The financial technology market across the Middle East and North Africa is poised to nearly double in size over the next five years, growing from a projected $6.35 billion in 2026 to $11.46 billion by 2031, according to market research firm Mordor Intelligence. The expansion, reflecting a compound annual growth rate of 12.52 per cent, is being fuelled by the convergence of government-led cashless mandates, surging smartphone adoption, and a wave of venture capital investment into digital payment and lending platforms across the region.
DIGITAL PAYMENTS DOMINATE THE MIX
Digital payments accounted for more than 54 per cent of the MENA fintech market in 2025, supported by the rapid proliferation of mobile wallets and merchant-acquiring incentives. Sub-segments including QR code payments and tokenized wallets have been particularly strong growth areas, with digital wallet transactions in the United Arab Emirates already accounting for 18 per cent of point-of-sale transactions and forecast to reach 33 per cent by 2027.
Saudi Arabia has been setting the pace. The kingdom has already surpassed its Vision 2030 target of 70 per cent cashless retail transactions, reaching 79 per cent of retail payments in 2024, ahead of schedule.
CBDC INITIATIVES GAIN MOMENTUM
Central bank digital currency programmes are adding a new layer to the region's payment infrastructure. The UAE is preparing the retail roll-out of its Digital Dirham, a sovereign digital currency designed to complement existing private-sector payment platforms. Egypt's central bank is also exploring a central bank digital currency.
REGULATORY SANDBOXES ACCELERATE LAUNCHES
Fintech regulatory sandboxes in Bahrain, Abu Dhabi, Saudi Arabia, and Jordan have been instrumental in accelerating product development cycles. These controlled testing environments allow startups to pilot new payment technologies, digital wallets, and API-based services under flexible regulatory conditions before seeking full licensing.
Saudi Arabia's fintech strategy targets 525 fintech companies and 18,000 jobs by 2030, and the Saudi Central Bank approved several neobank licences in 2024. Neobanks such as STC Bank are converting wallet user bases into full-service accounts, according to Mordor Intelligence.
CROSS-BORDER CORRIDORS AND ISLAMIC FINTECH
Two emerging opportunity areas stand out in the forward-looking analysis. First, cross-border remittance corridors linking GCC countries to North Africa via tokenized wallets represent a largely untapped market.
Second, green Islamic fintech products that combine Sharia compliance with environmental, social, and governance mandates are gaining traction in the region, according to Mordor Intelligence.