Fintech Statistics in the Arab Region
Arab Statistical Initiative (Arab Stat)
Eighth Meeting
Content
o Building Fintech Ecosystem
o Importance of Fintech & Digital Financial Services
o Pillars of the Fintech Ecosystem
o Fintech Statistics
o Statistics Objectives
o Fintech Data Challenges
o Fintech Index for the Arab Region “Finxar”
o Components and Methodology
o FinxAr 2021 main findings
o Findings and Recommendations
o AMF contribution to promote the Fintech ecosystem within the Region
Building the Fintech Ecosystem
Reasons behind:
o supporting Fintech ecosystem
o initiating depositary for data and statistics on Fintech Activities in the Arab region
Digital Financial Services
Improve Access to Financial Services
Open opportunities for:
Vulnerable Communities
Small
Businesses Entrepreneurs
Drive Economy
Central depositary for information to set proper Fintech ecosystem
as most information on Fintech activities in the region are either scattered or not
easily accessible
Policy Enablers:
Digital Identity, Open Banking, Data Protection, Cybersecurity, Innovation Facilitators (Innovation Office- Innovation Hub – Sandbox).
Fintech Ecosystem Pillars
Regulations
APIs, Cloud, Biometric, DLT & Blockchain, Artificial Intelligence & Machine Learning (AI & ML).
Demand Funding
Collaboration &Talent
Partnerships
Financial Market Infrastructure
Enabling Technologies :
Current Challenges in Fintech Data
DEFINITION
REGULARITY OF DATA AVAILABILITY OF DATA
SCATTERED OR NOT EASILY ACCESSIBLE DATA
AMF Remedies:
“Arab Region Fintech Guide”
“FinxAr”
Fintech Index for the Arab
FinxAr Index
METHODOLOGY
o The index is composed of the six pillars representing main pillars to promote Fintech ecosystem.
The weighted index for every single Arab country is composed of 100 points distributed among pillars.
o A composite Fintech index of 100 points reflects all Arab countries, Finxar, calculated as a simple average of all weighted indices for Arab countries that responded to the survey.
RESPONDENTS & FREQUENCY
o Arab central banks and monetary authorities as being the leading authorities that lead the Fintech activities in Arab countries.
o Regular index FinxAr: currently two annual versions (2021-2022).
o The annual index covers data of the precedent year (2020-2021).
Collecting and Monitoring information about Fintech activities in the Arab region is crucial
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𝑛o The Fintech Index for the Arab Region covers the fintech ecosystem and monitor the Arab countries efforts to developing such industry while regulating it.
Policies, laws, regulations
25 points
Demand 14 points
Funding 14 points
Talents 14 points Collaboration and
Partnership 13 points
Financial Markets Infrastructure
20 points
Fintech Index Components
(100 points)
FinxAr Index Methodology (1)
FinxAr Index Methodology (2)
100 %
25%
14 % 14 % 14 %
20%
13 %
0 20 40 60 80 100 120
FinxAr Policies, Laws
& Regulations
Demand Funding Talents Financial
Markets Infrastructure
Collaboration
& Partnership
FinxAr Genral index and Sub-Indices
Six sub-indices
FinxAr General Index (1)
31%
75%
64%
55%
65%
9%
14%
31%
41%
35% 37%
40%
52%
33%
19%
43%
0%
10%
20%
30%
40%
50%
60%
70%
80%
JOR UAE BAH TUN KSA SUD IRQ OMA PAL QAT KUW LEB EGP MOR YEM General Index 29%
15%
16% 7%
18%
15%
Contribution Results of the Six Indices to the Fintech General Index (43%)
FinxAr General Index (2)
The General Index “FinxAr” Average and the Six Main Indices
0.31 0.75
0.64 0.55
0.65
0.09
0.14 0.31
0.41
0.35
0.37
0.40 0.52
0.33
0.19
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
General Index
Policies, Laws and Regulations
Demand side
Access to Finance
Talent Development
Financial Markets Infrastructure
Collaboration and Partnerships
General Index (right pillar)
% Six Indices General Index
Policies, Laws & Regulations Pillar
National Strategies for Finetch / Digital
Transformation
Legislations and Regulatory Framework Initiatives
Policies, Legislations, Regulations and Initiatives
Institutional
Framework Governance
Scheme
Sandbox
Policies, Laws & Regulations Index
76%
75%
73%
71%
59%
58%
54%
51%
51%
44%
30%
24%
22%
9%
7%
44%
0% 10% 20% 30% 40% 50% 60% 70% 80%
BAH UAE KSA
TUN KUW
EGP JOR PAL QAT OMA LEB YEM IRQ MOR SUD Pillar average
Enhancing Demand Pillar
Financial &
Digital Financial Awareness
Initiatives Innovation in Payment
services to boost demand
Enhancing Demand on DFS
Fintech Hubs (Accelerators &
Incubators)
Internet, Mobile
& Smart Phones Usage
Volume of Fintechs
Demand Index
81%
70%
66%
63%
52%
47% 47%
41% 39%
34% 33%
27%
23%
17%
10%
44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Increasing Access to Finance Pillar
Investment in Fintech Activities
National Initiatives for Funding
Access to Finance
Funding from
Financial Institutions
Funding Index
50%
32%
31%
31%
25%
20%
14%
10%
10%
7%
4%
18%
0% 10% 20% 30% 40% 50% 60%
UAE KSA LEB TUN BAH QAT EGP KUW PAL JOR OMA Pillar average
Funding resources for fintechs from banks Loans from the banking
to Fintech sector No. of Funding Initiatives
o Limited % of funding resources, (less than 5%), comes from banks.
o Shortage or no available data on such percent.
o On average low, between zero and three, for initiatives dedicated to financial innovations, at large, at the national level.
o On average low, between zero and one, for initiatives to Finance fintech firms.
o Limited % of loans, (less than 5% of total banks’ loans), are deployed by banks to the Fintech sector.
o No available data on the % of loans dedicated to fintech firms.
Size of investments o Shortage of available data on investments size dedicated to the whole sector or fintech startups.
Key Considerations in Access to Finance
Developing Talents Pillar
Hackathons to derive DFS
Initiatives
Developing Talents
Universities competitions
Training to all stakeholders Various event
to foster Fintech
& innovations
Talents Index
87%
81% 78%
74%
67% 66% 66%
63%
42%
37%
29%
21%
17%
8%
50%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
EGP UAE KSA MOR LEB TUN BAH PAL KUW QAT YEM SUD JOR OMA Pillar average
Strengthening Financial Markets Infrastructure Pillar
NS for payments &
FMI
Employing new technologies Payment Infrastructure,
Digitizing Government Payments
Financial Markets Infrastructure (FMI)
Interoperability Initiatives
Remote onboarding Developing
ICT &
Financial
Infrastructure
Financial Markets Infrastructure Index
74% 73%
64%
50%
48% 46%
44%
39%
34% 34%
30%
24% 23%
11%
39%
0%
10%
20%
30%
40%
50%
60%
70%
80%
BAH UAE KSA TUN MOR LEB OMA JOR KUW PAL EGP IRQ YEM SUD Pillar average
Collaboration & Partnerships Pillar
Inter-agency
Initiatives
Collaboration and Partnership Initiatives
Partnerships between financial institutions
& Fintech firms
Collaboration with regional &
int’l peers, coordination with Standard Setters Regional &
International Accelerators &
Incubators
Collaboration & Partnerships Index
91%
68%
66%
63%
63%
54%
38%
37%
34%
33%
27%
25%
11%
49%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
UAE BAH
KSA QAT EGP TUN KUW
PAL LEB OMA YEM MOR JOR Pillar average
Main Considerations and Recommendations
Enhance collaboration among all stakeholders at the national level, and cooperation on regional & international levels.
More initiatives are needed to support access to capital and raising funds
Considering formulating Fintech Strategy to outline and coordinate initiatives, and document the governance scheme.
Ensure feedback loop and strengthen the role of the Innovation Office.
Continue efforts related to policies & regulations to foster innovations within a balanced environment, including the fintech firms.
Continue strengthening the financial markets infrastructure
Enhancing data, establishing national data base for the industry including
investments, financing, startups ..etc.
Support Fintech Ecosystem and promote development of the Fintech activities
AMF Contribution to the Regional Fintech Space
Knowledge & Expertise Sharing Platform Building Capacities:
trainings & workshops
Issuing Guidelines, policies & working papers
Regulatory Fintech Guide
Establishing the Arab Regional Fintech Working Group
Regional Fintech Index
AMF Remedies
o Introduction to Non-Fungible Tokens: From Regulatory and Financial Perspectives (Arabic): Click Here o Digital Identity, eKYC and Remote Onboarding in the Arab Region: Click Here
o Central Bank Digital Currencies: A Practical Guide for Arab Central Banks: Click Here o Open finance: A framework for the Arab region is more than a question of scope: Click Here o Islamic Fintech in the Arab Region: Imperatives, Challenges and the Way Forward: Click Here o Fintech Glossary: Click Here; Online Search Here; Electronic Content Here
o Strategies for Adopting DLT/ Blockchain Technologies in Arab Countries Click Here o Fintech Role Post COVID Era: Click Here
o The Arab Region Fintech Guide (second edition): Click Here
o Digital Wallets Providers Best Practices and Recent Developments: Click Here o Open Banking Regulatory Principles: Click Here
o Fintech index for the Arab Region “FinxAr” – Arabic Note: Click Here o Fintech index for the Arab Region “FinxAr” – English Note: Click Here o Open Banking: A Vision from the Arab World: Click Here
o Alternative Finance & Tokenization – An Overview and guidelines for the Arab Countries: Click Here o Central Bank Digital Currencies: An Analytical Framework for Arab Central Banks: Click Here o The Arab Region Fintech Guide (first edition): Click Here
o Digital Identity and e-KYC Guidelines for the Arab Region: Click Here Click Here
o Cyber Resilience Oversight Guidelines for the Arab Countries, concerning Financial Market Infrastructures: Click Here o Fintech Strategy Guidelines for the Arab Region: Click Here
o Digital Customer On-Boarding, e-KYC and Digital Signatures in the Arab Region: Click Here
