Middle East & Africa Alternative Lending Business Databook 2023: A $12.2 Billion Market by 2027 – 75+ KPIs on Market Size, End User, Finance Model, Payment Instrument, Loan Type and Demographics

DUBLIN, Nov. 27, 2023 /PRNewswire/ — The “Middle East & Africa Alternative Lending Market Business and Investment Opportunities Databook – 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics – Q2 2023 Update” report has been added to ResearchAndMarkets.com’s offering.

Alternative lending market in the Middle East and Africa is expected to grow by 44.0% on an annual basis to reach US$5.0 billion in 2023. 

Medium to long term growth story of alternative lending in Middle East & Africa remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 24.8% during 2023-2027. The alternative lending market in the region will increase from US$3.5 billion in 2022 to reach US$12.2 billion by 2027.

The fintech market is growing at a rapid rate in the Middle East. Factors including favourable regulatory environment, rising internet penetration, and tech-savvy population are driving the adoption of digital lending platforms across the region. The trend is projected to further continue in 2023, as inflationary pressures result into more consumers and businesses seeking credit solutions.

To tap into the growing credit demand, firms are expected to forge strategic alliances to launch new and innovative alternative lending products in the Middle East market. Saudi Arabia and the Emirates are among the two Middle Eastern countries that are expected to lead industry growth going forward. Overall, the market is well-poised to record accelerated growth over the next five years.

Firms are forging strategic alliances to launch and widen the scope of digital lending services in Middle East

Strategic collaboration is one of the key strategies opted by players in the alternative lending industry to enter the growing market and to introduce new and innovative products in the sector. In the Middle East, similar trends are emerging as the market is poised to record accelerated growth.

In February 2023, Emkan Finance and IBM announced the launch of a new digital lending solution targeted towards small businesses in Saudi Arabia. Through the collaboration, IBM would enable Emkan Finance to provide financial support to SMEs decision-making engine to offer lending services to businesses.

Mastercard, in collaboration with Egypt-based Egabi, is also seeking to expand access to digital lending services in the Middle East. The partnership, announced in May 2023, will see

Mastercard enhancing the digital lending capabilities of Egabi. The collaboration will also enable more businesses to enter the digital lending market. This will consumers to benefit from the BNPL services, while SMEs will get access to microfinance solutions. Going forward, the publisher expects more such strategic collaborations to take place in the alternative lending industry. These alliances will drive innovation and competitive landscape in the Middle Eastern market from the short to medium-term perspective.

Low credit penetration is driving the consumer demand for BNPL short-term loans in the region

A large chunk of the population in the Middle East region is still underserved by traditional financial institutions. With easier financing options, made available at zero interest, alternative lending solutions such as buy now pay later products have gained widespread traction among consumers. In the Middle East, only 8% of the population had access to credit, according to a report from PPRO, a fintech firm offering digital payments infrastructure to businesses. As inflation continues to impact the disposable income of such consumers, more are expected to turn to alternative lending providers to fund their daily expenses and purchases. Consequently, the low credit penetration will one of the biggest growth drivers for the alternative lending market over the next three to four years in the Middle East.

Firms are raising funding rounds from venture capital and private equity players to drive growth

To meet the credit demand among consumers and drive accelerated growth, firms operating in the segment are turning to venture capital and private equity players to raise funding rounds in the Emirates.

In February 2023, Halo, the digital mortgage service provider in the UAE, announced that the firm had raised seven figures in its seed funding round, which was led by Watheeq Proptech Venture and Hambro Perks Oryx Fund. With real estate prices soaring at a rapid rate in the Middle East market, Halo is well-positioned to tap into the growing demand for home mortgages in the UAE.

In Saudi Arabia, erad, the alternative lender in Saudi Arabia, announced that the firm had raised US$2.4 million in a pre-seed funding round. The firm is planning to use the capital infusion for enhancing its platform and bolstering its presence across the Middle East region. The Shariah-compliant platform offers businesses with alternative financing solutions and actionable insights to grow faster.

Other firms such as buy now pay later providers are also raising funding rounds from venture capital and private equity players in the Middle East. Tabby and Cashew are among the firms that have raised funding rounds in the region in 2023. As the market continues to develop and becomes more mature over the next five years, the publisher expects more venture capital and private equity funding to enter into the fintech segment, including alternative lending market, in the Middle East.

This title is a bundled offering, combining the following 8 reports:

• Middle East & Africa Alternative Lending Business and Investment Opportunities Databook
• Egypt Alternative Lending Business and Investment Opportunities Databook
• Israel Alternative Lending Business and Investment Opportunities Databook
• Kenya Alternative Lending Business and Investment Opportunities Databook
• Nigeria Alternative Lending Business and Investment Opportunities Databook
• Saudi Arabia Alternative Lending Business and Investment Opportunities Databook
• South Africa Alternative Lending Business and Investment Opportunities Databook
• Turkey Alternative Lending Business and Investment Opportunities Databook
• United Arab Emirates Alternative Lending Business and Investment Opportunities Databook

Scope

Alternative Lending Market Size and Forecast by Loan Types

• B2C Loans
• Personal Loan
• Payroll Advance
• Home Improvement
• Education/Student Loans
• Point of Sale
• Auto Loans
• Medical Loans
• B2B Loans
• Lines of Credit
• Merchant Cash Advance
• Invoice Factoring
• Revenue Financing

Alternative Lending Analysis by Consumer Attitude and Behaviour

Economic Indicators

• Gross Domestic Product at Current Prices
• Population
• Unbanked Population
• Unemployment Rate
• Loan Default Rate

Alternative Lending Market Size and Forecast

• Transaction Value
• Average Transaction Value
• Transaction Volume

Alternative Lending Market Size and Forecast by End User

• End User – Business
• End User – Consumer

Alternative Lending Market Size and Forecast by Finance Models

• P2P Marketplace Consumer Lending
• P2P Marketplace Business Lending
• P2P Marketplace Property Lending
• Balance Sheet Consumer Lending
• Balance Sheet Business Lending
• Balance Sheet Property Lending
• Invoice Trading
• Debt Based Securities
• Equity Based Crowd Funding
• Real Estate Crowd funding

Alternative Lending Market Size and Forecast by Payment Instrument – Transaction Value, Volume and Average Value

• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money

Alternative Lending Market Size and Forecast by Payment Instrument to Model

Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending

• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money

Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending

Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending

Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending

Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending

Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending

Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading

Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities

Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding

Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding

For more information about this report visit https://www.researchandmarkets.com/r/qtozuw

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