PayPal bets $100M as Middle East’s Gulf fintech giants amplify competition
The move from the US payments giant comes amid a flurry of activity that has further cemented the Gulf’s fintech sector on the map for global investors — including Saudi Arabia's Tamara, which recently secured a $2.4 billion financing deal.
US digital payments giant PayPal on Sept. 24 committed to invest $100 million to expand its reach across the Middle East and Africa, in the latest sign that the Gulf’s fast-growing fintech sector is drawing in global heavyweights and fueling a regional funding arms race.
Details: The investment will be deployed over several years through a mix of acquisitions, minority stakes, PayPal Ventures funding, hiring and other areas, per a press release from the Silicon Valley-headquartered company. It follows PayPal’s launch of a regional hub in Dubai in April and builds on existing regional bets, including backing the Saudi Arabia-based buy-now, pay-later firm Tabby.
“The Middle East and Africa are home to some of the most dynamic and rapidly evolving businesses in the world,” said PayPal CEO Alex Chriss in the press release. “We’re investing in technologies and partnerships that will help entrepreneurs scale faster.”
Why it matters: PayPal’s announcement comes amid a flurry of recent activity that has further cemented the Gulf’s fintech sector on the map for global investors.
