Doha: The fintech sector in Qatar has experienced remarkable growth, presenting numerous opportunities for economic transformation and advancement.

As reported by Statista, the digital payments market in Qatar is anticipated to achieve a total transaction value of QR31.02bn ($8.52bn) by 2024. Furthermore, this market is projected to exhibit an annual growth rate (CAGR) of 8.37%, culminating in an estimated total of QR42.78bn ($11.75bn) by 2028.

The report highlights that 2024 will witness substantial expansion within the industry, with digital investment emerging as the largest segment, boasting QR12.23m ($3.36m) in assets under management.

The average assets under management (AUM) per user in the digital investment sector are expected to reach QR1,760.55 ($483.60) in 2024, while revenue growth in this market is projected to be 14.48% in 2025. Additionally, digital commerce is identified as Qatar’s largest market, with a forecasted total transaction value of $8.25bn in 2024.

In a global context, China is expected to lead with the highest cumulative transaction value, reaching $3,744bn in 2024. It would be recalled that the Qatar Central Bank (QCB) initiated a fintech strategy in 2023, aligning with the Qatar National Vision 2030 to foster diversification and innovation within the financial sector. With the rise of ‘Buy-Now-Pay-Later’ (BNPL) services in the region, the central bank established BNPL guidelines in 2023, which include licensing requirements and consumer protection measures. Earlier this year, QCB approved five companies to offer BNPL solutions.

During the launch of the strategy last year, QCB Governor H E Sheikh Bandar bin Mohammed bin Saoud Al Thani articulated that the vision for financial technology is centred on development, diversification, and enhancing the competitiveness of Qatar’s financial technology and services sector through innovative infrastructure and solutions that improve customer experience. Recently, QCB unveiled the Express Sandbox, marking a pioneering initiative in the Middle East.

The Express Sandbox is an accelerated programme aimed at enabling faster market entry for solutions or innovations that exhibit product readiness and potential, particularly within the fintech sector. This initiative is accessible to financial institutions, licensed fintech firms, startups, and technology companies collaborating with licensed financial entities, both domestically and internationally.

The programme provides a streamlined process through the standard regulatory evaluation while upholding rigorous standards of risk management, consumer protection, and system integrity, as noted by the QCB.

In Qatar, entrepreneurship in the fintech sector has been significantly propelled by significant initiatives and financial investments aimed at fostering creativity and expanding the financial landscape. Key factors contributing to this growth include regulatory backing, innovation, establishment of a dedicated industry hub—the Qatar FinTech Hub (QFTH)—and the nation’s commitment to technology and infrastructure development, among others.

QCB and the Qatar Financial Institutions Regulatory Authority (QFCRA) have played a pivotal role in establishing a regulatory framework that promotes fintech innovation while ensuring stability and protection.

The QFTH has been instrumental in supporting the fintech ecosystem by attracting numerous regional and international fintech startups through its incubation and acceleration programmes, which offer access to investment, mentorship, and networking opportunities, thereby fostering collaboration and innovation.

The rising demand for alternative financial solutions, coupled with a progressively supportive regulatory landscape, is driving funding and investment opportunities for fintech enterprises.

Since its launch, the Qatar FinTech Hub has successfully graduated 57 fintech companies, collectively valued at $500m, and has effectively localised 26 fintech firms from countries including the United States, India, Bangladesh, the United Kingdom, and others.

By emphasising digital transformation, financial inclusion, and sustainable finance, Qatar is well-positioned to uncover clean opportunities, foster economic growth, and influence the future of finance in the region.

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