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Few would have predicted that one of the brightest stories in global fintech would come from the Middle East and North Africa, yet in less than a decade the region has turned into a centre of momentum.
While investment across Europe and North America has cooled of late, funding in the MENA region passed USD 2 billion in 2024 with the number of active firms climbing beyond 1,500. Saudi Arabia, the UAE, and Egypt are at the forefront, creating new unicorns and attracting global investors to a market that offers the conditions fintech startups need to succeed at scale. This article looks at why MENA has emerged as one of the most promising regions in the world for fintech growth, and what sets it apart from established hubs elsewhere.
Capital flows and investor appetite
Much of the region’s momentum comes from how capital is being deployed. Gulf sovereign funds and large family groups have made fintech part of their wider investment strategies, often backing firms at a speed and scale that founders elsewhere struggle to match. In Saudi Arabia alone, fintech startups raised about USD 1.3 billion across 2023 and 2024, with deals such as stc Bank’s USD 200 million round setting new benchmarks for the sector. The UAE has followed a similar course, with Dubai-based funds leading a significant share of Gulf fintech rounds in 2024.
This depth of liquidity shortens the path from seed to growth stage, cutting out the long pauses and down rounds that are common in Europe and North America. Average deal times in the Gulf are often measured in weeks rather than months, which changes the rhythm of building a company and gives startups in the region a rare advantage.
Regulation and supportive frameworks
The other reason startups have gained pace in the region is the way regulators have opened the door while keeping oversight firm. In Saudi Arabia, the central bank has played a leading role, issuing three digital bank licences and running a sandbox that has now approved more than 50 new models in payments, lending, and wealth tools. That mix of permission and supervision has allowed firms to test at scale without losing the confidence of customers or investors.
Elsewhere, Dubai’s DIFC and Bahrain have taken a similar course, giving early stage companies structured routes to trial products under watch before moving into full licences. Open banking is also being phased in, with Saudi Arabia mandating rollout across banks by 2025. These steps give smaller firms access to data once held tightly by incumbents and make it clearer how startups can grow within the system without the regulatory grey areas seen in other markets.
Demographics and consumer demand
The strength of the region’s fintech market also rests on its demographics. More than half of the population is under 30, and smartphone penetration in Gulf states sits above 90 percent. That combination of youth and digital access has created a consumer base ready to adopt new financial services at speed. In Saudi Arabia, where about 70 percent of adults were outside the formal banking system only a decade ago, the use of digital wallets has grown by more than 40 percent year on year. Buy-now-pay-later services have also surged, with adoption rates among the highest in the world.
This shows how quickly consumer behaviour is changing. Egypt is seeing the same effect, with mobile payments now processing transactions in the billions each year. For fintech founders, it means the region offers a customer base that’s both young and highly engaged with new ways of managing money.
Government agendas and infrastructure
Fintech growth in the region is also being shaped by government strategies that treat digital finance as part of wider economic reform. In Saudi Arabia, Vision 2030 set a target of raising cashless transactions to 70 percent by the end of the decade, and programmes like Fintech Saudi have already helped hundreds of startups move from pilot to market. Public backing has also included direct funding, incubators, and links between regulators, banks, and universities to build a stronger talent base.
The UAE has taken a parallel route, with DIFC and ADGM both promoting fintech hubs that connect early stage firms with capital and licensing support. Bahrain has positioned itself as a first mover in regional open banking rules, drawing in cross-border entrants. These initiatives mean startups can access clearer licensing routes, stronger institutional backing, and a deeper pool of skilled talent, all of which make it easier to build and scale.
Global positioning and cross-border growth
Beyond domestic policy, the regional fintech story has an international dimension. Saudi Arabia has pushed forward on cross-border payments, with the central bank linking systems to the UAE and experimenting with digital currencies for trade settlement. Several Gulf-backed fintechs have already expanded into Egypt, Pakistan, and parts of Africa, using the region’s location as a bridge between large neighbouring markets.
Global comparisons highlight the scale of this progress. While London and Singapore remain established hubs, MENA’s fintech revenue is forecast to grow at more than twice the global average, reaching a projected annual rate of 35 percent through 2028. For founders, that means the dual benefit of a fast-growing home market and a base from which to reach neighbouring economies in Africa and South Asia.
From local momentum to global reach
Fintech in the region has moved to the centre of global growth. Capital is flowing at record pace, regulation is structured but open, consumer demand is strong, and governments are backing the sector as part of wider economic reform. Saudi Arabia, the UAE, and Egypt stand out, yet the effect is regional, with scale that stretches beyond national borders. For founders and investors, this is a market where growth today connects directly to influence over how financial systems in MENA, Africa, and South Asia develop in the years ahead.