UAE: 800 fintech firms need $7bln in funding in 3 years across Menap

UAE: 800 fintech firms need $7bln in funding in 3 years across Menap

Fintech companies in the Middle East, North Africa and Pakistan (Menap), which comprise approximately 800 funded start-ups, will need new funding of around $5 billion to $7 billion (Dh18.35 billion to Dh 25.7 billion) over the next three years, according to global consultancy McKinsey.

At present, the region’s fintech funding levels, excluding capital raised by new digital banks, relative to GDP are much lower than recorded in other markets.

“If Menap fintechs succeed in attracting the level of funding available to peers in other regions, they would be in a stronger position to hire top talent, reach new segments in existing markets, and expand to adjacent markets.

It added that raising the funds needed to increase the fintech contribution from less than 1 per cent to approximately 2-2.5 per cent of the total regional banking sector revenue pool will require larger average investments and greater participation by local investors.

UAE retains top position

The UAE has retained the top position as the leading magnet for investors investing in fintech, despite a drop in the UAE share of total funding, from approximately 80 per cent in 2017 to about 35 per cent.

According to the latest report by global consultancy McKinsey, the UAE has been an attractive