1、May 2023Financial Services PracticeFintech in MENAP:A solid foundation for growthFintech in the Middle East and North Africa is burgeoning,thanks to funding increases and revised licensing regimes.Sustaining growth will require concerted efforts by businesses and governments.This article is a collab

2、orative effort by Max Fltotto,Sheinal Jayantilal,Sagar Shah,Rinki Singhvi,and Sonia Wedrychowicz,representing views from McKinseys Financial Services Practice.Growth in the fintech sector of the Middle East,North Africa,and Pakistan(MENAP)has been robust in recent years,with investor backing increas

3、ing by approximately 36 percent annually from 2017 to 2022.1 While 2022 brought a sharp drop in valuations and changed market dynamics across the global tech sector,many local fintechs continue to broaden their footprint across MENAP and beyond,albeit with a emphasis on profitability,the new imperat

4、ive for start-ups.Overall,the regions positive macroeconomic outlook and the consistently strong performance of its financial services industry provide favorable conditions for the fintech sectors continued growth.We estimate that MENAP fintech revenue could increase almost threefold,from$1.5 billio

5、n in 2022 to an amount between$3.5 billion and$4.5billion in 2025,2 which would boost fintechs share of financial services revenue from less than 1.0 percent to approximately 2.0 to 2.5 percent.Based on our conversations with leaders of 90firms active in the regionincluding start-ups,bank and nonban

6、k incumbents,and investorswe believe fintech innovators could play an increasingly significant role in the way consumers and businesses in MENAP conduct daily transactions and build wealth for the future.Realizing this potential will require that diverse actors reinforce the fintech ecosystem with c