Why Scaling Fintech in MENAT Isn’t Easy
Barriers to Scaling Fintech in the Middle East | What’s Holding Innovation Back?
In our last video, we explored the forces fueling Fintech growth across the Middle East—from mobile-first societies to billion-dollar sovereign wealth funds. But behind the momentum lie structural hurdles that founders and investors can’t afford to ignore.
This follow-up breaks down the “why nots” that make scaling Fintech in the region a complex challenge.
📌 Key Barriers to Watch:
Regulatory Fragmentation: No unified licensing. Each country requires separate approvals, slowing cross-border expansion.
Talent Shortages: In markets like Saudi Arabia and Kuwait, tech hiring remains a major bottleneck.
Gender Gaps: Only 9% of Fintechs have women in executive roles—far below global norms.
Capital Bottlenecks: VC flows remain shallow. Sovereign wealth funds dominate, but early-stage private capital is scarce.
Infrastructure Inequality: Broadband access and digital readiness vary widely across the region.
Data Localization Laws: Countries like Saudi Arabia and the UAE require in-country data storage, adding cost and complexity for global Fintechs.
Despite these challenges, the opportunity is real. With nearly 500 million people and a rapidly digitizing economy, the Middle East has the potential to redefine global Fintech—if it can align across borders, sectors, and systems.
📘 Explore key players and trends in our Special Report: The State of Fintech in the Middle East, powered by SAP. 👉 Read and download now at LucidityInsights.com
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