Middle East fintech funding sees 650% spike in 2020-2023

Financial technology funding across the Middle East and North Africa (MENA) saw a 650% increase between 2020 and 2023, even amid a global economic downturn driven by the coronavirus pandemic, according to a report released Monday.
The industry raised $186 million across 50 deals in the first half of 2024, representing an almost flat 3% year-on-year decrease in non-mega funding and a 2% year-on-year decline in deals, according to the report released by venture capital data firm MAGNiTT.
The report said fintech is one of the most funded and transacted industries across the MENA region, accounting for 24% of all venture investment in the region in the first half of 2024. The report stated that the industry has seen roughly a 650% regional funding growth between 2020 and 2023.
Within the region, the United Arab Emirates captured the largest share of fintech funding in the first six months of 2024, securing 39%, up from 25% in the first half of 2023. Despite a 36% year-on-year decrease in its funding levels, the UAE led the region in the fintech landscape, bolstered by a 15% increase in deal numbers, primarily driven by growth in seed and Series A funding rounds.
Meanwhile, Saudi Arabia demonstrated significant funding growth in the first six months of 2024, moving up two spots to become a major player in MENA fintech funding. The country posted a 391% annual funding increase in the first half of 2024, compared to the corresponding period in 2023, driven by three of the top five deals in the region involving Moyasar, Abyan Capital and SiFi. These key deals accounted for 74% of Saudi Arabia’s total sectoral funding in the first half of this year.
Philip Bahoshy, CEO of MAGNiTT, said in a press statement issued Monday, “2024 is a year of shifting investor patterns across the Middle East, Africa, and Southeast Asia, yet one trend remains clear: FinTech continues to lead in these emerging venture markets mimicking investor appetite at a global level. Over the past five years, we’ve seen a consistent rise in FinTech, and even amidst a global slowdown in venture investment over the last two years, interest in the sector has remained strong. Across MENA, FinTech remains a key focus for regulators, central banks, and corporates alike.