Three Wealthtech Startups in MENA That Make Trading Easier

Baraka, Sarwa and Thndr are facilitating financial literacy and inclusion in MENA.

Wealth management, traditionally dominated by expensive specialists managing large sums, is being disrupted by wealthtech startups looking to replace suits with tech that can help average users manage their cash. Just as US-based platforms like Robinhood have facilitated trading for millennials across the US, the last few years have seen the rise of MENA-based wealthtech startups that offer commission-free trading of stocks, Exchange Traded Funds (ETFs), and cryptocurrencies.

So what do wealthtech startups do? For starters, wealthtech is a sub-industry of fintech that focuses on giving investors tools and platforms to manage their wealth. Wealthtechs like Sarwa, baraka, and Thndr offer users the option to trade online without intermediaries. That means that investors no longer have to commission brokers or have deep pockets to invest their money in assets other than real estate. Many of these startups offer users the option to trade on the US stock exchange and allow trading in fractional shares (i.e. less than a full share).

Largely because stock market investing has not been part of the millennial culture in MENA and the GCC, one of the biggest hurdles that wealthtech startups have to overcome is educating users on wealth management and how to generate passive income. A key cornerstone of these startups is content creation and financial education, with podcasts, articles, videos, and webinars helping to onboard and inform budding investors.

While fintech continues to lead the charge when it comes to VC funding in MENA, investment literacy and financial planning are still in their early stages. Dubai Future District Fund singles out wealth management as a sector of focus for them -- particularly as asset classes like cryptocurrency gain traction.

These three MENA- and GCC-based startups are enabling millennials and other prospective investors to start trading, rather than saving.