Leading financial centers in the Middle East and Africa 2024

In 2024, Dubai was the most attractive financial center in the Middle East and North Africa (MENA) region with a Global Financial Centres Index score of 724 points. The private institute Z/Yen has constructed an index for financial center rating, in which a multitude of factors are integrated. Important areas of competitiveness are, among others, business environment, human capital, taxation, and infrastructure.

Finance industry in MENA

The financial technology (FinTech) industry in the MENA region has been booming recently, especially with the increased smartphone and internet penetration rates. Fintech helps businesses by allowing them to manage their financial operations efficiently using specialized software. The acceleration of fintech adoption can be attributed to the large share of the young population who were adapting to change and high rates of new technology adoption. Fintech had the highest share of startup deals in the region at 16 percent in 2020 compared to other industries. The number of fintech companies in the Middle East region was forecast to reach 465 firms by 2022, though this value will likely be exceeded.

Fintech in the UAE

The United Arab Emirates (UAE) was a leader in adopting fintech technology in the MENA region. The number of fintech startups in the UAE was 400 in 2020. There were 15 Islamic fintech firms in the country in the same year. The free zones ADGM and DIFC in the emirates of Abu Dhabi and Dubai respectively were proactively embracing fintech. The country’s regulatory authority boosted the blockchain sector in 2020 and 2021. Local authorities implemented regulatory laws and legalized the crypto-asset activities. The Dubai Financial Services Authority announced a crypto framework, while the Securities and Commodities Authority legitimized crypto-asset activities and introduced a crypto framework.