The nascent financial technology sector in the Middle East and Africa is set to capture 8 per cent of financial services revenue in the region by 2022, driven by demand for better customer experience.
With "huge" opportunity for growth, the regional FinTech industry still faces challenges including lack of funding, limited market reach, shortage of skills and inconsistencies in regulation, according to a report by New York-listed technology company Accenture and start-up accelerator FinTech Hive, an initiative of Dubai International Financial Centre.
"DIFC tripled its commitment to FinTech in 2018, and we have delivered on this promise by broadening our scope, bringing new partners on board and introducing dedicated streams for InsurTech, RegTech and Islamic FinTech," said Arif Amiri, chief executive of DIFC Authority.
The number of FinTech companies in the region grew ninefold in seven years to 839 last year from 91 in 2010 , presenting a "huge" opportunity for financial services companies, governments, businesses and customers, the DIFC said. Cities in the Arabian Gulf are working to establish themselves as FinTech hubs in the region. Dubai and Abu Dhabi are focusing on encouraging the start-up scene while Bahrain created a FinTech regulatory unit.
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Read more:
UAE start-ups face barriers to growth, but landscape improving, says Clyde & Co
New InsureTech start-up Aqeed.com launches after raising $18m in funding
Abu Dhabi launches travel, tourism start-up incubator
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With a total of $67 million in FinTech venture capital funding, the UAE has been the top investment destination in the region since 2010. But of the $50 billion and more that has been invested in FinTech companies globally since 2010, only 1 per cent was directed to MEA, the report showed.
FinTech Hive said on Tuesday that it has completed the 2018 edition of its accelerator programme, which it launched in collaboration with Accenture.
The 12-week programme doubled the number of participating start-ups to 22 from 11 last year.
Earlier this month, FinTech Hive announced the expansion of its global partnership network through bridges with FinTech hubs in New York, London, Hong Kong, Kuala Lumpur, Singapore, Mumbai, Paris, Brussels, Holland and Bahrain, helping start-ups participating in the programme to gain further international exposure. DIFC recently launched an additional programme, in partnership with Startupbootcamp, dedicated to accelerating start-ups at an early stage.
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
Tips for newlyweds to better manage finances
All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.
Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.
Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.
Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.
Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.
Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
If you go
The Flights
Emirates and Etihad fly direct to Johannesburg from Dubai and Abu Dhabi respectively. Economy return tickets cost from Dh2,650, including taxes.
The trip
Worldwide Motorhoming Holidays (worldwidemotorhomingholidays.co.uk) operates fly-drive motorhome holidays in eight destinations, including South Africa. Its 14-day Kruger and the Battlefields itinerary starts from Dh17,500, including campgrounds, excursions, unit hire and flights. Bobo Campers has a range of RVs for hire, including the 4-berth Discoverer 4 from Dh600 per day.
