This study examines the rapid expansion of the digital economy and fintech in Africa and the Middle East, highlighting key drivers, challenges, and implications for economic growth. Using a mixed-methods approach that combines econometric analysis with qualitative case studies, we explore the impact of digital finance on financial inclusion, entrepreneurship, and economic development. Our findings indicate that mobile money, blockchain technology, and regulatory frameworks play pivotal roles in shaping the fintech ecosystem. This paper contributes to the growing literature on digital transformation by offering policy recommendations to enhance the sustainable growth of fintech and the digital economy in these regions.