Mina Research Partners, a research firm, said in a study that investment in emerging financial technology companies (FANTEC) in the Gulf region would reach $ 2 billion in the next decade, compared to only $ 150 million invested in the last 10 years.
According to the study, the UAE and Saudi Arabia should play an important role in stimulating the growth potential of the Gulf region and in shaping and shaping the FANTEC sector in the Arab region.
Mina Research Partners said that these two countries will be at the forefront of the transformation of the Fintec sector, driven by several factors, including the adoption by senior leaders of an approach to creating advanced structures for smart future cities, and also because these two countries have the highest electronic connectivity per capita in the region and represent 45% of the economies of the Arab region.
Furthermore, the private sector of the two countries is also strengthening its investments in the FANTEC sector.
The study by MENA Research Partners shows that 35% of the total investment in emerging companies in the Middle East and North Africa (MENA) in the last 10 years was in 2017, or $ 52.5 million of the $ 150 million invested between 2008 and 2018. Completed last year.
This momentum is expected to continue in the coming years, but at a much faster pace.
This momentum will be driven by several factors, not least the initiatives taken by the Gulf governments.
Government regulators and regulators are providing more support to the FANTEC sector and are providing catalysts for local growth, such as Fentech High in Dubai, Reglab in the global market in Abu Dhabi, Fentech Bay in Bahrain and the Saudi-UAE joint venture to build a block based system.
The study states that the transformation of economic capacities from west to east will benefit these centers of the Vantik Gulf.
Other factors that will stimulate the growth of the Fintec sector are traditional banks, Vantec's ability to improve its traditional services and solutions through digital solutions, as well as the emergence of several independent companies created to bridge the gap in small and medium medium-sized businesses, amounting to $ 1.7 trillion.
Currently many small and medium-sized companies with high liquidity face difficulties in obtaining bank financing in the region: only 20% of these companies receive funding from banks and financial institutions, compared to an average of 42% in Latin America, Europe 39; East, Central and Eastern Asia Pacific. This big gap in funding from banks and money markets can be filled by Fantec companies operating in the lending and fund raising sector.