Mina Research Partners, a research firm, said in a study that investment in FANTEC in the Gulf region would be $ 2 billion over the next decade, while only $ 150 million was invested in the past ten years.
According to the study, the UAE and Saudi Arabia are expected to play an important role in stimulating the growth potential of the Gulf region and in shaping and shaping the FANTEC industry in the Arab region.
Mina Research Partners said that these two countries will be at the forefront of the Fintec transformation driven by several factors, including the adoption of a leadership approach to implementing advanced structures for smart future cities, and also because these two countries have the highest electronic connectivity per capita in the region and represent 45% of the economies of the Arab region.
In addition, the private sector of both countries also strengthens their investment in the FANTEC sector.
The MENA Research Partners study shows that 35% of the total investment in emerging Middle East and North Africa (MENA) in the past 10 years was in 2017 or $ 52.5 million from $ 150 million invested in 2008 to 2018. Completed last year.
This dynamics is expected to continue in the next few years, but much faster.
This impetus will depend on several factors, not least on the initiatives taken by the Gulf Governments.
Government regulators and regulators provide increased support to the FANTEC sector and provide local growth catalysts such as Fentech High in Dubai, Reglab on the global market in Abu Dhabi, Fentech Bay in Bahrain, and a joint venture between Saudi Arabia and the United Arab Emirates to build a block system.
The study argues that the transformation of economic capabilities from the West to the East will benefit these Gulf Vantik centers.
Other factors supporting the growth of Fintec are traditional banks, Vantec's ability to expand its services and traditional solutions through digital solutions, as well as the emergence of independent companies designed to overcome the $ 1.7 trillion funding gap for SMEs .
At present, many small and medium-sized businesses with high liquidity face difficulties in obtaining bank financing in the region. Only 20% of these companies receive funding from banks and financial institutions compared to an average of 42% in Latin America, Eastern Europe, the Central and Eastern Pacific. This large shortage of funds from banks and money markets can bridge Fantec, which is involved in lending and raising funds.