UAE's Fintech Market Rises 92% amidst Global Funding Slowdown

<p>Global
investments in financial technology companies saw a significant decline in
2023, falling 48% to $51.2 billion from the previous year's $99 billion,
according to data from Innovate Finance. </p><p>While
funding decreased in major fintech hubs like the UK and the USA, the United
Arab Emirates (UAE) demonstrated a contrasting trend, with fintech funding
nearly doubling in the past year.</p><p>Fintech Funding Plunges
Globally</p><p>Global fintech cautiously entered 2023 amid economic challenges, with concerns over inflation, tight monetary policies, and potential recession impacting spending and deals. Despite this, early stage fintech investment remained robust, garnering over $4 billion in seed funding. </p><p>However, larger deals above $100 million slowed, indicating a shift in growth-stage valuations and capital issuance caution. The average deal size dropped to $12.9 million from $15.5 million in 2022, yet exceeded the 2012-2020 average of $10.3 million. Demonstrating its international influence, fintech saw a notable shift in investment trends: for the first time, Asian countries in the TOP10 outpaced European counterparts in investment. </p><p>Innovate
Finance's study, corroborates information published earlier this week by
Finance Magnates. The US <a href="https://www.financemagnates.com/fintech/the-great-fintech-slowdown-us-and-uks-funding-struggle-in-2023/" target="_blank" rel="follow">experienced a drop of 36% in fintech funding</a>,
totaling $18.2 billion, while the UK's funding plummeted 63% to $4.2
billion. </p><p>The total
number of fintech fundraising deals also decreased sharply, dropping 61% to
3,973 in the last year. Despite this downturn, the US maintained its position
as the leading destination for <a href="https://www.financemagnates.com/terms/f/fintech/">fintech</a> investment in 2023, with the UK securing
the second spot globally. The UK's fintech funding still surpassed the combined
total of the next 28 European countries.</p><blockquote><p lang="en" dir="ltr">The FinTech Investment Landscape for 2023 is here! Read more to find out:- Where