According to the publisher, the alternative lending market in the country is expected to grow by 39.9% on an annual basis to reach US$337.0 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.
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.
Embark on a detailed exploration of the alternative lending market with our latest report, dissecting key economic indicators to provide a holistic view of this dynamic landscape. Delve into the alternative lending market's expansive horizons, from overall market size and forecasts to granular analyses of end-user segments, diverse finance models, and payment instrument intricacies.
This report helps in navigating the nuanced relationships between payment instruments and lending models, offering a detailed breakdown of transaction dynamics. Uncover the multifaceted nature of loans, from personalized B2C offerings like payroll advances to strategic B2B solutions like lines of credit. Complementing these insights, delve into consumer attitudes and behaviors, decoding the impact of age, income, and gender on financial choices.
This report provides a thorough knowledge of alternative lending market dynamics, market size and forecast with more than 75+ KPIs. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
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. For instance,- In May 2023, e&, one of the leading tech conglomerates in the UAE, announced that its enterprise arm had acquired a majority stake in Beehive, the SME-focused lending platform. With this acquisition, e& is seeking to tap into the US$250 billion SME credit gap in the GCC region. In addition to its operations in the UAE, Beehive is also offering lending coverage to SMEs in Saudi Arabia and Oman.
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.
- 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.
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.
Embark on a detailed exploration of the alternative lending market with our latest report, dissecting key economic indicators to provide a holistic view of this dynamic landscape. Delve into the alternative lending market's expansive horizons, from overall market size and forecasts to granular analyses of end-user segments, diverse finance models, and payment instrument intricacies.
This report helps in navigating the nuanced relationships between payment instruments and lending models, offering a detailed breakdown of transaction dynamics. Uncover the multifaceted nature of loans, from personalized B2C offerings like payroll advances to strategic B2B solutions like lines of credit. Complementing these insights, delve into consumer attitudes and behaviors, decoding the impact of age, income, and gender on financial choices.
This report provides a thorough knowledge of alternative lending market dynamics, market size and forecast with more than 75+ KPIs. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
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:United Arab Emirates Economic Indicators
- Gross Domestic Product at Current Prices
- Population
- Unbanked Population
- Unemployment Rate
- Loan Default Rate
United Arab Emirates Alternative Lending Market Size and Forecast
- Transaction Value
- Average Transaction Value
- Transaction Volume
United Arab Emirates Alternative Lending Market Size and Forecast by End User
- End User - Business
- End User - Consumer
United Arab Emirates Alternative Lending Market Size and Forecast by Finance Models
- 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 Payment Instrument - Transaction Value, Volume and Average Value
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
United Arab Emirates Alternative Lending Market Size and Forecast by Payment Instrument to Model
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
United Arab Emirates Alternative Lending Market Size and Forecast by Loan Types
- B2C Loans
- Personal Loan
- Payroll Advance
- Home Improvement
- Education/Student Loans
- Point of Sale
- Auto Loans
- Medical Loans
- B2B Loans
- Lines of Credit
- Merchant Cash Advance
- Invoice Factoring
- Revenue Financing
United Arab Emirates Alternative Lending Analysis by Consumer Attitude and Behaviour
- By Age
- By Income
- Gender
Reasons to buy
This report offers a comprehensive insight into the alternative lending market in United Arab Emirates, covering the following key areas:- Comprehensive Market Intelligence: This report offers a thorough scrutiny of the alternative lending market in United Arab Emirates, providing a deep dive into its size, growth potential, emerging trends, and key industry leaders. Investors and entrepreneurs can identify potential areas for market expansion, based on the payment instruments, finance models, and loan types covered in the report.
- Economic Indicators: Access to United Arab Emirate's economic indicators, including GDP, unbanked population, unemployment rate, and loan default rate, to empower your business with crucial data for market analysis and strategic planning.
- Industry Attractiveness Analysis: In-depth trend analyses for transaction value, average value, and transaction volume within the United Arab Emirates alternative lending sector. This information aids in assessing the industry's appeal and potential for growth.
- Strategic Segmentation Analysis: The report presents an extensive analysis of market segments based on financial models (P2P marketplace lending, balance sheet lending, invoice trading, debt-based securities, equity-based crowdfunding, real estate crowdfunding, and others), payment methods (cash, cheques, credit transfers, direct debits, debit cards, credit cards, and e-money) and end-users (consumers, businesses, and property).
- Growth Projections: The report contains future growth projections for the United Arab Emirates alternative lending market, classified by end-user, financial model, and payment instrument. These projections offer insights into areas with growth potential within various market segments, aiding your company in strategy alignment and informed decision-making.
- Loan Type Analysis: A thorough examination of loan types, including B2C Loans (Personal Loans, Payroll Advances, Home Improvement, Education/Student Loans, Point of Sale, Auto Loans, Medical Loans) and B2B Loans (Lines of Credit, Merchant Cash Advance, Invoice Factoring, Revenue Financing), offering valuable market insights.
- Consumer Attitude and Behaviour Analysis: Get a closer look at consumer behaviour and attitude, segmented by age, income, and gender, which can aid in developing targeted marketing and lending strategies.
Table of Contents
1. About this Report
2. United Arab Emirates Economic Indicators
3. United Arab Emirates Alternative Lending Industry Attractiveness
4. United Arab Emirates Alternative Lending Market Size and Forecast by End User
5. United Arab Emirates Alternative Lending Market Size and Forecast by Finance Models
6. United Arab Emirates Alternative Lending Market Size and Forecast by Payment Instrument
7. United Arab Emirates Alternative Lending Market Size and Forecast by Payment Instrument to Model
8. United Arab Emirates Alternative Lending Market Size and Forecast by Loan Types
9. United Arab Emirates Alternative Lending Analysis by Consumer Attitude and Behaviour
10. Further Reading
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 164 |
| Published | October 2023 |
| Forecast Period | 2023 - 2027 |
| Estimated Market Value ( USD | $ 337 Million |
| Forecasted Market Value ( USD | $ 764.3 Million |
| Compound Annual Growth Rate | 22.7% |
| Regions Covered | United Arab Emirates |
