Inside GCC’s Fintech Boom: Sourcing and Scaling the Next Generation of Unicorns

Rachel Zlatar
Sep 23
5 min read

In under a decade, the Gulf Cooperation Council (GCC) has transformed into one of the fastest-growing fintech markets worldwide. The region’s fintech industry was valued at USD 169.92 billion in 2023, expanding at a year-on-year growth rate of 27.8%. By 2033, the market is forecast to nearly quadruple, driven by a 15.68% CAGR.

Today, the GCC hosts 2,580 fintech companies, of which 568 are funded firms that have collectively raised USD 9.25 billion in venture capital.

Key Growth Segments Across FinTech

Payments & Embedded Finance: Digital payments are now the backbone of GCC fintech. Saudi has already surpassed its Vision 2030 cashless target, while adoption in the UAE, Bahrain, and Kuwait exceeds 75% of retail transactions. Cross-border remittances remain a major opportunity, given the expat-heavy demographics across the Gulf.
Lending & Alternative Credit: The SME financing gap across the GCC is estimated at over USD 250 billion, driving demand for debt crowdfunding, peer-to-peer lending, and BNPL solutions. Platforms in Saudi, UAE, and Oman are scaling quickly to address these gaps.
WealthTech & Digital Investing: Robo-advisory, digital brokerage, and Shari’a-compliant wealth platforms are rising across Saudi, UAE, and Bahrain. The UAE is also leading in crypto and digital assets, positioning itself as a regional gateway for blockchain-enabled wealthtech.
Insurtech & Savings: GCC insurers and regulators are pushing digital insurance adoption, with Bahrain pioneering sandbox pilots and the UAE rolling out fully digital insurers. Saudi is embedding savings and financial literacy targets into Vision 2030, aiming to boost household resilience among a young, tech-savvy population.

VC Investment is Rising, But Growth-Stage Capital is Missing

Across the GCC, venture investment in fintech has surged. Saudi Arabia has emerged as the single largest hub, attracting 56% of all MENA fintech capital in H1 2025. The UAE continues to play the role of the international gateway, pulling in global VCs and private equity funds through DIFC and ADGM, while Bahrain and Qatar are developing specialized niches around Islamic fintech, open banking, and payments. Collectively, GCC fintech firms have raised over USD 9.25 billion to date.

Yet despite this inflow, a growth-stage funding gap remains across the region. Early-stage capital and seed accelerators are abundant, but there is still limited Series B+ investment to help startups scale into regional unicorns. For investors, this represents one of the biggest opportunities: stepping in with larger, later-stage checks to help fintechs expand beyond their home markets into GCC-wide, MENA, and global champions.

Meanwhile, incumbent banks and insurers are no longer sitting on the sidelines. Across Saudi, UAE, and Qatar, leading institutions are launching corporate venture capital (CVC) arms, accelerators, and fintech partnerships. In Bahrain and Oman, sandboxes and regulatory programs are providing testbeds for pilots in lending, payments, and insurtech. The result is a new era of collaboration rather than competition, with corporates seeing fintech as partners in transformation.

At the same time, M&A activity has more than tripled across the GCC since 2022, offering viable exit paths for founders and investors alike. Consolidation is increasingly a growth strategy: incumbents acquire startups for their technology and customer base, while larger fintechs roll up smaller players to accelerate market share.

The Investor Value-Add Beyond Capital

In the GCC fintech boom, money alone is not enough.

What distinguishes successful investors is the strategic value they bring to startups. For many founders across the Gulf, the “right investor” is just as critical as achieving product–market fit.

With established ties to regulators such as SAMA (Saudi), DFSA/FSRA (UAE), CBB (Bahrain), and the Qatar Central Bank, institutional investors help startups navigate licensing and regulatory approvals at speed. Corporate venture arms of banks, insurers, and telecoms also unlock distribution by providing fintechs with immediate access to large customer bases, transaction flows, and infrastructure. Beyond market entry, investors encourage founders to professionalize, strengthening governance, compliance, risk management, and financial discipline that are essential for scaling.

Meanwhile, global VCs and private equity firms act as bridges to expansion. They open doors to GCC-wide and international markets, connect founders with specialist talent and product leaders, and bring operational playbooks from fintechs that have scaled in Europe, Asia, and North America.

How to Succeed as a Foreign Investor in the GCC Fintech Landscape

Breaking into the GCC fintech ecosystem cannot be done remotely. Each market rewards those who commit locally and build trusted relationships. Success as a foreign investor depends on:

Establishing a Physical Presence: Regulators, banks, and entrepreneurs across Saudi, UAE, Bahrain, Qatar, Kuwait, and Oman expect investors to show real commitment on the ground. A local office in Riyadh, Dubai, Manama, or Doha signals seriousness and builds trust.

Forming Strong Local Partnerships: Trusted GCC partners open doors, from regulators to distribution channels. Partnerships with family offices, banks, sovereign wealth funds, or corporate venture arms often make the difference between access and exclusion.

Respecting Cultural and Regulatory Nuances: Understanding GCC consumer behavior, Shari’a-compliant finance, and the nuances of each regulatory framework is essential. Approaches that work in Europe or Asia cannot simply be copy-pasted into the Gulf.
Aligning with National Priorities: The most successful fintechs are those solving for government-backed goals: Vision 2030 in Saudi Arabia, UAE’s Smart Finance strategies, Bahrain’s open banking framework, or Qatar’s National Vision 2030. Priorities such as SME financing, financial inclusion, and digital payments are where both regulators and investors offer the strongest support.

Shari’a-Compliant Fintech Investing

Saudi Arabia is a global center of Islamic finance, and fintech must reflect that. For investors, ensuring Shari’a compliance is both a risk-mitigation strategy and a competitive advantage:

Avoiding Interest (Riba): Lending models must be structured through profit-sharing, leasing, or cost-plus financing (Murabaha) instead of conventional interest.
Risk Sharing: Shari’a principles encourage equity-style or partnership structures, rather than debt-heavy balance sheets.
Asset-Backed Transactions: Financing must be tied to tangible assets or services, rather than speculative products.
Ethical Screening: Investments must avoid prohibited sectors (e.g., gambling, alcohol).
Shari’a Boards & Certification: Startups that establish credible Shari’a governance frameworks and seek certification gain investor trust and consumer adoption.

In the News/Recent Funding Rounds

S60 Ventures announced the launch of their $100M fintech-focused venture fund to back bold founders shaping the future of financial services.

Tamara has secured a significant Shari'ah-compliant asset-backed facility of up to $2.4 billion from major financial institutions, including Goldman Sachs, Citi, and Apollo funds.

HALA has raised $157 million in a Series B funding round co-led by TPG and Sanabil Investments, a division of the kingdom's Public Investment Fund.

Tarmeez Capital | ترميز المالية a Saudi-based sukuk fintech has raised a strategic funding round led by Tali Ventures, the corporate VC arm of stc group.

Alaan الآن closed a $48 million Series A funding round in August 2025, led by Peak XV Partners fueling expansion into Saudi Arabia.

Holo raises $22 million Series A to expand digital mortgage platform across GCC led by Saudi Arabia's Impact46 with participation from Mubadala.

From Insights to Action

The GCC's ecosystem has proven it can produce unicorns, the next challenge is scaling them. For investors, this is a moment to not only deploy capital, but to actively shape the future of financial services in the region.

That’s why the Middle East Investor Network (MEIN) is convening at SAX 2025 in Diriyah, Riyadh on November 17th, 2025 for a private boardroom on “Sourcing and Scaling KSA’s Next Generation of Fintech Unicorns.” This closed-door session will gather sovereign wealth funds, family offices, institutional investors, and leading VCs to explore the most pressing questions: