PHOTO
The UAE’s financial technology sector has defied a global slowdown in investment, with funding raised nearly doubling in a year, a new report said.
Total fintech investment in the UAE in 2023 surged by 92% from the previous year, while the amount of capital invested globally from Seed through Series I plunged by 48%, according to Innovate Finance, the UK’s industry body for fintech.
The UAE pulled in $1.3 billion in funding across 54 deals, marking an “exponential” increase for the country compared to last year, the industry body said in its “Fintech Investment Landscape 2023” report.
With the significant increase, the UAE landed in the top ten list of most funded fintech markets last year, climbing from the 24th to the sixth position.
Friendly environment
The growth in the UAE is due to the country’s fintech friendly environment.
The UAE, like Singapore, has “demonstrated a commitment to creating a supportive environment for fintech,” said Steve Lemon, Partner at Volution VC, in the report.
In comparison, other countries like India recorded a 63% fall in investment, UK a decrease of 65%, France a decline of 56% and Germany a drop of 66%.
The total capital raised by fintech firms globally in 2023 reached $51.2 billion spread across 3,973 deals, compared to the $99 billion raised in 6,397 deals in the previous year.
The United States landed the top spot in terms of total investment, with more than $24 billion raised in 2023, followed by the UK ($5.1 billion), India ($2.5 billion), Singapore ($2.2 billion) and China ($1.8 billion).
Top 10 Global Fintech Markets for 2023
· United States: 1,530 deals, $24.2 billion
· United Kingdom: 409 deals, $5.1 billion
· India: 187 deals, $2.5 billion
· Singapore: 176 deals, $2.2 billion
· China: 76 deals, $1.8 billion
· United Arab Emirates: 54 deals, $1.3 billion
· France: 97 deals, $1.2 billion
· Germany: 86 deals, $1.1 million
· Hong Kong: 41 deals, $912 million
· Canada: 92 deals, $884 million
(Writing by Cleofe Maceda; editing by Brinda Darasha)
