The term financial technology (FinTech) refers to software, online applications, mobile phones, and other technologies created to improve and automate traditional forms of finance for businesses and consumers alike, and includes mobile payment applications from those that transfer money to complex (blockchain) networks, Which hosts encrypted transactions, according to the Columbia Engineering platform.
The revenues of the global financial technology sector are expected to grow to $188 billion in 2024, according to the Statita platform.
In general, financial technology services range from digital banking, lending programs, online payments, personal financial management, insurance, and investment management.
The size of the financial technology market in the Middle East and North Africa region was estimated at approximately $1.36 billion in 2023, and the size of this market is expected to reach $1.51 billion in 2024, and $2.40 billion by 2029, with a compound annual growth rate of 9.71% during the period. Expected (2024-2029), according to the Mordor Intelligence platform.
Financial technology financing in the Middle East and North Africa jumped 650% between 2020 and 2023, even in light of the global economic slowdown resulting from the Corona pandemic, according to what was reported by the American Al-Monitor platform that focuses on the Middle East.
The financial technology industry also witnessed a 31% increase in the number of investors, highlighting the growing interest from regional and international players, according to a report issued by venture capital data company MAGNiTT.
According to the report, the financial technology sector is one of the most funded and traded industries in the Middle East and North Africa region, and accounted for 24% of the total venture investment in the region in the first half of 2024.
Young people drive growth
The Arab region has a young, technology-savvy population with widespread use of smartphones and the Internet, creating fertile ground for the adoption of financial technology, as users feel comfortable conducting financial transactions and managing their money through mobile applications.
According to a report issued by the World Bank in 2023, mobile phone subscriptions in the Middle East and North Africa region exceeded 1.8 billion subscriptions, making the region ideally positioned for the growth of mobile-focused financial solutions.
In this report, Al Jazeera Net presents 7 of the most prominent applications and financial companies operating in the Arab region, according to what was mentioned by a number of specialized sites and platforms, including: (Fintech Magazine), (App Tonix), (Fusionx), and (Idea Usher), in addition to the sites of these… Applications and companies on the Google Play and Apple Store stores and their websites.
1- My Fawry application
The Egyptian Fawry Company is a leading financial services company in Egypt, offering a comprehensive digital payment platform. The number of Fawry network users has reached about 52 million users, and the My Fawry application has been downloaded 14.4 million times as of October 20, 2024.
Businesses of all sizes benefit from Fawry’s extensive network, which includes more than 372,000 points of sale across Egypt, and in 2023 alone, Fawry processed transactions worth more than $50 billion.
The company provides bill payment services, recharging mobile phone cards, and government fees through the application, website, or points of sale and collection in Egypt. It also provides wholesale payment solutions for companies, and a cash deposit and withdrawal service.
- Headquarters: Egypt
- Establishment date: 2008
Madfooatcom Company was established in 2011 in Jordan, and provides services for viewing and paying bills online and in real time. The year 2014 was considered a turning point in the company’s history, as it won the exclusive bid from the Central Bank of Jordan to build, operate, and manage the service of viewing and paying bills electronically through the “E-Fawateercom” application ( eFAWATEERcom, an electronic system for viewing and paying bills, allows customers and companies to inquire and pay immediately and securely. This application is linked to all banks in Jordan, electronic wallets, post offices, and payment service providers.
- Headquarters: Jordan
- Establishment date: 2011
3- MNT-Halan (MNT-Halan)
It offers digital banking and e-payment solutions, including small and micro business lending, bill payments, loan disbursement and collection, remittances, consumer finance, and e-commerce.
Since its inception, the company has grown more than 20-fold to serve more than 7 million customers, and has added new customer services. The Halan application includes all types of commercial and consumer loans, prepaid cards, e-wallets, e-commerce, gold and money market fund investments.
The company became a unicorn (a term given to emerging companies with capital exceeding one billion dollars) in February 2023, and recently acquired the Turkish company (TAM Finance), a leading company in the field of trade finance in Turkey.
- Headquarters: Egypt
- Establishment date: 2018
4- Tabby application
Tabby allows online and in-store customers to split their payments into 4 installments with no fees or interest, track their payments, get discounts and discover brands and products that offer installments.
The application is active in Saudi Arabia, the Emirates, and Kuwait, and its value exceeded $1.5 billion in its latest financing round (as a subsidiary of a startup company), and the application deals with a wide range of international brands.
- Headquarters: Saudi Arabia
- Establishment date: 2019
5- Qatar FinTech Hub (QFTH)
Since its establishment in 2020, the Qatar FinTech Center has provided support to more than 100 financial technology startups directly and indirectly.
Qatar FinTech operates as a comprehensive center for financial technology-related activities in the country, in line with the Qatar National FinTech Strategy and the Qatar National Development Strategy.
The Centre’s FinTech incubation and acceleration programs have demonstrated a strong commitment to nurturing innovation, with seed investment exceeding $9 million in 70 FinTech startups from 28 different countries.
The Qatar FinTech Center has allocated more than $16 million in seed investment (from 2020 to 2028) to support an additional 50 fintech startups.
6- Tamara
Tamara allows customers to divide their payments into 4 installments without fees. It serves millions of users in Saudi Arabia, the Emirates, and Kuwait. It cooperates with more than 26,000 stores and companies, including major brands. Its transactions are carried out in accordance with Islamic law, and registration can be done easily through a mobile number and ID. Personal, and its application has been installed by more than one million users on the Google Play Store.
- Headquarters: Saudi Arabia
- Establishment date: 2020
7- MyFatoorah
The digital payments platform (My Fatawa) is headquartered in Kuwait, and it also has a presence in Egypt, Saudi Arabia, Bahrain, the Sultanate of Oman, and Jordan.
Founded in 2014, the company aims to simplify payments by creating invoices and collecting payments. It has a strong reputation in the market for its fast deposit times through its banks, and enables users to improve their cash flow and make secure payments.
- Headquarters: Kuwait
- Year of establishment: 2014
