Number of fintech companies in MENA 2024, by country

As of 2024, there were 739 fintech companies in Turkey, which was the highest in the entire MENA region. The United Arab Emirates and Israel followed with 686 and 550 fintech companies, respectively. The majority of countries in the region had less than 100 fintech companies in operation.

Fintech in MENA

At its core, fintech not only assists consumers, but also companies and business owners to better manage their financial operations using specialized software. High smartphone and internet penetration in the MENA region in recent years has been a factor in driving the rise in fintech startups. Additionally, the region holds a sizeable youthful population who tends to be more flexible to change and early technology adopters.

Burdensome and outdated regulations in the region have historically slowed down adoption and investment. However, a recent rapid change in the regulatory environment has been observed in different countries such as Egypt and Jordan, especially during the COVID-19 pandemic. The online banking penetration rate in Egypt was forecasted to expand to 12 percent by 2025. Despite being in their relative infancy, the region now has different levels of regulatory aspects that pertain to fintech specifically. Adding to this, the region hosts a high percentage of unbanked adults, which provides opportunities for fintech startups to step in and fill in the market gaps.

Fintech in UAE

The UAE holds one of the most mature fintech markets in the region, accounting for a large percentage of fintech startups. The country had the highest overall fintech readiness score among the MENA region, growth, making it a premium global fintech hub, while Saudi Arabia, Turkey, and Bahrain were emerging hubs. This is due to several factors, including the government’s efforts to foster startup growth, which makes the UAE a global hub for tech companies. Approximately 34 percent of firms in the UAE had a company-wide digital transformation strategy in place, with good progress in implementing it in 2019.