A Strong Foundation Supports Continued Fintech Growth in MENA

According to a new report by Arthur D. Little and Fintech Tuesdays, the fintech sector across the Middle East and North Africa (MENA) region demonstrated remarkable resilience in 2025 despite global economic headwinds.

The study, which surveyed over 140 founders and C-suite executives, found that 77% of respondents believe MENA fintech is stronger now than it was a year ago. Optimism for the medium-term future remains high, with 75% rating their outlook at 4 or 5 out of 5.

Key Findings

• UAE and Saudi Arabia are expected to lead innovation over the next three years, with 60% and 31% of respondents backing each country respectively
• Venture capital funding reached $3.8 billion in 2025, driven by high-profile deals like Mal’s $230 million raise and Tabby’s $160 million round
• Embedded finance is the most anticipated disruptor (34%), followed closely by AI/ML (29%) and open banking (21%)
• Major opportunity areas include SME financing, cross-border payments, digital wallets, Islamic fintech, Web3 payments, and real estate tokenization

“The Middle East has spent a decade building this ecosystem,” explained Arjun Singh, partner at Arthur D. Little. “We’re now seeing that structural depth pay off as the region navigates tighter funding environments.”

The report emphasizes regulatory harmonization across the Gulf Cooperation Council and calls on traditional banks to form genuine partnerships with fintechs rather than just pilot programs.