Dublin, Nov. 15, 2023 (GLOBE NEWSWIRE) -- The "United Arab Emirates Alternative Lending Market Business and Investment Opportunities Databook" has been added to ResearchAndMarkets.com's offering.
The UAE alternative lending market is forecast to grow by 39.9% on an annual basis to reach US$337 million in 2023. Medium to long term growth story of alternative lending in United Arab Emirates remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 22.7% during 2023-2027. The alternative lending market in the country will increase from US$240.9 million in 2022 to reach US$764.3 million by 2027.
Low credit penetration, coupled with favourable regulatory oversight, are among the factors that are aiding the growth of the alternative lending industry in the United Arab Emirates. Venture capital and private equity firm confidence is also high when it comes to the growth potential of the alternative lending market and this is evident in the different funding rounds raised by providers.
In addition to the burgeoning fintech landscape in the Emirati nation, tech conglomerates are also seeking to foray into the alternative lending category. This is expected to result in mergers and acquisition deals from the short to medium-term perspective. Overall, the Emirati alternative lending industry is poised to record accelerated growth over the next three to four years.
Tech conglomerates are acquiring majority stakes in SME-focused lending platforms in the UAE
- To tap into growing credit and working capital demand among SMEs, more and more firms are seeking to foray into the alternative lending sector. This also includes tech conglomerates that are acquiring majority stakes in lending platforms in the Emirati nation.
- From the short to medium-term perspective, the publisher expects more such acquisition deals to take place in the Emirati market, as the alternative lending sector continues to become a lucrative growth opportunity for fintech players in the region. This will further drive the competitive landscape in the segment over the next three to four years.
Firms are raising funding rounds from venture capital and private equity players to drive growth
To meet the credit demand among consumers and drive accelerated growth, firms operating in the segment are turning to venture capital and private equity players to raise funding rounds in the Emirates.
- In February 2023, Halo, the digital mortgage service provider in the UAE, announced that the firm had raised seven figures in its seed funding round, which was led by Watheeq Proptech Venture and Hambro Perks Oryx Fund. With real estate prices soaring at a rapid rate in the Middle East market, Halo is well-positioned to tap into the growing demand for home mortgages in the UAE.
Other mortgage providers in the real estate segment and other firms such as buy now pay later providers are also raising funding rounds from venture capital and private equity players in the Emirati nation.
- In January 2023, Tabby, one of the leading BNPL firms based in Dubai, announced that the firm had raised US$58 million in its Series C funding round, which included participation from Sequoia Capital India, PayPal Ventures, STV, Arbor Ventures, Mubadala Investment Capital, and others. With the Series C round, the firm is now valued at US$660 million.
- In April 2023, Shaker Group, the Saudi Arabia-based manufacturer and distributor of home appliances, announced that the firm had acquired a 10% stake in Cashew, another BNPL provider in the Middle East. With its investment in Cashew, Shaker Group is planning to strengthen its e-commerce and retail platforms.
These multi-million-dollar funding deals with mortgage and BNPL providers are a clear indication that venture capital and private equity firms are foreseeing a strong growth potential in the regional market over the next five years.
The rising adoption of buy now pay later will aid the alternative lending industry in the Emirates
The adoption of the BNPL payment method has been on the surge, especially among online shoppers who are seeking flexible payment methods to complete their purchases. The accelerated demand for BNPL has resulted in several players launching their innovative solutions in partnerships with online and offline retailers across the country.
From the short to medium-term perspective, the adoption of BNPL schemes is expected to further growth in the Emirati nation. This growth in the BNPL ecosystem will keep aiding the growth of the overall alternative lending industry in the United Arab Emirates over the next three to four years.
Report Scope
This report provides in-depth data-centric analysis of Alternative Lending industry in United Arab Emirates through 127 tables and 150 charts. Below is a summary of key market segments:
- Economic Indicators
- United Arab Emirates Alternative Lending Market Size and Forecast
- by End User
- by Finance Models
- by Payment Instrument - Transaction Value, Volume and Average Value
- by Payment Instrument to Model
- P2P Marketplace Consumer Lending
- P2P Marketplace Business Lending
- P2P Marketplace Property Lending
- Balance Sheet Consumer Lending
- Balance Sheet Business Lending
- Balance Sheet Property Lending
- Invoice Trading
- Debt Based Securities
- Equity Based Crowd Funding
- Real Estate Crowd funding
- United Arab Emirates Alternative Lending Market Size and Forecast by Loan Types
- United Arab Emirates Alternative Lending Analysis by Consumer Attitude and Behaviour
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 164 |
| Forecast Period | 2023 - 2027 |
| Estimated Market Value (USD) in 2023 | $337 Million |
| Forecasted Market Value (USD) by 2027 | $764.3 Million |
| Compound Annual Growth Rate | 22.7% |
| Regions Covered | United Arab Emirates |
For more information about this report visit https://www.researchandmarkets.com/r/uswk0o
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