We cover:

• Key numbers about fintech in the Middle East
• What is the history of fintech in the Middle East?
• What makes the Middle East a great place for fintech?
• What is the future of fintech in the Middle East?
• What are some well-known fintechs in the Middle East?
• What is Tenity’s role in this ecosystem?

Interested in working or partnering with fintech companies in the Middle East? Get in touch to find out more about how we can help.

Key Numbers About Fintech in the Middle East

As an introduction to the local fintech scene, here are some statistics about the financial services and fintech industries across the Middle East.

MENA startup funding reached a record high in 2025, with 647 startups raising a combined $7.5 billion — a 225% year-on-year increase in total funding value, according to Wamda’s annual investment report. While debt financing accounted for $4 billion of that figure, equity-led investment still grew by 77% year-on-year, reflecting broad investor engagement rather than a leverage-driven rebound.

Within fintech specifically, venture capital funding in MENA reached $3.8 billion in 2025, with standout transactions including Mal ($230 million), HALA ($157 million), Tabby ($160 million), and Rain ($58 million). The MENA fintech market is estimated at $6.35 billion in 2026 and is projected to reach $11.46 billion by 2031, growing at a 12.52% CAGR.

It is worth noting that early 2026 has brought some short-term turbulence to the region’s startup funding environment due to geopolitical tensions, with monthly deal volumes falling sharply in Q1 2026. However, the structural fundamentals of the ecosystem remain intact — regulatory frameworks, sovereign wealth backing, and digital infrastructure continue to develop, and industry sentiment remains broadly optimistic.

There is also significant headroom for growth. Only 17% of consumers in the Middle East currently use digital banking, compared with 60% in the US — even as 99% of people in the UAE have digital access.

What is the History of Fintech in the Middle East?

Stretching from north Africa to Iran and Iraq, much of the Middle East cannot be said to have a particularly active fintech sector. That activity is generally confined to the Gulf, including countries such as Saudi Arabia, Qatar, the United Arab Emirates, and parts of north Africa.

While these countries have long had established financial services industries, they have not historically been known for fintech growth and innovation. Instead, as the IMF has noted, the particular structure of Middle Eastern economics has tended to favour incumbents at the expense of innovation.

Yet this has changed considerably in recent years, as the Gulf states in particular have become increasingly wealthy with a growing middle class. This has provided a new pool of consumers who have money to spend, manage, and invest — increasing demand for consumer-focused fintech products. Combined with high levels of digital penetration, these consumers represent significant opportunity for fintech solutions.

Governments in the region have identified this opportunity and moved decisively to establish a place within the global fintech landscape. The Gulf Cooperation Council (GCC) countries — including Saudi Arabia, Bahrain, Qatar, Oman, UAE, and Kuwait — have been particularly active, using fintech as a central pillar of their strategies to diversify away from oil and gas.

Let’s take Saudi Arabia to illustrate the kinds of government support that have defined the industry. Fintech Saudi was established in 2018 and within 20 months had set up a regulatory sandbox framework, new payment laws, licensing policies, and a commercial register featuring fintech activity. Since then, further measures have followed — including the launch of the first Saudi financial technology accelerator in 2020, an instant digital payments system, and a new open banking strategy, all under the fintech component of Vision 2030.

Saudi Arabia is not the only country with ambitions. In 2019, Bahrain adopted open banking, becoming the first state in the Middle East to do so. Egypt, Qatar, and the UAE have pursued their own digital finance strategies, with the UAE streamlining its fintech licensing framework in 2024.

What Makes the Middle East a Great Place for Fintech?

As it continues to develop, the Middle East is an exciting fintech environment. Here are three key reasons why it is worth partnering with a local fintech, or moving your own fintech into the region.

1. The Middle East has large sovereign funds that are actively investing

One of the most important strengths of the Middle Eastern fintech scene — particularly in the Gulf states — is its powerful state backing.

These states are actively diversifying their economies from petrochemicals to other industries, including tech and finance. The largest investors are sovereign funds: large state-owned investment vehicles that are actively seeking opportunities. The region’s 10 largest sovereign wealth funds manage nearly $4 trillion between them — a sum larger than the UK economy.

That does not even include private investors. The Middle East is the world’s fourth largest wealth hub, and the number of ultra high net worth individuals in the region is projected to grow significantly through the decade.

For fintechs, this means that as an important centre of both state and private wealth, the Middle East is a compelling place to seek investment and strategic partnerships.

2. It offers access to a large, diverse, and growing market

Not only does the Middle East provide a strong opportunity for investment — it is a large and diverse market for fintechs.

Historically, the area has been fragmented into small states where over 60 different languages are spoken. This diversity has been a challenge for fintechs with global ambitions, as companies need to ensure compliance across individual territories.

However, economic unions such as the GCC have helped reduce these obstacles, and the direction of travel is toward greater economic integration. The range of different currencies in the region also provides opportunities for fintechs in FX and payment orchestration. Meanwhile, the region’s linguistic diversity is a meaningful testing ground for AI-native fintech products.

For consumer-focused fintechs, countries like Turkey and Egypt — both with populations exceeding 80 million — offer a large addressable market.

3. The Middle East is a bridge between east and west

Europe has thriving fintech hubs in London, Estonia, and Switzerland. Meanwhile, Asia’s centres of finance, such as Singapore, are stronger than ever. With its ambitions to be a global hub, the Middle East looks both ways.

For instance, the region is a natural base for Islamic finance innovation — finance methods and tools built around Islamic principles. Products developed from a central Middle Eastern location could reach the 1.9 billion Muslims across the globe in both directions.

The region also has a large expat population — around 30 million in the GCC alone, representing over half of the bloc’s total population. This creates strong demand for remittance services and a vibrant environment of international investors, businesspeople, and founders, all learning from each other.

What is the Future of Fintech in the Middle East?

With the region’s robust state backing and significant financial strength, the Middle East is set to continue developing as a meaningful fintech hub — though near-term geopolitical uncertainty adds a note of caution to short-term projections.

The structural ambitions remain significant. Saudi Arabia’s Vision 2030 targets at least 525 fintech companies, 18,000 new fintech jobs, and SAR 13 billion in GDP contribution from fintech by 2030. Saudi Arabia has also set a target of 70% cashless transactions by 2030. Egypt aims to bank 50% of adults, and the UAE has already streamlined its licensing framework to attract international operators.

Recent large valuations confirm investor confidence in the sector. Tamara reached unicorn status after raising $340 million in equity funding. Tabby secured $160 million in Series E funding in 2025. In January 2026, UAE’s AI-native Islamic bank Mal raised $230 million. These are not speculative bets — they reflect real commercial scale being achieved in the region.

The MENA fintech market is projected to reach $11.46 billion by 2031, growing at a 12.52% CAGR from its 2026 base of $6.35 billion.

What Are Some Well-Known Fintechs in the Middle East?

Some well-known Middle Eastern fintechs include:

Tabby. Based in Riyadh, Tabby is a buy-now-pay-later platform serving over 11 million customers and 40,000 retailers across Saudi Arabia, Kuwait, and the UAE. The company raised $160 million in Series E funding in 2025.

Tamara. Another Saudi buy-now-pay-later platform, Tamara became a unicorn after raising $340 million in equity funding and continues to expand across the GCC.

Foodics. A cloud-based restaurant management and payment technology company with offices across Saudi Arabia and the Netherlands, operating in 35 countries. Foodics has raised $198 million in funding to date.

Fawry. An Egyptian e-payment platform serving over 50 million customers. The company’s market cap has grown to over $830 million.

Mal. A UAE-based AI-native Islamic bank that raised $230 million in January 2026, signalling the convergence of AI, digital banking, and Islamic finance in the region.

What is Tenity’s Role in This Ecosystem?

Tenity started in 2015 as an open innovation programme at SIX, the Swiss Stock Exchange. Today we back early-stage founders at the convergence of fintech, AI, and digital assets — combining venture capital with ecosystem access across six global hubs. In 2024, Tenity acquired Hackquarters, a startup accelerator company based in Istanbul and London, strengthening our presence in the MENA region.

Here is how we are active in the Middle East.

1. We connect startups with financial institutions and investors

At Tenity, we connect financial corporates with startups that can solve their innovation challenges. Through our Istanbul hub and our broader network, we work with startups across the MENA region and connect them to corporate partners and investors across Europe and Asia.

We invest in early-stage companies across fintech, AI, and digital assets — from pre-seed to Series A — and bring a network of 65+ institutional partners that creates direct pathways to pilots, commercial partnerships, and follow-on funding.

2. We bring global fintech expertise to the region

With hubs in Zurich, Singapore, London, Madrid, Istanbul, and Hong Kong, Tenity is an active player in fintech ecosystems across two continents. We work with financial institutions including UBS, Julius Baer, Visa, or Allianz, and have experience across digital assets, AI in financial services, insurtech, regtech, and more.

For founders and institutions in the Middle East looking to expand into European or Asian markets — or for international players looking to enter the region — we offer the network, expertise, and market access to make that journey faster and better informed.

3. We run corporate innovation programs

Through our Innovation Services offering, we help financial institutions design and run custom innovation programs — connecting them with startups that can solve real business challenges. In the Middle East and Turkey, we have worked with organisations including Allianz Turkey on the Hackzone accelerator program, supporting startups and scaleups looking to grow globally.