Since 2010, global investment in FinTech ventures has exceeded $60 billion. The Middle East and North Africa (MENA) has claimed stake to only 1% of this. Could Islamic FinTech provide the panacea for innovation in the region and the 1.6 billion burgeoning global muslim population? Many seem to think so.
The Islamic finance industry has also grown significantly over the past decade, at approximately 10% per year. Sharia-compliant financial assets are projected to be valued at over $3 trillion by the end of 2018, covering bank and non-bank financial institutions, capital markets, money markets and insurance (“Takaful”).
The UAE is taking a leading role in the broader FinTech movement, hosting approximately 30% of all FinTech startup companies from the MENA region. It has established a first of kind start-up “accelerator programme” called the ‘Fintech Hive’ at DIFC. In October 2017, the UAE Exchange, the largest money transfer company in the region, allocated $250 million for Fintech acquisitions.
It is estimated that the UAE is already home to 12 out of approximately 100 Islamic FinTech companies, projected to double over the next few years.
Fin/tech intersecting is Islamic Finance. Leveraging growth, innovation and disruption.