• 77% of founders and C-suite executives said MENA fintech was stronger in 2025 than in the year before
  • Optimism meets funding constraints and cross-border regulatory challenges
  • UAE and Saudi Arabia identified as the region's leading fintech innovation hubs, with structural regulatory depth cited as a key differentiator

DUBAI, UAE: Arthur D. Little (ADL) has launched 'The Next Phase of MENA Fintech Growth'— an in-depth report that presents key findings from the Voices of Fintech Tuesdays Survey. Conducted jointly with ADL in H2 2025, the survey draws on first-hand perspectives from 140+ founders and C-suite executives across the region.

Published against a backdrop of significant regional disruption, the report offers a grounded assessment of the structural foundations MENA fintech has built over the past decade – regulatory depth, investor track record, and accelerating adoption – and the role those foundations will play as the sector navigates near-term headwinds.

Optimism Meets Realism

Conducted in H2 2025, the survey revealed a MENA fintech landscape defined by both confidence and capital constraints. Among the headline statistics, 77% of respondents indicated that MENA fintech was stronger in 2025 than in the preceding 12 months, while 75% rated their optimism about the medium-term future at four or five out of five. Despite this optimism, 78% of participants cited lack of cross-border regulatory harmonization as a barrier and 73% reported fundraising difficulty, in line with the global picture.

MENA Bucks the Trend

Fintech funding remains cautious worldwide, yet the Middle East recorded a series of standout transactions in 2025, with venture capital funding reaching $3.8 billion across the region. High-profile transactions including AI-native Islamic bank Mal ($230M), crypto-asset exchange Rain ($58M), embedded finance fintech HALA ($157M), and financial services and shopping app, Tabby ($160M), reflected continued conviction in the region’s fintech infrastructure, even as global sentiment turned more conservative.

According to Arjun Singh, Partner and Global Head of Financial Services at Arthur D. Little Middle East, the region's fintech track record matters more than ever: "Fintech in the Middle East has spent a decade earning the right to be taken seriously — through regulatory frameworks, record investment cycles, and genuine adoption. That structural depth is exactly what the region will draw on as the current environment tests it."

The UAE and KSA: Driving Innovation

Around 60% of respondents identified the UAE as the market most likely to lead fintech innovation over the next three years, and nearly half rated the country’s regulatory landscape positively. KSA’s rising fintech strength also earned recognition, with 31% of entrepreneurs and founders backing the Kingdom to lead on innovation.

The report identifies six structural opportunity areas:

  • SME financing: Traditional banks underserve small and medium-sized enterprises, creating space for fintechs offering alternative credit scoring, embedded lending, and faster access to working capital.
  • Cross-border payments: Solutions that reduce cost, increase speed, and leverage digital rails  are high-impact opportunities.
  • Digital wallets: Digital wallets are a leapfrog technology that can accelerate financial inclusion and support embedded finance models.
  • Islamic finance: Digital-first, Shariah-compliant products are under-developed relative to demand, presenting strong opportunities across savings, lending, and wealth management.
  • Payments evolution: Payments are the fastest Web2-Web3 convergence area, with stablecoins and blockchain infrastructure gaining traction.
  • Real estate: Property tech, tokenization, and fractional ownership are a major disruption opportunity in MENA’s massive real estate market.

Alongside these opportunities, transformative innovations are shaping the world of fintech, with embedded finance ranking highest (34%), ahead of AI and machine learning (29%) and open banking (21%).

In addition to highlighting key trends, ‘The Next Phase of MENA Fintech Growth’ turns major pain points into stakeholder recommendations. The report highlights the need for greater regulatory harmonization across the GCC and the request for clearer rules and timelines, banks must move beyond pilots to enable real partnerships while thinking with a Win:Win mindset, and fintechs should embrace embedded finance and adapt to the business and operating models of their more traditional partners.

Mehdi Letaief, Principal, Financial Services, at Arthur D. Little Middle East, summarizes the recommendations in a call to action: "The data is clear: this ecosystem has built something real over the past decade. The task now is to protect what has been built, keep the collaboration between regulators, banks, and fintechs moving, and use the current moment to demonstrate that structural depth holds under pressure - not just in favorable conditions."

About Arthur D. Little

Arthur D. Little has been at the forefront of innovation since 1886. We are an acknowledged thought leader in linking strategy, innovation and transformation in technology-intensive and converging industries. We navigate our clients through changing business ecosystems to uncover new growth opportunities. We enable our clients to build innovation capabilities and transform their organizations.

Our consultants have strong practical industry experience combined with excellent knowledge of key trends and dynamics. ADL is present in the most important business centers around the world. We are proud to serve most of the Fortune 1000 companies, in addition to other leading firms and public sector organizations.

For further information, please visit: www.adlittle.com

About Fintech Tuesdays

Fintech Tuesdays is MENA’s pioneering grassroots community dedicated to accelerating fintech and techfin innovation across the region.

We bring together startups, industry leaders, investors, corporates, and ecosystem partners to foster collaboration, knowledge sharing, and meaningful connections that drive tangible progress.

Our mission is to build a connected, inclusive fintech community by championing partnerships, enabling access to capital, and promoting diversity and talent development.

Through a combination of events, networking platforms, and support for Fintechs at every stage of growth, Fintech Tuesdays plays a central role in strengthening the regional fintech ecosystem and advancing its global competitiveness.