Databook 2023: Demand for BNPL short-term loans in the Middle East and Africa

Dublin, Nov. 17, 2023 (GLOBE NEWSWIRE) - The report "Middle East and Africa Alternative Lending Market Databook - 75+ KPIs by Alternative Lending Market Size, by End User, by Financial Model, by Payment Instrument, by Loan Type and by Demographics - Update for Q2 2023" has been added to ResearchAndMarkets.com.

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The alternative lending market in the MENA region is expected to grow at a CAGR of 44.0% to reach USD 5 billion by 2023. The market is expected to grow at a CAGR of 44.0% and reach USD 5 billion by 2023. The medium to long term development of alternative lending in the Middle East and Africa remains stable. The popularity of alternative lending is expected to grow steadily in''forecast period, at a CAGR of 24.8% from 2023 to 2027. The alternative lending market in the region will grow from USD 3.5 billion in 2022 to USD 12.2 billion in 2027. The market is projected to grow from USD 3.5 billion in 2022 to USD 12.2 billion by 2027. The market is expected to grow from US$3.5 billion in 2022 to US$12.2 billion by 2027.

The fintech market is growing rapidly in the Middle East. Factors such as favorable regulatory environment, increasing internet penetration, and technology-driven population are driving the adoption of digital lending platforms across the region. The trend is likely to continue in 2023 as inflationary pressures are leading more consumers and businesses to seek credit solutions. To meet the growing demand for credit, companies are planning to enter into strategic alliances to launch new and innovative products''alternative lending in the Middle East. Saudi Arabia and the United Arab Emirates are expected to be among the two Middle Eastern countries leading the industry's future growth. Overall, the market is well-positioned for accelerated growth over the next five years. Companies are entering into strategic alliances to launch and empower digital lending services in the Middle East. Strategic collaborations are one of the key strategies chosen by alternative lending industry players to enter the growing market and introduce new and innovative products in the sector. Similar trends are being witnessed in the Middle East as the market prepares for the expected accelerated growth. Mastercard strengthens digital' capabilities'lending from Egabi.

The collaboration will also enable more businesses to enter the digital lending market. As a result, consumers will benefit from 'buy now, pay later' services and SMEs will have access to microfinance solutions. In the future, the publisher expects similar strategic collaborations to continue in the alternative lending industry. These alliances are driving innovation and the competitive landscape in the Middle East from a short to medium term perspective.

Low credit penetration is driving consumers to demand short-term 'buy now, pay later' loans in the region. Much of the Middle East's population is still not served by traditional'by 'financial institutions. More affordable financial options without interest, such as 'buy now, pay later' products, have gained widespread acceptance among consumers. According to a report from PPRO, a fintech firm offering digital payments infrastructure to businesses, only 8% of the population had access to credit in the Middle East. As inflation continues to reduce the disposable income of these consumers, more people are expected to turn to alternative lending institutions to cover their daily expenses and purchases. As a result, low credit penetration will be a major growth driver for the alternative lending market over the next three to four years in the Middle East.

Companies''are attracting funding from venture capitalists and private investors to fuel growth. To meet the need for credit among consumers and accelerate growth, firms in this segment are seeking financial assistance from venture capitalists and private equity investors in the United Arab Emirates. Other companies such as "buy now, pay later" service providers are also raising funding from venture capitals and private investors in the Middle East. Tabby and Cashew are just some of the companies that have raised funding in the region in 2023. As the market develops and matures over the next five years, the publisher expects the fintech market, including the alternative lending market, in the Middle''East will receive more venture capital and private equity funding.

This report provides an in-depth analysis of the alternative lending industry through 127 tables and 150 charts. Key market segments are summarized below. If you need more information about this report, please visit https://www.researchandmarkets.com/r/wa0yii.

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The Middle East and Africa Alternative Lending Market