Last Updated on June 5, 2025 by Muhammad Ramzan
A new wave of activity is occurring in the Arab world, and it’s more than just a sandstorm moving through the deserts. There seems to be an eruption of action, and there is new funding and investment in brands solving genuine problems. Change can be seen from the crowded streets of Cairo to the glittering skylines of Riyadh and Dubai. It is obvious that ideas are being invested in, but what exactly is the main reason? What is the core catalyst for all the hype? In this op-ed, we will explore the reason behind all of it.
A New Wave of Startup Energy
Everywhere you turn, there’s a new app, a new offer, a more innovative way to handle your money. Saudi Arabia’s STC Pay has reached a valuation of over $1.3 billion. In Egypt, Fawry processes over 3 million transactions a day! And in the UAE? Tabby, a buy-now-pay-later startup, has raised over $700 million in just a few rounds of investment. This isn’t just a trend — it’s a full-fledged revolution. These startups are fast, fearless, and fiercely focused on the future.
It’s impossible not to note that such dynamics are changing the financial market and the entire digital landscape, including the online entertainment industry. This is especially noticeable in the growing interest in betting sites — Turkish “bet bahis siteleri” — which are trying to meet a new level of user expectations: to be not just a platform but a full-fledged product with a user-friendly interface and instant feedback. The user now chooses based on the odds and how quickly and technologically advanced the site works. And this is where the startup approach becomes a proper quality standard!
Why Investors Are Paying Attention
Investors aren’t just throwing darts at a map. They’re drawn to something tangible, something burning bright in this region. Here’s why Arab fintech is suddenly investor gold:
- Massive Unbanked Population: Over 65% of adults in the MENA region are unbanked. Startups are offering mobile-first financial solutions that banks never reached.
- High Smartphone Penetration: With over 80% smartphone usage in countries like the UAE and Saudi Arabia, digital solutions can scale quickly without physical infrastructure.
- Government Support: Saudi Arabia’s Vision 2030 and Bahrain’s FinTech Bay show deep commitment. Regulatory sandboxes, tax breaks, and funding programs are all real and active.
- Fast Growth Metrics: Egypt’s Khazna raised $38 million in Series A, and Tamara in Saudi Arabia hit $1 billion in valuation by 2023. These aren’t just ideas—they’re scaling machines.
When you mix these ingredients, you don’t just get interest — you get investment rockets. And a similar dynamic can be seen outside the financial sector — for example, on MelBet Facebook Türkiye, where sports news, insights, and trends are emerging at the same speed as startups in the region raise investment rounds. Everything moves fast — and that’s the power of the new digital world.
The Role of Accelerators and Ecosystems
Accelerators are gaining importance in the Arab world as they are potent drivers of momentum for startups. For example, Flat6Labs, based in Cairo, has funded over 350 startups with more than $100 million cumulatively. Also, in the UAE, Hub71 gives non-dilutive grants, free office space, unparalleled access to a network of VCs, offering mentorship and funding access, and vital connections to regulators and banks.
It is about the ecosystems that the accelerators build. With more than 200 fintech startups launched in less than five years, the Saudi Fintech initiative, backed by the Saudi Central Bank and Capital Market Authority, is one of the most progressive accelerators in the world. Also, in Bahrain, the regulatory sandbox accepted more than 40 fintechs from around the world in its first few phases. Startups in these regions don’t just survive; rather, they thrive and excel.
Local Problems, Smart Fintech Solutions
Arab fintech founders aren’t copying Western models. They’re solving problems born right here. From remittances to micro-lending, the solutions are laser-focused. And the result? Ideas that click. Just take a look:
| Problem | Startup | Solution |
| Remittance delays | Denarii Cash (UAE) | Instant cross-border transfers via blockchain |
| Credit invisibility | Tamweel (Jordan) | AI-powered alternative credit scoring |
| High SME rejection rate | Paymob (Egypt) | Digital payment infrastructure for small merchants |
| Expensive point-of-sale | Foodics (Saudi) | Cloud POS for restaurants, used in over 20,000 venues |
| Risky buy-now-pay-later | Tabby (UAE) | Data-driven BNPL with transparent terms |
See the pattern? The sharper the local pain point, the brighter the fintech response.
Building Trust in Young Companies
Trust is crucial when it comes to monetary transfers, especially with emerging fintech in the Arab world trying to earn that trust. Compliance with the law, strong cybersecurity measures, and protective licenses are the bare minimum. Startups such as Rasan, which manages Tameeni, one of the most used insurance platforms in Saudi Arabia, operate under the supervision of the Saudi Central Bank, which helps bolster public trust.
Cultural trust is different but equally important. Founders know the language and local customs and develop relatable products. That explains the strong affection for Edfa3ly (Egypt) and HyperPay (KSA). Fintechs combined with regulatory approval and real cultural relevance don’t just gain users—they cultivate loyalty.
Innovation That Speaks the Right Language
Fintech innovation here does not sound foreign or futuristic—it fits. In Qatar, Cwallet enables unbanked employees to receive payments and make transactions using only a smartphone. In Tunisia, Kaoun’s Flouci app provides banking to rural users through biometric registration in Arabic. Innovations like this do and feel like home because they are.
Even within high-tech subsectors such as insurtech and lending, personalization remains the primary focus. Hala in the UAE allows car owners to renew insurance in under 60 seconds with support in local dialects. It is not only functional—it is familiar. This kind of “culturally coded” innovation is more impactful.
From Idea to Scalable Model
So, how do fintechs go from a scrappy prototype to a regional giant? The process might look like this:
- Identify a Specific Issue. NowPay advanced and issued employee salary upfront payments, which solved an ongoing issue for many in Egypt.
- Rapidly Construct a Local MVP. Many utilize local developer talent and streamlined resources, building MVPs in less than three months.
- Join an Accelerator or Sandbox. With mentors from DIFC FinTech Hive, firms can quickly adapt to regulations.
- Partner Regionally For Expansion. YAP from the UAE established banking partnerships in Pakistan and Ghana to enable growth.
Turning Vision Into Long-Term Value
It goes beyond the pursuit of reaching milestones or acquiring venture capital. Arab fintech is striving for something subtler—a changer. They enable safer borrowing, launch enterprises, remit funds, and expand beyond imagination. And that is why every dollar, risk, and sleepless night is worth it. The region isn’t catching up; it is rewriting the playbook! It is just the start!
