Why Fintech has the ability to transform SMEs in the MENA region

Small and mid-sized enterprises (SMEs) play a huge role in the economic growth of countries in the MENA region, since they make up 70% of the region´s GDP. However, lending is still one of the main obstacles for growth. Furthermore, the coronavirus pandemic has hurt the profits of small businesses and has impacted the funding of startups.

The coronavirus pandemic has changed many people’s views about digitalization which has benefited Fintechs (Fintech apps have seen a 72% increase in usage in the past year). People are warming up to the idea of Fintech as they see how new technology can democratize finance, build better business connections, and empower individuals who prefer to work privately from home.

Governments in the MENA region also realize the ability of Fintech to enable more secure transactions for SMEs and accelerate economic growth as a whole; however there is still work to do in terms of regulation in order to prevent fraud an cyberattacks to the SMEs.