Middle East Digital Banking Sector Growing at a 43% Annual Rate

Middle East Digital Banking Sector Growing at a 43% Annual Rate

Since 2012, the Middle Eastern digital banking market has experienced sustained growth, rising at a 43% compound annual growth rate (CAGR).

Today, the region is home to 25 digital banks which serve a combined 25 million people, according to a new report by the BPC Group, a Swiss software company, and the Fintech Consultancy Group (Fincog), a professional services firm from the Netherlands.

Number of Digital Banks in The Middle East from 2012- 2021, Source: Digital Banking in the Middle East, BPC Group/Fincog, 2022

The Digital Banking in the Middle East report, released in November 2022, explores the region’s booming digital banking sector, sharing key trends observed and opportunities arising.

According to the report, the United Arab Emirates (UAE) currently stands as the region’s largest digital banking hub, housing the most digital challengers across the whole Middle East with nine players. The UAE is followed by Turkey with four players, and Saudi Arabia and Israel with three companies each.

Digital banks in the Middle East, Source: Digital Banking in the Middle East, BPC Group/Fincog, 2022

The Middle East’s fast evolving digital banking sector has been enabled by a number of factors, the report notes, naming governmental pushes, supportive initiatives, and favorable demographic characteristics such as the