The Islamic finance sector has grown substantially, reaching a staggering $4 trillion in total assets in 2021, marking a remarkable 17% increase from the previous year. Projections indicate that this figure will surge to $6 trillion by 2026.
Notably, Islamic banking activities dominated the global Islamic finance landscape, constituting approximately 70% of total assets in 2021. However, other players in the industry, such as fintech companies specializing in financial technology, investment, financing, leasing, and microfinance, as well as brokers and traders, accounted for 4% of the global Islamic finance assets last year. Takaful, or Islamic insurance, represented the smallest portion, with around 2%.
In line with this growing trend, an Egyptian startup has recently raised significant pre-seed funding to establish itself as the pioneering Islamic fintech enterprise in Africa. This noteworthy achievement positions the startup as a frontrunner in offering innovative financial services tailored to Islamic principles.
The startup aims to tap into the vast potential of the Islamic finance market and cater to the specific needs of Muslim consumers seeking Sharia-compliant financial solutions. By blending cutting-edge technology with the principles of Islamic finance, the company plans to revolutionize the industry and contribute to its expansion on the African continent.
The successful pre-seed funding round validates the startup’s vision and highlights the growing interest and support for Islamic fintech ventures. With this capital infusion, the Egyptian startup is well-positioned to enhance its operations, develop its platform, and attract a broader customer base across Africa.
The emergence of Africa’s first Islamic fintech company signifies a significant milestone in the region’s financial landscape. As the market continues to evolve, more startups are expected to seize the opportunity to disrupt the industry, fostering financial inclusion and offering Sharia-compliant alternatives to a broader audience.