Fintech in the GCC will contribute $500 to GDP per capita by 2030
The analysts calculated the value of fintech investment in GDP per capita of the GCC region using Tracxn data on funds raised by fintech companies. In 2022, the UAE was a leader with a significant gap – $636.4 (1.01%) in GDP per capita came from fintech. It was followed by Bahrain with $89 (0.24%) and Saudi Arabia with $75 (0.18%). For the entire GCC region, the impact of fintech on the well-being of citizens equaled $161 per capita.
According to UnaFinancial’s forecast, by 2030, the UAE will still have the highest value of fintechs’ contribution to GDP per capita. It will equal $915.6 (a 44%-increase compared to 2022). The second place will be taken by Saudi Arabia with $561.5 (an increase of +650%). Next comes Bahrain with $262.3. Despite the smaller value, it is projected to show a 3-times increase over 8 years, which is due to the rapid development of fintech in the country from 2021. For the GCC region, the fintech influence will increase from $160.8 to $506.7 per capita.
UnaFinancial’s analysts comment: “In terms of investment in fintech, the UAE makes up 62% of the entire GCC region. This is explained by the level of economic development of the country compared to other countries of the region. The GDP per capita for the population aged 15+ in the UAE equals $63,359, which is almost 4 times higher than the average in the GCC (excluding the UAE). Saudi Arabia and Bahrain are the countries with high average annual growth rates of fintech influence – 182.4%, which exceeds the region’s average by 1.5 times. Meanwhile, Kuwait, Oman and Qatar are in a transition phase. The average growth rate of fintech influence on the well-being of their citizens equals 166.3% per year. Yet, there are higher investment risks due to lower economic stability.”
