At 21.5% CAGR, Middle East & Africa Regtech Market is Projected to be Worth US$ 1,657.60 Million by 2031, says Business Market Insights

According to Business Market Insights’ research, the Middle East & Africa regtech market was valued at US$ 349.40 million in 2023 and is expected to reach US$ 1,657.60 million by 2031, registering a CAGR of 21.5% from 2023 to 2031. Consequences of fraudulent activities in financial operations and digitization of business operations are among the critical factors attributed to drive the Middle East & Africa regtech market growth.

According to a study by "eftsure" on payment fraud investigations, nearly one in every five organizations (~20%) said that the most disruptive incidence they faced incurred the cost of more than US$ 50 million to their businesses. Large organizations usually deal with significant financial transactions and handle crucial data, rendering them susceptible to cybercrimes. Regtech solutions come with advanced technologies and tools to detect and prevent financial crimes. These solutions leverage technologies such as Big Data analytics, machine learning, and artificial intelligence to enhance compliance processes and improve the effectiveness of anti-money laundering (AML) and know-your-customer (KYC) operations.

Regtech tools can identify suspicious transactions, detect patterns of fraudulent behavior, and provide timely alerts to financial institutions. Regtech tools, such as advanced transaction monitoring systems, help financial institutions identify money laundering attempts by analyzing transaction data and detecting irregularities or patterns that may indicate fraudulent behavior. Further, the integration of technologies such as machine learning and artificial intelligence enables Regtech solutions to process large volumes of data and identify suspicious activities in real time.

On the contrary, high development and deployment costs hamper the growth of Middle East & Africa regtech market.

By component, the Middle East & Africa regtech market is bifurcated into solutions and services. The solutions held 68.5% share of Middle East & Africa regtech market share in 2023, amassing US$ 239.19 million. It is projected to garner US$ 1,214.95 million by 2031 to register 22.5% CAGR during 2023–2031.

In terms of deployment type, the Middle East & Africa regtech market is bifurcated into on-premise and cloud. The cloud segment held 70.0% share of Middle East & Africa regtech market share in 2023, amassing US$ 244.41 million. It is projected to garner US$ 1,192.97 million by 2031 to register 21.9% CAGR during 2023–2031.

Based on enterprise size, the Middle East & Africa regtech market is bifurcated into SMEs and large enterprises. The large enterprises segment held 64.4% share of Middle East & Africa regtech market share in 2023, amassing US$ 224.93 million. It is projected to garner US$ 978.34 million by 2031 to register 20.2% CAGR during 2023–2031.

By application, the Middle East & Africa regtech market is segmented into risk and compliance management, AML and fraud management, and identity management. The risk and compliance management segment held 44.2% share of Middle East & Africa regtech market share in 2023, amassing US$ 154.56 million. It is projected to garner US$ 772.41 million by 2031 to register 22.3% CAGR during 2023–2031.

By industry vertical, the Middle East & Africa regtech market is segmented into banks, insurance, and others. The banks segment held 40.1% share of Middle East & Africa regtech market share in 2023, amassing US$ 140.07 million. It is projected to garner US$ 697.39 million by 2031 to register 22.2% CAGR during 2023–2031.

Based on country, the Middle East & Africa regtech market is categorized into Saudi Arabia, the UAE,  South Africa, and the Rest of Middle East & Africa. Our regional analysis states that Saudi Arabia captured 38.5% share of Middle East & Africa regtech market in 2023. It was assessed at US$ 134.52 million in 2023 and is likely to hit US$ 651.05 million by 2031, registering a CAGR of 21.8% during 2023–2031.

Key players operating in the Middle East & Africa regtech market are Broadridge Financial Solutions Inc; Deloitte Touche Tohmatsu Ltd; International Business Machines Corp; MetricStream, Inc.; PricewaterhouseCoopers International Ltd; and Thomson Reuters Corp; among others.

• In 2024: AI-powered regtech Cube acquired global regulatory intelligence enterprises from Thomson Reuters.

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