The investment technology sector in the UAE is forecast to more than double within the next two years, thanks to the rapid development of digital services.
The finding comes from research company UnaFinancial which has charted the volume of UAE’s investment tech market from 2017 to the current day.
The figures show a sevenfold increase between 2020 to 2022, from US$18.9 million to $127.7 million.
UnaFinancial then forecasts that the volume will grow to $313.5 million by the end of 2025, a 145% increase on the 2022 figure and a doubling of the predicted volume at the end of 2023.
According to UnaFinancial analysts, the investment tech market gained the greatest popularity after 2020, a trend they put down to an improved investment climate, the growing capital markets and the impact of the pandemic on digitalisation rates.
The report also forecasts a sharp increase in the number of tech providers in the investment management market in the next two years – from 294 at the end of 2022 to 386 by the end of 2025.
“We attribute such a trend to government measures aimed at attracting foreign investment, which are considered a key part of the country’s long-term economic development plans,” states the report. “The growing standard of living in the UAE and acceleration of mass digitalisation are important factors here too.”
In October, UnaFinancial raised $15 million to finance the development of an investment app to be launched in the UAE in 2024.
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