August 2, 2021Qatar
¿Why is Qatar rapidly becoming a Fintech hub?
Despite being one of the smallest countries in the world, Qatar has become one of the most advanced countries in recent years. With a population of just over 2 million people, Qatar is the 53rd economy in terms of GDP. Likewise, Qatar had a GDP per capita of 55.46 euros as of 2019 (Macro, 2021). The economy prosperity is derived from the extraction and export of petroleum and natural gas (Britannica, 2021)
Nevertheless, poverty and inequality is still a problem that Qatar faces mainly due to the migrant labor force. Lack of labor rights has created widespread poverty in Qatar, especially among migrants (about 95% of the labor force is migrants). Migrants have to apply for visas from employers, often incurring costs through recruiters to do so. Even if workers do manage to pay enough to get access to a job, employers have broad controls over what workers can do (HRW, 2020)
In terms of SMEs, Qatar has been increasing support to this business sector in recent years. For example, in January 2020 the QDB announced that credit to SMEs increased by 8% in 2019, with outstanding loans of QR6.7bn ($1.8bn), up from QR6.2bn ($1.7bn) in 2018. Many of the businesses supported by the QDB have helped plug gaps in the market caused in recent years as well (Oxford business group, 2021)
Qatar Fintech
The Fintech sector is considered one of the main industries in the Qatari country and one of the 4 pillars of Qatar’s National Vision 2030. Since 2020, different advances have been seen in the sector, including the implementation of the National FinTech Strategy with several initiatives already underway, including the establishment of the Qatar FinTech Hub (QFTH), FinTech licensing, and recently issued payments regulation (Swiss Business Hub Middle East, 2021). This national Fintech Strategy will target opportunities in digital payments, money management and lending, among others
Also, The Islamic Fintech market size in Qatar is projected to grow at a Compound Annual Growth Rate (CAGR) of 19.6 percent to reach $ 2bn by 2025, according to a report by the Global Islamic Fintech Report 2021.
Among the most popular Fintech lending P2P companies we can find Viainvest, Viventor, Axiafunder and Mintos. These fintechs along with the smaller and newer ones have a brilliant opportunity in this country as the government’s support is remarkable due to their 2030 vision.
