Market Insights Financial Wealth Management

Digital Investment - Lebanon

Lebanon

The Digital Investment market in Lebanon is expected to see a significant growth in the coming years.
According to projections, the total transaction value is set to reach US$405.40m in 2024.
This represents a substantial increase in investment activity within the country.
Furthermore, it is anticipated that the market will continue to expand at an annual growth rate of 7.07%, as measured by the compound annual growth rate (CAGR) between 2024 and 2027.
This growth trajectory is expected to result in a projected total transaction value of US$497.60m by 2027.
In terms of market dominance, Robo-Advisors are expected to hold a significant share in the Digital Investment market.
Projections indicate that their total transaction value will reach an impressive US$405.40m in 2024.
This showcases the growing popularity and adoption of automated investment platforms within the country.
When it comes to the highest cumulated transaction value, in the United States takes the lead with a projected amount of US$1,782,000.00m in 2024.
This highlights the strong presence and influence of the American market within the Digital Investment market sector.
Overall, these projections indicate a promising future for the Digital Investment market in Lebanon, with substantial growth and potential for increased investment activity in the years to come.
Lebanon's digital investment market is experiencing steady growth, fueled by a tech-savvy population and a supportive regulatory environment.

Key regions: Canada, United Kingdom, United States, United Arab Emirates, Europe

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Analyst Opinion

The Digital Investment market in Lebanon is experiencing significant growth and development. Customer preferences are shifting towards digital investment platforms, driven by the convenience and accessibility they offer. This trend is also influenced by global and regional market developments, as well as local special circumstances.

Customer preferences: Lebanese investors are increasingly turning to digital investment platforms due to their convenience and ease of use. These platforms provide a user-friendly interface that allows investors to manage their portfolios and make transactions online. The ability to access investment opportunities at any time and from anywhere is particularly appealing to busy professionals and young investors.

Trends in the market: One of the key trends in the digital investment market in Lebanon is the rise of robo-advisors. These automated investment platforms use algorithms to create and manage investment portfolios based on the investor's risk tolerance and financial goals. Robo-advisors offer a low-cost alternative to traditional financial advisors, making investment advice and management more accessible to a wider range of investors. Another trend in the market is the increasing popularity of peer-to-peer lending platforms. These platforms connect borrowers with investors, allowing individuals and small businesses to access financing outside of traditional banking channels. Peer-to-peer lending platforms offer higher interest rates than traditional savings accounts, attracting investors who are looking for higher returns on their investments.

Local special circumstances: Lebanon's digital investment market is also influenced by local special circumstances. The country has a large and well-educated population, with a high level of internet penetration. This creates a fertile ground for the growth of digital investment platforms, as investors have the necessary knowledge and access to technology to engage in online investing. Furthermore, Lebanon has a strong entrepreneurial culture, with many startups and small businesses seeking funding. Digital investment platforms provide an alternative source of financing for these businesses, allowing them to access capital quickly and efficiently.

Underlying macroeconomic factors: The growth of the digital investment market in Lebanon is also driven by underlying macroeconomic factors. The country has a relatively stable economy, with a strong banking sector. However, traditional banking channels are often perceived as inaccessible or cumbersome by younger generations, leading them to seek out digital investment platforms. Additionally, low interest rates on traditional savings accounts have pushed investors to explore alternative investment options. Digital investment platforms offer higher potential returns, attracting investors who are looking to grow their wealth more quickly. In conclusion, the digital investment market in Lebanon is experiencing growth and development driven by customer preferences for convenience and accessibility. The rise of robo-advisors and peer-to-peer lending platforms are key trends in the market. Local special circumstances, such as a well-educated population and a strong entrepreneurial culture, further contribute to the growth of the digital investment market. Underlying macroeconomic factors, including stable economy and low interest rates, also play a role in driving investors towards digital investment platforms.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.