Várri Consultancy, a specialised Dubai-based consultancy focused on strategy and risk assessment, announced today the findings of its first comprehensive “UAE FinTech survey 2021”, which surveyed over a hundred leading companies within the FinTech sector to assess the levels of risks.
The UAE is leading the FinTech market in the Middle East and North Africa region, which is estimated to top USD 2.5 billion by 2022. The study revealed that as the UAE FinTech industry continues to grow, over 60% of respondents believe that greater risk and uncertainty lie ahead, compared to a year ago. The primary risk drivers include supply chain disruptions, liquidity risk, IT and cyber risk. Underscoring specific threats, more than half of the respondents said their company had been the subject of a cyber-attack in the last year, which in most instances resulted in financial liability and direct revenue loss.
Neither country risk nor inflation was perceived as having any material impact, reflecting the level of trust FinTech companies place in the UAE’s financial and legal infrastructure. 51% of respondents stated that their companies are exposed to more earnings uncertainty. A year into the pandemic, Covid-19 remains one of the main risks to their companies achieving their strategic objectives in 2021. Additionally, almost half of the respondents also believe that liquidity risk and operational risk will increase in the coming year, compared to a quarter who believe those risks will reduce.
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