Here's Why The MENA Region Is The Best Place—Globally—For Fintech Startups To See Success
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.
Few would have predicted that one of the brightest stories in global fintech would come from the MENA; yet, in less than a decade, the region has turned into a center of momentum. While investment across Europe and North America has cooled of late, funding in the MENA region passed US$2 billion in 2024, with the number of active fintech 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. Fintech companies especially have been cashing in, with the MENA emerging as one of the most promising regions in the world for growth in this domain.
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 $1.3 billion across 2023 and 2024, with deals such as stc Bank’s $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.
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, for instance, the central bank has played a leading role, issuing three digital bank licenses 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, the UAE and Bahrain have taken a similar course, giving early-stage companies structured routes to trial products under watch before moving into full licenses. 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.
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 behavior 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.
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 programs 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 entities like the Dubai International Financial Centre (DIFC) and Abu Dhabi General Market (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.
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 Gulfbacked fintechs have already expanded into Egypt, Pakistan, and parts of Africa, using the region’s location as a bridge between large neighboring markets. Global comparisons highlight the scale of this progress. While London and Singapore remain established hubs, the 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 neighboring economies in Africa and South Asia.
Fintech in the region has thus moved to the center 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 the MENA, Africa, and South Asia develop in the years ahead.
About The Author
Sheldon Labuschagne, CEO of Knightsbridge Group, has been operating in the fields of international investment and business migration since 2010, gaining extensive expertise in navigating complex pathways for the company’s clients and their businesses.
