Why Does The MENA Fintech Sector Continue To Attract Capital Even In Unstable Environments? Experts Weigh In
Summary
Venture capital continued to flow into MENA fintech in 2025–early 2026, with Arthur D. Little reporting $3.8B in VC and notable rounds such as Mal ($230M), HALA ($157M), Tabby ($160M) and Rain ($58M). Investors see regional fintech as infrastructure—payments, SME credit, remittances, compliance and embedded finance—driven by structural demand and government digitisation efforts. The UAE and Bahrain drew crypto and fintech activity because regulators provided clearer licensing frameworks, making the Gulf more attractive than the US or Europe for some founders. Founders remain optimistic about sector momentum but cite funding concentration, difficulty securing capital, slow bank partnerships and fragmented cross-border regulation as key challenges.