PHOTO
QATAR: Investors poured US$30.4 billion into fintechs globally in the first nine months of 2020, according to the Qatar Fintech Report 2021 released today by the Qatar Financial Centre and Refinitiv.
Although with the MENA region accounted for less than 1% of global investments in 2019, the figures suggest the region is becoming increasingly attractive for investors.
The report highlights the exponential growth of the Global FinTech investments from just under US$ 1 billion in 2008 to an estimated US$34.5 billion by the end of 2019.
Despite jarring global economic uncertainty and financial market volatility brought on by the Covid-19 pandemic, fintech investment levels globally remained relatively stable during the first nine months of 2020. The largest investments were in payments, securing a quarter of VC funding, followed by digital banking and capital market solutions. Qatar’s current strategic FinTech interests are closely aligned to these outlined areas.
Within the MENA region, 70% of fintech investment went to the UAE in 2019 (the most recent year with data over 12 months) followed by Bahrain. Qatar is also accelerating the development of its FinTech ecosystem and is making significant strides in this regard.
The global outbreak of the Covid-19 pandemic came as a wakeup call for traditional financial institutions (FIs) in MENA markets and spurred growth opportunities in Qatar and elsewhere. The pandemic accelerated the implementation of digitalization strategies in Qatar’s financial marketplace.
Yousuf Mohamed Al-Jaida, Chief Executive Officer, Qatar Financial Centre, said: “The outbreak of the Covid-19 pandemic created new opportunities for financial innovation, which has attracted an influx of tech and FinTech companies seeking to set up operations in Qatar. The country offers FinTechs worldwide substantial opportunities domestically as an unsaturated market with ICT spending expected to reach US$9 billion by 2024, boosting the competitiveness of its market and strengthening its position to emerge as a FinTech hub in the region.”
“Qatar has made remarkable progress in the FinTech space in a very short time. Several major developments have taken place in the last year, including the launch of Qatar’s National FinTech Strategy, the Qatar FinTech Hub (QFTH) and its incubator and accelerator programs as well as the Qatar Financial Centre (QFC) Fintech Circle and Tech Talk series to buttress the local ecosystem.”
Nadim Najjar, Managing Director, Middle East and Africa, Refinitiv, an LSEG (London Stock Exchange Group) business, said: “Although this funding performance indicates significantly slower FinTech adoption in the region, it is also a sign of substantial untapped potential, especially in the Gulf. Key drivers for FinTech solutions in the Gulf include above average GDP per capita, high internet and online payment penetration, as well as shifting consumer preferences away from traditional financial institutions.”
The number of global deals has been in steady decline since the final quarter of 2019 indicating larger funding rounds in more mature FinTechs. The average deal size for 2020 has increased to US$21.5 million compared to US$15 million in 2019. Around 72 funding rounds were recorded during the first nine months of 2020 compared with only 70 for the same period in 2019 as investors increasingly place larger bets on a smaller number of players. The US is by far the largest funding market for FinTech investments, making up 51% of VC-backed investments in 2019, followed by 20% by Asia and 19% by Europe.
-Ends-
About Refinitiv
Refinitiv, an LSEG (London Stock Exchange Group) business, is one of the world’s largest providers of financial markets data and infrastructure. With $6.25 billion in revenue, over 40,000 customers and 400,000 end users across 190 countries, Refinitiv is powering participants across the global financial marketplace. We provide information, insights, and technology that enable customers to execute critical investing, trading and risk decisions with confidence. By combining a unique open platform with best-in-class data and expertise, we connect people with choice and opportunity – driving performance, innovation and growth for our customers and partners. For more information visit: www.refinitiv.com
About Qatar Financial Center
The Qatar Financial Centre (QFC) is an onshore business and financial centre located in Doha, providing an excellent platform for firms to do business in Qatar and the region. The QFC offers its own legal, regulatory, tax and business environment, which allows up to 100% foreign ownership, 100% repatriation of profits, and charges a competitive rate of 10% corporate tax on locally sourced profits. The QFC welcomes a broad range of financial and non-financial services firms.
For more information about the permitted activities and the benefits of setting up in the QFC, please visit www.qfc.qa
@QFCAuthority | #QFCMeansBusiness
CONTACTS
Tarek Fleihan
Director, Communications
Refinitiv
tarek.fleihan@refinitiv.com
© Press Release 2021
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
