Digest 10 | December 2023

What companies are telling us

• The PRC Central Bank and the UAE signed a Memorandum of Understanding to strengthen cooperation on CBDC.
• Japanese financial group SBI and Saudi Aramco are discussing cooperation on investment in digital assets.
• Lendo, a Saudi Arabia-based Shariah-compliant debt crowdfunding platform, has raised $28 million in a Series B round led by Sanabil Investments, a company owned by the Public Investment Fund PIF.
• Saudi financial literacy platform Yabi has raised $8 million in funding. The service operates in English and Arabic, offering courses every month taught by Saudi market experts. Yabi currently operates in the UAE and Saudi Arabia.
• UAE-based fintech startup Flow48, which provides SMEs with access to revenue-based financing, has raised $25 million in a pre-seed round.
• The UAE Central Bank has joined the AFAQ (Arabian Gulf System for Financial Automated Quick Payment Transfer) network of central banks in the Gulf in a bid to accelerate digital transformation and speed up real-time transactions.
• Leading players in the crypto industry such as Binance, OKX, and Laser Digital are flocking to the UAE to attract major investments.

New product launches and startups

Ajman Bank has partnered with Mastercard to launch a real-time cross-border P2P transfer service in over 40 countries through the Ajman Bank Digital Banking app.

Comment by red_mad_robot Market Research Center: For many users in the UAE, remittances are a vital way to keep in touch with their families. By providing them with a new service that is fast, convenient, secure, and affordable to transfer funds overseas, the companies are deepening their partnership.

ADGM introduces Numou, a digital platform designed to bridge the funding gap faced by SMEs in the UAE through collaboration with lenders and fintechs that have been developed to empower financial capability and support the growth of the entrepreneurial ecosystem in the UAE.?

Fils, a fintech platform launched by the MENA Fintech Association in Dubai, aims to help businesses integrate sustainable value into digital payments and promote trust and security in carbon markets.

Market Analytics

Saudi Arabia's fintech sector is growing strongly

• The number of active fintech companies has increased from 60 to 205 following the implementation of the financial sector development strategy under Saudi Vision 2030.
• In addition, the growth of the fintech sector in Saudi Arabia has led to the expansion of the labor market. The number of new jobs created has reached approximately 5,000. This growth is attributed to a clear strategy, initiatives, and performance indicators.
• Saudi youth play a key role in the development of the country and the success of strategies. The growth that has taken place in the last three years of Saudi fintech market development is attributed to the increased opportunities and fintech solutions that this segment has received.

Cross-border payments in UAE and Saudi Arabia

Cross-border payments are becoming increasingly popular around the world. The recent Mastercard Borderless Payments Report reflects this trend.

• Low fees, fast and easy transfer process, security and fraud protection measures are important factors for UAE residents when choosing cross-border payment platforms.
• On the other hand, the report also looks at the growth of UAE SMEs. 80% of them are actively planning to cooperate with a large number of international companies.
• Notably, 82% of SMBs use mobile apps for cross-border payments. This is 27% more than in 2021.
• Saudi Arabian users have roughly similar factors as UAE users. - Users prefer cross-border payments for their speed, low fees, and 24/7 availability. They also note the need for a website or app to facilitate transfers.
• There has also been a rise in SMEs, most of which plan to go international and use apps for cross-border payments.

red_mad_robot is a digital partner for major businesses in the fields of fintech, telecom, retail, insurance, e-commerce, medicine, and industry. The expertise of red_mad_robot covers the entire cycle of creating digital products: from conducting market research and consulting to direct development and launch on the market. The company creates marketplaces, ecosystems, mobile applications, and web portals for millions of people, as well as supports technological startups.

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