stemmed from government-led and legislative initiatives, aiming to propel a broader digital transformation with economic development at its core. This involves establishing regulations and fostering an environment conducive to innovation to bolster digitalisation efforts.

DURING THE PANDEMIC

73% MEA consumers shopped more online since Covid-19

69% payments will be cashless in the Middle East by 2023

MIDDLE EAST AFRICA

~40% increase usage of digital channels post-pandemic in Africa

~40% increase usage of online banking in Africa 64% in Middle East only started using online payments during pandemic 30% in Africa will visit a bank branch less post-pandemic 53 % in Middle East are shopping more on their smartphones than pre-Covid

In addition to national strategies, efforts within the broader tech landscape have contributed to advancing digitalisation. Initiatives targeting areas like AI and even the metaverse have been advocated from both governmental and legislative standpoints, as elaborated later in this report. Conversely, market-driven changes have also played a significant role. The overview of the MEA region presented in Chapter One underscores that the youthful population is underserved in financial services due to various economic factors. Fintech has emerged to bridge these gaps, catering to a wide range of individuals who lack access to traditional financial services.

Key strategies and economic integrations in the region related to fintech and broader financial services include initiatives such as:

■ Pan-African Payment and Settlement System (PAPSS): Launched in July 2019, PAPSS facilitates instant, cross-border payments in local currencies between African AfCFTA member nations.

■ Buna (from the Arab Monetary Fund - AMF): A multi-currency payment platform launched in 2020, Buna facilitates the clearing and settlement of cross-border payments in eligible Arab and international currencies across the Arab region and beyond, with links to major trade partners.

■ Gulf Payments Company: Established in December 2016, this company aims to develop a system that interconnects all payment systems in the GCC countries.

Overall, the potential socio-economic benefits would be immense if countries across MENA and SSA fully digitised their economies. Despite the widespread use of social media, there remains ample opportunity for further adoption of digital technologies. Fintech endeavours to address these gaps and propel digitalisation forward.

Digital infrastructure pertaining to fintech

The foundational elements empowering fintech in MEA are akin to those in other regions, encompassing digital infrastructure such as artificial intelligence (AI), machine learning, blockchain, application programming interfaces (APIs), mobile devices, big data, cloud computing, and cybersecurity. Additionally, the presence of skilled talent is crucial for driving innovation in this sector.

Present situation and identified gaps

In MEA, the digital infrastructure deficit poses a significant challenge for fintech development. Data centres, internet connectivity, and access to smart mobile devices are all essential for fostering a thriving fintech ecosystem. For instance, as previously noted in this chapter, up to 80 per cent of Africa's data was stored outside the continent, partly due to inadequate infrastructure. MEA is relatively new to the digital transformation journey, while the global market is swiftly evolving, marked by advancements in blockchain, AI, and the metaverse. Some MEA countries, like Dubai, have initiated their strategies to become global leaders in these domains. Nevertheless, the region still grapples with talent shortages and a lack of individuals equipped with the requisite skills in coding and other fintech-related areas. Brain drain exacerbates this challenge, with many highly skilled professionals and potential entrepreneurs opting to leave the region for opportunities abroad,

notably in the US, Europe or Singapore. This migration deprives MEA of valuable talent that could otherwise contribute to fostering a vibrant fintech landscape locally.

Addressing the challenges

Governments across the region are prioritising broader digital economic development, as previously highlighted, with a strong emphasis on various digital components. For instance, linked to Saudi Vision 2030, Saudi Arabia has a national strategy focused solely on AI called the National Strategy for Data & AI (NSDAI). This aims to position the country as a global leader in big data and AI by 2030, with a target of contributing at least 12 per cent to its GDP. Similarly, Saudi Arabia has launched its fintech-specific strategy to enhance the sector's contribution to the GDP. Qatar followed suit in March last year. Additionally, the UAE has its Artificial Intelligence Strategy 2031, which advocates for the adoption of exponential technologies like AI to drive transformation across various sectors. Beyond the GCC, countries like Egypt are prioritising AI development by launching initiatives such as an AI faculty at Kafr El Sheikh University. Egypt aims to derive almost $43 billion, or 7.7 per cent of its GDP, from AI by 2030. Türkiye has also launched its AI strategy roadmap, aiming for the AI ecosystem to contribute five per cent to the country's GDP by 2025 and employing 50,000 people in the sector. Infrastructure development is gaining momentum, especially in Africa, where the data centre market is projected to reach $3billion by 2025. South Africa leads in data centre infrastructure, contributing six percent to its GDP, and ranks 25th globally in data centre density. Nigeria also has a well-established data centre market, with key service providers such as Netcom, MainOne, and Console Connect.

The UAE stands out as a global leader in digitalisation, reflected in its high ranking in the IMD World Digital Competitiveness Ranking 2022. Qatar is also investing significantly in digital infrastructure and ranks second in the MEA region. However, there is still ample room for growth in fintech, particularly in open finance, presenting opportunities for the region. Efforts to enhance digital skills are underway across MEA, with initiatives like Digital Skills Africa and commitments from multinational companies like Cisco to educate millions in digital and cybersecurity skills. This transformation is evident even in wealthy areas like the GCC, where there's a shift towards the private sector and entrepreneurship as priorities in national economic development strategies.

In addition, efforts are underway across MEA to boost digital skills. This includes Digital Skills Africa, a non-profit company (NPC) established to reignite hope and address socio-economic transformation through digital empowerment. Moreover, large MNCs like Cisco have promised to educate 10 million people in digital and cybersecurity skills across EMEA over the next decade. To note, other large multinational corporations like Visa, Mastercard as well as telcos like Orange have dedicated efforts to boost talent development in digital.

Despite lagging behind regions like Europe and the US in fintech innovation, MEA is making significant strides in digitalisation and talent development. These efforts aim to achieve widespread financial inclusion and digital transformation across the region.

h.Summary: Key takeaways

MEA is characterised by its diversity across various dimensions. However, several key themes emerge:

Geographical

Despite its vastness, historical influences have led to shared traits across the region. The spread of cultures like Arabic in MENA and European colonialism have shaped the geopolitical landscape, evident in references to the Arab world or Francophone Africa.

Economic

MEA encompasses some of the world's wealthiest and poorest regions. Rich nations often derive their wealth from natural resources like oil and gas, while others, such as Dubai and Türkiye, have seen growth through service-oriented economies.

Financial services

Financial centres are concentrated in parts of MEA, including Dubai, Abu Dhabi, Istanbul, Cape Town and Johannesburg. While diverse, the region shares similarities in its financial services sector, characterised by government influence, conservative lending practices and disparities in infrastructure.

Tech and startups

Innovation hubs are prominent in Israel, Türkiye, UAE, and parts of the Middle East and Africa. Rich MEA countries, particularly the GCC, are active global investors, notably through sovereign wealth funds. Recent unicorns from Saudi Arabia, Egypt, UAE, and Türkiye have garnered significant attention.

MEA consumer

The MEA consumer demographic is youthful, with high unemployment rates and a strong presence in the informal economy. Mobile and internet penetration vary across the region, while remittances play a significant role in the economy.

Economic diversification and digitalisation

Government-led strategies aim to diversify and digitise the economy, with sectors like fintech receiving substantial support.

Digital infrastructure pertaining to fintech

Despite progress, the lack of general infrastructure remains a challenge in much of MEA. Economic development strategies prioritise addressing this gap, particularly in areas like AI and blockchain.

THE FINTECH LANDSCAPE OF THE

Source: Richie Santosdiaz and The Fintech Times

MIDDLE EAST AND AFRICA 2024

Chapter Two

The Fintech landscape in the Middle East and Africa

Putting the focus on the fintech sector in the MEA region

A. Overview of fintech in the Middle East and Africa

B. Key subsectors of fintech – an overview of nine key subsectors in the fintech sector

1 Payments, money transfer and remittances

2 Digital, challenger and neobanks

3 Gametech

4 Wealth and investment

5 Regtech

6 Digital currencies

7 Open finance 8 Lending 9 Insurtech

C. The rise of superapps

D. Wider fintech ecosystem

E. Key takeaways

Key subsectors in fintech

Paytech, money transfer & remittances

Payment processes, money transfers, sending money via remittances and digital payment solutions; including buy now, pay later (BNPL) and digital wallets.

challenger and neobanks

currencies

The digitalisation of banking services as well as digital-first banks

The development and monetisation of video, esports and mobile gaming

finance and investment

and grow one’s assets

The management of regulatory monitoring, reporting, as well as compliance within the financial services industry through technological solutions

Solutions from cryptocurrencies to stablecoins to central bank digital currencies (CBDC)s via a decentralised approach through blockchain

The opening of financial institutions to third party companies via application programming interface (API) such as with banks via open banking

for personal or commercial lending

of

a.Overview of fintech in the Middle East and Africa

The global fintech industry is estimated to be worth at least $300billion, making significant strides in MEA and contributing to financial inclusion for both unserved and underserved individuals and SMEs. Sub-Saharan Africa sees fintech contributing $150billion to its GDP, while Israel’s fintech sector contributes around 11 per cent to its GDP. In Türkiye, the industry is valued at least $15billion, growing annually by approximately 14 per cent. Similarly, the Arab World’s fintech sector is estimated to be worth at least $15 billion.

Despite challenges facing the global economy, which are felt across MEA, the fintech sector continues to play a crucial role in the region’s economic growth and development. While global VC funding has seen a downturn, fintech remains one of the most funded sectors in MEA, with countries like Saudi Arabia (which impressively last year raised almost $1billion for the first time ever) and Francophone African nations experiencing positive growth patterns in fundraising.

MEA also dominates in Islamic fintech markets, with Saudi Arabia, Iran, UAE, Kuwait, Malaysia, and Indonesia emerging as the top six markets by transaction value and assets under management, accounting for 85 per cent of the global market. MEA’s ecosystems are also conducive to Islamic fintech, with countries like Malaysia, Saudi Arabia, Indonesia, UAE, and the UK listed as the top five in the Global Islamic Fintech (GIFT) Report 2023/24. It even saw Oman make it to

+3,700 Fintech solutions in MEA +35,000 Tech startups in MEA Total fintechs

Are either in payments, lending or wealthtech

1 Payments, money transfers and remittances (almost a third of total fintechs)

2 Lending solutions (almost 20 per cent of total fintechs)

3 Wealthtech and investment (around ten per cent of total fintechs) Fintechs across different subsectors have been diversifying over time and, while it is still led by payments, is further expanding out.

85% History Of Middle East and North Africa (MENA) solutions at one point were in payments

$9.338 billion

MEA VC funding 2023 (sizeable percentage went to fintech)

+40%

Total fintechs in MEA are in three countries:

■ Türkiye

■ UAE

■ Israel

The 'Big 4' in Africa

■ Nigeria, Kenya, Egypt and South Africa

+60%

Fintechs in Africa are based in the Big 4

the top 10 list for the first time as well. The global Islamic fintech market is forecasted to reach $306billion in transaction volumes by 2027, an increase from $138billion in 2022/23, according to the Global Islamic Fintech (GIFT) Report 2023/24. MEA has seen a positive spotlight in unicorn creation, with Türkiye and the UAE producing notable fintech unicorns like Papara and Tabby, respectively. Saudi Arabia and Egypt have also added to the unicorn count with companies like Tamara and MTN Halan, showcasing a growing ecosystem supported by government initiatives and organic growth. What often goes unnoticed is MEA’s growing influence in the global fintech landscape, despite not reaching the same scale as European or American solutions. Historical successes, such as the widespread adoption of mobile money through platforms like M-Pesa, have transcended beyond East Africa to become popular not only in Africa but also in regions like Southeast Asia. More recent examples include South Africa’s TymeBank, which operates beyond MEA, extending its services to countries like the Philippines. Additionally, the wealthy GCC nations, as highlighted in the previous chapter, are expanding their investments and portfolio activities beyond MEA, contributing to the region’s growing presence in fintech. Financial institutions in regions like the GCC, where markets are becoming saturated, are also exploring opportunities beyond their borders or are in the process of doing so.

In the previous page of this chapter, there’s an image depicting key fintech subsectors, which applies to the MEA region as well. According to our research, nearly two-thirds of fintech solutions in MEA, totalling over 3,700, fall into categories such as payments, money transfer, and remittances (comprising about a third of all fintech solutions), lending (constituting around 20 per cent of total fintech solutions), and wealthtech and investing (making up approximately 10 per cent of total fintech solutions).

This diversity indicates a shift in the MEA fintech landscape beyond just payments, which historically dominated the sector. At its peak, payments accounted for 85 per cent of all fintech solutions in the MENA region. It’s important to note that the +3,700 fintech solutions include both native-born MEA solutions and those from non-MEA countries that have expanded through foreign direct investment (FDI). Additionally, this count may include some double counting of companies operating in multiple countries within the region.

Nevertheless, this explains the growing interest and expansion into other aspects and subsectors of fintech, such as open finance (particularly open banking) and embedded finance. Although embedded finance is still in its early stages in the MEA region compared to other parts of the world, there appears to be significant potential for its acceptance and adoption.

According to various sources, MEA’s embedded payment industry is projected to grow and exceed $5.8billion by 2022, with a compound

Unicorn fintechs in the Middle East and Africa

annual growth rate (CAGR) of 26.7 per cent from 2022 to 2029. By 2029, revenues are expected to surpass $21billion. Other topics and enablers, such as environmental, social, and governance (ESG) considerations, are also gaining traction in the wider financial services space in the region, albeit still in its infancy. Despite the burgeoning fintech activity and growth across various metrics, such as VC funding and the number of fintech companies, as Chapter Three will delve into, the geography of this activity tends to remain concentrated mainly in the affluent GCC countries, Israel, Türkiye, and the ‘Big Four’ of Africa – Nigeria, Kenya, Egypt and South Africa.

The chapter will now proceed with dissecting nine key subsectors within the MEA context, through the exclusive Fintech Landscape created by The Fintech Times in 2022. These nine subsectors are 1. Payments, money transfer and remittances, 2. Digital, challenger and neobanks, 3. Gametech, 4. Wealthtech and investing, 5. Regtech, 6. Digital currencies, 7. Open finance, 8. Lending, 9. Insurtech.

It’s important to note that some fintech solutions may operate in more than one subsector or even outside the fintech space entirely. These instances will also be covered, along with an overview of superapps. Additionally, similar to previous versions of this report, the wider fintech ecosystem will be recapped and acknowledged, as it encompasses not only fintech companies but also financial institutions, governments, and consumers, as well as supporting entities such as accelerators, associations, and media outlets..

YEMEN OMAN UAE

KUWAIT

ISRAEL PALESTINE

b.Key fintech subsectors

1.Payments, money transfers and remittances

Payments overview

Payments and paytech remain dominant forces within the broader fintech ecosystem across the MEA region. Historically, around 85 per cent of fintech firms in the MENA region operated within the payments, transfer, and remittance sectors. While other fintech subsectors are emerging in the wider MENA, Sub-Saharan Africa, and MEA region, payments continue to hold a significant share of attention and activity.

The prevalence of payments in the region presents two main opportunities. Firstly, there is the opportunity to address the challenges associated with cash-based societies, which are still prevalent in much of MEA. Secondly, there is significant potential for enhancing digital payment experiences through further digitalisation efforts, catering to both current needs and future prospects in the digital economy.

According to the MENA Fintech Association’s SHIFT report, non-cash payments in the UAE alone were projected to constitute 73 per cent of transaction volume by the end of last year, a significant increase from 39 per cent in 2018. This growth in non-cash payments

encompasses various payment types, including business-to-business (B2B), business-to-consumer (B2C), and business-to-government (B2G) transactions. In the MEA payments landscape, several key components contribute to its dominance:

■

The rise of digital payments

The rise of digital payments, especially in e-commerce, has been a prominent trend, particularly accentuated during the Covid-19 pandemic. In the MENA region, digital payments are forecast to grow at a compound annual growth rate (CAGR) of 15.39 per cent from 2022 to 2026. Even before the pandemic, digital payments were experiencing rapid growth in MEA. For instance, consumer digital payments transactions in the UAE saw an annual growth rate of over nine percent between 2014 and 2019, while Saudi Arabia witnessed significant growth in card payments, surpassing 70 per cent between February 2019 and January 2020, far exceeding Europe’s average annual growth of four to five per cent.

■ Digital wallets

Digital wallets, including mobile wallets, have gained traction in the region, mirroring global trends. Research across several countries revealed that the UAE had the highest share of small and medium-sized business (SMB) consumers using digital wallets for online payments, with over 30 per cent adoption, surpassing the US at 18.2 per cent. In Africa, digital wallets boast an estimated 562 million customers, facilitating 28 billion transactions annually, with a total value of £452billion.

■ Mobile money

Mobile money, spearheaded by Kenya’s M-Pesa, has significantly impacted financial inclusion, particularly in Sub-Saharan Africa, where it originated in 2007. Today, Sub-Saharan Africa still holds over half (53 per cent) of all global 30-day active mobile accounts, with peer-to-peer transactions reaching a record $386billion in 2021, with the MENA region witnessing the fastest growth at 49 per cent, followed by Sub-Saharan Africa at 40 per cent. As well as M-Pesa, other players in the African continent include Airtel and MTN.

Payments solutions in the Middle East and Africa

Payments and paytech remain dominant forces within the broader fintech ecosystem across the MEA region

■ Remittances solutions

In MEA, remittance solutions have thrived due to the widespread adoption of mobile phones, lower exchange rates and increased financial inclusion efforts. Fintech-powered remittance apps offer customers a wider range of payment options compared to traditional exchange houses, driving financial inclusion, especially in countries with high rates of financial exclusion.

■ Buy now, pay later (BNPL)

Despite global challenges, the buy now, pay later (BNPL) model is gaining traction in the region. Regulatory hurdles and financial literacy remain key challenges, but notable successes include Saudi Arabia’s BNPL Tamara achieving unicorn status and the UAE’s Tabby becoming the first direct fintech unicorn in the country.

2.Digital, challenger and neobanks

Neobanks in the MEA region, much like their global counterparts, operate solely in the digital realm, without any physical branches. On the other hand, challenger banks are predominantly digital but may have limited physical presence, distinguishing them from traditional banks. It’s worth noting that digital banks can fall into either category, whether neobanks or challenger banks.

While neobanks are still in their nascent stages compared to more mature markets like Europe and the US, they are gaining traction in the MEA region. This is particularly significant given the challenges individuals and SMEs face in accessing traditional financial services, such as opening bank accounts. Neobanks and challenger banks in the MEA region have emerged through two main avenues:

■ Banks creating their own neobanks

United Arab Bank, and Dopay with Barclays and Visa. In Türkiye, Papara received approval in 2016 to operate as an electronic money institution. Papara launched a non-bank dependent prepaid card with the Mastercard logo and has since become a member of Mastercard, Visa, and the Interbank Card Centre, boasting over 12 million users.

Partnerships have played a crucial role in enabling neobanks and challenger banks to expand beyond their initial markets. This approach has proven valuable in a region with diverse countries, making expansion without partnerships both time-consuming and costly.

Government support has played a crucial role in facilitating the growth of neobanks and challenger banks in the MEA region. For instance, in Saudi Arabia, the Saudi Arabian Monetary Authority (SAMA) granted licences to STC Bank and Saudi Digital Bank in June 2021, followed by D360 in February 2022. In Israel, One Zero became the first bank to launch in over 40 years in January 2021, following open-banking reforms adopted in October the same year.

Unlike in regions like the UK, where neobanks are typically independent entities, in the MEA region, traditional banks have taken the lead in establishing neobanks. This has been achieved either through developing neobank platforms in-house or acquiring existing technology. For example, Emirates NBD launched Liv, Mashreq Bank introduced Mashreq Neo, and ADCB established ADCB Hayyak in the Middle East. Similarly, Leumi Bank created Pepper, ABC Bank launched ila Bank, and Gulf International Bank of Bahrain introduced meem in Israel. In Türkiye, Akbank’s subsidiary, AkOde, developed Tosla.

■ Independent neobanks with bank partnerships

There are also independent neobanks operating in the MEA region, such as Now Money and Rise in the UAE, and Dopay in Egypt. These neobanks typically partner with established banks to operate under the bank’s licence. For instance, Now Money partners with Commercial Bank of Dubai (CBD), Rise with

In Africa, the digital banking landscape has seen significant growth, with the continent hosting 21 digital banks serving over 18 million customers as of 2022. Notably, 80 per cent of these digital banks are concentrated in Nigeria and South Africa, although the landscape appears to be diversifying further based on recent data. Pan-African bank Ecobank is pursuing an API approach, allowing

non-bank fintechs to connect to its financial infrastructure and access a broader range of products and services.

However, neobanks in Africa have faced challenges, particularly concerning bad debt. Despite this, there have been positive developments, such as South Africa’s TymeBank posting a profit for the first time in December. Nonetheless, many neobanks on the continent remain loss-making as of the current year.

In both Africa and the Middle East, neobanks and challenger banks have expanded beyond their core businesses through mergers, acquisitions, or organic growth to become superapps. For instance, TymeBank in South Africa acquired Retail Capital in 2022 to complement its BNPL product, MoreTyme, while Liv in the UAE incorporated gametech and other components in 2020 to attract a younger audience. In terms of user adoption, the top 10 digital banks in Africa in 2022 are as follows:

In addition to the mentioned players, other notable participants in the digital banking sector in Africa include Orange Bank, a subsidiary of the French telecommunications giant Orange, which boasts extensive coverage in West Africa, and 7aweshly from Egypt.

THE TOP 10 USERS IN AFRICA IN 2021 Rank Neobank

2nd (tie) TymeBank South Africa 4 million (part of Tyme Group of companies based in Singapore)

Chipper Cash US HQed and 4 million Pan- African such as Nigeria, Uganda to name a few

A significant development occurred in November 2021 when the Central Bank of Nigeria (CBN) granted provisional approval to MTN of South Africa and Airtel of India, both prominent telecom companies with significant presence across Africa, to operate payment service banks in Nigeria. This decision opens up opportunities for Nigerians, particularly the unbanked population, to access telecoms payment platforms such as MoMo and Smartcash. They can now join local telecom operators like Glo and 9mobile, which already hold this, and operate independently rather than forming partnerships.

Neobanks in the Middle East and Africa

3.Gametech

Gametech has gained global popularity, fuelled by increased digitalisation and mobile phone usage. The pandemic further accelerated this trend as people turned to digital entertainment, contributing to the projected $340billion value of the gaming market by 2027.

In the MEA region, characterised by a youthful and digitally savvy population, especially in the GCC and across Africa with high mobile penetration, gametech presents a lucrative opportunity.

As gametech intersects with fintech, games, like any business, aim to monetise and enhance revenue streams. In the realm of mobile gaming, in-app purchases have become commonplace, enriching gamers’ experiences and integrating with digital wallets. Remarkably, the rise of fintech within gaming parallels the growth of the gaming industry and gametech globally and in the MEA region.

In 2016, gaming expenditure in the Middle East and North Africa region totalled $3.2billion. By the end of 2022, spending on mobile gaming alone in MENA had surged to $2.3billion. In 2017,

the video gaming industry’s revenue in the Middle East amounted to approximately $3billion, with Türkiye, Saudi Arabia, and the UAE emerging as key markets. Analysing the presented charts, Saudi Arabia leads in gaming revenue in the MENA region, while Nigeria and South Africa dominate the gaming revenue landscape in Sub-Saharan Africa (SSA).

Other key metrics, such as ARPPU (Average Revenue Per Paying User), shed light on Saudi Arabia’s gaming market, boasting the world’s highest at $270, surpassing even China, the largest gaming market globally, with $32. Historically, prior to economic reforms like Saudi Vision 2030, leisure and entertainment opportunities were limited in the Kingdom. Hence, the emergence of gametech aligns well with Saudi Arabia’s young, tech-savvy, ambitious, and evolving demographic.

Moreover, the MEA region offers a fertile ground for the gaming and gametech industry due to the widespread use of Arabic, the world’s fifth most spoken native language. Approximately 70 per cent of the Arab world uses Arabic as their default language on smartphones, underscoring the significance of catering to Arabicspeaking audiences in the gaming sector. The region has witnessed organic growth, with innovative products emerging, particularly

those integrating blockchain and cryptocurrencies. For instance, Nigeria has seen the rise of platforms like Gamic, a decentralised messaging platform facilitating engagement with Web3 products and services, and Scorefam, a platform where crypto and sports enthusiasts can earn rewards. Additionally, the ecosystem supporting such startups and companies is expanding, exemplified by initiatives like the Africa Game Developers Association, boasting members from over 18 African countries.

Despite Israel’s status as a prominent tech hub, its presence in the gaming sector is still evolving. However, reports from Deloitte highlight Israel’s global successes in gaming since the early 2000s, with notable companies like Playtica and Plarium making significant strides in the industry.

Türkiye has emerged as a significant player in the MEA gametech sector, making headlines with the production of unicorns like Dream Games and Peak, which was the country’s first unicorn after being acquired by American Zynga in June 2020. With over 48 per cent of its population under the age of 30 and a high percentage of internet users engaged in gaming, Türkiye has become a hotbed for gaming activity. Mobile gaming, in particular, has witnessed explosive growth, with over 2.1 billion downloads across all platforms in the country in 2022. Istanbul (second) and Ankara (fourth) have emerged as major hubs for gaming studios, ranking among the top cities in

Gametech landscape in the Middle East and Africa

Europe for gaming development, alongside first place London and third place Paris. Moreover, esports, a burgeoning sector globally, has gained popularity in much of the MEA region. Governments have begun to support the development of esports, as evidenced by Saudi Arabia’s launch of its National Gaming and Sports Strategy in September 2022. With a significant investment from the sovereign wealth fund, Saudi Arabia aims to position itself as a global leader in gaming and esports by 2030.

Looking ahead, the development of the metaverse and the evolution of gambling regulations, such as those seen in the UAE, are poised to drive further innovation and growth in the gametech sector across the MEA region

Looking ahead, the development of the metaverse and the evolution of gambling regulations, such as those seen in the UAE, coupled with the region’s youthful population, mobile literacy, and increasing adoption of digital currencies like cryptocurrency, are poised to drive further innovation and growth in the gametech sector across the MEA region.

4.Wealthtech and investing

Traditionally, wealth managers have provided professional financial services primarily to affluent clients, offering investment advice and financial planning. However, the emergence of fintech has disrupted this industry, leveraging robo-advisory and advanced AI and machine learning to make wealth management more accessible. Fintech has democratised wealth management, making it available to a broader audience, including those with more modest incomes.

The relatively low barriers to entry have made wealthtech an attractive investment for fintech startups, enabling them to offer wealth-management services at lower costs. Despite global economic challenges impacting the fintech sector, including wealthtech, investment in the wealthtech sector dropped to less than $200million in 2023. However, the total deal value and the number of wealthtech deals remained consistent with 2020 levels.

MEA presents a significant opportunity for wealthtech, catering to both the ultra-wealthy and individuals with more modest incomes. The Middle East, particularly the GCC region, is home to some of the world’s wealthiest individuals. Additionally, Africa, often associated with poverty, also harbours some of the world’s

wealthiest individuals. See the chart opposite for the top ten richest individuals for reference.

Recent times have been challenging for many, including the ultra-wealthy, who collectively saw a decline of $10trillion, or 10 per cent, in their net worth in 2022 due to global economic uncertainties such as the energy crisis and the Ukraine War. However, despite these challenges, opportunities still exist, particularly in regions like MEA, which many affluent individuals call home.

Setting aside the wealthy, much of MEA comprises average middle-class individuals. Over the past 30 years, the African continent’s population has seen a significant rise in the middle-class category, accounting for at least a third of the population.

However, a significant challenge persists – financial literacy, particularly regarding concepts like savings. Many countries in Africa exhibit low levels of financial literacy, with only 38 per cent and 42 per cent of the populations in Kenya and South Africa, respectively, considered financially literate. Similar figures are observed in countries like Uganda (34 per cent) and Tanzania (40 per cent). Addressing this challenge is crucial for promoting financial inclusion and stability across the region.

TOP 10 WEALTHIEST CITIES IN MEA 2023

7

8

Various scenarios illustrate this, but consider the story of a mother from a rural village in the MEA region. To support her family, she works as a nanny in the affluent Arabian Gulf for 20 years, sending money home regularly. However, upon returning to her village, she finds herself with little to no savings, having failed to plan for her retirement or future.

Across the MEA region, cultural norms, often influenced by instability, lead many to prefer tangible assets like gold, cash, or property, or to send money abroad. Instances of financial instability, such as those witnessed in Lebanon, further erode trust in traditional financial institutions, leading to the rise of alternative options like cryptocurrencies.

Enter wealthtech, which caters not only to the wealthy but also to the middle class and even working-class and poor communities. This subsector has the potential to significantly impact lives across the

MEA region, as evidenced by its growth depicted in the ecosystem landscape image. Examples include EasyEquities in South Africa, boasting over 1.4 million registered users, Piggyvest in Nigeria, offering online savings platforms to previously underserved populations, and Amwalcom in Jordan, assisting consumers in comparing savings accounts.

In 2021, wealthtech ranked as the third-largest sector in Africa in terms of deals, despite a slight decline from the previous year. Similarly, the Middle East witnessed successes in the subsector, such as Hakbah from Saudi Arabia securing over $5million in Series A funding in December 2023. Despite prevailing uncertainties, opportunities abound in wealthtech, especially as the sector continues its digitalisation efforts.

Source: Henley & Partners & The Fintech Times

5.Regtech

The emergence of regulation technology (regtech), driven by stricter regulations and compliance standards following the 2008 Global Financial Crisis, has transformed the financial services industry. While the MEA region was not as severely affected by the crisis as the West, the adoption of regtech solutions gained momentum globally.

The global regtech industry is projected to grow to $19.5billion by 2026 and reach $45.8billion by 2032. MEA financial hubs such as Dubai and Mauritius have faced compliance and anti-money laundering (AML) challenges, prompting the adoption of regtech solutions.

Regtech has emerged as a crucial solution in the MEA region, despite being relatively new and still in its infancy. For instance, as recent as 2019, only four per cent of fintech VC funding in MENA went to regtech startups, indicating its nascent stage.

One reason for the potential of regtech in the region is the general lack of digitalisation across many parts of MEA. This has prompted governments to prioritise digital initiatives and promote economic development strategies focused on digitalisation. In sectors like financial services, where activities such as data management and

KYC processes are vital, there is a notable gap in the development of digital infrastructure compared to other regions.

Secondly, there has been a notable increase in financial inclusion across much of the region, albeit with room for improvement. This growth has led to organic expansion in the market, but it has also introduced challenges. Businesses operating in the financial services sector face hurdles ranging from obtaining licences to ensuring compliance with regulations. In addressing these challenges, the significance of regtech becomes apparent.

Government-led guidance and support have played a pivotal role, reacting to market changes and driving forward visionary plans. However, one specific challenge that has garnered attention is cybersecurity. The rapid digitalisation prompted by the pandemic has heightened concerns, with a survey conducted by Cambridge University revealing that 75 per cent of MENA financial regulators observed increased cybersecurity risks, while 67 per cent reported heightened operational risks.

In the MENA region, several countries have initiated their own regtech or supertech endeavours, including the UAE, Bahrain, Oman,

Jordan, and Türkiye. In the UAE, for example, initiatives such as the e-KYC project led by Abu Dhabi Global Market (ADGM)’s Financial Services Regulatory Authority (FSRA) have been notable. This project, initiated as early as 2018, involved collaboration with major UAE financial institutions like ADCB, Abu Dhabi Islamic Bank, and Al Fardan Exchange. Its goal was to develop a blockchainbased e-KYC system to streamline customer identification and verification processes, consolidating them into a single location.

Furthermore, in 2020, the FSRA of ADGM launched three regtech pilot initiatives. These initiatives aimed to assist regulated financial services firms in achieving enhanced compliance and risk management outcomes while simultaneously reducing regulatory costs and burdens.

Israel, renowned for its leadership in the broader tech landscape and particularly in cybersecurity, has witnessed significant successes in the regtech sector as well. In 2020, it emerged as the destination for six out of the top 10 regtech deals outside of North America and Europe. Companies like Aqua, Namogoo, Anyvision, Cheq, Ironscales, and Cymulate have contributed to Israel’s prominence in this field.

Shifting focus to the African continent, there is a burgeoning interest in regtech. For instance, the regtech sector is projected to experience a 40 per cent rise among startups in Nigeria by the end of

Regtech and

wider

MEA2024: THE FINTECH

2026. This growth is accompanied by an increase in regtech solutions, particularly in regulatory reporting and compliance, anti-money laundering and know-your-customer processes.

Nevertheless, significant challenges persist. In Africa, the process of building and launching financial products is daunting, requiring an average investment of $500,000 and a timeframe of 18 months. This prolonged timeline is due to stringent licensing and compliance procedures, intricate integration layers, complex banking and third-party relationships, and investments in elaborate core-banking infrastructure.

Additionally, it’s important to acknowledge that across much of the Middle East and Africa, including the African continent, the lack of digital infrastructure and the prevalence of the informal economy pose substantial obstacles to KYC processes for both businesses and individuals. As previously highlighted in the report, approximately half of the world’s one billion people without identification cards reside in Africa, rendering regtech implementation more challenging.

Despite these hurdles, the escalating threats of cybersecurity breaches and other security risks, alongside the growing emphasis on compliance amid the rise of digitalisation, underscore the potential benefits of regtech solutions, particularly in the Middle East and Africa.

IT FS infrastructure in the Middle East and Africa

6.Digital currencies (including cryptocurrencies)

The state of digital currencies in the MEA region mirrors trends seen globally, encompassing stablecoins, cryptocurrencies, and central bank digital currencies (CBDCs).

This section will specifically delve into the latter two. Before delving into specifics, it’s worth noting that the digital currencies landscape in the MEA region is diverse, with numerous companies offering services to meet varying needs.

Cryptocurrencies, despite their overall volatility on the global stage, continue to enjoy popularity in certain parts of the MEA region (see the table opposite). The appeal of cryptocurrencies in many parts of the MEA region can be attributed to several factors:

■ Stability compared to traditional financial institutions

In many areas of the MEA region, traditional financial institutions are plagued by volatility, hyperinflation and currency devaluation.

Cryptocurrencies offer an alternative avenue for safeguarding assets during times of economic uncertainty.

■ Increased financial inclusion

Cryptocurrencies provide a potential solution for individuals who are marginalised or excluded from traditional financial services and institutions. By leveraging cryptocurrencies, these individuals gain access to financial tools and services previously unavailable to them.

■ Necessity rather than luxury

Unlike in more affluent regions, where cryptocurrency trading may be pursued as a means of generating additional income, in the developing world, cryptocurrencies are often viewed as a necessity. People in these regions rely on cryptocurrencies as a practical solution to address financial challenges and circumvent limitations imposed by traditional financial systems.

It’s important to note that the regulation of cryptocurrencies varies widely across the MEA region, with some countries banning or severely restricting their use, such as Nigeria, which has opted to promote its own central bank digital currency (CBDC).

Central bank digital currency

CBDC initiatives have garnered interest across both the Middle East and Africa, as evidenced by the CBDC landscape image in this section. Some potential benefits of CBDCs include:

■ Cheaper cross border payments

Given the vastness of the MEA region, which encompasses nearly 70 nations, traditional cross-border payments can be costly. CBDCs offer the potential for more cost-effective international transactions.

■ Financial inclusion

By reducing fees associated with cross-border payments, CBDCs have the potential to make such transactions more accessible to individuals who may have been excluded from traditional financial systems.

■ Shorter and secure transactions

CBDCs have the capability to streamline transaction processes, reducing the time and enhancing the security of cross-border payments.

MEA governments have launched various government-led initiatives in the realm of CBDCs, making the region one of the most active in terms of government-driven CBDC projects globally.

Source: Chainalysis 2023 Geography of Cryptocurrency Report

Central Bank Digital Currency (CBDC) overview in the Middle East and Africa

In 2024, the Central Bank of Egypt announced its intentions to launch a digital currency by 2030

JORDAN TÜRKIYE

In 2022, a study announced (ongoing) to develop a legal digital currency linked to Jordanian dinar – ongoing

In 2022, Banque of France and Central Banque of Tunisia carried out successful transfer using prototype CBDC

Senegal was second in the world (1st being Bahamas) in 2017 to launch a CBDC, the eCFA

Phase 2/2 to commence in 2024; after results central bank to decide to proceed with CBDC or not

In foundation stage –Work ongoing (MoU w Ripple in 2023) for c. border payments

Developing Stage (successful train w/ JP Morgan 22) –work ongoing

In 2021, Ghana announced it will develop and pilot its digital currency, the eCeda; in 2023 a hackathon was launched in anticipation of the full launch – work in progress

In 2021, the Central Bank of Nigeria launched the eNaira CBDC. Adoption as of today remains to have relatively little effect (from one year annivesary in Oct 2022 < 0.5% were using it) – effects of the launch still ongoing

A Scheme to develop a central bank digital currency (CBDC) is underway after a study showed that the currency is needed in the country – work ongoing

2021 CB initiated feasibility study; - work ongoing (conducted various tests with wholesale CBDC and cross border pilots with CBs of Malaysia, Australia and Singapore

In foundation stage of CBDC – work ongoing (2023 MOU w DLT provider R3)

In foundation stage of CBDC – Work ongoing

In 2019, Saudi Arabia conducted tests with the UAE in 'Project Aber' –which focused on domestic wholesale CBDC use cases – Work ongoing

Project Aber with Saudi in 2019; founding member of mBridge alongside CBs in Hong Kong SAR, Thailand, China – made first CBDC transfer with China's CB in 2024 – further work ongoing

2022 – reports of the Bank of Israel to issue a digital shekel – in early 2024 – Bol released design thinking of the potential CBDC – work ongoing – 2023 completed two BIS-led interoperability tests w Sweden, Norway and Hong Kong CBs

2023 CB following consultation said does not consider the issuance of a digital currency a "compelling priority;" will continue monitoring developments in area to help future decisions

KUWAIT BAHRAIN

QATAR

GHANA

SAUDI

Source: Richie Santosdiaz and The Fintech Times

7.Open finance

MEA, like many parts of the world, is still in the nascent stages of adopting, considering, or fully comprehending the principles and advantages of open banking, and even broader, open finance. Open banking allows financial institutions to share customer data with trusted third-party providers through open banking APIs.

Fintech companies have been instrumental in driving the growth of open banking through partnerships, leveraging innovative solutions such as banking as a service (BaaS), either directly with financial institutions or through collaborations. Open finance expands beyond banking to encompass all financial service offerings, and this trend holds true for MEA.

The following image illustrates the open finance landscape, with a specific focus on open banking solutions throughout the MEA region. Despite its early stage, significant advancements have been observed across the region, driven by both market-led and government-led approaches. Fintechs and their partnerships with financial institutions have been pivotal in driving innovations in open banking, embodying the fundamental belief of collaboration.

Among the early adopters of open banking in the MEA region are Nigeria in Africa and Bahrain and Saudi Arabia in the Middle East. Further insights into the developments in open banking and broader open finance initiatives across the Middle East and Africa can be gleaned from the image.

The developments across MEA reveal that, in addition to the early adopters, other regions are also making significant strides, often with government support or guidance. Governments across MEA have embraced various national economic development strategies aimed at promoting their financial services sectors while prioritising digitalisation. Digital infrastructure varies across the region, with many areas lacking even basic or intermediate levels of development. To facilitate the success of open banking initiatives, governments have implemented numerous initiatives, including passing laws to permit APIs, reforming banking regulations, and enacting fundamental legislation related to data and consumer protection.

For instance, Rwanda’s Fintech Strategy 2022-27 acknowledges the importance of open finance and emphasises the need to build

up infrastructure, such as updating data protection laws. This multifaceted approach underscores the commitment of governments across MEA to foster a conducive environment for the growth of open banking and broader digital financial services.

In countries like South Africa and the UAE, where market forces have primarily driven initiatives, there has been increasing government support to promote open banking and broader open finance concepts. Efforts range from establishing working groups to developing strategies that prioritise not only open banking but also open finance initiatives. For instance, last year, the Central Bank of the UAE launched the Financial Infrastructure Transformation (FIT) Programme, with open finance identified as one of nine key priorities.

Although open banking is still in its early stages of development, significant progress has been made. However, the journey toward open finance, both in MEA and globally, is still in its infancy, and there are considerable challenges to overcome. Additionally, the realisation of open data initiatives remains a distant goal that requires concerted efforts from various stakeholders across the financial ecosystem,

Fintechs and their partnerships with financial institutions have been pivotal in driving innovations in open banking, embodying the fundamental belief of collaboration

Open banking and wider finance overview in the Middle East and Africa

Intends to open up bank accounts for customers via mobile phone application in 2024 – work ongoing

JORDAN

2022 the Central Bank published instructions governing Open Finance to be implemented by 2023/2024.

June 2022 – required financial entities to let their competitors automated access to customers' financial information (with consent) automatically – work ongoing (ie still no sandbox)

Central Bank in Dec 2022 launches open banking services in payments area. Other work ongoing

2022 Central Bank Tests First-of-its Kind Product for open banking in regulatory sandbox – work ongoing

Part of Qatar's Fintech 2023 strategy identified developing open banking in Qatar – work ongoing

Open Banking API Strategy is part of the Fintech Framework and Roadmap – work ongoing

Central Bank of Bahrain required financial institutions to open up APIs iin October 2020 – also created its open banking framework

National Payment System Strategy Plan (2019 – 2024) is establishing standards for data sharing and engaging stakeholders to develop the roadmap for data sharing – work ongoing

The Central Bank of Nigeria was the first regulator in Africa to introduce a regulatory framework for Open Banking in early 2021.

Central Bank issued open banking regulations in 2018 – work ongoing. Fintech Strategy 2022-27 acknowledges open finance and build up infrastructure (such as update on data protection) to be able to do so in the future – work ongoing

Generally a bit more market driven until recently – Financial Sector Conduct Authority (FSCA) published a draft Position Paper on Open Finance in June 2023 – work ongoing

Launched Open Banking Framework in 2022 and includes OB-mandated regime, rules for Third-Party Providers, technical, and securities standards, that market participants (banks and fintech) are proactively implementing. They also launched their Open Banking Lab – work ongoing

More industry led with guidance from ADGM and DIFC, which both have been issuing licences to TPPs for both AIS and PIS. Last year, Central Bank (CBUAE) launched the Financial Infrastructure Transformation (FIT) Programme – OF was one of nine priorities

Central Bank released digitalisation plan in December 2020 titled Kenya National Payments System Vision and Strategy 2021 – 2025 to overhaul the country's payments industry, which includes Open Banking and the importance of regulation – work ongoing

GHANA KENYA

SAUDI ARABIA UAE OMAN

NIGERIA RWANDA

SOUTH AFRICA

ISRAEL BAHRAIN

EGYPT

Source: Richie Santosdiaz and The Fintech Times

8.Lending

In much of the Middle East and Africa, individuals remain excluded from traditional financial institutions or underserved by them. This gap creates opportunities for growth in services such as credit cards, mortgages, and other lending offerings tailored to the region’s needs. Similarly, for small and medium-sized enterprises (SMEs), accessing loans for starting up or expanding businesses is challenging due to the underdeveloped fintech ecosystem, which lacks essential components such as credit bureaus and supportive lending regulations.

Furthermore, SMEs face difficulties in obtaining loans, with a significant percentage of funding requests being rejected by conventional banks. This is despite SMEs often contributing the majority of a country’s GDP, such as in the UAE, where they account for around 60 per cent. Surprisingly, loans to SMEs represent only four per cent of the outstanding bank credit in the UAE, which falls below the MENA average of 9.3 per cent.

Peer-to-peer lending gained traction globally during the 2008 Global Financial Crisis when traditional lending institutions tightened their lending practices. While China and the USA dominated the P2P lending market in 2020, the MENA region also saw a rise in P2P lending platforms. According to the International Finance Corporation (IFC), the SME lending gap in MENA is estimated to be as high as $240billion, with a formal MSME finance gap ranging from $160 to $180billion.

In MENA, pioneers like Jordan’s Iiwwa (established in 2013) and Beehive in the UAE played significant roles in popularising P2P lending. These platforms leveraged partnerships to fuel their growth. For instance, Beehive, recognised as the world’s first Sharia-compliant P2P platform, collaborated with banks to introduce an SME lending white-label solution and expanded its

base of institutional lenders. Similarly, Iiwwa partnered with institutional investors such as local banks in Jordan and global debt institutions, offering them a credit analysis engine and credit-as-a-service solutions.

Kenya and South Africa dominate the P2P lending market in Africa, jointly controlling 90 per cent of the continent’s P2P market. Interestingly, at one point, 90 per cent of online alternative lending in Africa originated from platforms headquartered outside the continent.

Although Africa currently represents only 0.1 per cent of the global P2P lending market, it holds significant growth potential. For instance, crowdfunding campaigns in Africa are projected to reach 11,800 this year, and Sub-Saharan Africa (SSA) could potentially achieve $2.5billion in crowdfunding by 2025. Despite its underdeveloped but rapidly expanding market, Africa’s share remains relatively small compared to the global market.

It’s important to note that Saudi Arabia is emerging as a significant hub for P2P lending. The regulatory environment in Saudi Arabia is conducive to the growth of P2P lending, making it more favourable compared to other parts of the Middle East and North Africa (MENA) region. Currently, the country hosts at least a dozen P2P lending platforms, including Raqamyah and Lendo.

While crowdfunding is still a relatively new concept in the region, and limited rules exist, it is steadily gaining traction. As previously highlighted in this report, the UAE government website acknowledges that fundraising for loans and investments, or debt-based funding, is a new concept. However, the Dubai Financial Services Authority (DFSA) has taken proactive steps by launching a regulatory framework for loan and investment-based crowdfunding platforms, marking a significant milestone as the first framework of its kind in the GCC.

In Israel, regulatory oversight of P2P lending began in 2017. The Israel Securities Authority implemented regulations for mass financing aimed at research and development companies and SMEs. Additionally, the Finance Committee of the Knesset approved regulations for crowdfunding under the authority of the Securities Authority during the same year. Similarly, Türkiye introduced legislation on crowdfunding at the end of 2017, with an additional provision in the Capital Markets Law requiring approval from the Capital Markets Board of Türkiye (CMB) for crowdfunding platforms.

Many fintech companies in the Middle East and Africa (MEA) have attained direct or indirect ‘superapp’ status by offering lending services, either directly or as part of their suite of services. Lending consistently ranks among the top three areas of focus for fintech companies in several MEA countries, alongside payments, illustrating its significance and widespread adoption in the region, as detailed in Chapter Three of this report.

Africa’s fintech landscape, heavily driven by mobile phone activity, has seen significant developments in lending, often tailored to mobile users. Many African fintech companies have evolved into superapps or megasolutions, expanding their services beyond paytech. Here are a few examples:

Lending solutions in the Middle East and Africa

Many African fintech companies have evolved into superapps or megasolutions, expanding their services beyond paytech

■ M-Pesa, in partnership with KCB bank, launched KCB M-Pesa Loan in 2015.

■ MTN Mobile Money Uganda, headquartered in South Africa, partnered with Jumo to introduce MoSente, a credit facility for MTN customers, in 2022. MTN has also offered a similar product named MoKash in Tanzania since 2016, in collaboration with Absa Bank and Tigo.

■ Lulaend, initially focusing on SME lending, expanded its services to include neobanking solutions in partnership with Access Bank in 2023, allowing clients to open bank accounts alongside their core lending business.

Despite the challenges related to technical integration and financial literacy, lending in the MEA region presents a significant opportunity to enhance financial inclusion, provided it is implemented effectively.

9.Insurtech

The global insurtech market is projected to reach $10billion by 2025, and although the MEA region is currently underrepresented in this sector, it holds the potential to claim a larger share of the market. As previously highlighted, financial exclusion is a significant challenge in MEA, extending to the insurance sector. Insurance, especially insurtech, presents both challenges and opportunities across much of MEA. Historically, its significance can be summarised as follows:

Lack of adoption: Particularly in most of Africa (excluding South Africa), insurance penetration remains low, with only three per cent of the population covered. Historically, South Africa dominated around 80 per cent of total premiums. Similarly, adoption rates have been low across much of the Middle East, including in the oil-rich Arabian Gulf. The issue extends beyond less affluent regions, highlighting a broader lack of financial literacy, especially regarding insurance.

the broader population, including those facing financial exclusion challenges. In essence, there has been a lack of motivation to develop products tailored to the needs of everyday individuals.

Disproportionate coverage and product types in MEA: There is a significant disparity in insurance coverage across the MEA region, with some countries like South Africa dominating the market with as much as 80 per cent of all African premiums, while others like Nigeria have only a 0.03 per cent penetration rate. Furthermore, the popularity of different insurance types varies across regions. For example, life insurance dominates in South Africa, whereas non-life insurance is not as prevalent in other parts of MEA.

Focus on wealthier individuals and larger companies: Due to the complexity and higher costs associated with targeting individuals in Africa and much of the Middle East, the focus of insurance companies has primarily been on wealthier segments of the population and established businesses. This approach neglects

Insurtech in the Middle East and Africa

Low investment in health insurance: Investment in health insurance, a critical component of the insurance sector, has been inadequate across both the Middle East and Africa. This underinvestment is evident not only in socioeconomically disadvantaged regions but also in affluent areas such as the Gulf countries. Despite having some of the highest rates of obesity and diabetes globally, the Gulf nations have been slow to prioritise healthcare. However, there has been a shift in recent years, with a growing emphasis on healthcare and overall well-being as part of broader economic development and diversification strategies, such as Saudi Vision 2030 and Qatar Vision 2030.

Lack of digitalisation – The insurance sector in much of the Middle East and Africa lags behind the West and other regions in terms of digitalisation. However, there is a growing recognition of the need for change. For example, a report by Capgemini indicated that two-thirds of insurers based in the UAE are eager to collaborate with insurtech companies, with 85 per cent expressing interest in partnering with technology providers.

Insurtech and broader digital initiatives have the potential to enhance the overall ecosystem by promoting digitalisation in day-to-day operations and advancing financial inclusion, especially in areas with significant insurance gaps across much of the Middle East and Africa (MEA). It’s noteworthy, as our analysis in Chapter Three will highlight, that insurtechs typically represent less than 10 per cent of the fintech sector in many MEA countries, trailing behind wealthtech and investment.

The growth of insurtech in the Middle East and Africa (MEA), much like in other regions, can be driven by either a government-led or market-led approach. A government-led approach involves initiatives to support insurtech startups, promote ecosystem development, and digitalise the sector. This approach also includes regulatory alignment to ensure effective oversight. Conversely, a market-led approach relies on organic growth driven by market demand and entrepreneurial innovation.

Currently, the insurtech landscape in Africa shows significant potential, with much of the growth being market-driven. The region boasts a substantial number of insurtech startups, particularly in the microinsurance and digital brokerage sectors. Additionally, there is growing interest in areas such as B2B data analytics, ancillary

revenues, insurance add-ons for small and medium enterprises (SMEs), and vertical Software as a Service (SaaS) solutions. These market-driven initiatives indicate a promising trajectory for insurtech development in Africa.

As noted earlier in the report, there has been a gradual shift in perceptions towards insurance in the MEA region, although it has been slower compared to other parts of the world. Accessibility to insurance has also improved, even in wealthier areas like the Gulf Cooperation Council (GCC) countries. Historically, insurance uptake in the GCC has been low, but efforts are underway to encourage greater participation and promote inclusivity, with the potential for further enhancement through increased government support.

Recent developments exemplify this trend. In Nigeria, the passage of the National Health Insurance Authority Bill 2022 aims to provide coverage for the 83 million impoverished Nigerians who cannot afford insurance premiums. This legislation is significant given that eight out of ten Nigerians currently lack access to health insurance. Similarly, in the GCC, Qatar has implemented mandatory health insurance requirements for specific foreign nationals and employers since 2022. Other Emirates such as Dubai and Abu Dhabi have enacted similar laws, addressing the need for broader insurance coverage.

However, despite these advancements, there are still untapped opportunities in the MEA region, particularly in Africa. Many existing insurtech companies in the region primarily serve as intermediaries or aggregators, heavily reliant on traditional brokers. Nonetheless, insurtech has the potential to further drive financial inclusion by expanding insurance coverage across the region. Continued innovation and collaboration, supported by both market forces and government initiatives, can play a crucial role in realising this potential.

Superapps in the Middle East and Africa

As highlighted in various key fintech subsectors, many companies in MEA have expanded beyond their initial focus to become superapps, offering a range of services beyond traditional fintech offerings. The growth of superapps in MEA can be categorised into two main groups.

■ Traditional non-fintech or non-financial institutions: These companies originated outside the fintech space, often in industries such as telecommunications, transportation, or delivery. Examples include M-Pesa, owned by Safaricom and Vodafone, which started as a telecommunications company but expanded into fintech, and Safeboda in Uganda and Yassir in Algeria, which began as ride-hailing apps but evolved into superapps offering services like ecommerce, delivery, and payments.

■ Fintech companies that expanded their offering: Some fintech startups initially focused on specific areas like payments, money transfer, or remittances but later expanded their services or moved into entirely different sectors. For instance, Livbank, a digital lifestyle bank in the UAE, began incorporating gametech and other components in 2020 to diversify its offerings and appeal to a younger audience beyond its core banking services.

e. Wider fintech ecosystem

The following overview is not exclusive to MEA and is reported in The Fintech Times: Middle East and Africa 2023 report. This section provides a broad overview of key components of the wider fintech ecosystem, with further details on each highlighted in Chapter Three:

Public sector

In the MEA region, the public sector, including entities such as central banks, free zones, and financial centre authorities, plays a crucial role in shaping the fintech landscape. Each fintech hub in MEA has its own central bank, which is responsible for monitoring and regulating the fintech sector. Additionally, other regulatory bodies, such as securities exchanges, contribute to establishing regulations and oversight.

One notable aspect of the MEA fintech ecosystem is the prominence of special economic zones. These zones offer favourable tax incentives and other benefits to attract investment and business growth. Special economic zones like the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) have significantly contributed to the region’s economic development by fostering a conducive environment for financial services and fintech innovation.

Media (fintech media)

Fintech media has experienced significant growth, both globally and within the MEA region, with a focus on regular discussions about fintech-related topics. In addition to established international fintech media outlets, there has been a rise in MEA-based media outlets that specifically cover fintech and related technology developments.

In Africa, notable examples include Big Cabel Media, headquartered in Nigeria, and Disrupt Africa, based in South Africa, which provide extensive coverage of fintech innovations and trends in the region. Similarly, in the MENA region, platforms like Magnitt, based in Dubai, serve as valuable sources of information and research on fintech developments.

Moreover, large global fintech media outlets, such as The Fintech Times, headquartered in London, have expanded its coverage to include the MEA region. Since 2020, The Fintech Times has become one of the most active sections, providing comprehensive content and attracting a significant viewership interested in MEA fintech developments.

Academia (degrees on fintech)

There has been a notable surge in global interest surrounding fintech and its broader digital landscape within academia. This heightened interest is evident through various academic endeavours, ranging from published reports to specialised courses, certificates, and even full-fledged degree programmes.

Notable organisations like the Milken Institute have contributed to this academic discourse by publishing insightful reports on fintech developments in the Middle East and North Africa. Several universities across the MEA region have also integrated fintechrelated topics into their curricula - Lagos Business School in Nigeria and several universities in the UAE, including Mohamed bin Zayed University and Ajman University, offer specialised master’s degree programmes focusing on AI and machine learning.

Financial

and other traditional institutions

Financial and other traditional institutions, including telecoms and remittance transfers, play a significant role in the broader fintech ecosystem in MEA.

Both MEA-founded and non-MEA multinational corporations (MNCs) have a presence in the region. This includes large telecom companies like STC and Etisalat in MENA, as well as MTN and Orange in Africa. Remittance transfer brands such as Western Union and MoneyGram, along with local brands like Al Fardan Exchange, also wield considerable influence in MEA.

Accelerators and incubators

Accelerators and incubators are vital components of the fintech ecosystem in MEA. In 2019, Africa boasted at least 618 hubs, with Nigeria, Kenya, Egypt, and South Africa leading in the number of different types of accelerators, incubators, and co-working spaces. In MENA, notable examples include Flat6Labs and Astrolabs. With the region’s emphasis on entrepreneurship and economic transformation, accelerators and incubators play an increasingly critical role in reshaping the region.

In the Gulf region, many accelerators and incubators serve as catalysts and offer their own programmes. Examples include DIFC’s Fintech Hive in Dubai, Hub71 in Abu Dhabi’s ADGM (with a broader startup focus), Bahrain FintechBay, Fintech Saudi, and Qatar Fintech Hub (QFTH).

Additionally, venture capitalists (VCs) are essential components of the fintech ecosystem in MEA, and their numbers are on the rise. MEA-based and/or focused VCs, such as Wamda Capital, Raed Ventures, and Jabbar in the Middle East, as well as Partech and Vantage Capital in Africa, are prominent examples. Other elements, such as mentors, are provided by accelerators and incubators or are integrated into the wider ecosystem.

THE DIRECT AND INDIRECT PLAYERS OF THE FINTECH AND WIDER DIGITAL ECOSYSTEM

Academia (degrees on fintech)

Fintech catalysts and associations

Fintech events & conferences

Source:: Richie Santosdiaz

Advisory (consultants)

Given the comprehensive economic development reforms underway, many consultancies have played pivotal roles in shaping these initiatives. This involvement spans a spectrum of firms, from major management consulting powerhouses like McKinsey, Bain, Boston Consulting Group (BCG), to the 'Big Four' accounting firms (EY, Deloitte, KPMG, and PwC), as well as niche consulting entities. Beyond traditional management consulting, these firms offer expertise in areas such as construction, engineering (especially in digital infrastructure), IT, and other factors influencing the economy.

In countries like Saudi Arabia, undergoing substantial transformations, consulting has become a significant industry. While the fintech sector is still relatively nascent compared to other regions globally, consulting firms are actively involved in shaping government strategies and supporting their implementation. Moreover, they assist financial institutions in the private sector with digital transformation initiatives, particularly in the affluent Gulf Cooperation Council (GCC) countries.

Legal (fintech lawyers)

The rising demand for regulatory technology, as previously mentioned, underscores the importance of legal expertise in navigating the regulatory landscape, whether fintech-related or not, across MEA. A variety of firms, both international and local, cater to the growing digitisation trend and the increasing role of fintech in the region.

Fintech lawyers with specialised knowledge and experience are essential for addressing the legal requirements of businesses, helping them navigate day-to-day operations, and addressing potential challenges.

Fintech catalysts and associations

Whether established by governments or inspired by government initiatives, fintech associations and catalysts have emerged across MEA, reflecting national efforts to cultivate a robust fintech ecosystem. For example, numerous fintech associations operate throughout the African continent, often operating under the umbrella of the Africa Fintech Network (AFN). Similarly, in MENA, fintech associations and catalysts have been established, notably including Fintech Saudi, created to bolster the fintech sector in the Kingdom of Saudi Arabia.

Other private companies and fintechs

Beyond the entities mentioned earlier, various private companies across sectors such as healthcare, agriculture, and logistics are increasingly recognising the need for fintech solutions or digital tools, which may include fintech applications.

Additionally, fintech firms themselves, whether native to MEA or originating from outside the region, are continuously shaping the private sector landscape throughout the region.

Fintech events and conferences

The region has witnessed a proliferation of fintech-related events and conferences, albeit mostly smaller in scale. These gatherings cover a range of topics within fintech and digital realms, including open finance/banking, payments, cryptocurrencies, and AI. Alongside fintech-specific events, larger technology-focused exhibitions like Seamless, GITEX and LEAP attract attention, showcasing a diverse array of technological innovations.

As fintech continues to evolve, so too will its wider ecosystem, which plays a crucial role in accelerating and innovating its growth. In today’s uncertain global economy, these developments are poised to address potential challenges and drive forward progress in the fintech sector.

e.The key takeaways

The vast geographical and economic landscape of the Middle East and Africa (MEA) significantly influences sectors like fintech. While there are similarities across the region, there are varying levels of development within the fintech sector, with some areas more advanced than others in terms of subsectors and overall ecosystem maturity. Although progress has been made, there is still ample room for further development.

Overview of fintech in MEA

■ The fintech landscape in MEA is diverse, boasting an estimated +3,700 fintech solutions in the region, with startups estimated to number at least +35,000. These fintechs include both MEA-founded companies and non-MEA entities that have expanded into the region.

■ The growth of Islamic fintechs has played a significant role in the region’s fintech ecosystem.

■ Payments, money transfers and remittances, lending, and wealthtech and investment solutions constitute around two-thirds of total fintech solutions in MEA. While payments dominate, there is increasing diversity across various fintech subsectors in MEA.

■ Despite challenges in the global fintech and wider economy, MEA has seen notable highlights in fintech, including:

■ Fintech is the most funded sector in the VC space – Countries such as Saudi Arabia and Francophone Africa have been attracting more investment – New unicorns in 2023 in fintech like in Saudi Arabia, UAE and Türkiye showcasing the maturity of the sector in the region – Fintech activity in MEA is concentrated in certain areas, mainly Israel, the big four African countries (Nigeria, Kenya, Egypt, and South Africa), Türkiye, and the GCC countries, particularly the UAE and Saudi Arabia.

Subsectors of fintech

■ Payments, money transfers and remittances continue to grow, with opportunities in digital wallets, BNPL,and mobile money.

■ Digital, challenger, and neobanks show potential, with examples like Tyme Bank in South Africa expanding beyond the region.

■ Gametech is emerging, driven by the young and mobile-savvy population in the region, with countries like Türkiye leading in global game development.

■ Wealthtech and investing have strong potential due to the region’s growing middle class and working class, along with cultural attitude shifts towards financial literacy and inclusion.

■ Regtech has the potential to grow, especially in a region where fintech growth is often led by government initiatives.

■ Digital currencies and cryptocurrencies are seeing significant activity, including CBDCs.

■ Open finance, particularly open banking, is making an impact, with increasing recognition of its importance across various levels of activities and planning.

■ Lending has become the second-largest subsector in MEA after payments, with many lending solutions also operating in other fintech subsectors.

■ Insurtech presents opportunities for increased financial inclusion, with a growing presence in MEA, although it still constitutes under 10 per cent of total fintech solutions in many parts of the region.

Rise of superapp

■ Necessity and innovation have led many fintechs to offer unique solutions in MEA. These include non-financial services institutions expanding into fintech, such as telecommunications and ride-hailing apps, as well as fintechs branching out into various subsectors like lending or gametech.

Wider fintech ecosystem

■ While there are similarities in key components of the fintech ecosystem worldwide, MEA is developing its own unique ecosystem to support fintech growth.

■ Chapter Three will provide an overview of key fintech hubs in the MEA region, highlighting the growth and development of fintech in these areas.

Matouk Bassiouny comprises 33 partners and over 200 lawyers across 7 jurisdictions – trained locally and internationally in common and civil law systems – fully conversant in Arabic, English, French and Korean.

info@matoukbassiouny.com

Chapter Three Fintech hubs of MEA

A: OVERVIEW

Chapter Three delves deeper into the Middle East and Africa region by analysing key fintech markets, reports and other research.

1. KEY CHANGES

The 2024 edition of The Fintech Times’ report introduces several key changes compared to previous editions:

■ Inclusion of new countries: Algeria and the Democratic Republic of the Congo (DRC) have been added as new countries, bringing the total to 25. These additions contribute to the diversity of the report, representing Francophone Africa and adding cultural angles such as Central African and North African perspectives.

■ Introduction of timelines: This report includes a country-specific fintech timeline of events to provide readers, both experienced and inexperienced, with insights into key government-led and marketled developments that have shaped each nation’s fintech ecosystem.

■ Comparison of fintech hubs’ growth: A comparison of fintech hub growth scores the progress of each of the 25 countries, so readers can assess how much each has grown, declined or stagnated in their fintech development.

■ Modification to scoring metrics: Notably, the evaluation of venture capital deals now focuses on total value rather than the number of deals per country. Additionally, the scoring for regulatory sandboxes has been simplified to a clear yes or no, without consideration for development status.

■ Identification of new overall MEA fintech hubs for 2024: The report identifies a new overall winner in the analysis of MEA fintech hubs. Additionally, other hubs have experienced significant growth and may have become future competitors. Moreover, two new entrants have been classified as tier-one fintech hubs, with one new entrant in the tier-two category.

2. SELECTING THE COUNTRIES IN MEA

The process for selecting countries and analysing their fintech ecosystems in the MEA region involved several steps:

■ Pre-filtration: The initial step included reviewing online coverage in The Fintech Times’ MEA section, along with primary and secondary data. This helped identify countries with notable fintech activity and economic development.

■ Country selection: Initially, a list of 22 countries was compiled for the first report in 2021. Ethiopia was later added in 2022, bringing the total to 23. Algeria and the Democratic Republic of the Congo (DRC) were included in the current report due to their growing fintech activities and economic development.

■ Diplomatic considerations: Known fintech activity, overall economic advancement, and reports covering the

MENA region, SSA, Israel and Türkiye were considered. This involved assessing economic development and advancements in technology and fintech.

■ Criteria for evaluation: The selected countries were further evaluated and ranked based on two main criteria:

Economic development: This criterion assessed the overall health, prosperity and advancement of each country’s economy.

Economic development related to digital and fintech: This criterion focused on evaluating the progress of digital and tech ecosystems, with a specific emphasis on understanding the fintech landscape in each country.

By following this systematic approach and considering key criteria, the report provided insights into the fintech ecosystems of selected countries in the MEA region.

3. GATHERING DATA

To confirm and rank the selected MEA countries, various indicators were applied, focusing on two main themes:

Indicator theme one: Economic development: Economic and social

A sample of economic and social indicators were used to understand the chosen MEA countries (total score weighted at 50 per cent overall), including:

Gross domestic product (GDP) per capita:

This indicator reflects the economic output per person in a country and provides insight into the standard of living. Countries with higher GDP per capita received higher scores.

Higher education enrolment: This indicator assesses human capital by considering the proportion of the population enrolled in higher education institutions. For the fintech sector, a highly skilled workforce is crucial, so countries with a higher ratio of college-educated individuals received higher scores.

Economic development: Tech and digital ecosystem

123

Number of startups: This indicator counts the number of startups in the country to gauge the strength of its tech and entrepreneurship ecosystem. A higher count means a higher score, indicating a stronger ecosystem.

Number of tech/startups (factoring in population):

This indicator takes into account the number of tech/startup companies per person and provides a holistic approach. The lower the number per person, the higher the score.

VC deals: This indicator quantifies the number of VC deals (total value $) in the ecosystem, reflecting investment activity crucial for fintech. It’s worth noting this indicator has been modified from previous versions of the study.

Economic development: Fintech

Regulatory sandbox: This indicator assesses the sophistication of the regulatory environment for fintech innovation. A country with a regulatory sandbox in place receives the highest score, while those without or still in development receive no score.

Entrepreneurship: The number of startups and entrepreneurial activity in a country, measured using data from the Global Entrepreneurship and Development Institute (GEDI). A higher score on the Global Entrepreneurship Index (GEI) indicated a more favourable environment for entrepreneurship and innovation, resulting in a higher score.

Ease of doing business: This indicator evaluates the regulatory environment and administrative processes for starting and operating a business. Countries with higher rankings in the World Bank’s Doing Business Report, indicating greater ease of doing business, received higher scores.

Population: The size of the country’s population was considered, with larger populations receiving higher scores.

Human Development Index (HDI): This indicator provides a comprehensive evaluation of a country’s development by considering factors such as life expectancy, education and income. Countries with higher HDI scores received higher scores in this category.

Indicator theme two: Economic development: Tech, digital and fintech

Sample data related to the tech and digital ecosystem, as well as fintech-specific information, were collected to calculate the score. The tech and digital aspect accounted for 20 per cent of the total weight, while fintech contributed 30 per cent.

Unicorns: This indicator evaluates the presence of unicorn companies in the country, signalling investor confidence and funding potential. The higher the number of unicorns, the higher the score.

Number of fintech companies – Similar to the tech/startup indicator, this measures the quantity of fintech companies in the country, reflecting the strength of the fintech ecosystem. A higher number of companies corresponds to a higher score. 123

Number of fintech companies per capita:

This indicator considers the density of fintech companies relative to the population, providing a comprehensive assessment. A lower ratio per person yields a higher score.

Bonus score: Economic development strategy (known)

A bonus score is awarded if a country has a comprehensive national economic strategy that includes promoting digital transformation. This additional score reflects a clear framework and commitment to fostering sectors like fintech.

4. SCORING MECHANISM AND SUMMARISATION OF THE FINTECH TIER CATEGORIES

The countries were evaluated using a 10-point scoring system, with one being the lowest and 10 being the highest score. Based on their scores, countries were categorised into three tiers:

■ Premier global hub (tier-one): Countries scoring from eight to 10, demonstrating exceptional performance across various indicators.

■ Emerging hub (tier-two): Countries scoring from 4-7.99, showing notable initiatives and future aspirations in fintech. This tier includes sub-ranks based on scores:

■ Highly-ranked emerging hubs: 7-7.99

■ Middle emerging hubs: 5-6.99

■ Lower-end emerging hubs: 4-4.99

■ Early stage, developing (tier-three): Countries scoring under 3.99, indicating an early stage of fintech development with potential for growth through investment and dedication. Countries with scores from 3-3.99 are considered on the higher end of the ‘market to watch’ list.

This ranking aims to provide a comprehensive assessment of each country’s economic development and fintech-specific progress. It emphasises the tier categories over individual scores and is not intended as a competitive ranking.

The report acknowledges that not every MEA country was analysed due to data limitations. It also highlights that the

data used is as of March 2023, with potential limitations due to Covid-19’s impact on data availability and accuracy. Further details of the scoring results are provided in the appendix.

B. COUNTRY ECONOMIC AND FINTECH BREAKDOWN LANDSCAPES

This chapter will provide an overview of each of the 23 selected countries in alphabetical order, starting with the Kingdom of Bahrain and concluding with the UAE. Each country section will cover the following points:

■ Country overview: This will focus on the country’s fintech and wider digital landscape.

■ Figures used: Details of the data used to calculate the country’s fintech hub status, including wider economic development indicators, digital and tech indicators, and fintech-specific indicators.

■ Fintech sub-sector/usage: If available, this section will highlight specific fintech sub-sectors or fintech usage trends within the country.

The Congo River in Kinshasa, Democratic Rep. of Congo

The Mosque-Madrassa of Sultan Hassan from the Citadel, Cairo, Egypt

The stunning World Trade Center building, Manama, Bahrain

1People's Democratic Repuplic of Algeria

CAPITAL AND FINANCIAL HUB Algiers

KEY

ECONOMIC DEVELOPMENT STRATEGY

Algeria’s National Vision 2030

ECONOMIC,

FINANCIAL

SERVICES AND FINTECH OVERVIEW

Algeria, despite facing its own challenges, is rich in natural resources like oil and natural gas, which significantly contribute to its economy. The economy has largely been state-controlled, and although Algeria is not a member of the World Trade Organisation (WTO), it participates in regional groups such as the Arab League and the Africa Continental Free Trade Agreement (AfCFTA).

Apart from the Bank of Algeria, the government lacks a specific framework focused on monitoring and supporting fintech startups. Financial inclusion is notably low in Algeria for both individuals and micro, small, and medium enterprises (MSMEs). MSMEs in particular have the lowest level of financial inclusion in the Middle East and North Africa region. Additionally, a significant portion of the population lacks access to bank accounts, with only a small percentage utilising digital payment methods.

Despite lagging behind other African nations like Tunisia and Morocco in the startup and tech sectors, Algeria has seen notable developments. Recently, the government allowed non-banks to provide payment services, a privilege previously exclusive to banks. This legislative change also paves the way for investment banks and digital banks to operate in the country.

In efforts to digitalise the banking system, two public entities, the GIE monétique and SATIM, alongside initiatives like the Algeria Startup Challenge launched by Nesrine Ziad, have played pivotal roles. The Algeria Poste, similar to Morocco’s counterpart, offers various fintech services, contributing significantly to

TIMELINE OF KEY FINTECH HIGHLIGHTS

2016 Algeria permitted financial institutions to onboard customers efficiently in compliance with AML and other KYC requirements.

2016 Algérie Poste launched the Edahabia card, which can be used to carry out all types of financial and commercial transactions via the internet, withdraw cash from ATMs and pay for purchases in shops equipped with Eftpos terminals

2020 Algerian Startup Fund created

2022 Algerian Super App Yassir Raises

$150million in Series B Funding

2022 The African Continental Free Trade Areat agreement (AfCFTA) rentered into force in July

2023 Law No23–09 – This new law introduces important provisions specifically addressing the operations of fintech, digital banks, and PSPs (essentially permitting fintechs in the country)

2023 Launch of the Algeria Fintech & E-commerce Summit

financial inclusion. To note, Algeria has a relatively high mobile and internet subscription rate, which in 2021 was at least 37 million mobile internet subscribers and over 3.5 million fixed-broadband Internet subscribers.

Algeria boasts a relatively high rate of mobile and internet subscriptions, with millions of subscribers in both categories. Fintech startups like Banxy (mobile-based bank), DFA (open banking platform), ESREF Pay (digital wallet), and Yassir (a superapp with banking features) are emerging in the Algerian fintech landscape, with Yassir becoming the country’s most funded startup as of 2023.

BREAKDOWN OF SECTOR

Fintechs in Algeria cover a wide range of subsectors, but are mainly focused around payments.

KEY ORGANISATIONS

■ Algerian Startup Fund – Sector-agnostic, pre-seed and seed stage focused investment fund offering tickets starting at $30,000 and going up to $145,000, Algerian Startup Fund also manages public funds allowing investments of up to $1million dollars on startups on later stages.

■ Bank of Algeria (BOA) – Central Bank of Algeria

■ Securities and Investments Organisation and Monitoring Commission (COSOB) – To organise and to oversee the securities market

■ Association Professionnelle des Banques et des Etablissements Financiers (ABEF) – Association for Banks and Financial Institutions in Algeria

■ Ministry of Post and Telecommunications – Mainly regulations telecommunications in Algeria including Algerie Poste

in millions 1,845,808

2Kingdom of Bahrain

CAPITAL AND

FINANCIAL

HUB

Manama (Ranked globally 76th)

KEY ECONOMIC DEVELOPMENT STRATEGY

Bahrain Economic Vision 2030

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

Bahrain’s rich historical legacy as a regional financial services hub continues to shape its present trajectory, positioning the Kingdom as a leading centre in the region. Pioneering economic diversification, Bahrain was the first in the Arabian Gulf to envision an economy less reliant on oil and gas.

With 364 licenced financial institutions as of December 2022, Bahrain boasts a dynamic financial landscape comprising international, regional, and local entities. The financial services sector, contributing over 16.8 per cent to Bahrain’s GDP as of September 2022, stands as a vital non-oil sector. Moreover, employing 13,697 people in 2021, the sector is a significant contributor to employment, with Bahrainis constituting over 66 per cent of its workforce.

In the realm of fintech, Bahrain’s focus lies primarily in payments and cryptocurrencies. The Central Bank of Bahrain (CBB) has spearheaded progressive regulatory reforms, including frameworks for crypto assets, digital financial advice, crowdfunding, e-KYC, and open banking, positioning itself as a legislative frontrunner in the Middle East. With over 34 incubators, accelerators, and co-working spaces, and nearly eight active investment entities, Bahrain’s fintech ecosystem fosters innovation and growth. Although diverse, Bahrain’s fintech landscape is predominantly characterised by payment and cryptocurrency solutions. Notable Bahraini fintech companies include Rain, a licenced crypto platform and custodian; CoinMENA, a Sharia-compliant digital asset trading platform; and Aion Digital, offering digital banking platforms for the banking and financial services sectors.

In the broader digital sphere, Bahrain’s retail banking sector stands out, leveraging the nation’s status as a regional financial hub. Banks have embarked on modernising their core banking systems to facilitate future development and the integration of value-added services. Third-party applications like BenefitPay capitalise on Bahrain’s robust infrastructure to connect with users and facilitate seamless transactions.

KEY ORGANISATIONS

■ Central Bank of Bahrain (CBB) – The Kingdom’s central bank. Since 2002, the CBB has been the single regulator and source for governance in the financial sector

■ Bahrain Fintech Bay – The first and largest fintech hub in the Middle East and main fintech catalys t

■ Al Waha Fund of Funds – a $100million venture capital fund that provides funding access to Bahrain’s startup industry.

■ Women in Fintech Bahrain (WIFBH) – an initiative to raise awareness of women’s role in fintech in Bahrain

TIMELINE OF KEY FINTECH HIGHLIGHTS

2018 Bahrain FinTech Bay, a fintech hub for the Middle East and Africa, opens

2018 CBB issued open banking rules and then framework on governance and sharing of data followed in 2020

2019 CBB created fintech unit to oversee the sector in the Kingdom

2020 The Central Bank of Bahrain introduced a virtual innovation platform for key players in the ecosystem through FinHub973, offering more than 430 APIs to develop banking and financial solutions

2021 25 fintechs in the regulatory sandbox from September

2021 Bahrain Supernova by CBB launches to solve challenges via fintech innovations (second edition the following year)

2022 Achieves +120 fintechs in the Kingdom (2022)

2023 Bahrain received permission to join the Gulf Region Payment System (CBDC success prior year was trial with JP Morgan – CBDC study work still going)

2023 BENEFIT, a fintech and electronic financial transactions services, has announced partnership to acquire Bahrain FinTech Bay (BFB), (Sept 2023)

2023 Bahrain hosts inaugural 'Fintech Forward"' event in October 2023

BREAKDOWN

Payments, transfers and remittances (27 fintechs)

Digital banks & banking platforms (5)

Cybersecurity & regtech (4)

Other (11)

1,495,066

3Democratic Republic of the Congo

CAPITAL AND FINANCIAL HUB Kinshasha

KEY ECONOMIC DEVELOPMENT STRATEGY

Plan National Stratégique de Développement (PNSD); Plan National du Numérique (PNN) – Horizon 2025

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

With nearly under 100 million people, the Democratic Republic of the Congo (DRC) boasts the fourth largest population in Africa and is home to the world’s second largest rainforest. However, the country faces significant challenges in its economic development, exacerbated by political and security issues in 2017 and prior. Despite its natural resources and vast potential, the DRC remains largely underdeveloped, particularly in its infrastructure and digital ecosystem.

Mobile penetration in the DRC is under 40 per cent, and broadband connectivity is barely at 10 per cent. Approximately 80 per cent of the population lives below the poverty line, highlighting the severe economic disparities within the country. Financial inclusion rates are low, with an estimated 26 per cent of the population having access to formal financial services, driven primarily by remittances and informal savings. MSMEs face even greater challenges, with an estimated 95 per cent financial gap in 2017.

Cash remains the dominant form of payment in the DRC, with 90 per cent of transactions conducted in cash. Digital payment options are limited, with fewer than a quarter of businesses accepting digital payments, and only five per cent of the population having access to a bank account, let alone digital payment methods.

Despite these challenges, progress is being made through government initiatives and investments from multinational corporations. The DRC government has prioritised digitalisation, implementing strategies such as the DRC Financial Inclusion Roadmap 2016-2021 and the Plan National du Numerique (PNN) – Horizon 2025. In 2022, the DRC passed a new Startup Act to support its burgeoning startup ecosystem.

Multinational corporations like Visa and Mastercard have shown interest in investing in the DRC. Visa opened a branch office in Kinshasa in 2022 and projected significant growth in credit card adoption within the country. Mastercard is collaborating with Rawbank’s fintech division, illicocash, to introduce virtual

card programmes. Even telecommunications companies in the DRC are venturing into electronic banking. Despite lagging behind some of its African neighbours, startups and fintechs in the DRC are experiencing growth. In 2022, the DRC raised $62million in startup funds, contributing significantly to the region’s startup funding growth. Fintech companies like Bcecoloans, Tuma, Maishapay, and Maxicash are operating in the DRC, providing microfinancing and payment solutions to address the country’s financial challenges.

BREAKDOWN OF SECTOR

The majority of fintech activity in the DRC primarily revolves around payments and transfers, with additional activities focusing on credit, savings and investment.

TIMELINE OF KEY FINTECH HIGHLIGHTS

2002 Law no003/2002 February relates to the activity and control of Credit Institutions in DRC; also rule passed requiring all credit institutions had to be members of Asociation Congolaises des Banques

2015 Plan National Stratégique de Développement (PNSD) was launched to boost economic development

2016 The DRC launched its Financial Inclusion Roadmap 2016-2021

2019 Plan National du Numérique (PNN) – Horizon 2025 to foster digital transformation

2020 Telecommunication Framework Law promulgated in November, which prevented large-scale investments in a fragile environment (missing aspects of data protection and cybersecurity standards)

2021 New Startup Act was introduced in December

2022 Startup Act became law

2023 DRC raised $62million in startup funds, most not just for DRC but Central African region that year

2023 Tuma, DRC fintech, raised largest funds ever for a DRC fintech startup at $500,000 (which included Visa for example)

2024 New Congolese Fintech Network (CFN) with support by government and at least 15 fintechs

Addis Abeba city, the capital of Ethiopia

Tel Aviv's skyline, Israel City centre in Accra, Ghana

4 Arab Republic of Egypt

CAPITAL AND FINANCIAL HUB Cairo

KEY ECONOMIC DEVELOPMENT STRATEGY

Egypt Vision 2030; Financial Inclusion Strategy 2022-2025

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

As one of the largest countries in the MEA region, with a population exceeding 100 million people, Egypt occupies a unique position both geographically and culturally, straddling the Middle East and Africa. However, unlike its wealthier Gulf Cooperation Council (GCC) counterparts and other African nations reliant on oil and gas, Egypt’s economic focus has shifted towards its historical relics, particularly tourism, and the Suez Canal, a vital artery for international trade.

Given Egypt’s status as a low to middle-income country and its sizable population, it’s no surprise that the nation ranks among the top five globally for remittances. Moreover, with over a third of its adult population still lacking access to financial services, there are ample opportunities for fintech to address financial inclusion, especially considering that half of Egypt’s economy operates within the informal sector. The country has faced significant economic challenges in recent years, including the impact of Covid-19, a decline in tourism due to geopolitical tensions, and regional conflicts such as those involving Russia, Ukraine, and Gaza.

Within fintech, Egypt has witnessed notable advancements. Fintech investment in the country soared to $796.5million in 2022, a remarkable 51-fold increase compared to 2019. The proliferation of payment solutions is evident, with over 57 million cards, 30 million mobile wallets, nearly one million point of sale (PoS) devices, and 680,000 QR codes facilitating transactions. Internet and mobile banking usage have also surged, with over 14 million internet banking users and 13 million mobile banking users recorded in 2022.

The government has played a supportive role in fostering the fintech sector, exemplified by initiatives like the Financial Inclusion Strategy 2022-2025. Notable fintech players in Egypt include Fawry, the Arab world’s first fintech unicorn, and MTN-Halan, Egypt’s second fintech unicorn. Paymob is another key player offering a range of solutions, including POS systems, payment links, and salary payouts.

TIMELINE OF KEY FINTECH HIGHLIGHTS

2019 CBE introduced ‘less-cash payment law’ in collaboration with the National Payments Council, obliging juridical or natural persons to pay governmental entities using non-cash methods whenever the payments’ value exceeds 500 EGP

2019 CBE issued regulatory sandbox

2020 Fawry becomes Egypt's first (and the Arab world's first) fintech unicorn

2020 Egypt passes its ‘Fintech Law’ aiming to govern the provision of non-banking financial services (NBFS) through technology mediums through FinHub973, offering more than 430 APIs to develop banking and financial solutions

2021 Regulations of Instant Payment Network was issued with the aim to define the framework of banks’ work and mobile phone applications for service providers on the Instant Payment Network (IPN)

2022 Egypt’s largest national banks: Banque Misr, National Bank of Egypt, and Banque du Caire partnered with Global Ventures, a venture capital firm to create a new fintech fund, which has invested in at least eight startups

2022 Financial inclusion strategy for 2022-2025 launched

2022 Egypt’s largest national banks: Banque Misr, National Bank of Egypt, and Banque du Caire partnered with Global Ventures, a venture capital firm to create a new fintech fund, which has invested in at least eight startups

2023 Guidelines on digital banks launched

2023 CBE intends to allow opening of bank accounts via mobile in 2024

2024 The FRA streamlined the path for fintech startups in Egypt with the issuance of Decision No. 268 of 2023. announced on 8 January growth in the sector and boosting the national economy

2024 CBE announced plans to launch a digital currency by 2023

112,716,598

636,817

5Federal Democratic Republic of Ethiopia

CAPITAL AND FINANCIAL HUB

Addis Abeba

KEY ECONOMIC DEVELOPMENT STRATEGY Ethiopia Digital Payments Strategy (EDPS), Digital Ethiopia 2025

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

Conflict and current economic challenges have impeded Ethiopia’s development. Nevertheless, the country’s large population, the second-largest in Africa after Nigeria, presents significant opportunities, especially considering that the majority (65 per cent) of Ethiopians remain unbanked. Additionally, Ethiopia recently joined the BRICS alliance, signalling its aspirations for economic growth and cooperation on the global stage.

In recent years, Ethiopian banks have increasingly adopted technology, evident in the rising use of mobile and internet banking among customers. Transactions via internet banking surged from ETB1.8billion ($25million) in 2017/18 to ETB15billion ($290million) in 2019/20. However, cash transactions still dominate, with over 98 per cent conducted in cash, and more than 80 per cent of Ethiopians still rely on physical bank branches for withdrawals.

Mobile money, a transformative force for financial inclusion across Africa, is gaining traction in Ethiopia. In late 2022, Safaricom Ethiopia was granted a licence to operate M-Pesa mobile money services in the country, following regulatory revisions allowing foreign investment in mobile money. Previously, Ethiopia’s mobile money service, Telebirr, was exclusively offered by Ethio Telecom.

The Ethiopian government aims to increase financial inclusion to 70 per cent of adults by 2025, with a focus on scaling digital payments through mobile money services. The goal is to elevate digital payment usage from 20 per cent of adults in 2020 to nearly 50 per cent by 2025, as outlined in a research paper by the GSMA.

Notable fintechs in Ethiopia include ArifPay, offering smartphone-based POS payment solutions; Hellocash, a mobile money service provided by banks and microfinance institutions; Kifiya, dedicated to leveraging digital solutions for societal improvement; and Telebirr, Ethio Telecom’s mobile money service developed in collaboration with Huawei.

BREAKDOWN OF SECTOR

“Ethiopia’s fintech sector is dominated by payments solutions including mobile money. Out of a sample of nine fintech solutions from the country, nearly all of them, bar one, were in this sub-sector”

KEY ORGANISATIONS

■ National Bank of Ethiopia (NBE) – The central bank of the country

■ Ethiopian Health Insurance Agency – Autonomous federal government organisation with the objective of implementing health insurance system in Ethiopia

■ Ministry of Innovation and Technology – Government agency responsible for science and technological development in Ethiopia as well as a governing body of communications

■ Association of Ethiopian Insurers (AEI)

– The voice of the Ethiopian insurance industry

■ Ethiopian Digital Transformation Program Association (DTEA)

– An association that serves as a network and voice for the digital economy and entrepreneurs around Ethiopia

■ Ethiopian Youth Entrepreneurs Association – Supports and empowers the entrepreneurial interests of its members and youth entrepreneurs in Ethiopia

■ Ethiopian Investment Commission – Its mandate is to promote investments in the country

TIMELINE

2014 National Financial Inclusion Strategy – I – 2014-2020 implemented. Until 2020 – both foreign and domestic companies were not allowed to provide digital financial services in Ethiopia until ban was lifted this year.

2021 National Financial Inclusion Strategy 2021-2025 II implemented.

2021 National Digital Payments Strategy 2021-2024 implemented.

2022 Ethiopia’s Parliament approved the opening of digital financial services to foreign companies, with an aim of the new regulation to expand financial services in geographic areas underserved by traditional banks, increase competition in the telecom industry, and facilitate the transfer of technology and knowledge.

2022 Safaricom became Ethiopia’s second official telecommunications operator.

2023 Safaricom launches m-pesa mobile money service in Ethiopia.

2023 (ongoing) Ethiopia further liberalises banking sector to further attract foreign investment.

Republic of Ghana

CAPITAL AND FINANCIAL HUB Accra

KEY ECONOMIC DEVELOPMENT STRATEGY

Ghana Vision 2020, Ghana Digital Agenda

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

Despite facing current economic challenges, Ghana is widely regarded as one of the most stable, democratic, and prosperous countries in West Africa. With over half of its population under 25 years old and a high urbanisation rate, Ghana stands out as a young and vibrant nation. It holds the distinction of being West Africa’s second-largest economy, following Nigeria.

Benefiting from relative prosperity compared to many African nations, Ghana has accelerated its digital agenda through initiatives like the Ghana Digital Agenda. This comprehensive plan encompasses projects such as the National Identification Card (Ghana Card), the Ghana E-Payment Portal (GEPP), and the Ghana Electronic Procurement System (GHANEPS).

Mobile money plays a significant role in Ghana’s fintech landscape, with transactions contributing over 80 per cent to the country’s GDP. In 2021, Ghana boasted 40.9 million registered mobile money accounts, with 17.5 million actively used. Notably, Ghana ranked third globally in mobile money usage in 2020, trailing only China and Kenya.

The country’s digitalisation drive has spurred the growth of fintech ventures. In a notable achievement, Ghana led Africa in finance app installations in 2021/22, experiencing a remarkable 200 per cent increase in installations, according to a study by AppsFlyer and Google.

In line with fostering innovation and financial inclusion, the Bank of Ghana introduced its Regulatory Sandbox in August, following a successful pilot phase. Developed in collaboration with EMTECH Solutions, the Sandbox reflects the Bank’s commitment to creating an enabling regulatory environment.

Prominent fintech companies from Ghana include Pennysmart, offering automated savings solutions; Bitsika, utilising blockchain technology for instant cross-border money transfers across Africa; and Paysail, a provider of payroll services. These innovative ventures exemplify Ghana’s growing fintech ecosystem and its potential to drive financial inclusion and economic growth.

34,121,985

BREAKDOWN OF SECTOR

Ghana’s estimated +100 fintechs are dominated by wider payment solutions; other non-payments include insurance, pensions, blockchain, security trading and assets management, agriculture, BNPL, loans and property.

TIMELINE OF KEY FINTECH HIGHLIGHTS

1997 Sika card was launched, which was an alternative to bank notes and cheques

2008 MTN Ghana launched first ever mobile money service

2018 Ghana Interbank Payment and Settlement Systems Limited (GhIPSS) was established (a subsidiary of the Bank of Ghana (BOG))

2019 Bank of Ghana’s National Payment System Strategy Plan (2019 – 2024) launched

2021 Bank of Ghana announced a pilot regulatory sandbox

2022 Ghana's parliament approved a new tax on electronic transactions effective 1st of May that same year

2022 GhIPSS launched the Ghana Pay Mobile Wallet, a bank-wide payment platform and a readily accessible mobile application

2022 Ghana’s Ministry of Communications and Digitalisation (MoCD) and the Postal and Courier Services Regulatory Commission (PCSRC) launched the African Continental Free Trade Agreement (AfCFTA) Hub for the purposes of encouraging digital trade and e-commerce and to create a conducive environment for technology and fintech start-ups and SMEs

2023 BOG launches regulatory sandbox with first cohort

2023 eCedi Hackathon ran and was hosted by the Bank of Ghana (eCedi is the CBDE of Ghana that was announced in 2021 as a pilot)

KEY ORGANISATIONS

■ Bank of Ghana – the central bank of the nation

■ Ghana Fintech and Payments Association (GFPA)

– the fintech hub and not-for-profit organisation

■ Ghana Investment Promotion Centre (GIPC)

– Ghana’s investment promotional agency

State of Israel

FINANCIAL HUB Tel Aviv (Ranked globally 48th)

KEY ECONOMIC DEVELOPMENT STRATEGY Digital Israel

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

Dubbed the ‘Startup Nation’, Israel has the highest number of startups per capita in the world. Israeli tech scene had many high points in 2021 and the first half of 2022, with Israeli startups alone raising $15.5billion in funding in the previous year. However, this amount is half of what was raised the year before, with cybersecurity taking the biggest hit.

In terms of last year, Israeli fintech companies during the first half of the year raised a combined investment of $617million, which is a 30 per cent decrease year-on-year. Despite that, this represented 35 deals, which is one more deal compared to 2022 in the same period. Compared to 2022, fintech companies in Israel, which were on track

2008 Payments Systems Law, 5768-2008: this law is not a ‘payments law’ but rather regulates the authorization of controlled payment service

2010 Part of the Treasury Ministry plan to promote the local high-tech industry (‘Competitive Advantage National Plan’), the state initiated a programme intended to encourage prominent global financial bodies to establish fintech R&D activities, which was still infant at the time

2021 Financial Information Services clarifies the obligations of the big banks to share consumer data with third-party applications (went into effect as law in June 2022) and establishes the Israel Securities Authority (ISA) as the regulator for financial information services

2022 Reports of the Bank of Israel to issue a digital shekel (ongoing) – as late as 2024 released design thinking of the potential CBDC

2023 New law was published to regulate payment and payment initiation services in Israel – to commence in June 2024

2022 Ongoing developments of the Digital Shekel – in 2023 completed Bank for International Settlement (BIS)-led interoperability tests: Project Icebreaker with the central banks of Sweden and Norway (which are outside the Eurozone) and Project Sela with Hong Kong Monetary Authority (HKMA)

9,273,396 Population

4,300,000,000

to raise $1.2billion last year, represents a 57 per cent decline from the previous year. Interestingly, in terms of new fintechs, Israel has seen an 85 per cent decrease in the establishment of new fintech companies in the country. Last year until October, only nine new fintech startups emerged, a far cry from the 61 established in 2022 and 82 in 2021.

Ongoing regional conflicts and other global challenges will impact the economy and, both direct and indirect, the fintech sector.

Examples of fintechs in Israel include: Earnix, a Global provider of Intelligent Insurance and Banking Operations through agile, composable and real-time solutions; Balance, a payments platform aimed at B2B merchants and marketplaces, and; Vestoo – the world’s first marketplace for Life and P&C insurance-based risk transfer.

BREAKDOWN OF SECTOR: FINTECHS IN ISRAEL

Trading & investment (22.8%)

Payment & money transfer (20.8%)

Enterprise solutions (16.3%)

Anti-Fraud, risk & compliance (13.4%)

Insurtech (11.9%)

Lending & finance (8.9%)

Other (5.9%)

0 5 10 15 20 25

KEY ORGANISATIONS

■ Bank of Israel – The central bank of Israel

■ Startup Nation Central – The prime connector and facilitator of Israeli innovation boosting business growth and generates impact

■ Fintech-Aviv – Mission is to help position Israel as the greatest financial technology ecosystem in the world

■ Israel Innovation Authority – The support arm of the Israeli government, charged with fostering the development of industrial research and development in the State of Israel

■ Fintech Ladies IL – A community that was formed for the empowerment of executive women in tech

■ Israel Insurance Association – Voice to overall promote the wider insurance industry

■ The Capital Market, Insurance and Savings Authority – Oversees financial services in the insurance, pension, and provident funds markets

The beautiful Kuwait City

Sunset over Amman, Jordan

Kenya’s capital Nairobi City at dusk

8Hashemite Kingdom of Jordan

CAPITAL AND FINANCIAL HUB Amman

KEY ECONOMIC DEVELOPMENT STRATEGY

Jordan 2025, Financial Technology & Innovation Vision

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

Despite its limited resources compared to neighbouring countries, Jordan boasts a diversified economy. Trade and finance account for nearly a third of its GDP, while transportation, communications, public utilities, and construction represent one-fifth. Mining and manufacturing also contribute significantly.

Jordan’s tech scene has experienced remarkable growth, with startup funding increasing by nearly 500 per cent in 2021 compared to the previous year. Despite its small size, Jordan has a vibrant entrepreneurial ecosystem. Around 27 per cent of tech entrepreneurs in the MENA region are Jordanian, despite the country making up only three per cent of the region’s population. However, many Jordanian entrepreneurs leave the country for better opportunities elsewhere. Jordanian startups have secured a total of $246million through 220 deals between 2018 and 2022, placing the country fourth in VC funding and rounds in MENA, behind only the UAE, Saudi Arabia, and Egypt. Notably, Jordan accounts for 23 per cent of total MENA technology entrepreneurs.

A significant percentage of Jordanians live abroad, estimated to be around 10 per cent, and remittances play a substantial role in the country’s GDP. Additionally, Jordan hosts millions of refugees, but only 12 per cent were estimated to have a bank account or mobile wallet in 2022. Overall, 43 per cent of adult Jordanians were estimated to have access to banking services or mobile wallets, with over 60 per cent having insurance.

In 2018, the Central Bank of Jordan (CBJ) launched one of the first Regulatory Sandboxes in the MENA region to foster innovation. Notable fintech companies in Jordan include MadfooatCom, specialising in

real-time payment processing solutions; Liwwa, the first peer-to-peer lending platform in the MENA region; and MEPS, a regional payment service provider catering to financial institutions, retailers, and corporations. These fintech ventures showcase Jordan’s growing prominence in the tech and innovation space in the MENA region.

BREAKDOWN OF SECTOR:

FINTECHS IN JORDAN

Payments, transfer & remittances (9)

Financial inclusion (5)

Robo advisors & personal finance (4)

Lending & capital (3)

Wealth management (2)

Insurtech (2)

AI and data analytics (2)

Crowdfunding & alternative investment (2)

Infrastructure & API (2)

Other (3)

KEY ORGANISATIONS

■ Central Bank of Jordan (CBJ) – The Kingdom’s central bank

■ Ministry of Digital Economy and Entrepreneurship – The body responsible for setting policies and legislation to regulate the information technology, communications and postal sector

■ Jordan Investment Commission – National investment promotional agency of the Kingdom

TIMELINE OF KEY FINTECH HIGHLIGHTS

2010 Permitting non-bank emoney issuers to operate in the Kingdom

2013 Launched JoMoPay, the Kingdom's national payments system to serve the unbanked and underbanked

2015 Issued an electronic transaction law

2017 Launched the National Financial Inclusion Strategy

2017 Launch of the Jordan Payments and Clearing Company (owned by the CBJ)

2018 Launch of the regulatory sandbox by the CBJ

2022 Jordan Payments and Clearing Company expanded operations to enable fintech innovation by launching JOIN Fincubator

2022 The Central Bank of Jordan launches ‘Open Finance Services Instructions’ – with plans to launch it in 2023/24; also study announced to determine feasibility of CBDC (ongoing)

2023 Jordan Payments and Clearing Company (JoPACC) has launched the JOIN Fincubator, a fintech incubator that will support the development of fintech startups in Jordan.

2023 CBJ launched its Financial Technology and Innovation Vision to support the development of micro, small and mediumsized enterprises (MSMEs) and improve financial inclusion

2024 JoPACC Launches the Jordan Open Finance Standards (in line with 2022 CBJ instructions)

9 Republic of Kenya

CAPITAL AND FINANCIAL HUB Nairobi (Ranked globally 95th)

KEY ECONOMIC DEVELOPMENT STRATEGY

Kenya Vision 2030, National Payments Strategy 2022-25

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

Kenya has emerged as a powerhouse not only in East Africa but also in the wider MEA region, with Nairobi, its capital and largest city, earning the moniker ‘Silicon Savannah’ due to its thriving tech ecosystem. The country has attracted significant investments from multinational companies as well as from the tech and fintech sectors, bolstering foreign direct investment, with notable players such as Microsoft and Visa making substantial commitments.

Kenya’s commitment to financial inclusion is evident through the widespread adoption of mobile money, notably its flagship export M-Pesa, which is estimated to contribute at least five to the country’s GDP. Kenya’s influence in popularising mobile money extends globally, with the country boasting the secondhighest penetration rate in the world, trailing only behind China. In the first 11 months of 2021 alone, Kenyans conducted 1.9 trillion mobile money transactions totalling over $55billion.

In addition to M-Pesa, Kenya is home to a vibrant fintech ecosystem. Examples include Apollo Agriculture, an online marketplace for farm loans, providing financial access to rural communities; Mara, an online platform offering digital wealth learning for cryptocurrency, catering to the growing interest in digital assets; and BitPesa, which facilitates cross-border money transfers through digital wallets, addressing the needs of individuals and businesses alike.

BREAKDOWN OF SECTOR: FINTECH IN KENYA

TIMELINE OF KEY FINTECH HIGHLIGHTS

2011 National Payment Systems Act

2012 Tax on mobile money introduced (later increased in 2018 and speculation in 2022 to further increase)

2019 The Financial Services Act (2019) – promotes innovation and competition in the financial services sector while safeguarding consumer interests through the licensing and regulation of fintech companies by the CBK.

2019 Data Protection Act

2019 CMA established Kenya’s Regulatory Sandbox framework

2022 The High Court of Kenya determined that regulation of payment service providers (PSPs) by CBK under the National Payment Systems Act extends to any persons engaged in any process in a payment system

2022 Enactment of the CBK Digital Credit Provider Regulations (the regulation of digital credit business)

2023 CBK warned customers that companies engaged in money transfer services without its licence were committing criminal offenses

2023 CBK following consultation previous year said does not consider the issuance of a digital currency a ‘compelling priority’; will continue monitoring developments in area to help future decisions for issuance

2024 (Pending as of March) expected Startup Bill 2022 to go into law

KEY ORGANISATIONS

■ Central Bank of Kenya – The country’s central bank

■ Kenya Fintech Association (FINTAK) – First non-for-profit organisation representing leading fintechs within Kenya

■ Digital Lenders Association of Kenya – A new member organisation incorporated in 2019 bringing together the leading digital-first loan providers and associated stakeholders

■ Capital Markets Authority – Is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence.

■ Insurance Regulatory Authority – Sole authority charged with regulation and supervision of the insurance industry within the Republic

55,101

State of Kuwait

CAPITAL AND FINANCIAL HUB Kuwait City (Ranked globally 80th)

KEY ECONOMIC DEVELOPMENT STRATEGY Kuwait Vision 2035

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

With the world’s sixth-largest oil reserves, the State of Kuwait has leveraged its resources to become a wealthy nation, with a historical reputation as a regional financial centre. Its financial system encompasses four main sectors: banking, insurance, other financial institutions, and investment funds, boasting over 100 financial institutions offering a wide array of products and services.

Banking in Kuwait is predominantly focused on retail business, with personal loans and financing accounting for 40 per cent of total facilities. The country has also fostered the growth of iconic tech companies, exemplified by the success of delivery app Talabat and e-commerce platform Boutiqaat.

A significant portion of Kuwait’s population aged above 15 holds accounts with financial institutions, with nearly a quarter possessing credit cards and over a third engaging in online purchases or bill payments. Moreover, an impressive 83 per cent of Kuwaitis express willingness to embrace fintech solutions.

In a move towards sustainability, the Central Bank of Kuwait (CBK) announced in late 2022 its prioritisation of ESG finance solutions within its regulatory sandbox. This strategic focus aims to encourage the testing of innovative sustainable fintech products and services, fostering the adoption of social and climate-related financial instruments within the Kuwaiti financial system.

Additionally, in 2022, the Competition Protection Authority received requests from three alliances to establish digital banks in Kuwait, involving seven listed companies. Officials have initiated assessments to gauge the potential competitive landscape resulting from these alliances.

Among the notable fintech companies operating in Kuwait are payment service providers like Tap Payments, Myfatoorah, and Ajar Online, reflecting the country’s commitment to embracing innovative financial solutions.

KEY ORGANISATIONS

■ Central Bank of Kuwait – The country’s central bank

■ Kuwait Banking Association – Focuses on member bank coordination and collaboration to resolve any issues

■ Capital Markets Authority – The capital markets authority of the country

■ Insurance Regulatory Unit – Regulates insurance market activities in a manner that is fair, transparent and competitive

■ Kuwait Direct Investment Promotion Authority

– Country’s investment promotional agency

BREAKDOWN OF SECTOR: FINTECHS IN KUWAIT

Peer-to-peer money transfer (44%)

Accounts aggregation (17%)

Crowdfunding (9%)

Connected health (8%)

Other (22%)

OF KEY FINTECH HIGHLIGHTS

2018 The ‘E-Payment Regulation’ was issued by CBK

2018 CBK launched the Regulatory Sandbox Framework (broadened in 2019 for more services and products)

2019 $200million tech fund was launched to power technology investment

2021 Kuwait automated settlement system for interparticipant payments (KASSIP) was launched

2022 CBK tests a first-of-its kind product for open banking within the Regulatory Sandbox.

2022 Open Banking Working Group was launched

2023 CBK in May issued new instructions for regulating electronic payment of funds in the State (‘2023 CBK Instructions’); this replaced the previous 2018 instructions (topics discussed included the likes of BNPL)

2023 Kuwait Capital Markets Authority in July launched circular prohibiting use of all virtual assets as a payment tool/ current or recognizing that as a decentralized currency

2023 MOU with Ripple to explore cross border payments (further development of CBDC)

125,417,534 Population

The Mohammad Al Amin mosque in downtown Beirut, Lebanon

Port Louis, the capital of Mauritius

Old Medina City centre in Casablanca, Morocco

11 Republic of Lebanon

CAPITAL AND FINANCIAL HUB Beirut

KEY ECONOMIC DEVELOPMENT STRATEGY N/A

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

A combination of ongoing economic and political turmoil, compounded by other challenges, has resulted in Lebanon’s downgrade from an upper-middle-income economy and a regional financial services hub to a lower-middle-income country. This decline has been stark, with GDP per capita plummeting by at least 35 per cent from 2019 to 2021 alone.

Lebanon’s banking sector, once renowned for its regional prominence, now operates under informal capital controls, severely limiting lending and deposit attraction. The country’s payment system is fragmented, distinguishing between pre-October 2019 US Dollar deposits and newer ‘fresh dollar’ inflows. Long queues for limited cash withdrawals are a common sight, exacerbated by hyperinflation of the Lebanese Pound, leading to a widespread dollarisation of the economy.

Historically, Lebanon has relied heavily on remittances, which have consistently contributed a substantial portion – 28 per cent – of its GDP. Despite its current crisis, Lebanon was once a thriving hub for startup funding in the MENA region, ranking among the top three recipients. The Lebanese populace has also displayed a willingness to embrace new technologies, with over half adopting digital banking by 2017 and the country ranking second in the region for exclusive mobile banking usage in 2016.

Fintech adoption in Lebanon has largely been organic, with less legislative or government-backed support compared to other regional counterparts. Mistrust of traditional financial institutions has driven the popularity of e-wallets and cryptocurrencies, a trend supported by the government’s authorisation of at least 13 licences for e-wallet providers as of November.

Notable fintech companies originating from Lebanon include Capital Banking, offering comprehensive software solutions for banking, wealth management, and compliance; PinPay, providing a smartphone app for mobile payments; and Neotic, developing AI-enabled platforms for automatic trading strategies and recommendations. Despite its current challenges, Lebanon’s fintech sector continues to demonstrate resilience and innovation amidst adversity.

TIMELINE OF KEY FINTECH HIGHLIGHTS

Lebanon has some key legislation pertaining to fintech as a whole:

PRE-2020

2000 BDL Basic Circular 69/2000 on Electronic Banking and Financial Transactions;

2017 BDL Basic Circular 144/2017 on Prevention of Cybercrime

2018 Electronic Transactions and Personal Data Law, which regulates electronic payments and money transfers, bank cards and electronic checks, and vests the BDL with extensive authority with regard to the issuance and regulation of electronic and digital money.

2021-2022

POST-2023

It is worth nothing the economic and political challenges of Lebanon that began in its current state from 2019, seeing a devaluation of the Lebanese pound and loss of trust in much of the traditional banking services saw an increase organically in the demand for subsectors in fintech such as ewallets and also cryptocurrencies.

2023 Central Bank of Lebanon (Banque du Liban) had greenlit 13 eWallet providers, with more awaiting approval 2023 (2024 ongoing) it appears the worst of the Lebanese economic crisis where it had/s one of the highest inflations in the world might finally be improving.

BREAKDOWN OF SECTOR

The country as a whole offers opportunities not just in fintech but in its sub-sectors too, such as insurtech, e-payment and paytech.

KEY ORGANISATIONS

■ Banque du Liban – Country’s central bank

■ Capital Market Authority – Lebanon’s capital market authority

■ I nsurance Control Commission (ICC) – An independent institution, in charge of maintaining an efficient and stable Insurance market in the country

■ Investment Development Authority of Lebanon

– Lebanon’s investment promotional agency

■ Union of Arab Banks – Organisation responsible for fostering cooperation between Arab banks, developing of Arab financial business, and enhancing the financing role of Arab banks in the Arab World

Republic of Mauritius

CAPIPTAL

AND FINANCIAL HUB Port Louis (Ranked globally 61st)

KEY ECONOMIC DEVELOPMENT STRATEGY Mauritius Vision 2030

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

Situated in the Indian Ocean, this island nation boasts a unique advantage with many of its citizens fluent in both French and English, making it a strategic gateway between Africa and South Asia. Over the years, Mauritius has ascended to the status of an upper-middle-income country, proudly holding one of the highest GDP per capita figures on the African continent.

With a clear vision outlined in its economic development strategy, Mauritius aims to transition to a high-income status by 2030, leveraging its political stability, abundant resources, and pivotal location. Central to this strategy are investments in highly skilled employment, infrastructure, and digitalisation, which are anticipated to propel the nation forward over the next decade.

Mauritius’s financial services sector stands as a testament to its progress, recognised for its robust development and strong capitalisation. The nation has diligently cultivated an investor-friendly environment while adhering to global standards of compliance. Contributing significantly to Mauritius’s total GDP, the financial services sector accounts for 13 per cent of the country’s economic output and provides employment opportunities for over 8,600 individuals.

In a bid to further bolster economic growth, the Mauritius National Budget 2021-2022 outlined several measures, with a particular focus on fintech and digital advancement. Initiatives such as the establishment of an Open Lab by the Bank of Mauritius (BoM) for banking and payment solutions, along with the creation of a Fintech Innovation Lab by the Financial Services Commission (FSC), underscore the nation’s commitment to fostering entrepreneurship. Notably, the BoM’s announcement of a pilot rollout for a Digital Rupee, a central bank digital currency (CBDC), marks a significant milestone in Mauritius’s digital evolution.

Among the fintech ventures emerging from Mauritius are Flash, offering app-based money management and wallet services; Limit Markets, a versatile multi-asset trading platform; and Learnleapology, an innovative online investment trading platform.

BREAKDOWN OF SECTOR

Subsectors in Mauritian fintech include payments and processing, remittances, blockchain and cryptocurrencies, security and fintech tools.

KEY ORGANISATIONS

■ Bank of Mauritius – The central bank of the country

■ Financial Services Commission (FSC) – The country’s financial services regulator minus banking institutions and global business

■ Mauritius Fintech Hub – Launched in 2018 with the objective to promote Mauritius as the Fintech Innovation Hub for the African continent

■ Mauritius Economic Development Board

– The country’s main investment promotional agency

■ Insurers’ Association of Mauritius – Set up in 1972 as the voice for the insurance industry

■ Mauritius International Financial Centre (IFC)

– An internationally recognised jurisdiction and home to international banks, legal firms, corporate services, investment funds and private equity funds

2016 Mauritius Board of Investments launches its sandbox

2019 Mauritius offered a dedicated regulatory landscape for the safekeeping of digital assets

2020 Financial Services Commission of Mauritius (FSC) issued guidance on Securities Token Offerings (STOs) and Security Token Trading Systems

2020 Law changed for the Bank of Mauritius (MoM) to be able to issue digital banking licences and to also issues a digital currency

2020 Fintech roundtables were launched to open discussions about opportunities and challenges in sector

2021 Virtual Asset and Initial Token Offering Services Act (‘Act’) enacted in December has been enacted in order to provide a regulatory framework for the Fintech sector in Mauritius

2021 BoM published guidelines on licensing of digital banks

2022 Cryptoassets became legal; also FSC published guidelines on non-fungible tokens (NFTs)

2023 First committee meeting on the draft fintech policy guidelines for Mauritius (ultimately a national fintech strategy) with the UNECA

2023 November saw the Financial Services Commission (FSC) of Mauritius launch its fintech and innovation webpage and updates on the regulatory sandbox guidelines

1,301,609

POST-2023

OF KEY FINTECH HIGHLIGHTS

13 Kingdom of Morocco

FINANCIAL HUB Casablanca (Ranked globally 56th)

KEY ECONOMIC DEVELOPMENT STRATEGY Maroc Digital 2020

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

The Kingdom relies heavily on the export of raw materials and select agricultural products like citrus, alongside sectors such as tourism and telecommunications.

Historically, Morocco operated on a predominantly cash-based system with significant financial exclusion. However, digitalisation, particularly accelerated during the pandemic, has reshaped the financial landscape. According to the 2017 World Bank’s Global Findex Report, only 29 per cent of adults had a bank account. By 2021, this figure surged to 44 per cent, reflecting the rapid adoption of digital financial services. Concurrently, cash usage has declined, with 43 per cent of consumers indicating reduced reliance on cash for in-store transactions.

Conversely, digital payments have witnessed a surge, with nearly half of consumers (49 per cent) reporting increased usage. This shift appears to be enduring, with 46 per cent expressing a preference for contactless payment methods in the future. Moreover, over four-fifths of consumers exhibit high levels of confidence in contactless cards.

Banks constitute a significant portion of Morocco’s financial system, with entities like Groupe Banque Populaire and Attijariwafa ranking among the largest banks in Africa. Traditional financial institutions are investing in new technologies to remain competitive, with many adopting fintech services such as mobile banking and digitised platforms.

Morocco boasts a mature mobile market, evidenced by a penetration rate of 137.5 per cent. Maroc Telecom, Inwi, and Orange stand as the Kingdom’s three major telecom providers. Internet penetration reached 83 percent in 2020, marking a significant increase from 71 per cent in 2019. Given the sizable Moroccan

diaspora, remittances play a pivotal role in the country’s economy, contributing to almost eight percent of GDP. Prominent fintech ventures originating from Morocco include OnePay (specialising in online bill payments), MeilleurCreditmmo (an online comparison platform), and SYPEX (offering trade management solutions).

BREAKDOWN OF SECTOR

Payment, remittance and POS systems are the most developed segments in terms of fintech subsectors in Morocco; crowdfunding, personal financial management, lending and data analytics are other subsectors.

TIMELINE OF KEY FINTECH HIGHLIGHTS

2013 Bank Al Maghrib (BAM) set up the Moroccan Foundation for Financial Education,

2014 Banking Law by BAM, payment institutions with a scope of activity limited to small-value transactions

2014 Before 2014 only Maroc Telecommerce was authorised to process online credit card payments in the country (monopoly ended and others like AmanPay, PayZone and F-Pay entered)

2015 BAM passed the first banking law (first since 2006)

2018 National Financial Inclusion Strategy (NFIS) was launched by BAM

2022 According to BAM, the number of access points to financial services reached 31,515, up 18 per cent compared to a year earlier

2022 BAM announced that it is keen ‘not to limit innovation and protect citizens from the various risks associated with the field;’ potentially signaling a change

2023 In June, BAM launched instant interbank transfers, a new electronic payments service enabling the transfer of money in under 20 seconds between accounts at different banks

2023 In January, a policy was introduced to allow tax authorities to gain access to bank accounts formerly obscured because their owners reside outside of Morocco.

KEY ORGANISATIONS

■ Bank Al-Magrib – Country’s Central Bank of Morocco

■ Morocco Fintech Association – Main fintech association of the country

■ Supervisory Authority of Insurance and Social Welfare (ACAPS) – Authority overseeing the insurance sector

■ Moroccan Capital Market Authority (MCMA)

– Authority for capital markets

■ Maroclear - Central Securities Depository in Morocco since 1997

■ Moroccan Investment and Export Development Agency

– Country’s investment promotional agency

■ Casablanca Finance City Authority – An economic and financial hub aspiring to become a bridging platform between the north and the south

Tinubu Square on Lagos Island, Nigeria

Mutrah Corniche, Muscat, Oman

The skyline of Doha city centre at sunset, Qatar

14 Federal Republic of Nigeria

FINANCIAL HUB Lagos (Ranked globally 100th) KEY ECONOMIC DEVELOPMENT STRATEGY Nigeria Agenda 2050, Nigeria Payments System Vision 2025 (psv 2025)

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

The largest country in Africa by population, Nigeria’s economy has historically relied on oil. However, as a middle-income country with much economic potential, the country is at a crossroads to further develop.

Besides having the largest population in the MEA region, half of Nigeria’s population is under 19 years of age, and over 65 per cent are under 35 years old. According to Hootsuite, there are over 187 million mobile connections (90 per cent of its population); 10 to 20 per cent of the population have smartphones while the rest are using traditional mobile phones. However, it is a nation of contrasts, as half the population does not have internet and many are still financially excluded.

Nigeria often is one of the biggest VC recipients in the continent. For instance, in the first quarter of 2002, Nigeria had the most at $600million. In terms of key developments in fintech, there are several: Nigeria introduced a digital central bank currency called the e-Naira, released the exposure draft of Opening Banking in 2022, and the CBN ordered all banks to stop transacting with entities dealing in cryptocurrency.

Despite this, cryptocurrencies are very popular in Nigeria. Many point out that the 2016 economic recession in the country could have caused Nigerians to flock to digital currencies. This change in behaviour propelled Nigeria to have the largest crypto market in Africa by 2019 and one of the largest user bases in the world. Cryptocurrencies have remained popular despite the ban. A report by KuCoin showed that at least 33.4 million Nigerians aged between 18 and 60 had invested in digital assets in the past six months.

Nigeria, as mentioned earlier in this report, has the most fintech unicorns in Africa. Examples of fintechs (and unicorns) include Flutterwave (which has seen better days with recent controversy) and Interswitch; other non-unicorn fintechs include the likes of Piggyvest.and innovation amidst adversity.

BREAKDOWN OF SECTOR: FINTECHS IN NIGERIA

Payments (28%)

Lending (25%)

Software solutions (15%)

Wealthtech (11%)

Other (21%)

KEY ORGANISATIONS

■ Central Bank of Nigeria – Country’s central bank

■ Securities and Exchange Commission of Nigeria

– Country’s security and exchange commission

■ National Insurance Commission (NAICOM)

– Commission to oversee the insurance sector

2014 International Money Transfer Services

2015 Guidelines of Mobile Money Services; Guidelines on Int’l Mobile Money Remittances Service; Guidelines on Mobile Money Services

2018 Regulation for Bill Payments; Guidelines for Licensing & Regulation of Payment Service Banks

2019 Electronic Payments and Collections for Public and Private Sector

2020 Framework for Regulatory Sandbox Operations (‘Sandbox Operations Framework’) (in December 2022 the public was invited to take part via expression of interest); also Guidelines on Operations of Electronic Payments Channels

2021 CBN Regulatory Guidelines on the e-Naira – also first regulator in Africa to introduce a Regulatory Framework for Open Banking earlier that same year

2021 SEC Crowdfunding Rules

2022 Nigeria Startup Act 2022 – framework for regulation and development of fintech startups

2022 Nigerian Exchange Technology Board Listing Rules

2022 Nigerian Payment Systems Vision 2025 launched by CBN (prior was 2006 with PSV2020); also announced plans to set up a national domestic card scheme, the first central bank-led national card scheme In Africa

2023 CBN Operational Guidelines for

2023 Nigeria Data Protect Act

15 Sultanate of Oman

CAPIPTAL AND FINANCIAL HUB Muscat

KEY ECONOMIC DEVELOPMENT STRATEGY Oman Vision 2040

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

Oman has a rich historical legacy, once boasting a powerful navy and expansive empire that reached the eastern shores of Africa. Despite starting later in the oil and gas game compared to its GCC neighbours, Oman has successfully transformed its economy, aligning with the broader development trajectory of the Arabian Gulf region. With a significant portion of its population under the age of 29 and a substantial expatriate community, Oman’s future lies in diversification and reducing reliance on oil. Although Oman may seem like a latecomer to fintech compared to its GCC counterparts, initiatives such as Vision 2040 and broader digital transformation efforts are driving economic development, including in the fintech sector, especially underscored by the pandemic’s emphasis on digitalisation.

Several homegrown fintech companies have emerged in Oman, reflecting this evolving landscape. Examples include Split X, offering a buy now pay later (BNPL) solution; TelyPay, providing a secure digital platform for individuals and businesses; and Wadiaa, focusing on crowdfunding and crowd-investing. Thawani made history in 2020 by becoming the first non-banking financial entity to receive a fintech licence from the CBO, marking a significant milestone in Oman’s fintech journey.

KEY

ORGANISATIONS

■ Central Bank of Oman (CBO) – Country’s central bank

■ Capital Market Authority – Oman’s capital market authority

■ Oman Startup Hub (OSH) – A platform for startups, investors, advisors, and entrepreneurs

■ Oman Investment Authority – Country’s investment promotional agency

■ Sharakah – S closed-joint stock company incorporated by a Royal Decree in the Sultanate in 1998. Sharakah provides financial support and post-financial to SMEs in Oman

■ Oman Technology Fund – Aims to put Oman firmly on the map of knowledge leaders in the Middle East

■ Oman Banks Association (OBA) – A non-profile professional association for the country’s banking industry

2016

CBO launched the online payment getaway OmanNet, the central payment gateway in Oman

2018 Legal Framework of the National Payment Systems was issued by CBO

2019 Bank Muscat, the largest financial institution in Oman, announced a new $100million fintech investment programme

2020 CBO launched its Financial Regulatory Sandbox

2021 Financial Consumer Protection Regulatory Framework launched in December to protect those using FS 2022 Securities Law RD 46/2022 (the ‘Securities Law’) came into force and effect in June – Securities Law authorises the Capital Market Authority to regulate innovative financing, approval of fintech based apps and virtual investments

2023 CBO and Omantel, a provider of integrated telecommunications in Oman, delivered a six-month accelerator programme dedicated to nurturing and empowering fintech startups

2023 Ongoing Fintech Framework and Roadmap

TIMELINE OF KEY FINTECH HIGHLIGHTS

Shoppers at Mutrah Corniche, Muscat, Oman

Kigali City Tower at night, Rwanda

The city of Dakar, Senegal by the coast of the Atlantic ocean Al-Olaya in northern Riyadh, Saudi Arabia

16 State of Qatar

CAPITAL AND FINANCIAL HUB Doha (Ranked globally 88th)

KEY ECONOMIC DEVELOPMENT STRATEGY Qatar Vision 2030

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

The country’s economic diversification efforts extend beyond its natural resources into sectors such as sports, entertainment, financial services, and fintech, as part of its broader digital transformation agenda.

The Qatari government has been proactive in supporting the growth and development of the fintech sector, notably through initiatives like the Qatar Fintech Hub (QFTH). QFTH has emerged as a key player in the region, becoming the second-largest investor in MENA fintech by September 2022 and incubating over 60 entities valued at over $400million. Collaboration between QFTH, alongside other entities like the Qatar Development Bank (QDB), Qatar Financial Centre (QFC), and Qatar Central Bank (QCB), has been instrumental in driving the fintech ecosystem forward.

Recognising the importance of fintech for long-term economic development, Qatar has integrated fintech into its Second National Development Strategy 2018-2022. Moreover, the Qatar Investment Authority (QIA), the country’s sovereign wealth fund, has shown interest in fintech opportunities globally, along with ventures in venture capital and sustainability.

Among the notable fintech companies emerging from Qatar are CWallet, Loopay and Tiptiptop.

BREAKDOWN OF SECTOR

According to the From Qatar to the World: A report by QFTH, the four areas in focus are payments, regtech, Islamic finance and SMEs.

KEY ORGANISATIONS

■ Qatar Central Bank (QCB) – Country’s central bank

■ Qatar Financial Centre (QFC) – An onshore business and financial centre located in Doha, providing legal and regulatory services for local and international companies

■ Qatar Fintech Hub (QFTH) – A fintech hub with the purpose to support the development of the fintech industry

2,731,366

■ Qatar Financial Markets Authority (QFMA)

– Established under Law No. 33 of 2005 as an independent regulatory authority to supervise financial markets

■ Investment Promotion Agency of Qatar

– The country’s investment promotional agency

■ Qatar Development Bank (QDB) – Its vision is to develop and empower Qatari entrepreneurs and SMEs to innovate and compete internationally while contributing to Qatar’s economic diversification and the development of its private sector

2017 Qatar launches a fintech task force

2019 Fintech strategy announced with an established investment promotional agency (IPA) and other incentives to attract foreign direct investment (FDI)

2019 Qatar Fintech Hub (QFTH) by QDB with support of QCB was launched

2019 Over 800 fintechs, IT, tax and investment consulting firms part of QFC

2020 QFTH introduced its fintech and accelerator programmes

2021 Payment Service Regulation Framework comes into force

2022 Interest for CBDC announced and feasibility of it (ongoing) – 2023 signed MoU with DLP provider R3

2022 (Not directly fintech) Qatar hosts the World Cup, aimed to be a cashless experience for participants

2023 In March the QCB released its Qatar Fintech Strategy 2023”

2023 QFC issues consultation for introduction of a digital assets framework

2023 In October QCB issued instructions for the loan-based crowdfunding regulation; August invites companies to apply for licences to offer buy now pay later

2023 E-KYC regulation introduced October

2023 QFC unveils Digital Assets Lab (powered by QCB) to facilitate open innovation

2024 QCB plans to launch Fawran, its instant payment service (ongoing)

POST-2023

17 Republic of Rwanda

CAPITAL AND FINANCIAL HUB Kigali (Ranked globally 67th)

KEY ECONOMIC DEVELOPMENT STRATEGY Rwanda Vision 2050, National Strategy for Transformation 2017-24

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

Rwanda has emerged from its troubled past to become a beacon of progress and innovation, earning the moniker ‘Switzerland of Africa’ and positioning itself as a regional hub with ambitions for continental leadership. The country’s 2050 vision aims to propel Rwanda into a globally competitive, knowledge-based economy, with digital technology playing a central role in its growth trajectory.

At the heart of Rwanda’s economic transformation is its financial services industry, which includes a diverse array of banks and institutions. The establishment of the Kigali International Financial Centre (KIFC) underscores Rwanda’s commitment to becoming a financial powerhouse. KIFC’s recognition on the Global Financial Centres Index (GFCI) as one of the most promising financial centres in Sub-Saharan Africa highlights Rwanda’s rapid progress in this sector.

Despite its turbulent history, Rwanda has made significant strides in financial inclusion, with over three-quarters of the population now formally included in the financial system. Moreover, nearly 60 per cent of adults utilise more than three financial services, demonstrating a robust demand for financial products and services. The country has also embraced digital payments, with one-third of Rwandans making digital transactions annually.

Fintech companies like ADFinance, MobiCash, and Comza Africa are leading the charge in Rwanda’s digital finance revolution, offering innovative solutions to meet the evolving needs of consumers and businesses alike.

KEY ORGANISATIONS

■ National Bank of Rwanda – The country’s central bank founded in 1964

■ Rwanda Fintech Association – A fintech association promoting the industry in the country

■ Rwanda Development Board – Country’s investment promotional agency

■ Capital Market Authority – Rwanda’s capital market authority

■ Kigali International Financial Centre – An ecosystem of financial actors that will transform Rwanda into an international financial destination for investors

Payments and remittances (17)

Lending/financing (14)

Savings (8)

Enabling processes and technologies (8)

Insurance (5)

TIMELINE OF KEY FINTECH HIGHLIGHTS

2015 Smart Rwanda Master Plan

2015-2020 implemented

2017 Rwanda launches National Strategy for Transformation (2017-2024) to boost innovation in Rwanda

2018 Rwanda launches National Payment Strategy 20182024; also launches Rwanda Capital Market Masterplan 2018-2028; also launched open banking regulations

2019 National Financial Inclusion Strategy was launched in Rwanda

2021 Various laws pertaining to personal data, cybersecurity, and consumer protection passed

2022 Rwanda launched its fintech strategy with an implementation phase from 2022-2027

19.62%

44

57,301

2022 The Kigali International Financial Centre (KIFC) launched the first and only fintech-focused Africa Fund valued at $50million and backed by MyGrowthFund Venture Partners

2022 BNR launches regulatory sandbox – No 41/2022 of 13/04/2022 governing the regulatory sandbox

2023 Kigali hosted its ‘Inclusive Fintech Forum 2023’ in June, which was graced on stage by the President of Rwanda, Paul Kagame

2024 KIFC signs MOU with foreign partners such as with Abu Dhabi’s ADGM to foster partnerships and collaboration

BREAKDOWN OF SECTOR: FINTECHS IN RWANDA

18 Kingdom of Saudi Arabia

FINANCIAL HUBS Riyadh (Ranked globally 84th) and also the capital city Jeddah (historical commercial hub)

KEY ECONOMIC DEVELOPMENT STRATEGY Saudi Vision 2030

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

Saudi Arabia is undergoing significant economic development driven by its national strategy, Saudi Vision 2030. Central to this transformation is the creation of multiple giga-projects, including the King Abdullah Financial District (KAFD), a new mixed-use financial centre in Riyadh. Alongside physical infrastructure development, Saudi Arabia is prioritising the digital transformation of its financial services sector through initiatives like the Financial Sector Development Programme (FSDP).

The FSDP launched the Fintech Strategy Implementation Plan in 2022 to accelerate the growth of Saudi Arabia’s fintech sector and establish Riyadh as a global fintech hub. The ambitious plan aims to triple the number of fintech companies to 230 by 2025, increase digital transactions to 70 per cent within three years, and contribute $1.2billion to the GDP while creating 6,000 new jobs by 2025. By 2030, Saudi Arabia aims to have 525 fintech companies, generating nearly 18,000 jobs.

A key milestone in Saudi Arabia’s fintech journey is its push for open banking, with the launch of a new open banking framework by the Saudi Arabian Monetary Authority (SAMA) in 2022. The country also leads in venture capital funding in the MENA region, securing the top spot for the first time in 2022.

Saudi Arabia boasts one of the highest rates of mobile adoption in the region, with a strong embrace of digital technologies. Contactless payments, particularly through Near-Field Communication (NFC), are widely adopted, with a rate exceeding 94 per cent.

Fintech companies in Saudi Arabia, such as Tamara, Geidea, Lean Technologies, and Foodics, are at the forefront of innovation, offering solutions ranging from buy now, pay later (BNPL) services to point-of-sale (POS) systems and open banking infrastructure.

KEY ORGANISATIONS

■ Saudi Central Bank (SAMA) – Kingdom’s main central bank

■ Capital Market Authority – Country’s capital market authority

■ Fintech Saudi – Main catalyst promoting the fintech industry

■ King Abdullah Financial District (KAFD) – An under construction mixed used mainly new financial district in Riyadh

■ Saudi Investment Promotion Authority (SIPA)

– Established to attract national and foreign investment as part of the National Investment Strategy

■ Financial Academy – Body responsible for upskilling professionals in the wider financial services sector

■ Council of Cooperative Health Insurance – To be an international leader in prevention and improving value in health care services for the health insurance beneficiaries

BREAKDOWN OF SECTOR: FINTECHS IN SAUDI ARABIA

Payments & currency exchange (32%)

Lending/financing (19%)

Personal finance/treasury management (13%)

Business tools (12%)

Private fundraising (10%)

Capital markets (7%)

Other (7%)

TIMELINE OF KEY FINTECH HIGHLIGHTS

2012 Finance Companies Control Law passed – any business engaging in FS needs SAMA licence

2018 Fintech catalyst Fintech Saudi launched by SAMA and the CMA

2018 The CMA issues financial technology experimental permit instructions

2018 SAMA launches regulatory sandbox initiative

2020 SAMA launches its Payment Service Provider Regulations

2021 Council of Ministers approved first digital banking licences for STC Bank and Saudi Digital Bank

2021 SAMA launched rules pertaining to debt-based crowdfunding

2022 FDSP launched the Fintech Strategy Implementation Plan

2022 SAMA launched its open banking framework and open banking lab

2022 LEAP, annual tech event, founded

2023 Personal Data Protection Law introduced

2023 The Saudi Data & AI Authority (SDAIA) launches Data and Privacy Regulatory Sandbox

2023 Tamara becomes KSA’s second fintech unicorn (first was stc pay in 2020)

19 Republic of Senegal

CAPITAL AND FINANCIAL HUB Dakar

KEY ECONOMIC DEVELOPMENT STRATEGY Senegal Vision 2035

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

Historically, Senegal’s economy has been centred around agriculture, particularly peanuts. However, in recent decades, the government has been diversifying the economy to include other agricultural products, as well as non-agricultural sectors such as tourism and natural resources like oil, gas, and gold. By 2025, the government aims to create 35,000 new jobs in the technology sector. Mobile phone usage in Senegal has surpassed 60 per cent this year. Despite this digital advancement, only seven per cent of the population utilises traditional financial services.

As a Francophone nation located in West Africa, Senegal is relatively stable and prosperous compared to some of its neighbouring countries. It is a member of the West African Economic and Monetary Union (WAEMU), and its fiscal and economic policies are influenced by this union, including foreign exchange controls.

However, Senegal remains a developing economy with significant challenges in financial inclusion, particularly in rural areas. The majority of traditional financial services infrastructure, such as ATMs and point-of-sale terminals, are concentrated in the capital city of Dakar, leaving rural areas underserved. Additionally, cash remains the preferred payment method for 56 per cent of Senegalese.

Fintech presents opportunities to address these challenges and promote financial inclusion. Mobile money, in particular, has had a significant impact, with over 70 per cent of adults in Senegal reporting its use within the last 30 days.

Fintech companies like Wave, Senegal’s only fintech unicorn besides Nigeria and Egypt, Bayseddo, a crowdfunding platform for agribusinesses, and Sudpay, offering multiple payment solutions, are leading the way in leveraging technology to improve financial access and services in Senegal.

KEY ORGANISATIONS

■ Central Bank of the West African States (BCEAO)

– The common issuing institution of the eight West African member States of BCEAO

■ Agency for Investment Promotion and Major Projects (APIX)

– The country’s investment promotional agency

■ Senegalese Information Technology Association (SITSA)

– The first national association to represent the information industry and professionals in Senegal

TIMELINE OF KEY FINTECH HIGHLIGHTS

2008 Banking authorisation regime is regulated by Law 2008-26 of 28 July on banking regulation (Law of 2008)

2016 The digital currency ‘eCFA’ announced by the Central Bank of West African States (BCEAO) with Senegal first to see it rolled out (eventually dropped)

2019 Senegal Startup Bill passed (second country in Africa to have after Tunisia)

2021 Wave Digital Finance becomes Senegal’s first fintech unicorn

2022 BCEAO announced creation of its fintech bureau

2024 BCEAO sets payment regulatory framework (ongoing)

2024 Creation of regulatory sandbox (mentioned in previous reports and conferences – ongoing – nothing significant published since then)

BREAKDOWN OF SECTOR: FINTECHS IN SENEGAL

18,092,284 Population in

24 Number of fintech companies

753,845 Ratio of fintech startups (per person)

128 Number of tech startups

141,346 Number of tech Companies per capita

Table Mountain and the city of Capetown in South Africa

The vibrant city of Dar es Salaam, Tanzania

Tunis city, Republic of Tunisia

20 Republic of South Africa

FINANCIAL HUBS Cape Town (Ranked globally 83rd ) Cape Town (Ranked globally 83rd ) and Johannesburg (Ranked globally 82nd ); former also capital city alongside with Pretoria and Bloemfontein

KEY ECONOMIC DEVELOPMENT STRATEGY

National Development Plan 2030

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

South Africa boasts a well-developed financial services sector compared to many others in the MEA region, encompassing robust banking and insurance industries. A significant proportion, at least two-thirds, of the population holds a bank account, and the insurance sector alone commands four-fifths of all premiums written across Africa. Notably, South Africa ranks among the world’s leaders in insurance penetration. The country’s two major cities, Johannesburg and Cape Town, serve as prominent regional commercial and financial centres, competing effectively on both regional and global stages. Johannesburg, in particular, hosts the second-highest number of Fortune 500 companies in the MEA region, following Dubai in the UAE.

South Africa stands out not only for its high rate of mobile penetration but also for the widespread adoption of smartphones. Approximately 95 per cent of South Africans own a mobile phone, with smartphones accounting for 91 per cent of all devices in the country. Despite its economic successes, South Africa grapples with persistent challenges, including poverty, inequality, and political instability. However, the country is actively promoting digitalisation, recognising the potential for fintech to contribute to its development goals. Enhancing financial inclusion, especially among businesses that are not yet part of the formal ecosystem, remains a priority.

Fintechs in South Africa include insurtechs Naked Insurance and Pineapple, the country’s first P2P insurer, along with banking as a service provider Jumio and digital bank Tyme.

KEY ORGANISATIONS

■ South African Reserve Bank (SARB) – Country’s central bank

■ Financial Sector Conduct Authority (FSCA)

– The financial institutions market conduct regulator

60,414,495 Population in millions

■ Payments Association of South Africa (PASA)

– Payment system management body recognised by SARB

■ South African Insurance Association (SAIA)

– Representative body of the non-life insurance industry

■ Fintech Association of South Africa (FINASA) – The mission to nurture and empower the thriving fintech ecosystem

BREAKDOWN OF SECTOR: FINTECHS IN SOUTH AFRICA

Payments (28%)

Lending (21%)

Investech (19%)

Insurtech (10%)

Blockchain (10%)

Financial management (4%)

Other (8%)

TIMELINE OF KEY FINTECH HIGHLIGHTS

2002 Financial Advisory and Intermediary Services Act 2002 (FAIS)

2016 Intergovernmental Fintech Working Group (IFWG) created (members include the South African Reserve Bank) with purpose to develop common understanding of financial technology

2017 Fintech unit established in SAR

2018 Under IFWG, a working group created for cryptocurrencies

– Crypto Assets Regulatory Working Group (CARWG)

2020 Digital launch of inaugural regulatory sandbox by IFWG

2021 Financial Sector Conduct Authority (FSCA) publishes its 2021-2025 Regulatory Strategy

2022 Phase Two of Project Khokha ended in April. It explored the implications of tokenisation in financial markets through a proof-of-concept focused on SARB debentures using DLT

POST-2023

2024 In budget revealed plans to incorporate stablecoins and blockchain technology as part of a strategic shift towards digital payments nationwide (ongoing)

2024 (Ongoing) Conduct of Financial Institutions (COFI) expected to be passed end of the year

21United Republic of Tanzania

FINANCIAL HUB Dar es Salaam

KEY ECONOMIC DEVELOPMENT STRATEGY

Tanzania Development Vision 2025

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

Tanzania, renowned for attractions like Zanzibar, relies on key exports such as gold, coffee, cashew nuts, and cotton, with gold contributing significantly to export earnings. The country aims to diversify its economy, transitioning to a lower-middle-income status, with a robust annual GDP growth averaging seven percent since 2000. Initially characterised by a centrally-planned economy, Tanzania nationalised all private banks between 1967 and 1992. Subsequently, private banks, including branches of foreign-owned institutions, have been permitted to operate, fostering a more dynamic financial services sector. Although Tanzania’s fintech landscape is comparatively smaller in the MEA region, notable progress is evident. Mobile money has played a pivotal role in driving financial inclusion, akin to other East African nations. Tanzania has experienced substantial growth in formal financial service adoption, with the percentage of citizens using such services rising from 16 per cent in 2009 to 65 per cent in 2017. By June 2021, over 33 million mobile money accounts were active, indicating rapid expansion in account ownership. Additionally, the government’s promotion of Zanzibar, not only for its scenic beaches but also under the banner of ‘Silicon Zanzibar’ reflects efforts to attract tech talent to the region’s idyllic setting. Fintechs in Tanzania include Azampay (offering payment management solutions), Mipango (providing financial management services) and Lokofin (a savings platform).

KEY ORGANISATIONS

■ Bank of Tanzania – The state-run bank operates as the central bank

■ Capital Market and Securities Authority – The main market and securities authority

■ Tanzania Insurance Regulatory Authority – Insurance regulator

■ Tanzania Startup Association – An umbrella membership-based organisation which bring together stakeholders of startup ecosystem in Tanzania

■ Tanzania Investment Centre – Main investment promotional agency of the country

BREAKDOWN OF SECTOR: FINTECHS IN TANZANIA

(Estimated 33 fintechs, some are double counted as they're superapps)

1994 Capital Market and Securities of 1994

2006 Bank of Tanzania Act – Bank of Tanzania (BOT) regulator of financial services sector

2015 National System Payment Act – department within BOT and deals with any fintech and reviews new financial technology products to be launched in the country

2015 Tanzanian government established the ICT Commission

2021 Tanzania introduced a new tax on mobile money transfer and withdrawal transactions (minus merchant, business and government payment transactions).

2021 NMB Bank became an open banking pioneer and aunched first fintech sandbox in the country

2022 Success of government initiative Silicon Zanzibar to attract tech talent from Africa to Zanzibar with the launch of the Wasoko Innovation Hub in Zanzibar

2023 Startup policy made news and looking to take shape (ongoing)

2023 Bank of Tanzania (BOT) issues draft regulations for a regulatory sandbox

City Centre of Dar es Salaam

68,861,245 Population in millions

33 Number of fintech companies

2,086,704 Fintech companies per capita

673

102,320

POST-2023

22 Republic of Tunisia

CAPITAL AND FINANCIAL HUB Tunis

KEY ECONOMIC DEVELOPMENT STRATEGY

Tunisia Digital 2021-2025

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

Tunisia, straddling Francophone, Arab North African, and African cultures, holds the potential to serve as a gateway across these diverse regions in the MEA. Despite facing various challenges, ranging from economic to political to security issues, the country has made strides in advancing its technological landscape and remains relatively stable and developed compared to its peers. The Tunisian government has taken proactive steps to nurture a thriving startup ecosystem and enhance digital infrastructure, recognising entrepreneurship as a catalyst for economic growth. Initiatives like the Digital Tunisia 2020 strategy and the passage of the Startup Act demonstrate Tunisia’s commitment to prioritising digital transformation.

However, the regulatory environment in Tunisia appears to be heavily regulated, posing potential barriers to the future facilitation and growth of the broader startup community. In 2019, less than 40 per cent of Tunisians aged 15 and over had a bank account, below the MENA average, indicating limited access to formal financial services. Cash remains prevalent in the country, with only eight per cent of the population owning credit cards, lower than the regional average.

Despite these challenges, Tunisia’s postal service, La Poste, has emerged as a popular provider of fintech products, serving over six million individuals with financial accounts. The country shows promise for further digitalisation, boasting a mobile connection rate exceeding 150 per cent of its population and a significant internet user base of 66.7 per cent.

Nevertheless, improvements are needed, as indicated by the dissatisfaction among Tunisian fintechs regarding the national regulatory framework. Over half of Tunisian fintechs perceive the regulatory environment as discouraging, highlighting the need for reforms to foster a more conducive ecosystem for innovation.

Among the fintechs operating in Tunisia are Bitaka (offering mobile transfer services), Kaoun (providing financial software solutions), and Paymee (offering payments processing solutions).

BREAKDOWN OF SECTOR

The country hopes to become a pioneer by implanting blockchain in the TCB, digital payment, and cryptocurrencies, according to the declarations of the governor of the TCB.

KEY ORGANISATIONS

■ Banque Centrale de Tunisie – Central Bank of Tunisia (BCT)

■ Conseil du Marché Financier

■ Startup Tunisia

■ Entrepreneurs of Tunisia

■ Tunisia Investment Authority

■ FintechTunisia

1998 Tunisia launches Africa’s first Startup Act

2016 New Banking Law No. 2016-48 – align banking sector with Basel III requirements by the end of the decade

2020 The Banque Centrale du Tunisie (BCT) announced the launch of the fintech regulatory sandbox

2021 Tunisia Digital 2021-2025 Strategy launches – key aspects included to develop a fintech ecosystem, bring financial inclusion and to further attract foreign direct investment (FDI)

2021 BCT and the French central bank successfully completed a joint CBDC experiment in July, which conducted wire transfers between French and Tunisian commercial banks using blockchain-based wholesale CBDC

2022 Through support with IFC, BCT launched paysmart.tn, a digital bill payments platform for Tunisians to pay for utilities

2023 BCT launches a new sandbox licensing regime mainly for traditional financial service institutions

2023 May – Companies allowed to offer mobile payment services in Tunisia included several traditional banks and five fintech companies: ViaMobile, Zitouna Paiements, Enda Cash, Wafacash and Payvago

12,535,770 Population

27 Number of fintech companies

464,288 Fintech companies per capita)

650

19,286

The National Monument of Kasbah in the Kasbah square, Tunis

Istanbul, the capital of Türkiye

Sunset over the futuristic skyline of Dubai, UAE

The city of Kampala in Uganda

23 Republic of Türkiye

FINANCIAL HUB Istanbul (Ranked globally 110th)

KEY ECONOMIC DEVELOPMENT STRATEGY Vision 2023

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

Despite recent challenges, Türkiye remains a high-middle income nation with promising prospects, bolstered by its large population and strategic geographical location as a bridge between East and West. Istanbul, home to the megacity Istanbul, is currently undergoing significant investment, particularly in projects like the Istanbul Financial Centre, aimed at positioning the city as a leading global financial hub.

In the realm of technology and entrepreneurship, Türkiye, especially Istanbul, has experienced remarkable growth in startups, witnessing the emergence of two decacorns and four unicorns by 2020, including notable gametech company Dream Games. The proliferation of accelerator programs, co-working spaces, and incubation centres further underscores the country’s burgeoning startup ecosystem.

Fintech regulations in Türkiye largely align with EU standards, with the Payment Law resembling the First Payment Services Directive (FPSD), though it has yet to fully adopt the Second Payment Services Directive. Despite regulatory alignment, the country has witnessed organic growth in fintech and related subsectors, with the depreciation of the Turkish lira driving increased popularity in cryptocurrencies, despite some setbacks like the closure of crypto houses such as Vebitcoin in 2021.

Regarding financial inclusion, Türkiye boasts nearly 100 million credit cards, ranking ninth globally for credit card transactions and seventh for credit card ownership. With over two million POS devices, a significant portion now facilitating in-store contactless payments, and more than 90 million active online banking customers, Türkiye demonstrates robust digital financial infrastructure.

Among the prominent fintech companies in Türkiye are Papara, offering payment solutions, Param, the first Turkish electronic money solution, and Moka, a payment service provider. Additionally, Dream Games represents Türkiye’s prowess in the gametech sector.

BREAKDOWN OF SECTOR: FINTECHS IN TÜRKIYE

Payments (255)

Decentralised finance (92)

Banking technologies (91)

Corporate finance (66)

Insurance (57)

Financing (49)

Trading & investing (36)

Other (93)

TIMELINE OF KEY FINTECH HIGHLIGHTS

2006 Bank cards and credit card law by Banking Regulation and Supervision Agency (BRSA)

2013 Payment and Securities Settlement Systems, Payment Service and Electronic Money Institutions Law No 6493 went into effect by both BRSA and Central Bank of Republic of Turkiye (CBRT)

739

2019 First ever Istanbul Fintech Week event to engage the Turkish and wider global fintech community

2019 Law on amendment of law of Regulation on Payment Service and Electronic Money Issuance, Payment Institutions and Electronic Money Institutions and Certain Laws by CBRT (previously was under BRSA)

2020 Regulation on the use of QR codes by CBRT

2021 Regulation on disuse of crypto assets in payments by CBRT

2021 Communique on crowdfunding by Capital Markets Board of Turkiye (CMB)

2021 Regulation on Operating Principles of Digital Banks and Banking as a Service

2022 Communiqué on the Management and Supervision of the IT Systems of Payment and Electronic Money Institutions and the Data Sharing Services of Payment Service Providers in Payment Services Area – points include shared platform designed with the CBRT and BKM to ensure the integration of open banking stakeholders

2022 İstanbul Finance and Technology Base Inc., established in Istanbul Financial Centre

2023 In the FAST System, the instant payment system operated by the CBRT and put into use in 2021, 6.4 million payments with an average daily amount of 7.9 billion TRY are made instantly between accounts 2023 (Ongoing) National Fintech Strategy of Türkiye; 2023 also ended with phase one of CBDC trail

24 Republic of Uganda

CAPITAL AND FINANCIAL HUB Kampala

KEY ECONOMIC DEVELOPMENT STRATEGY Uganda Vision 2030

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

In recent years, Uganda has faced various challenges, from Ebola outbreaks to stringent Covid-19 lockdowns. Despite these difficulties, the country has witnessed significant growth in its financial services and fintech sectors, driven by both organic market dynamics and government support.

In the payments space, mobile money has emerged as the dominant ecosystem in Uganda, with a range of players including aggregators, telecoms, and banks offering mobile wallet solutions. These platforms facilitate a wide array of transactions, including utility payments, bank-to-consumer transfers, e-commerce transactions, and retail payments. Additionally, the country has seen the emergence of numerous mobile and digital wallet providers, further diversifying the payment landscape.

Fintechs in Uganda have also made significant strides in savings and lending, catering to niche markets such as asset lending, solar energy, agro-business, micro-loans, and savings. Leveraging their understanding of traditional Ugandan SACCOs and microfinance structures, these fintechs offer digital transformation solutions to enhance financial inclusion.

The e-commerce sector in Uganda has experienced notable growth, particularly during the pandemic, with platforms like Safeboda, Jumia, and Glovo expanding their presence. However, disparities in internet access remain, with higher smartphone usage observed in urban centres like Kampala compared to rural areas.

In the realm of remittances, mobile money platforms like Airtel Money, MTN Mobile Money, and Eversend have played a crucial role in facilitating transactions for the unbanked population. These platforms have enhanced connectivity between financial institutions, businesses, and consumers through mobile and digital wallets, catering to the significant number of Ugandans working abroad who send money back home.

Regulatory frameworks in Uganda have evolved to accommodate the shifting landscape, with a greater emphasis on mobile money and open-ended financial regulations. This regulatory flexibility has supported innovation and growth in the fintech sector. In addition to the mentioned fintechs, Uganda is home to other notable players

such as Pivot Payments (a neobank), Dusupay (specialising in money remittances), and Tugende (offering asset finance solutions.

KEY ORGANISATIONS

■ Bank of Uganda (BoU) – Country’s central bank

■ Financial Technology Service Providers’ Association (FITSPA)

– The umbrella body for fintechs in Uganda

■ Financial Sector Deepening Uganda (FSDU) – Independent non-profit focusing on leveraging digital finance in Uganda

■ Uganda Investment Authority – The country’s investment promotional agency

BREAKDOWN OF SECTOR: FINTECHS IN UGANDA

Payments (47%)

Bank infrastructure (23%)

Investment and savings (16%)

Lending (7%)

Insurance (5%)

Markets (2%)

TIMELINE OF KEY FINTECH HIGHLIGHTS

2009 Establishment of NITA-U Act

2013 Bank of Uganda (BOU) issues mobile money guidelines

2017 Financial Institutions Act 2002 amended to incorporate agent banking regulations

2017 Financial Technologies Service Providers Association (FITSPA) incorporated

2019 NITA-U issues Data Protection and Privacy Act

2020 BOU issues National Payment Systems Act

2021 BOU issues first ever fintech licences

2023 Digital Investment in Uganda set to reach a total transaction value of $10.57million by year end

2024 The Personal Data Protection Office (PDPO) commences campaign on amplifying public awareness and understanding of the data protection and privacy principles, rights and responsibilities

25 United Arab Emirates

FINANCIAL HUBS Dubai (Ranked globally 20th) and Abu Dhabi –also UAE’s capital city (Ranked globally 37th) – only country in MEA to rank in top 50 globally and with two cities as well.

KEY ECONOMIC DEVELOPMENT STRATEGY

UAE Centennial 2071, UAE Vision 2021, Abu Dhabi Vision 2030, Dubai Industrial Strategy 2030, UAE National Strategy for Artificial Intelligence (AI) 2031

ECONOMIC, FINANCIAL SERVICES AND FINTECH OVERVIEW

The UAE stands as a prominent economy within the MEA region, boasting the regional hubs of Dubai and Abu Dhabi. Its robust growth is evidenced by its developed economy, where approximately 90 per cent of the population comprises non-UAE nationals. With aspirations to become a digital leader and drive future economic growth, the UAE has invested heavily in digital infrastructure and innovation.

With a staggering internet penetration rate of 99 per cent and over 17 million mobile connections, the UAE exhibits high levels of connectivity and digital adoption. Moreover, around 85 per cent of the population has access to at least one formal financial service, underscoring the nation’s advanced digital economy. Little wonder then that the UAE has earned the distinction of being the most digitally advanced nation in the Arab World.

The UAE has implemented various strategies aimed at advancing digitalisation, including initiatives in blockchain technology and the metaverse. These efforts align with the nation’s broader economic diversification goals and play a crucial role in driving future prosperity. At both national and emirate levels, mechanisms are in place to promote digitalisation and foster economic growth, with entities such as the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Markets (ADGM) spearheading efforts to bolster the financial sector.

Dubai, in particular, has emerged as a fintech hotspot, hosting an estimated half of the total fintechs in the MENA region. Meanwhile, Abu Dhabi has been actively investing in and promoting its fintech sector, further solidifying the UAE’s position as a leading fintech hub.

Notable fintechs in the UAE encompass a range of sectors, including wealthtech with companies like Finamaze and Sarwa, insurtech with players like Souqalmal, and payment solutions such as Tabby, which gained recognition as the UAE’s first fintech unicorn at the end of last year.

9,571,128

Population in millions

1,697

5,641

691,000,000

BREAKDOWN OF SECTOR: FINTECHS IN UAW (Sample of 136 Fintechs) Payments, e wallets and remittances (39%)

Insurtech (11.76%)

Lending (8.08%)

Blockchain /crypto (7.35%)

Wealtech (6.6%)

Digital and neobanks (5.88%)

Other (21.33%)

2006 Abu Dhabi Vision 2030 developed

2014 Smart Dubai Initiative launched

2017 DIFC Fintech Hive launches in DIFC with first accelerator programme cohort

2017 DIFC’s DFSA launches its regulatory sandbox

2018 CBUAE launches Project Aber to distributed ledger technology

2018 UAE government launches Emirates Blockchain Strategy 2021

2019 Hub71, Abu Dhabi’s startup hub, launches in ADGM

2020 CBUAE launches fintech office to help build mature fintech ecosystem in the UAE

2021 ADGM FSRA introduces a new regulatory framework for Third Party Financial Technology Services

2022 DIFC launches its Strategy 2030

2022 DIFC launches the region’s first Open Finance Labs

2022 (and 2023) – ADGM and DIFC progress rules and guidance on virtual assets

2022 Dubai launches its Metaverse Strategy

2023 ADGM introduced the region’s first comprehensive regulatory framework for Sustainable Finance

2023 CBUAE implements digital currency strategy

2023 CBUAE launches Financial Infrastructure Transformation (FIT) programme

2023 CBUAE introduces regulatory framework on BNPL providers

2023 Al Etihad Payments, a subsidiary of CBUAE, launches Aani, an instant payments platform

2024 UAE sends first CBDC ‘digital dirham’ to China via mBridge platform

OF KEY FINTECH HIGHLIGHTS

Empowering the Middle East’s public sector: Insight into PayTabs’ payment orchestration

Managing payments efficiently and securely is paramount, especially for large corporations and government entities overseeing mega infrastructure and development projects

ayTabs, Saudi Arabia’s first fintech brand and MENA’s award-winning payment solutions powerhouse, has unlocked its holistic payment orchestration platform to meet the unique and diverse needs of the region’s merchants and billers, financial institutions, digital wallet providers, fintechs/PSPs, telecom institutions and government entities and ministries in light of data localisation and flexibility that has assumed utmost criticality.

This case study dives into how PayTabs’ issuing and acquiring fintech platform has transformed payment management for businesses across sectors, driving efficiency, scalability and security. It is worth noting that the PayTabs Group has a client portfolio of 1.2 million across the region and processes over US$10billion worth of payment volumes, annually. For nine consecutive years, the PayTabs Group has made it to the top of the illustrious Forbes Middle East Fintech list.

Challenges faced by businesses

Businesses across the MENA region typically encounter a host of challenges including:

■ Diverse payment landscape

■ Optimisation complexity

■ User experience imperatives

■ Security and compliance hurdles

■ Expertise and overall solutions

PayTabs issuing and acquiring fintech platform

PayTabs’ payment orchestration platform has emerged as a game-changer, offering a suite of solutions and benefits to address these challenges:

■ Full stack payment solutions

■ Diverse tech stack

■ Paymes social commerce platform

■ Issuance and program management

■ Rapid time-to-market:

■ Partner approach

■ Expertise in cutting-edge payments tech:

■ Presence in MENA

■ Custom fit solutions

■ Empowering business growth

Expanding reach with key local payment integrations

In early 2024, PayTabs Group made headlines by announcing seamless integration of key local payment methods in the Kingdom of Saudi Arabia into its orchestration platform. This strategic move not only expanded PayTabs’ reach but also fortified its commitment to extend full-stack payment processing services to government entities, financial institutions, and fintech companies overseeing infrastructure projects across the region.

Tailored solutions for Saudi Arabia’s Vision 2030

PayTabs’ payment orchestration platform is meticulously designed to align with the ambitious goals of Saudi Arabia’s Vision 2030. With a focus on scalability, security, and stability, PayTabs offers custom-fit solutions for ministries, fintechs, and public entities. The platform’s ability to manage exponential payment volumes effortlessly underscores its suitability for the Kingdom’s flourishing public sector.

Rapid deployment for mega projects

Just as Saudi Arabia’s ministries have a proven record of delivering renowned projects, PayTabs boasts a reputation for facilitating rapid deployment. Whether launching card issuance or a payment gateway, PayTabs ensures the fastest go-to-market timeline in the region, aligning seamlessly with the Kingdom’s ambitious project timelines.

Enhanced payment processing and collection

The integration of key national payment methods, including SADAD, significantly enhances PayTabs’ payment orchestration platform. This empowers government entities with efficient and secure payment processing and collection capabilities, paving the way for seamless execution of mega projects and initiatives.

Culmination of services under one unified label

The payment orchestration platform represents the culmination of PayTabs’ services under one unified label, streamlining the user experience and providing a comprehensive suite of payment solutions. From SMEs to private enterprises and freelancers, PayTabs caters to all sectors of the economy, facilitating financial transactions with ease and efficiency.

Empowering economic diversification

As Saudi Arabia’s first fintech brand, PayTabs takes pride in powering this growth with its home-grown orchestration platform, driving innovation and progress across sectors. Visit us at https://site.paytabs.com/en/

Case study example

Consider a prominent government entity in the region tasked with overseeing mega infrastructure and development projects. Faced with the monumental challenge of managing diverse payment methods and ensuring seamless transactions for these projects, the government entity sought a robust solution to streamline its payment operations. Upon implementing PayTabs’ platform, the government entity experienced transformative benefits:

■ Unified payment ecosystem: PayTabs’ platform enabled the government entity to consolidate its payment infrastructure, integrating various payment methods into a unified ecosystem. This streamlined approach simplified payment management, reducing complexity, and enhancing operational efficiency across its projects.

■ Optimised transaction processing: Leveraging PayTabs’ dynamic routing capabilities, the government entity optimised transaction processing, routing payments through the most efficient and cost-effective channels. By considering factors such as cost, reliability, and regional preferences, PayTabs ensured seamless transactions while minimising processing costs.

■ Enhanced security measures: With PayTabs’ robust security measures, including encryption and fraud detection mechanisms, the government entity fortified its defenses against cyber threats.

■ Improved financial management: PayTabs’ platform offered the government entity comprehensive analytics and reporting tools, providing valuable insights into transaction performance, expenditure patterns, and budget allocation. Armed with actionable data, the government entity made informed financial decisions, optimising resource allocation, and maximising project efficiency. What’s more, month on month volumes processed by the entity shot up by a mammoth and staggering 1200 per cent in a span of six months – from June 2023 to December 2023. The chart below showcases this growth which enabled the entity to scale and deliver.

3,500,000

3,000,000 2,500,000 2,000,000 1,500,000 1,000,00

0

■ Accelerated deployment: PayTabs’ proprietary technology facilitated rapid deployment, allowing the government entity to launch payment solutions for its projects in a matter of six weeks.

■ Customised solutions: PayTabs’ platform offered custom-fit solutions tailored to the unique requirements of the government entity’s projects. Whether it was infrastructure development, public services, or community initiatives, PayTabs provided flexible solutions to address specific needs and challenges.

■ Compliance and regulatory alignment: PayTabs’ adherence to local data fencing and security requirements ensured compliance with regulatory standards set forth by the local governments.

c. Findings: results and key takeaways

The 2024 edition of this report serves up the following findings:

■ Tier-one ‘premier global fintech hubs’ – UAE, Israel, Saudi Arabia (new) and Türkiye (new)

■ Tier-two ‘emerging fintech hubs’

– Higher-level – None for 2024

– Middle-range – Bahrain, Egypt, Kuwait, Qatar, Nigeria, South Africa, Mauritius, Kenya, Oman, Jordan and Tunisia

– Lower-level – Ghana, Lebanon and Morocco (new)

■ Tier-three ‘early-stage fintech hubs’

– Higher-level ‘markets to watch’ – Rwanda, Algeria (new), Senegal, Uganda

– The rest – DRC (new), Ethiopia, Tanzania

The findings are quantified by factoring in wider economic development indicators and digital-specific ones, both within the broader tech space and in the fintech sector. This report utilises a tier-three system, as introduced in The Fintech Times: Middle East and Africa 2021 report, to categorise various fintech hubs. The summary table and accompanying diagram illustrate the rankings of the fintech hubs based on this tier-three system. While the majority of rankings have remained consistent, there have been notable changes that will be discussed shortly. Additionally, comparing this year’s 2024 results with those from 2023 and the inaugural 2021 edition provides further insights into the evolution of fintech hubs over time.

KEY TAKEAWAYS

Despite the diversity among the 25 countries included in this list, several key themes emerge to conclude this chapter.

■ Clear timelines of fintech events: Each of the 25 countries has demonstrated significant developments in fintech, including both government-led initiatives and market-driven milestones. These timelines highlight the evolution of the fintech ecosystem within each country.

■ Government support: Many countries on the list have received varying levels of government support, ranging from broader economic development strategies to digitalisation initiatives and specific fintech policies. These efforts have resulted in the passage of laws and regulations aimed at accelerating fintech growth.

■ Recent activities: The fintech activities observed in these countries are relatively recent, indicating a period of catch-up compared to other regions. This trend was evident prior to the pandemic, during the pandemic, and in the post-pandemic era, highlighting the growing importance of fintech in the region.

■ Unique characteristics: Each country selected for inclusion in this report possesses unique characteristics related to its economic development. Whether it’s a large population, a developed economy, or a vibrant entrepreneurial ecosystem, each country offers something distinctive that contributed to its selection.

Chapter Four will further analyse the findings of the fintech hubs in the MEA region and subsequently conclude this report.

Source: *2022 was not added as this is for illustrative purposes. Also note, in the first edition (2021) and second edition (2022) the scoring mechanism was slightly different

PREMIER GLOBAL FINTECH HUB (TIER ONE)

UAE, ISRAEL, SAUDI ARABIA AND TÜRKIYE (Scores higher then 8)

EMERGING FINTECH HUBS (TIER TWO)

High Level: None for 2024 (Scores of 7- 7.99)

Middle Level: Bahrain, Egypt, Kuwait, Qatar, Nigeria, South Africa, Mauritius, Kenya, Oman, Jordan and Tunisia (Scores of 5- 6.99)

Early Level: Ghana, Lebanon and Morocco (Scores of 4-4.99)

EARLY-STAGE FINTECH HUBS (TIER THREE)

High Level: Markets to watch: Rwanda, Algeria, Senegal and Uganda (Scores of 3-3.99)

The Rest: DRC (New), Ethiopia and Tanzania (Countries with scores below 2.99)

Source: The Fintech Times and various; prefiltration (due to nearly 70 countries in MEA) was done based on available data and expert opinion. Later the chosen countries were scored through three wider indicator themes (wider economic development, digital and wider tech and fintech-specific). Premier fintech hub (tier-one) – leading hubs in MEA for fintech as a whole; plays strong impact globally; stable and sophisticated fintech landscape

Emerging fintech hub (tier-two) – strong commitment and desire to further solidify their fintech ecosystem; strong investments either at government level or organically is underway

Early-stage fintech hub (tier-three) – overall infancy in fintech ecosystem yet for those in the higher ranking (ones to watch-top scorers) show potential to be in the emerging category one day

Source: The Fintech Times: Middle East and Africa 2024 Report

Chapter Four

After reviewing the 2024 fintech hubs in the Middle East and Africa in the previous chapter, this section will delve deeper into not only the changes and outcomes of those findings but also provide insights into the broader fintech ecosystem in MEA, drawing from previous iterations of this report as well as future prospects. This will be achieved through the following steps:

■ Reflection on the findings of fintech hubs in the Middle East and Africa

■ Assessment of predictions made in 2023 – were they accurate?

■ Summary and future outlook for fintech in the Middle East and Africa

A. Reflection on the fintech hubs of the Middle East and Africa findings

This subsection aims to provide a detailed analysis of the results obtained from the 2024 study on fintech hubs. From the inception of this report to the present, The Fintech Times: Middle East and Africa 2024 Report seeks to corroborate existing research, which often focuses on specific regions within MEA or particular fintech subsectors, by offering a comprehensive examination of potential fintech hubs.

It considers not only fintech but also the broader macroeconomic factors influencing sectors like fintech. Therefore, while some findings may align with existing knowledge in the field, this report offers a unique perspective and methodology, contributing to the ongoing validation of fintech hubs in the region.

Tier-one Premier global fintech hubs

A significant shift in this year’s report, unlike previous versions, is the ascension of Saudi Arabia and Türkiye to tier-one premier fintech hubs. Their fintech journeys, while not highlighted in earlier reports, are noteworthy, with notable advancements in scoring since 2021 and their elevation from

higher-end tier-two fintech hubs last year. This rise can be attributed to various government-led initiatives that have significantly impacted both wider economic development and fintech within these countries.

Another notable development is the emergence of the UAE as the top-scoring country in MEA for the first time in this year’s report. If viewed as a competition, the UAE stands out as the leader in 2024.

While Israel has historically been a leader in technology, recent events, including the ongoing situation in Gaza, have presented challenges for the country. Prior to October, Israel faced internal challenges such as judicial protests, which have also impacted its wider tech and economic landscape. The region’s challenges, coupled with potential repercussions from the humanitarian crisis in Gaza, have implications for both the broader economy and the fintech sector.

Another notable development is the emergence of the UAE as the top-scoring country in MEA for the first time in this year’s report. If viewed as a competition, the UAE stands out as the leader in 2024

Nevertheless, these four countries have continued to demonstrate highly developed economies, with all but Türkiye classified as developed economies, while Türkiye remains a high-middle-income economy. They have witnessed both market-led demand sparking innovation and notable government-led initiatives prioritising wider economic development and diversification, particularly in the fintech and digital sectors.

The emergence of Saudi Arabia and Türkiye in the tier-one category of this report is a testament to the concerted efforts of both countries in nurturing mature fintech ecosystems. As highlighted in this report, both nations now boast multiple fintech unicorns, significant VC investments (each nearing $1billion in 2023, a challenging year for global VC funding), and a substantial number of fintech companies relative to their populations and compared to the wider MEA region.

Tier-two Emerging fintech hubs

In comparison to previous assessments, there hasn’t been much change in the overall scores of the participating countries. This isn’t necessarily negative but indicates that there is still much room for growth and development in their fintech ecosystems.

One significant change is the absence of any new higher-end tier two nations. Previously, this category was filled by Saudi Arabia and Türkiye, both of which have now ascended to tier one. No other country has stepped in to take their place; the closest contender is Bahrain, which ranks highest in the middle-level tier-two category. Additionally, Morocco has entered the tier-two category for the first time, landing in the lower level.

The remaining countries on the list, including the GCC countries not in tier one (Bahrain, Kuwait, Oman, and Qatar), Africa’s Big Four fintech players (Egypt, Kenya, Nigeria, and South Africa), Mauritius, Ghana, Tunisia, Jordan, and Lebanon, generally maintain similar scores to those of the past few years in this study.

Tier-three Early-stage fintech hubs

The remaining countries on the list fall into the tier-three early stage fintech hubs category. Compared to previous iterations of this report, there haven’t been significant changes, except for Morocco, which

10 Predictions from 2023 –did they materialise or not?

The 2022 and last year’s 2023 reports made 10 predictions for developments in the fintech space in the MEA region. This subsection will analyse those predictions to determine their accuracy up until early 2024, when this report was written.

1

Partnerships between financial services industry and fintechs

The prediction regarding partnerships between the financial services industry and fintechs thriving, as well as an increase in mergers and acquisitions (M&A), appears to be accurate. This trend is evident due to several factors within the diverse landscape of the MEA region. Partnerships between fintech companies and traditional banks, as well as between different fintech firms, have become increasingly common. These collaborations have facilitated the expansion of solutions across different territories within the region, addressing the challenges and costs associated with scaling operations independently.

Moreover, governments have actively promoted cross-border collaborations, particularly in areas such as Africa with initiatives like PaPPS and among GCC countries, focusing on enhancing cross-border payment systems. For instance, in 2023 alone,

The Fintech Times website published nearly 100 standalone articles highlighting partnerships in the Middle East and Africa, indicating a significant level of activity in this area.

2Regulation challenges for fintechs and the wider financial services sector

The prediction regarding regulation remaining a challenge for many fintechs and the broader financial services and tech sectors appears to hold true. Regulation has historically posed challenges globally in the financial services sector, and the MEA region is no exception. While it’s challenging to quantify the exact extent of this challenge, the report accurately highlights the ongoing difficulties faced by fintech companies and other stakeholders in navigating regulatory landscapes.

However, there have been positive developments in the form of government-led reforms and support aimed at facilitating innovation, including within fintech. Collaborative efforts between governments, such as AfCFTA in Africa and initiatives within the GCC, further indicate a commitment to fostering cross-border trade and innovation.

Looking ahead, it is anticipated that further regulatory adaptations will occur, particularly in areas such as digital

Morocco has become a tier-two fintech hub in MEA as per The Fintech Times: Middle East and Africa 2024 report

transitioned from this category to tier two this year. Additionally, the two new entrants to the list, Algeria and the Democratic Republic of the Congo (DRC), also belong to this category. These tier-three countries share several common characteristics:

■ Middle or lower-middle income or low-income economies:

These countries generally have middle-income, lower-middle income, or low-income economies. Limited access to technology and financial services hinders fintech innovation or renders it entirely inaccessible.

■ Lack of fintech-specific infrastructure: While some countries aspire to develop fintech and financial services sectors, these areas are still in their infancy compared to global standards. However, efforts are underway to foster their growth, as seen in the DRC with its Startup Law.

■ Aspirations for future economic growth: Despite facing challenges, these countries aspire to elevate their income status in the long term and leverage technology and digitalisation to combat poverty.

currencies and open finance (e.g, open banking). Partnerships are expected to continue playing a crucial role in facilitating expansion into different parts of the MEA region, serving as a strategy to both drive growth and mitigate regulatory risks.

3 Brain drain challenges in the region

The prediction regarding brain drain continuing to be a challenge in the region appears to be accurate, particularly in the context of remittances. Countries like Egypt and Lebanon, as highlighted in Chapter One, continue to rely on remittances as a significant source of income.

Despite the challenges posed by brain drain, innovative solutions have emerged to address gaps in the market. A notable example is the rise of mobile money in East Africa, exemplified by m-pesa, which originated from market needs and urgent demands.

Governments will need to implement strategies to retain talent within the region. However, it’s worth noting that brain drain has also spurred innovation, with entrepreneurs often developing solutions tailored to the needs of their markets. An interesting area for further exploration would be to examine the number of fintechs founded by individuals from the MEA region who have relocated elsewhere, such as the United States.

While many fintechs in the GCC region have expatriate founders, countries like Saudi Arabia have seen a rise in locally founded fintech solutions. For instance, Tamara, the second Saudi fintech unicorn, was founded by three Saudis, highlighting the potential for homegrown innovation despite challenges associated with brain drain.

4 Mobile money driving growth, especially in Africa

While mobile money has played a significant role in driving fintech growth, particularly in Africa, it’s important to acknowledge that it’s not the sole driver of growth across the MEA region. The assumption that mobile money would universally fuel growth overlooks the unique characteristics of each market within MEA. MEA countries exhibit diverse fintech landscapes, with solutions tailored to specific market needs. Superapps, for example, have filled gaps in both affluent and less affluent MEA nations, indicating that growth is not solely driven by mobile money. Fintech subsectors like paytechs, lending, digital currencies, open banking, and insurtechs have also seen substantial growth and interest across the region.

Furthermore, emerging trends such as banking-as-a-service (BaaS), embedded finance, and products compliant with environmental, social, and governance (ESG) standards present significant opportunities for fintechs in MEA.

MEA-based fintechs, such as TymeBank and Careem, have demonstrated the potential for regional and global expansion. Additionally, non-MEA fintechs have contributed to the growth of the region’s fintech ecosystem. Collaborations between MEA-based companies and non-MEA entities, such as M-Pesa’s partnership between Safaricom and Vodafone, highlight the importance of international collaboration in driving fintech innovation.

The influx of non-MEA talent into the region further enriches the fintech sector, driving growth across various subsectors. While this report has primarily focused on MEA-born fintechs, future reports should acknowledge and highlight the contributions of non-MEA fintechs to the region’s fintech ecosystem.

The UAE is recognised as the leading fintech hub in the Middle East and Africa region

5

Global economic challenges impacting fintech

The ongoing inflation and recession worries in the global economy are expected to have a significant impact on the fintech sector in the Middle East and Africa. These economic challenges have evolved and become increasingly unpredictable, particularly in light of recent geopolitical events such as the war and humanitarian crisis in Gaza.

MEA countries are experiencing both global and regional challenges, which have ripple effects across their economies.

While global inflation may have peaked, its potential to fluctuate rapidly poses a risk to the fintech sector. Inflationary pressures can affect investor sentiment and funding availability, leading to cautious investment behaviour and increased due diligence.

The impact of these economic challenges is evident in global venture capital funding trends, with investors becoming more cautious and selective in their investment decisions. Fintech startups may face greater scrutiny as investors seek to underst and the value proposition and resilience of these ventures in the face of economic uncertainty.

As the global economy navigates these challenges, MEA-based fintech companies must remain vigilant and adaptable to mitigate risks and capitalise on emerging opportunities. Collaborative efforts between governments, financial institutions, and fintech startups may be necessary to foster resilience and drive innovation in the face of economic headwinds.

While payments continue to play a significant role in MEA fintech, non-payment sectors such as lending, wealthtech, investing, and digital currencies are experiencing notable growth

and dynamism of MEA-based fintech startups, attracting substantial investment and attention from global investors.

7 Potential impact of layoffs in fintech

Contrary to predictions of potential layoffs in the fintech sector, MEA has experienced relatively minimal impacts compared to other regions, particularly the West. While global economic challenges have prompted caution and prudence in hiring practices, layoffs in MEA-based fintech companies have been less pronounced.

Despite challenges, the MEA fintech sector continues to demonstrate resilience and growth, maintaining its status as a key recipient of venture capital funding in the region. While there may be hesitancy in over-hiring and increased precaution in staffing decisions, widespread layoffs have not been observed, indicating a more stable outlook for the industry in MEA.

8 Evolution of payments and non-payment fintech solutions

The prediction regarding the dominance of payments in the MEA fintech sector remains accurate, as evidenced by the continued growth of payment, money transfer, and remittance solutions. However, the prediction may have underestimated the rapid expansion of non-payment fintech solutions in the region.

6 Emergence of more unicorns in the MEA region

Previous versions of this report expressed cautious optimism regarding the emergence of unicorns from the Middle East and Africa region. However, recent developments have exceeded expectations, particularly in countries such as the UAE, Türkiye, Saudi Arabia, and Egypt. These nations have witnessed the birth of several fintech unicorns, marking significant milestones in their respective fintech ecosystems.

In the UAE and Türkiye, the emergence of their first direct fintech unicorns, followed by Saudi Arabia and Egypt’s subsequent unicorns, reflects the region’s growing prominence in the global fintech landscape. These achievements demonstrate the maturation

While payments continue to play a significant role in MEA fintech, non-payment sectors such as lending, wealthtech, investing, and digital currencies are experiencing notable growth. Central bank digital currencies (CBDCs) are gaining traction among governments, while open finance, including open banking, is emerging as a key trend.

The report acknowledges the role of superapps in driving fintech growth, demonstrating their widespread adoption and increasing influence across MEA. Superapps, such as Careem in the UAE, have expanded their services beyond payments, contributing to the diversification of the fintech landscape in the region.

In hindsight, the prediction could have provided a more comprehensive overview of the diverse range of non-payment

fintech solutions, including digital currencies, open finance, insurtech and gametech.

9

Fintech

growth

aligned with wider economic development

The prediction accurately highlights the symbiotic relationship between fintech growth and the broader economic development strategies in the MEA region. Fintech expansion is intricately linked to the success of both organic and government-led economic development initiatives, which prioritise digital transformation and fintech innovation as key drivers of growth.

Many countries in MEA have adopted comprehensive economic development and diversification strategies that include specific emphasis on digitalisation, financial services, and fintech. These strategies aim to not only foster economic growth but also to enhance competitiveness and sustainability in the digital age.

The report’s observation extends beyond well-known tech hubs like Tel Aviv and the UAE, highlighting emerging innovation ecosystems such as Silicon Savannah and Silicon Zanzibar. These developments underscore the region’s commitment to leveraging technology and fintech to drive economic diversification and innovation across diverse sectors.

10

Continued focus on financial inclusion

The prediction accurately identifies financial inclusion as a central narrative driving fintech growth in the MEA region, echoing themes from previous reports. The diverse socio-economic landscape of MEA, characterised by a mix of affluent nations and underserved populations, underscores the importance of fintech solutions in promoting financial access and inclusion.

The report rightly emphasises the significance of addressing the needs of the underbanked and under financially excluded populations in MEA, highlighting the complexity of inclusion beyond basic financial services. Future fintech solutions must navigate this complexity to effectively reach marginalised communities and facilitate their participation in the formal financial ecosystem.

Moreover, the observation regarding the presence of underserved populations even in affluent MEA nations underscores the ongoing challenges of financial exclusion within the region. Despite apparent sophistication, significant segments of the population remain excluded from traditional financial services, presenting opportunities for innovative fintech solutions to bridge this gap.

Overall, the prediction accurately captures the enduring importance of financial inclusion as a driving force behind fintech innovation in the MEA region, signalling ongoing opportunities for impactful solutions that address the diverse needs of underserved populations.

Conclusion

In conclusion, our analysis of the top 10 predictions for the MEA fintech landscape generally proved to be accurate, although we recognise that there were aspects we may have overlooked or underestimated.

Additionally, we introduced a framework for economic prosperity through fintech in the Fintech Times: Middle East and Africa 2022 Report, which remains relevant and adaptable to the MEA context. Reflecting on the framework’s key pillars in the context of 2024, we observe the following:

■ Regulatory and business environment: Overcoming regulatory challenges and fostering a business-friendly ecosystem continue to be critical for fintech growth. Initiatives such as regulatory sandboxes and incentives for foreign investment remain valid strategies.

■ Talent fostering and retention: Investing in entrepreneurship and tech education remains essential for developing a skilled workforce and addressing brain drain, contributing to sustainable fintech innovation.

■ Financial literacy: Increasing financial literacy and awareness of fintech solutions are crucial for promoting inclusive access to financial services, particularly in diverse socio-economic circles across the MEA region.

■ Infrastructure development: Advancements in digital infrastructure, including access to high-speed connectivity and innovation hubs, are essential for supporting fintech growth and fostering innovation.

■ MSME prioritisation and engagement: Supporting micro, small, and medium enterprises through targeted interventions and industry dialogues remains vital for driving inclusive economic growth and reducing rejection rates for MSMEs.

In summary, the ongoing progress in these areas underscores the positive trajectory of fintech-driven economic development in the MEA region. While challenges persist, the concerted efforts to address regulatory, talent, literacy, infrastructure, and MSME priorities are yielding tangible results and contributing to broader economic prosperity across the region.

c: andSummary future on fintech in the Middle East and Africa

The fourth edition of this report maintains continuity with its predecessors – The Fintech Times: Middle East and Africa 2023, 2022, and 2021 Reports. It retains a similar format and chapter structure, particularly resembling last year’s edition. Furthermore, it continues to highlight the prevailing theme that has significantly impacted the region, which is financial inclusion.

However, unlike in 2021 and 2022 when fintech globally experienced a boom despite Covid-19, more recent trends indicate a slowdown in the wider startup and tech sector, with VC funding declining overall in MEA. Additionally, ongoing conflicts, such as those in Sudan and the humanitarian crisis in Gaza, have affected regional stability, albeit not directly related to the economy but still influencing it.

Despite these challenges, fintech in the region possesses opportunities for further growth and advancement. While many initiatives have been market-led, especially in Africa where digital infrastructure limitations have spurred innovations like mobile money payments, government support for fintech has been increasing. Over the past few years, governments across MEA have implemented strategies prioritising digital transformation and fintech, with notable initiatives ranging from CBDCs to regulations on cryptocurrencies and frameworks for open banking.

This report also identifies emerging trends and growth beyond the traditional hubs, highlighting developments in places like Francophone Africa. The inclusion of countries like Algeria and the Democratic Republic of the Congo demonstrates the expanding fintech landscape in the region. Moving forward, it will be interesting

to observe further developments in these areas, particularly as they show promise in fintech and wider financial services.

Ideally, future reports will no longer need to mention words like coronavirus, inflation, and war. While progress has been made on the first two fronts, the hope remains for peace to prevail and for such topics to be omitted altogether.

Additionally, it is imperative to shift the narrative from portraying fintech as in its infancy in the region to celebrating its achievements in promoting financial inclusion, both within MEA and globally. Despite not leading in VC funding or the number of fintechs, the region’s contribution to closing the gap in financial inclusion holds immense value, especially for those previously excluded from the traditional financial ecosystem. Richie Santosdiaz and the MEA 2024 Report team at The Fintech Times

Chapter Five Appendix

2.

4.

EASE OF DOING BUSINESS

and less

Range is out of a score from 0-100

Overall ease of doing business in the country?

The baseline of a World Bank Doing Business Report was used, whereby it was given a score of 0 to 100, with 100 being the highest.

DIGITAL & TECH INDICATORS

5. POPULATION

FINTECH ONLY INDICATORS

than 2m

Range is Population

A quantitative metric is needed, and population is good to determine the size of the country. The larger the population, the larger the score.

6. HUMAN DEVELOPMENT INDEX (HDI)

Score is from the UNDP from 0 -10

A human development index was factored in via public data from the United Nations Development Programme (UNDP) 2020 Human Development statistics. The score is 10 being the highest possible human development and 0 being the least. 13.

to the tech/startup indicator, the number of fintech companies in the country is

A holistic approach is needed, so the number of fintechs also has its indicator that takes into account the number of fintechs per person.

Endnotes

Chapter One

A. MEA OVERVIEW – GEOGRAPHY

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

B. MEA OVERVIEW – POPULATION & ECONOMICS

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● International Monetary Fund

● World Population Review

● The United Nations

C. BREAKDOWN OVERVIEW BY SIX REGIONS

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The World Bank

● The United Nations

● World Population Review

D. FINANCIAL SERVICES OVERIVEW

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● https://www.statista.com/statistics/421060/ global-financial-institutions-assets/

● Global Financial Centres Index 35 Report

– March 2024

● Islamic Finance Development Report 2023

– Islamic Corporation

for the Development of the Private Sector

● https://www.statista.com/statistics/1350281/ bank-account-penetration-rate-in-south-africa/

● https://www.theglobaleconomy.com/rankings/ percent_people_bank_accounts/Africa/

● https://medmsmes.eu/algeria#:~:text=SMEs%20 in%20Algeria%20represent%20a,employ%20 less%20than%2010%20employees.

● https://www.tralac.org/blog/article/15863-themicro-and-small-medium-enterprisesdevelopment-in-kenya.html#:~:text=Micro%2C%20 small%2C%20and%20medium%2D,MSMEs%20 operate%20as%20 licenced%20entities.

● https://www.intellinews.com/africa-s-massiveunbanked-population-creates-huge-opportunitiesfor-incumbent-banks-and-fintech-start-ups301344/#:~:text=However%2C%20only%20 43%25%20of%20sub,to%20BPC%2C%20a%20 fintech%20company

● https://www.statista.com/topics/9696/bankingindustry-in-kenya/#:~:text=Increasing%20 banked%20population&text=In%20general%2C%20 formal%20access%20to,mobile%20banking%20 and%20mobile%20money.

● https://www.weforum.org/agenda/2023/11/ africa-digital-mobile-banking-financialinclusion/#:~:text=Today%2C%2048%25%20of%20 Africa’s%20population,at%20pace%20across%20 the%20continent.

● https://www.fitchratings.com/research/ non-bank-financial-institutions/iraqislamic-banks-growth-to-continuestructural-issues-remain-05-07-2022

● https://www.mfw4a.org/blog/recenttrends-access-finance-africa

● https://www.meinsurancereview.com/ News/View- NewsLetter-Article?id=87111& Type=MiddleEast

● https://www.leadway.com/insurance-nigeriastatistics/#:~:text=The%20rate%20of%20 insurance%20penetration%20in%20Nigeria%20 has%20been%20regarded,rate%20as%20of%20 March%2C%202022.

● https://www.statista.com/topics/4206/insuranceindustry-in-africa/#topicOverview

● https://www.weforum.org/agenda/2023/11/africadigital-mobile-banking-financial-inclusion/

● https://www.statista.com/statistics/1383501/ mena-share-of-banked-population-bycountry/#:~:text=Share%20of%20banked%20 population%20MENA%202022%2C%20by%20 country%20or%20territory&text=In%20 2022%2C%20Israel%20had%20the,Africa%20 was%20at%2046%20percent.

● https://www.meed.com/fintech-promotesfinancial-inclusion-in-bahrain#:~:text=In%20 Bahrain%2C%20bank%20account%20penetration, part%20driven%20by%20fintech%20innovation.

● https://www.thebanker.com/The-untappedsegment-in-Middle-Eastern-banking-1670493822

● https://www.bpcbt.com/hubfs/2022_campaigns/ DGB%20report%20Africa/BPC_Digital%20 banking%20in%20Africa.pdf

● https://www.centralbank.go.ke/wp-content/ uploads/2022/08/2021-Finaccesss-Survey-Report.pdf

● https://www.intellinews.com/africa-s-massiveunbanked-population-creates-huge-opportunitiesfor-incumbent-banks-and-fintech-start-ups-301344/

E. TECH OVERVIEW

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Startup Blink - The Global Startup Ecosystem Index Report 2023

● https://kpmg.com/xx/en/home/media/ press-releases/2024/01/q4-2023-global-vc-dealsvolume-drops-to-level-not-seen-since-q3-2016.

● html#:~:text=2023%E2%80%94Key%20Highlights, from%20%24269.6%20billion%20in%202022.

● https://www.gulf-insider.com/middle-east-sees-23drop-in-vc-funding-qatar-bahrain-uae-hardest-hit/

● https://www.fdiintelligence.com/content/ feature/algerias-grand-startup-plan-facesteething-issues-82312

● https://news.crunchbase.com/venture/ israel-vc-backed-startup-funding-q4-2023/

● https://www.swfinstitute.org/fund-rankings/ sovereign-wealth-fund

● https://businesschief.ae/corporate-finance/top-10biggest-sovereign-wealth-funds-in-the-arabian-gulf

F. THE MEA CONSUMER

● https://www.ilo.org/africa/events-and-meetings/ WCMS_842674/lang--en/index.htm

● https://blogs.worldbank.org/en/arabvoices/ informal-employment-egypt-morocco-tunisiawhat-can-we-learn-boost-inclusive-growth#:~:text =Most%20recent%20estimates%20place%20informal, workers%20hold%20an%20informal%20job.

● https://www.imf.org/external/np/vc/2012/061312. htm?id=186569#:~:text=Moreover%2C%20at%20 about%2025%25%2C,activity%20and %20to%20increased%20unemployment.

● https://www.globalmediainsight.com/blog/ uae-population-statistics/

● https://www.ktpress.rw/2023/10/mobile-phonepenetration-in-africa-to-reach-88-by-2030/

● https://unconnected.org/blog/impact-of-theinternet-in-africa-2021

● https://www.gsma.com/solutions-and-impact/ connectivity-for-good/mobile-economy/ wp-content/uploads/2023/12/051223-MobileEconomy-Middle-East-and-North-Africa-2023infographic.pdf

● https://www.digitalmarketingcommunity.com/ indicators/middle-east-internet-usage-stats/

● https://www.weforum.org/agenda/2023/11/ africa-digital-mobile-banking-financial-inclusion/

G. ECONOMIC DEVELOPMENT

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

H. DIGITAL INFRASTRUTURE

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

Chapter Two

INTRODUCTION AND OVERVIEW

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● https://100-2020.webflow.io/unicornes-eng

● https://www.imf.org/en/Publications/fandd/ issues/2023/09/unleashing-mideast-fintechamjad-ahmad#:~:text=Fintech%20revenues%20 are%20expected%20to,percent%20to%20 2%E2%80%932.5%20percent.

● https://www2.deloitte.com/xe/en/pages/ financial-services/articles/fintech-solutions.html

● https://salaamgateway.com/story/oic-marketskey-players-in-global-islamic-fintech-space

● https://www.digipay.guru/blog/challenges-andsolutions-of-financial-inclusion-in-africa/

PAYMENTS

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● McKinsey & Co – Fintech in Africa: The End of the Beginning Report

INSURTECH

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● https://briterbridges.com/stories/2022/2/19/ insurtech-landscape-in-africa

● https://www.tamimi.com/news/healthinsurance-becomes-mandatory-across-uaeeffective-january-1-2025/

● https://www.fragomen.com/insights/qatarcertain-categories-exempt-from-mandatoryhealth-insurance.html#:~:text=Since%20 2022%2C%20Qatar%20has%20imposed,is%20 for%20informational%20purposes%20only.

● https://insights.omnia-health.com/clinical/ why-gcc-needs-tackle-diabetes-urgently

GAMETECH

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● https://enrich.africa/news/a-quick-lookat-africas-gaming-sector-unlockinggrowth-and-opportunities-g4Cjr3

● https://startuplist.africa/industry/gaming

● https://www.fintechfutures.com/2020/07/ emirates-nbds-challenger-live-moves-to -super-app-status/

● https://techcrunch.com/2024/01/31/ despite-glimmers-of-profit-most-africanneobanks-remain-in-the-red/

● https://www.moec.gov.ae/documents/ 20121/ 0/2022_03_25_Gaming+Sector +Heatmap+in+English.pdf

● https://african.business/2024/02/technologyinformation/mobile-games-and-esports-newfrontiers-africa-video-games#:~:text=Africa’s%20 videogame%20market%20has%20been,a%20 South%20African%20gaming%20platform

● https://www.fastcompany.com/91022527/Türkiyegaming-saudi-arabia-competition-middle-east

● https://edition.cnn.com/2023/09/07/business/ uae-gambling-new-regulatory-body/index.html

● https://www.arabnews.com/node/2346431/ business-economy

● National Gaming and Esports Strategy – Saudi Arabia

WEALTHTECH AND INVESTING

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● https://www.visualcapitalist.com/ cities-most-millionaires/

● Knight Frank – The Wealth Report 2024

● Henley & Partners – World’s Wealthiest Cities 2023 Report

● https://migasuto.com/2024/04/02/the-future -of-wealthtech-trends-and-predictions/

● https://afr-ix.com/african-growth-and-the -rising-of-african-middle-class/

● https://www.businessdailyafrica.com/bd/ opinion-analysis/columnists/financial-literacymust-begin-at-home--4168630

● https://fintechnews.ae/19433/saudiarabia/saudiwealthtech-hakbah-closes-us5-1-million-series-a/

REGTECH

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● https://dabafinance.com/en/news/ Regulation-focused-startups-in-Africa

● Fintech Regulation in the Middle East and North Africa – Cambridge Judge Business School

● Deloitte – Regtech: The Way Forward for KSA Report

DIGITAL CURRENCIES

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● https://techpoint.africa/2023/12/11/egypt-tolaunch-digital-currencies/#:~:text=Senegal%20 launched%20its%20digital%20currency,of%20 its%20currency%2C%20dubbed%20eNaira.

● https://www.centralbanking.com/central-banks/ financial-market-infrastructure/7857171/france -and-tunisia-carry-out-cross-border-cbdc-transfer

● https://www.ledgerinsights.com/Türkiyecbdc-trials-2nd-phase/

● https://cbdctracker.org/currency/jordan

● https://mecouncil.org/publication/cbdc-globalpioneers-a-roadmap-for-gulf-countries/

● https://www.ledgerinsights.com/uae-crossborder-cbdc-payment-mbridge/

● https://cointelegraph.com/news/qatarcentral-bank-in-foundation-stage-oflaunching-digital-currency

● https://thepaypers.com/online-mobilebanking/qfca-and-r3-agree-to-support-qatarsfinancial-technology-industry--1262269

● https://www.unlock-bc.com/111618/kuwaitfinance-house-ripple-join-forces-redefinecross-border-banking-middle-east/

● https://www.ledgerinsights.com/central-bankof-bahrain-jpm-coin-digital-currency-tests/

● https://www.thenationalnews.com/business/ banking/2022/05/31/oman-developing-its-owndigital-currency-central-bank-official-says/

● https://www.spa.gov.sa/w1844333

● https://www.reuters.com/world/africa/ kenya-central-bank-says-digital-currencynot-compelling-priority-2023-06-02/

● https://digitalpolicyalert.org/change/5922south-african-reserve-bank-sarb-feasibilitystudy-for-a-general-purpose-retail-central-bankdigital-currency-cbdc

● Chainanalysis: The 2023 Geography of Cryptocurrency Report

OPEN FINANCE

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● https://thepaypers.com/interviews/insights-onopen-banking-evolution-in-africa-interview-withdeloitte--1266549#:~:text=Most%20African%20 markets%20have%20not,%2C%20Ghana%2C%20 and%20South%20Africa

● https://www.wamda.com/2023/02/open-bankingmena-shifting-gears-making-strides

● https://www.openbankingmap.com

● World Bank – The Role of Consumer Consent in Open Banking report

● https://www.fintech-galaxy.com/media-center/ news/-navigating-the-sands-of-innovation-openfinance-in-the-gcc

● https://www.legalink.ch/groups/newsletterarticles/open-banking-is-taking-off-in-israel/ 3157/#:~:text=The%20statute%20entered%20into% 20force,%2C%20fees%2C%20interest%2C%20etc.

LENDING

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● https://techcrunch.com/2023/02/01/south-africandigital-lender-lulalend-to-launch-bankingproduct-off-the-back-of-35m-series-b/

SUPERAPPS

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● https://www.citizen.digital/business/safaricomacquires-full-ownership-of-m-pesa-holdingn329615#:~:text=Safaricom%20has%20 announced%20the%20acquisition,the%20 M%2DPesa%20trust%20arrangement.

● https://www.Yassir.com

● http://www.beyon.com

● https://impact.economist.com/perspectives/ sites/default/files/the-super-app-model-inthe-middle-east-and-africa.pdf

WIDER FINTECH ECOSYSTEM

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

Chapter Three

25 COUNTRIES FINDINGS

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times – Fintech: Middle East and Africa 2022 Report

● The Fintech Times – Fintech: Middle East and Africa 2021 Report

● The Fintech Times

● Times Higher Education

● OECD Library

● The Global Entrepreneurship and Development Institute (GEDI) – http://thegedi.org/tool/

● The World Bank

● World Population Review

● The United Nations

● https://startupstash.com/uae-startups/

● https://dealroom.co/blog/ecosystem-spotlightcode-saudi-arabia#:~:text=In%20Saudi%20 Arabia%20itself%2C%20there,from%20various%20 backgrounds%20fosters%20innovation.

● https://techcrunch.com/2023/10/13/israelsstartup-ecosystem-down-but-not-out/

● https://blog.teamwave.com/turkiyes-startupecosystem-data-insights-and-trends/

● Magnitt

● https://www.tanzaniainvest.com/startups#:~: text=The%20most%20recent%20country%2Dwide ,rising%20from%20247%20to%20587.

● http https://www.jica.go.jp/english/our_work/ thematic_issues/private/information/20230713. htmls://startupgenome.com/ecosystems/tunisia

● https://www.jica.go.jp/Resource/nigeria/english/ office/topics/emo4vc000000w6jr-att/

● https://www.agenceecofin.com/telecom/100677383-l-ecosysteme-tech-de-rd-congo-un-enormepotentiel-mal-canalise230316_01.pdf

● Magnitt Venture Investment 2023 Report

● https://www.statista.com/outlook/fmo/ capital-raising/traditional-capital-raising/ venture-capital/oman

● https://techcrunch.com/2024/01/23/2023-vcfunding-in-africa/

● https://www.agbi.com/tech/2023/11/e-commercebeats-fintech-to-jordan-vc-funding-top-spot/

● https://www.statista.com/outlook/fmo/ capital-raising/traditional-capital-raising/ venture-capital/lebanon#capital-raised

● https://www.openbankproject.com/blog/ regulatory-sandboxes-in-africa/

● https://afrelafrica.org/bank-al-maghribs-annualreport-on-financial-market-infrastructures/

● Fintech Egypt News and Events|Fintech Egypt (fintech-egypt.com)

ALGERIA

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● World Trade Organization – https://www. wto.org/english/forums_e/public_forum12_e/ art_pf12_e/art15.htm

● Afrikan Heroes – https://afrikanheroes. com/2023/07/07/algeria-approves-new-lawpermitting-fintech-and-digital-banks-for-thefirst-time-heres-what-it-says/

● Buyouut – https://theouut.com/how-fintech-canimprove-financial-inclusion-in-algeria/

● Tracxn – https://tracxn.com/d/explore/fintechstartups-in-algeria/__LuI-7EGZUl99pcA3eQLIj_ 1weFOHrHcwMti_WtQ8JIc/companies

● Fintech News – https://fintechnews.ae/8557/ algeria/fintech-development-in-algeria-lagsbehind-mena-counterparts/

● Algerie Poste

● Fintech News – https://fintechnews.africa/41284/ fintech-algeria/algerian-super-app-yassir-raises150-million-in-series-b-funding/

● Crunchbase

● SmartVista – https://www.bpcbt.com/blog/ bpc-facilitates-interoperability-in-algeriamillions-to-use-country-wide-network

● BCP – https://www.bpcbt.com/blog/bpcfacilitates-interoperability-in-algeriamillions-to-use-country-wide-network

BAHRAIN

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Bahrain Fintech Ecosystem Report 2022

– Bahrain Fintech Bay

● Digital Payment Landscape Report 2022 – CBB

● Retail Banking Benchmarking Report 2023

– Bahrain Fintech Bay

● Central Bank of Bahrain (CBB), Bahrain Fintech Bay

DEMOCRATIC REPUBLIC OF THE CONGO (DRC)

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● The DRC Financial Inclusion Roadmap 2016-2021

● Visa – https://navigate.visa.com/cemea/ spotlight-the-democratic-republic-of-thecongo-on-the-path-to-digitizing-payments/

● Fintech Global - https://fintech.global/2024/01/09/ mastercard-partners-with-illicocash-to-launchvirtual-cards-in-drc/

● Techcabel – https://techcabal.com/2024/ 01/24/fintech-and-energy-illuminate-drcongos-nascent-startup-ecosystem/

– https://techcabal.com/2023/06/22/tuma/

● World Bank – Democratic Republic of Congo

Digital Economy Assessment Report

● Inclusive Fintechs in Francophone Africa: Democratic Republic of the Congo Report

● Digital Economy Assessment

● US State Department – https://www.state.gov/ reports/2018-investment-climate-statements/ congo-democratic-republic-of-the/

● National Investment Promotional Agency

– https://www.investindrc.cd/en/ Creation-d-une-banque

● Enrich Africa – https://enrich.africa/news/ fintech-startups-in-the-drc-forge-alliancewith-government-to-advance-financialinclusion-yjRjGO

EGYPT

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Egypt Fintech Landscape Reports 2023, 2022 and 2021 – Fintech Egypt

● Central Bank of Egypt

● Tamimi – https://www.tamimi.com/news/ navigating-regulatory-changes-in-egypts -fintech-sector/

● Techcabel – https://techcabal.com/2023/07/19/ egyptian-fintech-report-2023/

● DailyNewsEgypt – https://www.dailynewsegypt. com/2024/01/09/egypts-fra-streamlines-fintechstartup-licensing-with-new-requirements/

ETHIOPIA

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● National Banko of Ethiopia

● International Trade Administration – https://www.trade.gov/market-intelligence/ ethiopia-fintech-sector

● Africa Review – https://africanreview.com/ict/ ethiopia-africa-s-sleeping-fintech-giant

● DW – https://www.dw.com/en/ethiopia-becomesbrics-member-amid-economic-crisis/a-68000253

● Fintech Global – https://fintech.global/ 2023/08/30/safaricom-launches-m-pesamobile-money-service-in-ethiopia/

● The Africa Report – https://www.theafricareport. com/328179/ethiopia-working-on-fullbanking-sector-opening-central-bankgovernor-mihretu-says/

GHANA

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● Bank of Ghana

● Moody’s Analytics - https://www.moodys analytics.com/regulatory-news/feb-21-23-boglaunches-regulatory-sandbox-in-ghana

● Chambers and Partners - https://practiceguides. chambers.com/practice-guides/fintech-2023/ ghana/trends-and-developments

● GIPC – Ghana ICT and Fintech Sector Report 2022

● Bank of Ghana – Fintech Sector Report 2023

● Businesswire - https://www.businesswire.com/ news/home/20231218355185/en/EMTECHSuccessfully-Pilots-Its-Web3-based-Digital-CashInfrastructure-Solution-With-Bank-of-Ghana

ISRAEL

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Bank of Israel

● Fintech Global – https://fintech.global/2023/09/17/ israeli-fintech-funding-on-track-to-half-in-2023as-average-deal-size-declines/

● Jerusalem Post – https://www.jpost.com/ business-and-innovation/banking-and-finance/ article-761310#google_vignette

● Chambers and Partners – https:// chambers.com/content/item/3271

● Gornitzky – https://www.gornitzky.com/ new-regulation-in-israel-payment-services-andpayment-initiation-law/

● Mondaq – https://www.mondaq.com/fintech/868058/chapter-on-fintech-2nd-edition

● Reuters – https://www.reuters.com/business/ finance/bank-israel-still-unsure-digital-shekelgarners-public-support-2022-05-09/

JORDAN

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● The Central Bank of Jordan (including Jordan Payments and Clearing Company)

● Wamda – https://www.wamda.com/2023/ 05/jopacc-rainmaking-collaborate-launchfintech-incubator-jordan

● Jordan Times – https://jordantimes.com/news/ local/cbj-launches-fintech-innovation-visionfocus-jordans-ict-talent

● Fintechnews.ae – https://fintechnews.ae/ 18834/fintechjordan/fintech-funding-injordan-accelerates/

● Information and Communications Technology Association of Jordan – https://intaj.net/startups/

● Zawya – https://www.zawya.com/en/economy/ levant/cbj-launches-fintech-innovation-visionwith-focus-on-jordans-ict-talent-sj8xybbp

● Financial inclusion Diagnostic Study in Jordan 2022

● CGAP – https://www.cgap.org/blog/harnessingfintech-in-arab-world-opportunity-worth-billions

● https://cbdctracker.org/currency/jordan

KENYA

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Chambers and Partners – https://practiceguides. chambers.com/practice-guides/fintech-2023/ kenya/trends-and-developments

● CR Advocates – https://www.cradvocatesllp.com/ regulation-of-fintech-companies-inkenya/#:~:text= All%20Fintech%20companies%20 in%20Kenya, keeping %20Fintech%20 companies%20in%20check.

● MMAN – https://mman.co.ke/content/fintechregulation-kenya-0

● Tech Labari – https://techlabari.com/kenya-tosign-startup-bill-into-law-in-2024/

● SEMAFOR - https://www.semafor.com/ article/01/16/2024/nigerian-fintechs-prepare-fornew-central-bank-licensing-regime

● GFRID – https://gfrid.org/kenyas-mobile-moneytax-is-one-of-africas-highest/

● https://www.reuters.com/world/africa/ kenya-central-bank-says-digital-currency-notcompelling-priority-2023-06-02/

KUWAIT

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Central Bank of Kuwait

● Al Tamimi & Co – https://turtl.tamimi.com/ story/updates-in-the-fintech-sector-in-kuwaitin-2023/page/1/2

LEBANON

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Codebase Technologies – eWallets in Lebanon Report – https://www.codebtech.com/ ewallets-in-lebanon/

● Lexology – https://www.lexology.com/library/ detail.aspx?g=5b8a7862-07d5-4166-b97400800a1b3151#:~:text=Lebanon%20has%20 not%20adopted%20an,incorporated%20and%20 licenced%20in%20Lebanon.

MAURITIUS

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Business Magazine – https://www.businessmagazine.mu/rencontre/parole-dexpertsrencontre/ the-arrival-of-legislation-in-thefintech-industry/

● Mondaq – https://www.mondaq.com/fintech/1391426/fintech-developments-mauritius-the-fsc-launches-a-new-fintech-webpage-andupdates-its-regulatory-sandbox-guidelines

● UNECA – https://www.uneca.org/eca-events/ 1st-committee-meeting-draft-fintech-policyguidelines-mauritius

● Elliptic – https://www.elliptic.co/ country-guides/mauritius

MOROCCO

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Fitch Solutions ≠ https://www.fitchsolutions.com/ bmi/telecommunications/morocco-fintechfinancial-inclusion-drives-regulation-distrusthampers-adoption-23-08-2022?fSWebArticle Validation=true&mkt_tok=NzMyLUNLSC03Njc AAAGR8M6-ZWHGtAPBmonfb7L1_5KtLpgGzWD w0vh5MXu01plFvB0pF_

● NX1tuvjhm1YtQkLpahPq8bX2xOx ohTEa5z7wkO5NrN6gMA6aOwRKO27m7uZ1EV2g

● Bank Al-Maghrib

● UNSGSA – https://www.unsgsa.org/country-visits/ morocco-has-opportunity-harness-digitalpayments-fintech-and-green-finance-expandfinancial-inclusion

● Wamda – https://www.wamda.com/2016/06/3reasons-why-morocco-is-lagging-in-e-payments and https://www.wamda.com/2016/06/ the-year-moroccos-digital-economy-levels-up

● The Banker – https://www.thebanker.com/ Morocco-kicks-off-instant-interbankpayments-1691479728

● HESPRESS – https://en.hespress.com/73973morocco-access-points-to-financial-services-up18-in-2022.html

● Forbes – https://www.forbes.com/sites/ roselynewanjiru/2023/07/05/crypto-regulation-inafrica-here-are-seven-nations-and-theirregulatory-stance-in-the-last-fiveyears/?sh=7e88f59c4005

● Morocco World News – https://www. moroccoworldnews.com/2023/01/353487/ tax-authorities-to-gain-access-to-bank-accountsof-moroccans-residing-abroad

NIGERIA

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Central Bank of Nigeria

● Global Legal Insights – https://www. globallegalinsights.com/practice-areas/ fintech-laws-and-regulations/nigeria

● ICLG – https://iclg.com/practice-areas/ fintech-laws-and-regulations/nigeria

OMAN

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Central Bank of Oman

● BSA Ahmad Bin Hezeem & Associates – https:// bsabh.com/uploads/files/2022_in_review_-__the_ legal_and_regulatory_updates_impacting_ businesses_in_Oman.pdf

● Thawani – https://thawani.om/2023/02/15/ thawani-amp-fintech-regulations-in-oman/

● Open Banking Project – https://www. openbankproject.com/blog/open-banking-inoman/

QATAR

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Qatar Central Bank

● Qatar Financial Centre and Qatar Fintech Hub

● Hubbis – https://www.hubbis.com/news/ qfc-issues-proposals-for-the-introduction-of-adigital-assets-framework

● Open Banking Expo – https://www. openbankingexpo.com/news/qatar-central-bankto-launch-instant-payment-service/

● Zawya – https://www.zawya.com/en/pressrelease/companies-news/qatar-fintech-hubannounces-wave-5-of-its-incubator-andaccelerator-programs-lpk8en37

● https://thepaypers.com/online-mobile-banking/ qfca-and-r3-agree-to-support-qatars-financialtechnology-industry--1262269

RWANDA

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● National Bank of Rwanda (BNR)

● MINICT – https://www.minict.gov.rw/index.php?eI D=dumpFile&t=f&f=41305&token=4bcac6970c5d43 3ff070e4b9c25bb346763debed

● CENFRI – https://cenfri.org/wp-content/uploads/ BNR-Open-Finance_Validation-mission-workshop_ slide-deck.pdf

● Stears – https://www.stears.co/premium/article/ plugging-rwandas-financial-exclusion-gaps/

SAUDI ARABIA

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Saudi Central Bank (SAMA), Capital Markets Authority (CMA) and Fintech Saudi

● Z&Co – https://zamakhchary.com/ financial-regulations/fintech-regulations/

● ICLG – https://iclg.com/practice-areas/fintechlaws-and-regulations/saudi-arabia

● Magnitt VC Funding Report MENA 2023

SENEGAL

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● MFW4A – https://www.mfw4a.org/news/ waemu-central-bank-bceao-sets-fintechpromotion-bureau

● Ecofin Agency – https://www.ecofinagency.com/ finance/0702-45187-bceao-sets-regulatoryframework-for-payment-service-providers-in-thewamu-mandates-approval-within-6-months

● Smart Tunisia – http://www.smarttunisia.tn/ senegal-becomes-2nd-african-nation-topass-startup-act/

● Central Banking – https://www.centralbanking. com/fintech/cbdc/2478564/central-bank-of-westafrican-states-to-regulate-national-digital-currency

● Practice Guides – https://practiceguides.chambers. com/practice-guides/comparison/926/12312/ 19521-19523-19525-19527-19531-19533-1953519537-19539-19541-19543

SOUTH AFRICA

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● South African Reserve Bank, Financial Sector Conduct Authority

● Bowmans Law – https://bowmanslaw.com/ wp-content/uploads/2021/08/2022_fintech_ south_africa.pdf

● IFC Review – https://www.ifcreview.com/ news/2024/february/africa-south-africa-eyesdigital-payments-revolution-with-stablecoinsand-blockchain-initiatives/

● Wee Tracker – https://weetracker.com/2024/ 03/04/south-africa-fintech-laws/

TANZANIA

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Bowmans Law – https://bowmanslaw.com/insights/ tanzania-the-fintech-regulatory-sandboxregulations-2023/

● ABC Attorneys – https://abcattorneys.co.tz/ fintech-and-laws-in-tanzania/

● Digest – https://www.digest.tz/tanzania-startuppolicy-to-tackle-startup-challenges-by-year-endannounces-nape-nnauye/

● Fintech for Who? Tanzania UNCDF 2023 Report

● North Africa Post – https://northafricapost. com/60365-zanzibar-launches-new-wasokotech-hub-for-start-ups.html

● QZ – https://qz.com/africa-is-betting-bigon-open-banking-1849623583

TUNISIA

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Zawya – https://www.zawya.com/en/economy/ north-africa/tunisia-for-53-of-fintechs-nationalregulatory-framework-is-discouraging-p9cn9921

● Oxford Business Group – https:// oxfordbusinessgroup.com/reports/tunisia/2019report/economy/fundamental-revamp-theauthorities-pursue-reforms-to-bring-regulationsin-line-with-international-standards

● Afrikan Heroes – https://afrikanheroes. com/2023/02/10/central-bank-of-tunisia-launchesa-new-sandbox-licensing-regime-fintech-startupsnot-welcome/

● Onespan – https://www.onespan.com/resources/ financial-regulations/tunisia

● IFC – https://pressroom.ifc.org/all/pages/ PressDetail.aspx?ID=27289

● OECD Library – https://www.oecd-ilibrary.org/ sites/142fcac4-en/index.html?itemId=/content/ component/142fcac4-en

TURKIYE

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Turkiye Fintech Guide 2023 Report – President’s Office of the Republic of Turkiye Finance Office

● Presidents Office of the Republic of Türkiye Finance Office

● https://www.ledgerinsights.com/ Türkiye-cbdc-trials-2nd-phase/

UGANDA

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Bank of Uganda and FITSPA

● FITSPA and Deloitte Study on the State of Uganda’s Fintech Industry Report 2022

● Dentons – Trends to Watch Uganda 2024 Report

● Daily Monitor - https://www.monitor.co.ug/ uganda/business/finance/fintech-firms-growto-24-4117836

● New Vision– https://www.newvision.co.ug/ category/business/2023-fintech-landscapeexhibition-for-thursda-NV_164308

UNITED ARAB EMIRATES

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● Central Bank of the UAE (CBUAE), Dubai International Financial Centre (DIFC), and Abu Dhabi Global Markets (ADGM)

● Government of the UAE, Dubai and Abu Dhabi

● https://www.ledgerinsights.com/uae-crossborder-cbdc-payment-mbridge/

Chapter Four

REFLECTION ON THE FINTECH HUBS OF THE MIDDLE EAST AND AFRICA FINDINGS

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● CNN

● Al Jazeera

● https://www.npr.org/2024/01/12/1223677088/ israel-gaza-war-tech-economic-toll

PREDICTIONS

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times – Fintech: Middle East and Africa 2023 Report

● The Fintech Times

● https://www.reuters.com/markets/Türkiyes-yapikredi-shares-jump-report-fab-bid-interest-2024-04-05/

● https://www.bloomberg.com/news/ articles/2024-04-10/standard-bank-to-deepenmideast-ties-with-new-egypt-office?utm_ campaign=socialflow-organic&cmpid=socialflowfacebook-business&utm_medium=social&utm_ content=business&utm_source=facebook&fbclid=I wAR3GznsoNxwu4jbD-Tgp6ZV8xL8MJh2kiQUrFgNXQUWzmYX3jJRhvnMG5s

● https://www.arabnews.com/node/2383261/ business-economy

● https://african.business/2023/08/trade-investment/ the-south-african-bank-using-singapore-toexpand-in-asia

● https://www.zawya.com/en/wealth/alternativeinvestments/uaes-careem-enters-indianremittance-market-eyes-philippines-egypt-htba5eyl

● http://www.careem.com

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