Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?

I am Mohammed Azim Ansari, currently serving as the Global Strategy and Excellence Lead at stc. Previously, I worked as a Market Research and Strategy Consultant at IDC and served as a Business Advisor to the Group CEO's office at ABHG, one of the largest investment companies in Saudi Arabia, specializing in fintech and emerging technologies.

Prior to that, I held the position of Project Manager at e& Digital (Etisalat) in the UAE, where I was involved in end-to-end planning and execution of digital transformation projects across the country. I have experience in market research, strategy development, business analytics, financial modelling, project management, and entrepreneurship within fintech, IoT, AI, cybersecurity, and emerging tech. I also co-founded two startups in the fintech and edtech space and am highly self-motivated, with leadership qualities that complement my innovative mindset.

Q2. Which are the most significant fintech market segments in MENA today contributing to rapid growth, and which segments hold the greatest potential over the next 3–5 years?

The fintech market in the MENA region is continuously growing and evolving. Over the last few years, the number of fintech companies has risen to more than 1,000. BNPL, wealth management, and SME finance are the three segments within the fintech industry in the MENA region that are leading the growth of the fintech ecosystem. Although the emergence of digital banks and e-wallets has been significant, these three segments will likely gain higher traction in the coming years due to their niche focus and increased demand from consumers.

Q3. How do you quantify the market size and investment opportunity in emerging fintech verticals like BNPL, crypto, and embedded finance in MENA over the next five years?

To quantify the MENA fintech market over the next five years, the BNPL market is expected to grow significantly, with a projected 20% year-on-year increase in 2025, reaching an estimated $5.79 billion that year and potentially exceeding $11.74 billion by 2030. The MENA region is the seventh-largest crypto market globally, having received $338.7 billion in on-chain value by mid-2024, and demonstrates strong growth drivers such as increased institutional adoption. The growth of embedded finance is linked to high smartphone penetration, digital adoption, flourishing e-commerce, and the demand for seamless financial experiences within non-financial platforms.

The broader MENA fintech market is projected to experience robust growth, with an anticipated 35% annual increase in net revenue until 2028, outperforming the global average. Some of the key growth drivers and opportunities include:

Demographics: Young, tech-savvy, and digital-native population ready to try new financial services.

Regulatory Environment: Positive and far-sighted regulatory bodies, particularly in specific sectors like crypto and digital assets, are attracting investment.

E-commerce and Digitalization: E-commerce is booming, and the overall digital adoption is fueling demand for embedded financial solutions.

Q4. How are digital payments evolving in MENA, and what innovations or which partnerships are driving higher adoption rates?

Digital payments in the MENA region are rapidly evolving from a cash-based economy to a cashless economy. The emergence of local real-time and instant payment services such as SARIE in KSA, AANI in the UAE, and Maal in Oman are driving innovation at the national level. E-wallets, super-apps, BNPL, open banking, AI, and machine learning are collectively fueling the digital payments market, making transactions seamless and secure while building consumer trust.

• Fintech and Telco Partnerships: Collaborations between telcos and fintech innovators are driving the e-commerce landscape and driving digital commerce growth.
• Payment Facilitator Models: New payment facilitators are changing how businesses, acquirers, and card networks collaborate, creating more flexible payment options.
• Cross-Regional Initiatives: The development of regional payment systems, such as the GCC RTGS, aims to connect and modernize payment infrastructures across the region.

Q5. What product development trends are fintech firms prioritizing to capture market opportunities, especially in regulatory-compliant AI-driven personalization and payment technology?

Fintech companies are now embedding AI-based technologies within their applications to capture market opportunities.

Hyper-Personalization: Fintech firms are moving from traditional segmentation to real-time, dynamic personalization powered by AI, tailoring financial advice, products, and services to individual needs and behaviors.

360-Degree Customer Experience: This includes personalized dashboards, real-time financial insights, and tailored product recommendations, which are especially important for digital-first consumers such as Gen Z.

Companies are leveraging AI and machine learning (ML) for automated compliance monitoring, fraud detection, and anti-money laundering (AML) activities.

Multiple software solutions are available in the market for real-time regulatory monitoring, enabling continuous surveillance systems for the instantaneous detection of potential regulatory breaches and ongoing monitoring of transactions.

Q6. What are the anticipated regulatory challenges related to cryptocurrency, cross-border payments, and data privacy in MENA’s fintech landscape, and how are companies preparing to mitigate these risks?

The MENA region faces regulatory challenges in cryptocurrency, cross-border payments, and strict data privacy within the fintech sector. Companies are preparing by implementing enhanced compliance measures, adopting strategic technologies, and engaging in public-private collaborations.

Cryptocurrency Regulatory Challenges

The regulatory environment for crypto in MENA is highly fragmented, ranging from proactive regimes in the UAE and Bahrain to outright bans in Kuwait and Qatar. Key risks include money laundering, terrorism financing, scams, and cybersecurity vulnerabilities. Companies face challenges such as varying licensing requirements, mandatory registration of virtual asset service providers (VASPs), and robust AML/KYC protocols. The lack of a unified regional policy complicates cross-border crypto operations and increases compliance costs.

Fintech firms are mitigating these challenges by:

• Securing licenses in multiple jurisdictions and establishing comprehensive AML/KYC and risk-based monitoring.
• Engaging with regulators beforehand through sandboxes and industry forums.

Cross-Border Payments Regulation

Cross-border payments in MENA are challenged by diverse regulatory standards, varying compliance thresholds, and, at times, unclear legal status for non-bank entities. Traditional payment systems are inefficient, while blockchain-based solutions are increasingly adopted for their speed and transparency, supported by evolving local regulations. To navigate these complexities, fintech companies:

• Deploy orchestration platforms with unified APIs to connect to different banks and payment systems.
• Leverage blockchain for transparency and faster settlements.
• Form partnerships with licensed payment institutions to ensure compliance and market entry.

Data Privacy Risks
Emerging and inconsistent data privacy laws across MENA create uncertainty, particularly affecting startups and SMEs. There is often ambiguity regarding proportional compliance, resulting in slow customer onboarding and digital adoption.

Mitigation strategies include:

• Early adoption of privacy-first business models and advanced compliance tools.
• Implementation of AI-driven and machine learning fraud prevention systems.
• Adopting cloud-based solutions for secure, standardized operations across borders.
• Participating in sector-wide public–private cybersecurity and data privacy initiatives.

Fintech firms are dedicating significant portions (25-30%) of their operational budgets toward regulatory compliance and risk management. The region is witnessing a trend toward regulatory harmonization and unified compliance frameworks, although progress remains uneven. Technology-driven compliance—such as distributed ledgers, automated monitoring, and integrated multi-cloud solutions—is becoming mainstream to reduce costs and accelerate market entry.