July 11, 2024

DUBLIN–(BUSINESS WIRE)–The “United Arab Emirates Alternative Lending Market Business and Investment Opportunities Databook – 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics – Q2 2023 Update” report has been added to ResearchAndMarkets.com’s offering.

The alternative lending market in the UAE 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 UAE 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.

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.

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. 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.

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.

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:

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

Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending

Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending

Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending

Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending

Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending

Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading

Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities

Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding

Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding

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

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/wvqht5

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