Fintech Forward 2023 highlights Middle East’s thriving financial landscape

TDT | Manama                                   

The Daily Tribune – www.newsofbahrain.com

Reported by Zahra Ayaz

Fintech Forward 2023 (FF23), organised by the Bahrain Economic Development Board (EDB), kicked off yesterday at Exhibition World, Sakhir, with a gathering of industry experts from around the world.

The event focused on exploring the opportunities and challenges in the Middle East’s financial sector and its growing prominence as a hub for innovation and investment.

During a panel discussion titled “Spotlight on the Middle East,” key figures shared insights on the region’s economic diversification efforts, the role of fintech in driving growth, and the importance of collaboration among local, regional, and international stakeholders.

Khalid Humaidan, Chief Executive at Bahrain EDB, emphasised the long-standing commitment to diversifying the economy beyond oil. He highlighted the impressive growth achieved over the past two decades, with Bahrain’s economy expanding at an average annual rate of 8 percent, outpacing the global average.

“Moreover, oil’s contribution to GDP decreased significantly from 42 percent to 16 percent, demonstrating the successful shift towards non-oil sectors.” Humaidan spoke about the critical role of fintech in shaping the future of financial services, stating that Bahrain’s focus on technology and the digital realm is integral to its overall growth strategy.

He stressed the need for collaboration among GCC countries to capitalise on the vast opportunities presented by the global fintech landscape. Abdulmohsin Al Omran, founder and CEO of The Family Office, shed light on the growing importance of diversification for family businesses in the region.

He noted that the COVID-19 pandemic served as a catalyst, prompting many businesses to seek international portfolios and sustainable income streams beyond traditional industries. Al Omran highlighted the opportunities available for foreign investors and international firms, emphasising the region’s educated and talented youth population as a valuable asset.

Remo Giovanni Abbondandolo, General Manager MENA at checkout.com, discussed how fintech is driving diversity in the Middle East. He shared the significant growth in digital payments, which has transformed the economy by enabling easy access to a wide range of products and services.

Abbondandolo cited the example of Bahrain, where fintech adoption has surged by 30 per cent in the past year, with four out of five individuals regularly using fintech apps for daily transactions.

The region has also witnessed a dramatic decline in cash usage. Michel Sawaya, CEO of Citi Bahrain, pointed out the importance of diversification in new industries such as entertainment, tourism, and sustainable and low-carbon sectors.

He emphasised the collaboration between local, regional, and international banks in providing innovative financial solutions and facilitating economic growth. Sawaya underscored the role of international banks in structuring and scaling financial initiatives, while local banks play a vital role in nurturing local businesses.

Fintech Forward 2023 has showcased the Middle East as a thriving hub for fintech innovation and investment. As the Middle East continues to embrace fintech, it is poised to become a global leader.