October 2025

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Crossing Borders

Our letter for this month starts by mentioning next month, November 2025, which heralds a milestone in banking and finance with the arrival of the deadline for all major financial institutions to adopt the ISO 20022 standard for cross-border payments. The Society Worldwide Interbank Financial Telecommunication, more conveniently known as Swift, is the registration authority for ISO 20022, and has been instrumental in its worldwide adoption.

As you can expect, the recent 2025 MEA Finance Leaders in Payments Summit, focused on this key moment in time, and you can read about the discussions around this, and similarly groundbreaking developments changing our regional payment's world in this issue's coverage of this key market occasion. Then continue crossing the borders of our pages to check 2025's winners in our Leaders in Payments Awards presentations.

In his cover story interview for this issue, Adam Jones, Division President, West Arabia for Mastercard, details their genuine commitment to the region in terms that go beyond commercial service levels to ensure they add real value to the communities’ and the many different countries that they cover, "we are on a mission to power economies and empower people", says Jones.

Citi start their Africa Series with MEA Finance, highlighting that the opportunities offered by Sub-Saharan Africa are better than ever, and detail their long commitment across the many borders of this region, "Africa continues to play an important role in our strategy", says Ebru Pakcan, CEO for Middle East & Africa (MEA), at Citi.

Nicoleta Remmlinger Director at 4most Analytics Consulting, in her opinion piece, warns that the journey to Internal Ratings-Based (IRB) accreditation will be lengthy and demanding, "

Implementing an IRB programme is a complex, multi-year transformation that extends far beyond model development", she points out.

Our special focuses this month fall on Financial Inclusion, which is gaining in appreciation for the contribution it can make to economic growth and expanding the reach of financial services. We detail regional Equity Capital Markets as they undergo a profound shift with enhanced governance, high levels of listings and a growing secondary market. The relationship between AI and Fintech, and how they are revolutionising one another and shaping the way we bank is examined, while our Market Focus, for this edition rests on Türkiye, whose government is pledged to the reduction of inflation and increasing economic growth.

In this edition's wide range of key issues, Standard Chartered, in the midst of the reconfiguring of global supply chains, tackles the role of the UAE at the heart of global trade, then Chuck Long, Managing Director, Head of Family Wealth Services, BNY Wealth underlines BNY’s strong belief in the region as a leading wealth and investment hub.

Olivier Busolini, Head of Information Security Group at Mashreq, highlights that as digital innovation accelerates, so do concerns about how personal data is collected, stored and used. Adding to the mix, Ahmed Darwish Elsayed, Head of Digital Delivery, Acting Head of Digital Business Solutioning at Bank Albilad, gives us his perspectives on the role, the development and the progress of digitisation and AI in Saudi Arabia’s banking sector.

We are delighted to be visited again by George Hojeige, Group CEO, Virtugroup who tells us of some of the leading reasons why investors are crossing borders to set up and settle in the UAE and as equally welcomed among our pages, Infosys explain why banks must act now to show real appreciation of the SME sector of the economy.

So, here in the October 2025 issue, you have a veritable continent of different topics, each with their own frontier for you to cross.

The UAE’s Role at the Heart of Global Trade WHERE CORRIDORS CONVERGE:

As global supply chains reconfigure and trade corridors shift, the United Arab Emirates has emerged not just as a commerce powerhouse, but as a centre of financial, digital and operational resilience. Talking with MEA Finance, Syed Khurrum Zaeem Managing Director, Head of Trade and Transactional Banking for the Middle East, Pakistan and Africa at Standard Chartered, explores how corporates are redefining resilience, why the UAE has become a stand-out global hub and where the next wave of opportunity lies

Global trade has faced significant disruptions in recent years. From your perspective, how are corporates adapting to this new reality?

Corporates have been forced to fundamentally rethink what resilience means. It is no longer just about diversifying suppliers or managing costs; it is about the capacity to adjust quickly to shocks, whether those come from geopolitical dynamics, trade tariffs or supply constraints.

We are seeing a clear shift toward more distributed and flexible supply chains. Around 57 per cent of corporates globally are investing in digitalisation, while the same proportion are adjusting their treasury management strategies to strengthen liquidity and risk management. In the Middle East and Africa, that figure rises above 60 per cent, showing that the region is ahead of the curve in embedding financial resilience into business models.

The UAE stands out within this transition. According to Standard Chartered’s lasted report titled

Syed Khurrum Zaeem, Managing Director, Head of Trade and Transactional Banking for the Middle East, Pakistan and Africa, Standard Chartered

‘Future of Trade: Resilience’, the country recorded net intentions of 18 per cent for sourcing, 18 per cent for manufacturing and 21 per cent for exports — meaning that far more corporates plan to increase than reduce their operations in the UAE. This reflects a structural shift in global

supply chains as companies rebalance where they produce and distribute goods, favouring markets that combine stability, connectivity and innovation. The UAE has become one of those anchors, evolving from a transit hub into a base for longterm growth serving Asia, Africa and the wider Middle East.

The UAE has long been seen as a logistics powerhouse. How is that role evolving as trade becomes more digital and finance-driven?

The UAE’s strength in logistics has long been central to its economic story. Its geographic position, world-class infrastructure and forward-looking policies have made it a vital link in global supply chains for decades. Jebel Ali Port, one of the busiest container terminals in the world, and the country’s extensive air-cargo network continue to anchor this advantage by connecting Asia, Africa and Europe with unmatched efficiency. This foundation in physical trade has provided the platform for the UAE to move confidently into new and more sophisticated dimensions of growth.

As global commerce becomes increasingly digital, competitiveness now depends not only on how goods move but also on how data and capital flow. The UAE recognised this shift early and invested in advanced technology infrastructure, building a strong network of data centres, cloud platforms and AI-enabled systems that support global businesses. These investments are turning the country into a digital command base where physical and digital connectivity work together to enhance corporate agility.

The same transformation is evident in finance. With more than six in ten corporates in the region prioritising the adjustment in treasury management strategies, a higher share than the global average, the demand for sophisticated financial infrastructure is rising quickly.

The UAE’s clear regulatory framework, deep banking expertise and strategic time-zone position make it a natural home for regional treasury and cashmanagement centres. Increasingly, companies leverage the UAE not only to move goods but also to manage liquidity, hedge risk and oversee regional finance.

Through this integration of trade, technology and finance, the UAE has evolved from a logistics hub into a complete ecosystem. Its ability to combine physical efficiency with digital and financial sophistication is what now defines it as one of the most connected and resilient economies in the world.

As the UAE strengthens its position as a global trade hub, which areas are driving its next phase of growth?

The UAE’s evolution from a logistics and energy powerhouse into a diversified, innovation-driven economy is gathering pace. While traditional strengths in trade and infrastructure remain vital, the country’s growth story is increasingly being defined by financial services, technology and digital infrastructure.

The UAE is consolidating its role as a centre for finance, AI and digital connectivity. Investments in data centres,

cloud ecosystems and fintech platforms are enabling corporates to manage operations, liquidity and digital trade from the UAE, linking regional markets through a more integrated ecosystem.

At the same time, the expansion of technology and e-commerce corridors is broadening the UAE’s global reach, creating new opportunities for crossborder trade and investment well beyond petrochemicals. Together, these developments illustrate how the UAE is

that make cross-border activity faster and more transparent. This digital layer allows transactions, compliance and financing to move with the same speed and precision as physical goods, creating a more resilient foundation for global exchange.

The country’s financial ecosystem is equally important. Treasury and cashmanagement operations increasingly sit alongside trade flows, supported by a banking system that provides

THE UAE’S TRANSFORMATION IS REDEFINING HOW GLOBAL TRADE WORKS. IT IS NO LONGER JUST A HUB THAT FACILITATES THE MOVEMENT OF GOODS; IT IS BECOMING A PLACE WHERE THE VERY MECHANICS OF TRADE ARE BEING REWRITTEN

moving from facilitating trade to shaping it, building an economy where goods, data and capital flow seamlessly through a single, connected hub.

How is the UAE’s transformation influencing the future direction of global trade?

The UAE’s transformation is redefining how global trade works. It is no longer just a hub that facilitates the movement of goods; it is becoming a place where the very mechanics of trade are being rewritten. By integrating finance, innovation and policy, the UAE is shaping a new model of commerce that blends physical connectivity with digital intelligence and financial depth.

At the heart of this evolution is the convergence of infrastructure and technology. Modern ports, free zones and logistics networks are now complemented by data centres, fintech platforms and digital-trade systems

both sophistication and scale. This combination is giving corporates the ability to operate seamlessly across regions to move products, manage liquidity and deploy capital within a single, interconnected environment.

But perhaps the most significant change lies in the UAE’s role as a catalyst for collaboration. The same networks that carry goods and data are linking governments, institutions and innovators, allowing new industries to emerge and scale across borders. In doing so, the UAE is demonstrating that the future of trade will not be defined by geography alone, but by the ability to connect ideas, finance and technology into one coherent system.

In many ways, the UAE has become a proving ground for this next chapter of global commerce; one where resilience is measured not only by supply-chain strength but by how intelligently nations and companies adapt to change.

Making an Impact

Ahmed Darwish Elsayed Head of Digital Delivery, Acting Head of Digital Business Solutioning at Bank Albilad provides his perspectives on the role, the development and the progress of digitisation and AI in Saudi Arabia’s banking sector

How do you assess the overall level and impact of banking and finance technology across Saudi Arabia today?

Banking and finance technology in Saudi Arabia is continuously evolving, with great focus on digital transformation, open finance and modernisation. By fostering innovation and competition, the Fintech Strategy is designed to make the Kingdom of Saudi Arabia (KSA) a global Fintech hub, aiming to reach a goal of 80% of non-cash transactions and 525 Fintech companies with a SAR 13.3Bn contribution to the GDP by 2030.

Venture capital investment in Saudi fintech companies reached SAR 7.1 billion by the end of Q2 2024. As of today, there are 39 licensed banks (four of them are digital) and over 240 Fintech companies working in the KSA. This is making great progress by increasing the financial inclusion of the unbanked, underserved SMEs and retail users, increasing digital transactions and economic growth. This is proven by the level of non-cash transactions approaching 70% and a projected

Ahmed Darwish Elsayed, Head of Digital Delivery, Acting Head of Digital Business Solutioning at Bank Albilad

SAR 4.6Bn GDP contribution of these companies by end of 2025.

This is not only strengthening the financial system but also facilitates economic diversification and reduces reliance on oil revenues. While this brings benefits like economic growth and improved customer experience, it also introduces new risks like cyber threats and systemic risks that need to be actively managed through effective regulations.

As the revolution in Fintech solutions continues in Saudi Arabia, how are banks managing the relationship with Fintech companies?

Saudi banks have taken different approaches to working in this new era. Some built their own Fintech subsidiaries to make most use of the operational agility and the flexibility given by SAMA to these entities, to expand offerings to their customers. The second approach was sponsoring them or buying some shares under a venture capital arm of the bank, driving innovation within the Fintech sector. The third method adopted a strategy of focusing on leveraging new technology and partnerships with these companies to sustain growth and indirect market share. Each of these approaches have their own pros and cons along with the corresponding business and operating models, which can be managed through what is called Banking as a Service (BaaS) and Open Banking platforms. The BaaS platform can be looked at as the new shape of corporate internet banking platforms used to serve direct customers.

With almost two decades of banking experience in KSA, what can you share with us your thoughts about the digitalisation journey of banking here?

I always say, digitalisation is a journey of maturity, which can start with a minimum viable product followed by increments, and upon achieving one level of maturity, can move toward the next one. This is clear in the case of Saudi Arabia’s banking digitalisation journey which can be broken down into two main phases:

• The early adoption of internet, mobile applications and e-payments (2000 until the mid-2010s) for account management and simple online transactions.

• The current hyper-acceleration (mid-2010s–Present) driven by Vision 2030, the booming fintech ecosystem and disruptive technologies. The last has helped us to innovate and develop new services like account opening, new products like digital wallets and family banking, and achieve financial literacy for our kids’ using gamifications and the metaverse.

Given that AI is essential for banks operating today, how should an organisation start their AI-adoption journey?

This is a very good question. I have noticed that several banks are not moving in the right direction in AI adoption, going for multiple solutions for different use cases. This will end up with their having multiple isolated AI solutions within the organisation which will be challenging to manage in the future. That is why I always advise starting the AI adoption journey by setting an AI strategy aligned with the organisation strategy. This can help the entity to grow and achieve the strategic goals and objectives. This should be followed by gathering all possible use cases and find an enterprise AI solution that best fit the business needs.

What

are the main challenges when starting a structured AI adoption journey?

In my opinion, this endeavor cannot succeed without four key elements. First, the right mind setup and executive alignment to support it. Second, the proper preparation and movement of the massive amounts of structured and unstructured data collected through different interactions. Third, having the right skill set of people who should drive the transformation journey of AI adoption. Fourth, is establishing robust governance and ethical frameworks, especially in the very well-regulated financial sector we have in KSA.

delivering seamless omnichannel experiences, to making real-time decisions for financing and time-sensitive services. Additionally, offering proactive data-driven insights for cross-selling and up-selling banking products, and even going beyond banking by identifying new financial solutions for our customers.

We should also consider the advantages of the use of Agentic and GenAI for covering shortages of staff and capabilities, guiding the innovation cycles and design thinking process and helping on the design and development of complete solutions, along with launching them to the market in just days, or weeks at most.

What is your approach to differentiating your digital banking innovations from your peers in the Saudi market?

DIGITALISATION

IS A JOURNEY OF MATURITY

Based on that, where do we stand in AI adoption today, what should we focus on and what do you feel will be the most obvious benefits of AI in Saudi Arabia’s banking sector?

Nowadays, one can notice that we have only scratched the surface with very few useful use cases like enhancing security via Intelligent Fraud Detection or enhancing operational efficiency through Intelligent Automation and Conversational AI.

I believe that we should focus on transforming the core banking services rather than these supporting functions. From developing new products and services, improving customer experience through hyper-personalisation and

I always believe in doing things differently to provide unique value proposition to our customers. While most of our peer’s design solutions for a complete portfolio or for being the first provider in the market, we like to go deeper with innovative value. I consistency aim for reasonable “most valued player” status, for overcoming the challenges we face in our sector.

Where do you see the financial and banking sector is heading into the coming years?

With the non-stop disruption of technologies, changing customers’ expectations and regulations, I am expecting more adoption of AI, IoT, DeFi, Digital Currencies, Stablecoins, Augmented Reality (AR) and Virtual Reality (VR). Also, I foresee the Metaverse, Open Finance, Open Economy adding to the probability of the banks we have today shifting toward more useful lifestyle fintech solutions for solving the day-today problems of people and businesses. Lastly, as part of my doctorate study, and as is my dream, to have a global Open Government. I am looking forward to seeing a cross-border open banking ecosystem.

Staying the Course

The Turkish government has pledged to curb inflation, restructure economic growth and establish long-term sustainability through increased foreign direct investment and the encouragement of strategically selected industries

Türkiye has been the fastestgrowing economy in the Organisation for Economic Co-operation and Development (OECD) over the past two decades, buoyed by expansionary fiscal and monetary policies that have boosted consumer spending to historic highs.

However, the OECD said in its OECD Economic Surveys: Türkiye 2025 report that the policies led to unsustainable developments, creating significant internal and external imbalances and a decline in the value of the Turkish lira.

Following the May 2023 elections, President Recep Tayyip Erdogan made an abrupt U-turn in economic policy and started the process of normalising macroeconomic policies to steer Türkiye’s economy back onto a sustainable trajectory.

“Macroeconomic fundamentals have really improved over the past

twelve months, despite the tightening of monetary policy and the resulting slowdown in growth due to positive real interest rates for households and businesses,” BNP Paribas said in its Economic Research report.

The Turkish authorities’ resolve is not misplaced; data backs it. The International Monetary Fund (IMF) said the policy turnaround has reduced economic imbalances and revived confidence, with real GDP growth projected at 3.9% in 2025.

Ratings agencies also approve. Over the past 12 months, Fitch Ratings has upgraded Türkiye’s sovereign debt – alongside several Turkish banks – twice, from B- to B+ in March and then to BB- in September.

Moody’s also lifted Türkiye’s credit rating from B1 to Ba3 and revised its outlook to stable. The rating agency cited central bank policy “that durably eases inflationary pressures, reduces economic

imbalances and gradually restores local depositor and foreign investor confidence in the Turkish lira.”

Meanwhile, Turkish banks face a higher cost of risk and slower net interest margin (NIM) recovery due to the central bank’s monetary tightening in response to financial market volatility.

Fitch Ratings maintains a ‘neutral’ outlook on Türkiye’s banking sector, projecting 2025 profitability to exceed strong 2024 levels, with asset-quality pressures expected to stay manageable within banks’ provisions, earnings and capital buffers.

However, “repeated market volatility or a change in Türkiye’s macroeconomic policy direction could still exacerbate risks,” the ratings agency said in a note in June.

For Türkiye to preserve and further its progress, the authorities must advance structural reforms to achieve more inclusive, greener and higher mediumterm growth. The IMF said that further energy and labour market reforms, including those aimed at boosting female participation, remain essential priorities.

Towards a competitive economy

Since mid-2023, Turkish policymakers have managed to restore some stability to the nation’s economy by implementing restrictive monetary and

fiscal policies, which have driven down inflation, albeit at the cost of a hit to the government’s popularity.

Vice President Cevdet Yılmaz unveiled the country’s updated mediumterm economic programme earlier in September, outlining the government’s economic roadmap for the next three years with a focus on reducing inflation, achieving balanced growth and delivering lasting social prosperity.

Türkiye’s new medium-term programme forecasts economic growth of 3.3% in 2025 and 3.8% in 2026, down from earlier projections of 4% and 4.5%, underscoring Ankara’s shift toward prioritising price stability over rapid expansion.

“The resilience of the economy to the monetary shock since 2023 is due to the support of fiscal policy, with a fiscal impact estimated by the IMF at +1.2 points of GDP in 2024, the rise in employment, sustained exports over the years and rising tourism revenues,” said BNP Paribas.

On the global front, the medium-term programme cautions that geopolitical tensions and policy uncertainty will continue to drive protectionist measures and supply chain disruptions. The interplay between these risks and monetary policy trends is expected to be a key determinant of investor sentiment, particularly in emerging markets.

“Within this context, one of the medium-term programme’s central goals is to chart a growth path that is both sustainable and aligned with the ongoing disinflation process,” ING strategists said earlier in September.

Vice President Yılmaz underscored that disinflation remains the Turkish government’s top policy priority and pledged continued coordination between monetary, fiscal and income policies to bring inflation down to single digits over time.

He also emphasised that the government aims to increase its revenue without further raising taxes to prevent fueling inflation.

Against this backdrop, Türkiye imposed an 8% special consumption tax on yachts, motorboats and other

MACROECONOMIC

FUNDAMENTALS

HAVE REALLY IMPROVED OVER THE PAST TWELVE MONTHS, DESPITE THE TIGHTENING OF MONETARY POLICY AND THE RESULTING SLOWDOWN IN GROWTH DUE TO POSITIVE REAL INTEREST RATES

FOR HOUSEHOLDS AND BUSINESSES

– BNP Paribas

pleasure craft in September, scrapping a zero-rate exemption previously applied to luxury vessels.

The measure is part of Ankara’s broader push to boost tax revenues, with Finance Minister Mehmet Simsek underscoring the need to strengthen fiscal income to help narrow the budget deficit.

“Tax and expenditure measures underpin efforts to restore fiscal prudence and the commitment to stronger incomes policies has strengthened credibility,” said the IMF.

Since President Recep Tayyip Erdogan endorsed an economic policy overhaul two years ago, his government has leaned on consumption levies and new business taxes. While some measures are billed as efforts to curb price growth, others have contributed to inflationary pressures.

Monetary policy

Türkiye has endured some of the highest inflation rates in the world in recent years. However, a recent policy shift has started to attract foreign investors who fled when the lira plummeted, as the currency’s value stabilises.

Fitch Ratings forecasted that inflation, which more than halved to 35% in the year to June, will fall further to 28% at the end of 2025 and 21% at the end of 2026, although this remains the highest among any sovereign that it rates.

Turkish inflation eased less than expected in August, underscoring resilient consumer demand despite the

central bank’s signals of further rate cuts. Annual inflation dropped to 33% from 33.5% in July, while monthly inflation came in at 2.04%, marginally lower than July’s 2.06%, according to data from the state statistics agency TurkStat.

Türkiye Cumhuriyet Merkez Bankası (TCMB) delivered a sizable interestrate cut in September, with the Turkish central bank sticking to a faster pace and defying market expectations of a more significant slowdown.

The Monetary Policy Committee slashed the one-week repo rate to 40.5% from 43% and removed an explicit reference to real lira appreciation from its policy statement. The central bank also lowered its overnight lending rate to 43.5% from 46% and its overnight borrowing rate to 39% from 41.5%.

“Inflation expectations remain significantly above the central bank’s medium-term target of 5%, and core inflation has stayed persistently high, driven by rising prices in services,” said the OECD.

Türkiye’s banking sector is maintaining a solid liquidity position, with both shortand long-term indicators running above regulatory thresholds and historical norms, according to the latest data from TCMB. A stronger tilt toward lira deposits, coupled with slower loan expansion, has driven down the loan-to-deposit ratio, bolstering liquidity buffers.

The share of non-performing loans has stayed below historical averages,

as an improvement in commercial loan quality offset a slight uptick in retail delinquencies amid tighter financial conditions. Meanwhile, lenders’ mediumand long-term external debt rollover ratios have climbed, with the overall figure holding above 110%.

“Profitability will be aided by the eventual NIM recovery, but also remains sensitive to higher loan impairment charges amid asset-quality deterioration and inflation-driven operating expense pressures,” Fitch Ratings said.

Meanwhile, GCC banks operating in Türkiye are expected to benefit from the country’s recent macroeconomic adjustments and its adoption of more traditional economic policies.

The cooling inflation is expected to mitigate net monetary losses for GCC banks’ Turkish units, while slower lira depreciation is projected to reduce the adverse capital impact from currency translation losses.

GCC banks have demonstrated a robust interest in expanding their operations in key regional markets, particularly Türkiye, driven by an improving economic landscape and promising greater growth opportunities.

“GCC banks’ appetite to expand in Türkiye has increased since the country’s macroeconomic policy shift following last year’s presidential election, which has reduced external financing pressures and macro and financial stability risks,” said Fitch.

Though persistent inflation continues to weigh heavily on lower- and middleincome households, macroeconomic

INFLATION EXPECTATIONS REMAIN

SIGNIFICANTLY ABOVE THE CENTRAL BANK’S MEDIUM-TERM TARGET OF 5%, AND CORE INFLATION HAS STAYED PERSISTENTLY HIGH, DRIVEN BY RISING PRICES IN SERVICES

stability has strengthened over the past two years, with the 12-month cumulative budget deficit holding nearly flat at TRY 2.3 trillion ($55.6 billion) as of July 2025.

An FDI magnet

Türkiye expects to attract between $13 billion and $14 billion in foreign direct investment (FDI) in 2025, Burak Daglioglu, president of the Presidential Investment Office, said in an interview with CNBC-e.

The government in Ankara unveiled plans to boost the appeal of several highvalue-added sectors in 2024, with the aim of nearly doubling its share of global FDI. Türkiye’s 2024/28 strategy outlines plans for the country to raise its global share of FDI to 1.5% by 2028, up from a 3-year moving average of 0.85% in 2023, according to Invest in Türkiye.

“We aim to position Türkiye as one of the world’s leading production and export hubs during a time marked by the reshaping of the global economic landscape and escalating uncertainties,” Dağlıoğlu said, commenting on the new strategy.

Türkiye has gained significant momentum in FDI inflows due to its rising economic performance from 2003 to 2022, as well as the high-level value propositions it offers to investors, resulting in a total of $262 billion in FDI.

The country’s strategic location at the crossroads of Europe, Asia and Africa has cemented its role as a regional economic hub, hosting more than 80,000 multinational firms. Global companies are expanding their footprint in Türkiye with production facilities, R&D centers, design operations, procurement offices, logistics bases and regional headquarters.

Türkiye has set an ambitious FDI goal through 2028, aiming to attract 120 climate-focused projects, 240 in digital industries, 360 projects tied to global value chains, 270 in high-end services, 360 projects geared toward high-quality job creation and 300 in knowledgeintensive sectors.

While the US, the UK, Germany and the Netherlands are among Türkiye’s major foreign investors, Turkish authorities are actively seeking to increase trade and investment ties with the oil-rich Gulf states, including Qatar, the UAE and Saudi Arabia.

Turkey has ramped up monetary and fiscal tightening over the years to rein in runaway inflation, with the rate projected to ease to 25%-29% by year-end. Fitch Ratings said tighter policy, planned spending cuts and wage moderation will help cool inflation and narrow currentaccount deficits, while shoring up foreigncurrency reserves.

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Building Momentum

Artificial intelligence is reshaping the fintech sector, revolutionising the way we bank, invest and borrow, yet still faces headwinds such as traditional money management remaining sticky with large parts of society and concerns around cybersecurity

From the debut of the first ATM in 1967 to today’s digital deposits and mobile apps such as Tabby and Wio Bank, innovative technologies have completely reshaped the way we handle money. It has revolutionised how we transfer funds, pay bills, access credit and invest in, turning what once required a trip to the bank into a few simple taps on a screen.

Though fintech firms emerged in the early 2010s, initially shaking up the payments landscape, their impact has since expanded across the entire financial ecosystem – disrupting everything from lending to insurance and even challenging long-established sectors like wealth management.

“Fintech has expanded access to banking products and services, and it has streamlined many mundane business

processes,” according to an IBM report.

The consultancy firm said the existing fintech solutions are delivered through software that utilises a combination of application programming interfaces, mobile applications and web-based services.

The GCC fintech market has grown exponentially, with the number of fintech companies rising to more than 1,000, according to McKinsey. Four unicorns have emerged, many more are in the pipeline and capital has continued to flow into the market, the consultancy firm said, with $1.9 billion invested in 237 deals during 2023/24.

The emergence of agentic AI and other disruptive technologies, coupled with the robust demand for innovative financial solutions, presents a fertile ground for the growth of the GCC fintech industry.

“Agentic AI, technology that can perform tasks and issues largely on its own, will be able to handle complex requests, shifting AI from reactive helper to proactive financial agent for wealth management, payments and investing,” said McKinsey.

AI is proving to be a game-changer in the banking sector. Given the transformative technology’s digitalfirst cost structure and ability to deliver substantial gains in coding, customer support and risk management, its impact in the fintech space is poised to be even more pronounced in the near term.

The industry has witnessed a surge in innovative applications powered by AI, such as embedded finance, open banking, buy-now-pay-later (BNPL) and robo-advisory, driven by AI’s ability to process massive datasets, identify patterns and predict future trends.

Meanwhile, trust in fintech is heavily reliant on solution providers’ ability to ward off cyberattacks and capably protect end users’ data. PwC said fintech breaches such as the Lykke cyberattack in June 2024 and the Revolut hack in July 2023 have rattled stakeholders’ confidence.

AI’s advanced capabilities make it a vital partner in safeguarding the financial services sector against cyber threats. The transformative technology’s

capability to enhance threat detection, automate incident responses and adapt to evolving risks presents a compelling case for its integration into cybersecurity frameworks across the fintech industry.

Embedded finance

From e-commerce platforms offering BNPL to payment service providers integrating lending into their value proposition, embedded finance has revolutionised how financial services are accessed and utilised.

Embedded finance is revolutionising the fintech world. It leverages innovative technologies such as AI, the cloud and machine learning to connect financial products such as payments, loans and deposits to non-financial platforms ranging from company websites to mobile apps.

The innovative approach makes it easier and cheaper for merchants and brands to offer financial services to their customers.

“AI is evolving into the linchpin of the embedded finance revolution, thanks to advancements in GenAI, large language models (LLMs) and deep learning,” Arthur D. Little said in a report, adding that GenAI can create personalised offerings, while LLMs can handle customer inquiries, manage data and predict market trends more accurately.

For decades, nonbanks have provided financial services through private-label credit cards at retail chains, supermarkets and airlines. However, McKinsey said what makes the next generation of embedded finance so powerful is the integration of

OVER THE LAST FEW YEARS, THE NUMBER OF FINTECH COMPANIES HAS RISEN TO MORE THAN 1,000. FOUR UNICORNS HAVE EMERGED, MANY MORE ARE IN THE PIPELINE AND CAPITAL HAS CONTINUED TO FLOW INTO THE MARKET, WITH $1.9 BILLION INVESTED IN 237 DEALS DURING 2023 AND 2024

– McKinsey

financial products into digital interfaces that users interact with daily.

“Retailers, software companies, online marketplaces, automotive equipment manufacturers and e-commerce platforms are steadily embedding financial products and services into their end-to-end customer journeys,” according to EY.

The seamless integration of financial services into customers’ daily lives has entered a new era. Analysts expect the embedded finance product portfolio in the GCC region to expand further as customer onboarding, product servicing and real-time risk analytics become increasingly digitised and sophisticated.

Following global trends, fintech firms in the Gulf region are expanding their offerings while prioritising sustainable value creation.

Many are shifting from traditional mobile wallets and payment solutions to a broader range of sophisticated financial products that cater to both individual consumers and businesses.

AGENTIC AI, TECHNOLOGY THAT CAN PERFORM TASKS AND ISSUES LARGELY ON ITS OWN, WILL BE ABLE TO HANDLE COMPLEX REQUESTS, SHIFTING AI FROM REACTIVE HELPER TO PROACTIVE FINANCIAL AGENT FOR WEALTH MANAGEMENT, PAYMENTS AND INVESTING

– McKinsey

Saudi BNPL provider Tamara, Bahraini microfinance platform Bede, UAE proptech firm Huspy and Saudi consumer insurtech platform Rasan are examples of GCC fintechs that have entered a new phase of value creation, prioritising sustainable, profitable growth.

The evolution of embedded finance is being fueled by changes in commerce, merchant and consumer behaviour and technology. For nonbank platforms, the innovative approach offers an opportunity to advance the customer experience and create new revenue streams without the overhead of traditional banking operations.

Spreading the pay

Today, consumers in the GCC region demand fast, seamless and personalised experiences similar to those offered by Netflix and global e-commerce giant Amazon. This expectation extends to banking, where users seek intuitive and integrated solutions for everyday transactions, and BNPL delivers on this demand by providing a streamlined and user-friendly experience.

The Gulf region’s already fast-growing BNPL industry experienced exponential growth at the height of the COVID19 pandemic, fueled by a tech-savvy population, a booming e-commerce sector and the allure of flexible payment options.

“The BNPL industry in the UAE and Saudi Arabia has exploded in popularity. Just two years ago, only one in 10 consumers used the payment service.

Today, the figure has doubled, with one in five consumers embracing this flexible payment option,” said consultancy firm Redseer Strategy Consultants.

The growth has spurred significant changes in fintech business models, with local players such as Tabby, Tamara, Cashew and Postpay driving this regional surge.

The competitive landscape is undergoing a shake-up, with companies such as Spotii closing down while Tabby and Tamara have secured significant funding rounds, raising $200 million and $340 million, respectively, at valuations of $1.5 billion and $1 billion in 2023, ahead of their anticipated listing on the Saudi Exchange.

“As consumers increasingly interact with platforms that seamlessly integrate financial services into their daily lives, these services become a familiar and accessible part of the digital experience,” Roland Berger said, while noting that regional platforms such as Careem and Noon have successfully integrated payment and lending services, including BNPL, into their customer journeys.

As technology advances and consumer preferences continue to evolve, BNPL fintechs are adapting to keep pace. While the idea of paying in instalments is not new, what is groundbreaking is how fintech firms are leveraging innovative technologies such as open APIs, the cloud and AI to deliver unprecedented

RETAILERS, SOFTWARE COMPANIES, ONLINE MARKETPLACES, AUTOMOTIVE EQUIPMENT MANUFACTURERS AND E-COMMERCE PLATFORMS ARE STEADILY EMBEDDING FINANCIAL PRODUCTS AND SERVICES INTO THEIR END-TO-END CUSTOMER JOURNEYS

levels of speed, scalability and seamless integration with consumer platforms.

Fortifying fintech

The future of fintech in MENA is promising, considering the recent performance of leading players.

McKinsey projects net revenue in the region’s fintech industry to grow at an annual rate of 35% through 2028, more than double the global average of 15%, as leading players post strong results and investor confidence builds.

However, fintech’s growth in MENA faces significant headwinds. PwC said as much as 83% of the region’s population continues to rely on traditional methods of money management, reflecting deeprooted ties to legacy banking systems.

Over the years, the most pressing issue in the fintech sector has been cybersecurity. However, the effective leveraging of AI in cybersecurity

THE BNPL INDUSTRY IN THE UAE AND SAUDI ARABIA HAS EXPLODED IN POPULARITY. JUST TWO YEARS AGO, ONLY ONE IN 10 CONSUMERS USED THE PAYMENT SERVICE. TODAY, THE FIGURE HAS DOUBLED, WITH ONE IN FIVE CONSUMERS EMBRACING THIS FLEXIBLE PAYMENT OPTION

– Redseer Strategy Consultants

necessitates a multifaceted approach that addresses potential vulnerabilities while maximising its defensive capabilities. Fintech firms are inherently exposed to risks due to the nature of their business, which involves handling financial assets, investments and the liabilities that come with them.

To address financial crime concerns, fintech firms must implement robust cybersecurity measures to protect AI systems from hacking, data breaches and unauthorised access.

AI offers a vast advantage in risk management as it can analyse large amounts of data to detect any unusual patterns and identify possible fraud while greatly increasing monitoring teams’ efficiency and effectiveness.

“The integration of AI into the cybersecurity framework of the financial services sector encapsulates the technology’s dual nature as both a potential risk factor and a critical defensive tool. By embracing an integrated approach that emphasises security by design, ethical development practices and collaborative innovation, fintech firms can harness AI’s full potential to fortify their cybersecurity defences,” said EY.

Henceforth, the robust funding for fintech firms in the GCC region will continue to drive innovation, while extensive digital penetration and a technologically savvy population will enable high rates of user uptake. Fintech services will continue to expand as competition and collaboration between incumbents and digital attackers intensifies.

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FROM PERSONALISATION TO PROTECTION:

Why Does Privacy Matter More Now Than Ever?

As digital banking becomes an essential part of daily life, customers are engaging with financial services in ways that were unthinkable a decade ago. Mobile apps, AI-powered insights and seamless payments have become the norm. Yet, as digital innovation accelerates, so do concerns about how personal data is collected, stored and used. Data privacy is no longer a back-office issue. It is a core pillar of trust in the digital banking relationship

The Digital Banking Revolution

From open banking and embedded finance to AI-driven personal finance tools, innovation is reshaping the way banks serve their customers. These technologies enable banks to offer more relevant and timely solutions, often anticipating customer needs before they are even expressed. Behind these advancements lies a common thread: data. The strategic use of data has allowed banks to tailor products and deliver hyperpersonalised services, transforming customer satisfaction and engagement. When managed responsibly, data can elevate the customer experience, helping banks deliver services that are

not only faster and more convenient but also more meaningful. Customers want digital services that feel intuitive and intelligent, but they also want to be in control. A growing number of users are asking more questions about data sharing and consent. They are reading privacy statements and adjusting their settings. This shows a shift in mindset. People are becoming more selective with whom they trust online. Banks need to respond by putting the customer in charge of their data experience.

Rising Concerns Over Data Privacy

As customers grow increasingly vigilant about their data management, concerns around consent, transparency and security are now front of mind. Global regulations such as the General Data Protection Regulation (GDPR) in Europe and the UAE’s Personal Data Protection Law (PDPL) have set clear expectations for data protection, and new regional frameworks are emerging to follow suit. In the UAE, for example, open banking policies are evolving with a sharp focus on safeguarding customer information. Financial institutions must keep pace, not just to comply, but to earn and retain the trust of those they serve, as customers increasingly prioritise service providers that clearly demonstrate a proactive approach to protecting their personal information. Research shows that people are more likely to do business with brands that are clear about their privacy practices

Olivier Busolini, Head of Information Security Group at Mashreq

85% of people e xpect strong data security practices from the brands they use, and 67% say they would consider switching to a competitor if they felt their data was not being handled properly.

This creates both a challenge and an opportunity for banks. Those who make data protection a visible part of the customer experience will earn their trust and loyalty. Those who do not may find it harder to build lasting relationships.

Striking a Balance: Innovation vs. Privacy

Innovation and privacy are not opposing forces; they are complementary pillars of modern banking. Banks can and must excel at both. This begins with clear, customer-friendly data policies and robust security measures. It also means adopting a ‘zero trust’ mindset, where verification is constant and systems are designed to detect and contain threats quickly. These rigorous security frameworks give customers confidence that their information remains protected, even as banking becomes increasingly interconnected and data driven.

Ethical use of AI is especially important. While AI can transform how banks detect fraud, assess creditworthiness or personalise offerings, this transformative power demands an equal measure of responsibility. Financial institutions need to ensure that AI models are transparent, fair and explainable, with rigorous oversight governing how data feeds into decision-making. Building transparent AI processes does more than protect privacy; it helps cultivate lasting customer trust and loyalty.

In plain terms, financial institutions need to explain their use of AI. When customers understand how their data supports the daily banking operations, they are more likely to feel confident about the outcomes. Banks should also give customers a way to contest automated decisions or speak to a human when needed. This shows a commitment to fairness and strengthens the relationship between banks and customers.

Strategies for Balancing Innovation and Privacy

To navigate this landscape, financial institutions must embrace a customerfirst approach. That means designing digital journeys where privacy is a given, not an afterthought. This also calls for stronger collaboration across the industry. Banks, regulators, fintechs and technology providers must have shared privacy standards that reflect today’s realities and tomorrow’s possibilities. Through cross-stakeholder and crosssector partnerships, the banking industry can develop innovative solutions that safeguard data protection without hampering technological progress.

and how leaders measure success. Everyone in the organisation has a role to play in protecting data, from software developers to marketing professionals to customer service teams. A strong privacy culture creates fewer gaps, fewer risks and more trust.

Building Trust as the Cornerstone of the Digital Future

The future of digital banking hinges on trust. As we embrace new technologies and reimagine the customer experience, we must do so with a clear commitment to privacy and data integrity. Trust is not built overnight. It is shaped by consistency, clarity and respect. When a bank puts

WHILE AI CAN TRANSFORM HOW BANKS DETECT FRAUD, ASSESS CREDITWORTHINESS OR PERSONALISE OFFERINGS, THIS TRANSFORMATIVE POWER DEMANDS AN EQUAL

MEASURE OF RESPONSIBILITY

At Mashreq, we recognise that responsible innovation requires both vision and discipline. Our centralised data governance model ensures consistency across markets, while empowering our regional teams to adapt their approaches to local needs and regulations. We are also investing in technologies that help reduce risk while still allowing us to learn and grow. These include methods that analyse data without exposing personal information, and tools that give customers more visibility into how their data is used. This commitment to balancing global standards with local flexibility enables us to deliver secure, innovative services that truly resonate with our diverse customer base.

Beyond technology, privacy must become part of the workplace’s values. It should influence how teams are trained, how products are developed

its customers first, in both words and actions, it builds stronger relationships over time. That trust then becomes the foundation for every new product, every digital interaction and every strategic move. By building secure, transparent systems and working together as an industry, we can unlock the full potential of digital banking without compromising the confidence of those who rely on us.

Looking ahead, banks that treat privacy not as a constraint but as a strategic asset will be better equipped to lead. In an environment where customer expectations continue to evolve, trust will serve as the currency of long-term growth. This requires a mindset that sees privacy not as a checklist, but as a value. In this new era of digital finance, privacydriven innovation will distinguish the leaders, forging enduring customer relationships anchored in trust and transparency.

SME OPPORTUNITY:

Why Banks Must Act Decisively Now UNLOCKING THE

SMEs play an essential role in economies, but have often been under appreciated by traditional banks, and now others are moving quickly to fill service gaps, says Sriranga

Sampathkumar

Global Head of Sales – Infosys Finacle

Opportunities do not come with their values stamped on them. Yet, in the case of small and medium enterprises (SMEs), the value is not only evident – it is enormous, quantifiable and increasingly urgent. SMEs are not just a segment within an economy; they are the economic engine. In the Middle East and Africa, SMEs account for 94% of companies and 86% of private-sector employment in the UAE 1 , according to ACCA. And globally, they represent over 90% of businesses and more than half of employment2

Despite this centrality, most banks have historically lumped SMEs under either retail or corporate business units, treating them as an operational afterthought rather than a strategic growth driver. What this approach overlooks is the fundamentally distinct nature of SME banking, its business dynamics, risk contours and customer expectations warrant tailored offerings, specialised teams, bespoke digital journeys, advanced business models

and differentiated strategic intent.

SMEs Are Not Retail. Nor Are They Corporate.

SMEs operate in a hybrid zone requiring the agility and simplicity of retail offerings with the scalability and complexity of corporate solutions. Their banking needs

are extensive and nuanced:

• Managing cash flow across tight working capital cycles

• Accessing flexible, fast and digital credit

• Facilitating cross-border trade and FX

• Accepting and reconciling digital payments

• Ensuring compliance with tax and regulatory norms

• Connecting with digital platforms for visibility and growth

The EY Global SME Survey highlights this duality: while 63% of SMEs still prefer traditional banks, a growing 56% now use fintechs for payments or banking services3. The message is clear; banks continue to hold trust but are rapidly losing relevance in key engagement areas.

This erosion is amplified by persistent gaps. Many banks offer diluted versions of corporate products to SMEs, resulting in friction in access, usage and satisfaction. Onboarding remains manual and timeconsuming. Credit approvals are opaque and inflexible. Advisory services are limited. And digital journeys are often fragmented or underdeveloped.

Others Are Moving Fast and Winning

As banks lag, non-traditional players are capturing the SME opportunity with laser focus and platform-scale ambition. Platforms like Shopify, Square, Toast and SumUp are now responsible for processing nearly 30% of global consumer purchases, with even deeper penetration in SME segments (McKinsey, 2024)4. These platforms embed financial

Sriranga Sampathkumar, Global Head of Sales – Infosys Finacle

services directly into the SME’s core operating workflows removing friction and making banking invisible.

Meanwhile, fintechs and digital challengers are targeting specific pain points with precision. The opportunity here is significant.

Lending, in particular, is undergoing disruption. Fintechs, BigTechs and specialist SME lenders are rapidly gaining market share by offering real-time credit scoring and digital disbursements. These challengers acquire SME customers through seamless credit experiences and then expand into adjacent services gradually taking over the entire financial relationship.

The scale of this shift is vast. The AdyenBCG Embedded Finance Report 2024 estimates that the total addressable market for embedded finance in SMBs is $185 billion, yet only 20% of that has been realised5

51% of the Dubai SMEs are exporting to other countries (as compared to 44% in EU-47 and 18% in New Zealand) 6 . A McKinsey study in the UK found that 23% of SMEs now use fintechs for crossborder payments, compared to only 13% using banks—illustrating a clear gap in traditional offerings7

The longer banks delay, the larger the share captured by others.

Why Banks Can and Must Lead Now

The critical question is not whether banks understand the importance of the SME segment—they do. The real issue has been viability. Historically, serving SMEs has been perceived as expensive and risky characterised by high acquisition costs, thin margins and operational complexity.

But that calculus has changed. Today, banks are better positioned than ever

Sources:

before to serve SMEs profitably, at scale and with differentiation—thanks to a confluence of enablers:

1. Digital-Only Models

Zand Bank empowers UAE SMEs by seamlessly bridging TradFi and DeFi, redefining wallet and custody offerings. The bank achieved record-fast core migration (< 100 days), first UAE bank for regulated digital-investing, and 22-month break even with 2.4× revenue growth.

4. Cloud and AI-Enabled Intelligence

Banks now have access to low-cost, high-performance infrastructure. AI-driven credit scoring, predictive cash flow analytics and contextual product recommendations allow banks to offer tailored experiences even to long-tail SME customers.

5.

Collaborative Models

Karnataka Bank in India exemplifies a co-lending strategy for SME inclusion. Through a partnership with Paisalo under an 80:20 co-lending model, the bank is delivering credit to microentrepreneurs and SHGs that traditional underwriting would typically exclude.

6.

Self-Service with Human Touch

THE SME SEGMENT

IS NOT A BOX TO BE CHECKED IT IS A BUSINESS MODEL TO BE LED

2. Marketplace Integration

UnionBank of the Philippines has launched a full-fledged SME marketplace, offering not just credit and payments, but also access to business services, suppliers and distribution partners making it an indispensable growth partner to SMEs.

3. Embedded Banking

Amazon GS Credit Line offers SMEs embedded credit based on sales performance—servicing working capital needs in-context and in real time. Banks that can integrate into such ecosystems can expand their reach exponentially.

1. https://abmagazine.accaglobal.com/content/abmagazine/global/articles/2025/jul/practice/uae-welcomes-smes.htm

2. https://www.worldbank.org/en/topic/smefinance

3. https://www.ey.com/en_lu/insights/financial-services/emeia/why-digital-lending-is-the-future-for-banks-and-smes

4. https://www.mckinsey.com/industries/financial-services/our-insights/global-payments-in-2024-simplerinterfaces-complex-reality

5. https://www.adyen.com/index-reports/embedded-finance-report-2024

6. https://sme.ae/SME_File/Files/STATE_of_SMEs_in_Dubai_Presentation.pdf

RAKBANK in the UAE has reimagined SME onboarding through a unified engagement hub—50% of SME customers opt for digital account opening, and over half of transactions are conducted through self-service. These are not isolated pilots. These are bank-led, scalable and profitable models. The path is clear. What remains is the strategic will to prioritise and invest.

The Window of Opportunity is Narrowing

SMEs are digitalising rapidly. They are seeking integrated, intelligent and intuitive experiences. And they are finding them from platforms that do not carry banking licenses.

Banks that do not adapt risk relegation to backend utilities are mere infrastructure providers to someone else’s customer experience. Opportunities do not come with their values stamped on them. But this one does, and it is rapidly being claimed. The SME segment is not a box to be checked it is a business model to be led. With the right orchestration of platforms, partnerships and technology, banks can do more than serve SMEs. They can become their growth partners. The question is not whether the SME segment is valuable. It is whether banks are willing to seize the moment before it is gone.

Wealth of Knowledge

The UAE continues to attract world leading levels of multi-sector foreign direct investment, but is putting emphasis toward AI and knowledgebased business while creating an incentivised environment for the inward migration of wealth

In 2024 alone, the UAE’s FDI inflows reached AED 167.6 billion (USD 45.6 billion), accounting for 37% of all FDI inflows in the region.

A separate report by Dubai FDI Monitor showed these five countries brought the highest FDI capital inflows into Dubai: the United States, the United Kingdom, France, India and Saudi Arabia.

Steering the nation’s focus towards AI and tech

UAE FDI continues to soar, on track to meet USD 65 billion target by 2031

With an estimated AED 40.4 billion (USD 11 billion) in foreign direct investment (FDI) capital and 643 greenfield Foreign Direct Investment (FDI) projects in the first half of 2025, Dubai has maintained its lead on the global greenfield FDI ranking, further reinforcing its position as the world’s premier investment hub.

According to a real-time database monitoring worldwide greenfield projects, Dubai’s FDI capital increased by 62% from AED 24.7 billion (USD 6.8 billion) in the same period in 2024—a feat that aligns with the UAE’s National Investment Strategy unveiled by H. H. Sheikh Mohammed bin Rashid Al Maktoum in March this year.

Focusing on key sectors such as industrial, logistics, financial services and information technology, the six-year strategy aims to boost annual FDI inflows to AED 240 billion (USD 65.3 billion) by 2031 and achieve a total FDI stock of AED 2.2 trillion (USD 599 billion) in the near future.

While the leading sectors based on FDI capital were business services, hospitality, transportation and warehousing, consumer products and real estate, the UAE is amplifying investment towards AI and tech-related projects.

Under its “Projects of the 50 Initiatives,” the UAE has allocated an USD 8.7 billion investment to foster innovation and accelerate SME growth in the country.

In line with this vision, Abu Dhabi’s Technology Innovation Institute (TII) and US technology giant NVIDIA recently inaugurated the region’s first joint research lab dedicated to artificial intelligence and robotics, which supports the UAE’s goal of raising AI’s non-oil GDP contribution to 20% and expanding its market size to over AED 170 billion (USD 46.2 billion) in the next five years.

Another groundbreaking project the UAE plans to launch is the Stargate UAE AI campus, a next-generation AI infrastructure cluster that will occupy 10 square miles of land in Abu Dhabi and will have a 5-gigawatt capacity.

George Hojeige, Group CEO, Virtugroup

The milestone project, set to be launched in 2026, will be managed by a consortium of US tech leaders, including OpenAI, Oracle, NVIDIA, which will provide advanced chips, and CISCO Systems, which will design and build the connectivity infrastructure.

Abu Dhabi-based M2 Capital has also invested USD 20 million in Ethena’s governance token, ENA, with an aim to link regional investors with new digital assets available internationally, while reinforcing the country’s position as a digital asset hub.

Furthermore, according to the Dubai State of AI report, widespread AI adoption can cumulatively contribute nearly USD 64 billion to the nation’s economy.

In fact, the emirate intends to raise the robotics sector’s GDP contribution to 9% and have 200,000 robots by 2032 to enhance efficiency and productivity in various economic sectors.

UAE to welcome USD 63 billion in wealth migration

Industry experts foresee the UAE will welcome 9,800 new millionaires this year, equating to USD 63 billion in

THE UAE HAS BEEN AT THE FOREFRONT OF ECONOMIC AND INVESTMENT ACTIVITIES IN THE REGION, PLAYING A PIVOTAL ROLE IN ESTABLISHING THE MIDDLE EAST AS A STABLE, LUCRATIVE AND OPEN MARKET WITH IMMENSE POTENTIAL TO RIVAL TRADITIONAL WESTERN MARKETS.

Another significant factor drawing HNWIs to the UAE is its Golden Visa program, which provides 10-year residency to investors, entrepreneurs and professionals who meet certain criteria.

According to the latest data published by Dubai’s General Directorate of Residency and Foreigners Affairs, the agency has issued over 158,000 golden visas as of 2023, with market analysts expecting this number to climb to more than 300,000 by this year.

Aside from the rising number of golden visas issued, real estate investments in the UAE also skyrocketed, with Dubai

BASED ON NUMBERS FROM RECENT

MINISTRY OF INVESTMENT

wealth migration, with the country’s zero-tax framework on income, capital gains and inheritance being the primary driving force.

Based on numbers from recent years, the UAE Ministry of Investment expects the country’s number of high-net-worth individuals (HNWI) to increase by 39% in 2026.

recording AED 431 billion (USD 117 billion) worth of transactions in H1 2025, over 50% of which were made by foreign investors.

Abu Dhabi also saw its property transactions surge to AED 51.7 billion (USD 16.6 billion), representing a 39% growth from the same period in 2024, and with strong interest from investors from Russia, China, the UK, France, Kazakhstan and the US.

Sustaining the UAE’s global lead with forward-looking policies

The UAE has been at the forefront of economic and investment activities in the region, playing a pivotal role in establishing the Middle East as a stable, lucrative and open market with immense potential to rival traditional Western markets.

Buoyed by business-friendly policies— including favorable tax incentives, robust intellectual property protection, and streamlined processes—the UAE’s startup ecosystem continues to thrive, as evidenced by USD 1.1 billion raised across 207 startups in 2024, the highest in the Middle East and North Africa (MENA) region.

Additionally, the UAE took the number one spot on the Global Entrepreneurship Monitor’s report for 2024-2025, outranking many advanced economies and gaining recognition as the world’s best destination for SMEs.

According to an annual survey done by Kearney, a Chicago-based management consulting firm, the UAE led the Gulf Cooperation Council (GCC) countries in terms of global investor interest, while placing second among emerging markets and ninth globally.

Looking at these achievements, the UAE is poised to reach its key targets of raising its foreign trade value to AED 4 trillion (USD 1.08 trillion) and generating AED 800 billion (USD 217.8 billion) in non-oil exports by 2031, as outlined in its “We the UAE 2031” vision.

All For Growth

Financial inclusion is now appreciated for the contribution it makes to economic growth and expanding the reach of financial services, whether to low-income earners or SMEs, and helping individuals achieve financial health will have many wider societal benefits

Financial inclusion is a pivotal driver of socioeconomic growth, enabling citizens, residents and businesses to participate in the economy fully.

For the GCC, a region that is experiencing exponential growth driven by ambitious National Visions like Saudi Arabia’s Vision 2030 and “We the UAE 2031”, enhancing financial inclusion is not merely important – it is essential.

The World Economic Forum said financial inclusion empowers marginalised communities by integrating them into the formal financial system, allowing them to achieve stability and effectively withstand economic shocks. With the exception of the six highincome markets of the Gulf region, the Middle East continues to grapple with

gaps in financial inclusion, lagging behind the rest of the world in terms of increasing access to basic financial services.

EY said financial inclusion echoes the aspirations of millions striving to engage with a financial system from which they have historically been excluded. Consumers continue to struggle to access formal credit, while small and medium-sized enterprises (SMEs) remain largely underserved by traditional financial institutions.

The nexus between financial digitalisation and enhancing inclusion is clear. Over the past decade, countries in the Middle East have witnessed remarkable progress as the digital transformation of financial services has reshaped financial inclusion, allowing more people to access, manage and benefit from digital financial tools.

Digital transformation in the financial service sector is rapidly changing the way we bank by boosting access to a wide range of financial services and products, thereby supporting financial inclusion.

“Technology drives inclusion in financial services. It facilitates widespread education, accessibility and affordability that were previously reserved for a wealthy few, opening doors and breaking down barriers worldwide,” according to the World Economic Forum.

Central Bank Digital Currencies (CBDCs) could be a game-changer for financial inclusion. Digital currencies are offering new ways to empower the unbanked by providing them with buying power, introducing them to the financial system and fostering a more diverse and competitive global marketplace.

The United Nations Development Programme said CBDCs, if properly designed and managed, may have the potential to enhance financial inclusion by addressing access and price barriers.

Furthermore, open banking has the potential to foster financial inclusion by making financial services more accessible to the unbanked and underbanked population. To this end, the UAE, just like other GCC states, has already taken positive and effective steps towards financial inclusion, including the Wage Protection System.

“Open banking may offer many advantages for people with low incomes. If properly structured and with the right market conditions, the exchange of data that results from open banking can support financial resilience and financial inclusion in several ways,” according to the World Bank.

Financial inclusion is flourishing in regions that are pioneering techenabled financial systems. The GCC has made substantial progress in this area, paving the way for enhanced economic growth and empowerment of underserved communities.

The future of money

Though CBDCs are not a magic bullet, central banks across the GCC see them as a potential catalyst for advancing financial inclusion – provided that inclusion is built into their design from the outset.

The CBDC landscape is expanding rapidly, with 137 countries representing 98% of the global GDP exploring their versions compared to 35 in May 2020, according to the US-based Atlantic Council think-tank.

“CBDC has unique aspects that may benefit financial inclusion, such as being a risk-free and widely acceptable form of digital money, availability for offline payments and potentially lower costs and greater accessibility,” said the IMF.

Nearly half of these countries are in the advanced stages of development and pioneers such as China, the Bahamas and Nigeria are seeing increasing adoption.

“CBDCs can play a key role in providing access to digital payments without the requirement of a bank account,” McKinsey said, while noting that the Nigerian and Jamaican models offer a template for how this could be accomplished.

CBDCs could significantly enhance the efficiency of cross-border payments, a priority for oil exporters and the GCC countries. The mBridge CBDC network, which is expanding rapidly, currently connects China, Thailand, the UAE, Hong Kong and Saudi Arabia, with more countries expected to join in 2024.

CBDC HAS UNIQUE ASPECTS THAT MAY BENEFIT FINANCIAL INCLUSION, SUCH AS BEING A RISK-FREE AND WIDELY ACCEPTABLE FORM OF DIGITAL MONEY, AVAILABILITY FOR OFFLINE PAYMENTS AND POTENTIALLY LOWER COSTS AND GREATER ACCESSIBILITY

By encouraging competition in the payments market and enabling more direct transactions, CBDCs can help reduce the cost of financial services and make them more accessible, thereby advancing financial inclusion.

CBDCs offer a promising avenue for enhancing financial inclusion. By addressing the challenges and leveraging the opportunities, policymakers and central banks can work towards creating a more equitable and inclusive financial system.

The Atlantic Council said cross-border wholesale CBDC projects have more than doubled since the outbreak of the war in Ukraine to reach 13 as of October 2025.

The increase underscores a growing global push to explore alternatives to existing, often slow and costly, crossborder payment systems.

Financial inclusion is a journey, and access to digital payments is the first step, Visa said, adding, “When we empower a person to pay and be paid digitally, we create a pathway to full participation in the formal financial sector.”

Towards inclusive growth

The Gulf region stands out as a beacon of financial inclusion in the Middle East. GCC central banks and financial regulators have been actively promoting digital financial services to boost financial inclusion, digitise the informal sector and increase tax revenues.

“From enhancing a more inclusive digital economy to creating fair and responsible credit decisions, there’s no

doubt that open banking drives financial inclusion,” according to Mastercard.

From licenced financial institutions to fintech companies, open banking is revolutionising the financial services landscape by facilitating seamless partnerships via application programming interfaces (APIs). The innovative approach enables the creation of more efficient, personalised and accessible financial products and services for consumers.

“With increasing evidence of the societal benefits of open banking, central banks and monetary authorities in the Middle East highlight financial inclusion as a top priority as they reshape their financial regulations,” Yasmeen Al-Sharaf, Director of Fintech and Innovation at Central Bank of Bahrain, said in a blog post.

Open banking holds the potential to revolutionise the financial landscape by fostering data sharing, enhancing transparency and enabling seamless fund transfers. It promotes a more interconnected financial ecosystem where various players can collaborate effectively.

The GCC is a microcosm of the global open banking trend. With varying levels of implementation and regulation, the region presents a dynamic landscape for financial services firms to innovate and capitalise on new opportunities.

Bahrain pioneered open banking in the Gulf region, introducing regulations in 2018.

Saudi Arabia, initially market-driven, adopted a more structured open banking approach in 2021 and launched a full

FINANCIAL INCLUSION

framework in 2022. The Saudi Central Bank, also known as SAMA, unveiled an ‘Open Banking Lab’ in December 2022 to speed up the development of open banking in Saudi Arabia.

The ‘Lab’ constitutes a ‘technical testing environment’ to enable established banks and fintech companies the opportunity to ‘develop, test and certify’ open banking services to ensure compatibility with the framework.

Qatar, while still in its early stages, is actively working towards a robust open banking ecosystem. The central bank’s Fintech Sector Strategy Summary, launched in 2023, seeks to develop a robust framework facilitating digital transformation.

“No longer an optional extension of open banking, different countries’ prioritisation of financial inclusion reflects relative levels of importance and the recency of formal proclamations on the topic,” said Mastercard.

Open banking is challenging the traditional notion that financial inclusion is solely a philanthropic endeavour. By leveraging APIs, it offers banks and fintech companies a lucrative opportunity to create sustainable business models that expand access to financial services globally.

The innovative approach empowers financial institutions to unlock the potential of customer data through Banking as a Service (BaaS) and Banking as a Platform (BaaP). Together, BaaS and BaaP drive financial inclusion by expanding access to financial services and fostering competition in the market.

Paths to inclusion

Financial inclusion is commonly discussed as providing people with access to financial accounts and services. However, industry experts argue that this perspective overlooks the true transformative power of financial inclusion: helping individuals achieve financial health.

There is no denying that GCC countries have made significant progress in financial inclusion over the last couple of decades, driven by a confluence of factors,

including a burgeoning fintech ecosystem, supportive regulatory frameworks and strategic government initiatives.

“The GCC is embracing a new era of economic diversification and, by expanding finance to previously excluded groups, financial inclusion is enabling every community to be at the heart of the process,” according to the World Economic Forum.

Financial inclusion is essential for fostering inclusive economic growth and ensuring that financial services are accessible to all segments of society, thereby solidifying the financial system.

Saudi Arabia’s financial system is a cornerstone of the Financial Sector Development Program under Vision 2030. SAMA is actively working to enhance financial literacy, expand access to financial services and bring the unbanked population into the formal financial sector.

Financial inclusion is one of the Central Bank of the UAE’s (CBUAE) key areas of focus under the National Financial Inclusion Strategy.

“The UAE’s commitment to financial inclusion is evident by its efforts to provide individuals and businesses with access to beneficial financial products and services, in line with its vision for a cashless society,” Younis Haji Al Khoori, Undersecretary of the UAE Ministry of Finance, said in a blog post.

The UAE’s Wage Protection System (WPS), established in 2019 by the CBUAE and the Ministry of Human Resources and Emiratisation, enables payments of salaries to low-income professionals, such as housemaids, nannies, cooks and family drivers, electronically through bank transfers, exchange houses and authorised financial institutions.

The GCC has achieved significant progress in microfinance. With its low barriers to entry and accessible nature, microfinance has been a crucial component of their financial inclusion strategies.

The World Economic Forum said microfinance opens the door to fullfledged banking services for individuals and small businesses who may not have access to traditional banks.

Government policies are fostering an enabling environment for the growth and effectiveness of microfinance initiatives. From Bede in Bahrain to Tamam in Saudi Arabia to Bedayti in Kuwait, microfinance institutions are making consumer and business loans accessible to underserved communities, thereby promoting financial inclusion.

Meanwhile, SMEs form a significant part of the GCC economies, but historically, the sector has faced challenges in accessing financial services. Programs and financial products designed to support SME growth are critical to financial inclusion.

The Abu Dhabi Global Market unveiled Numou in November 2024, a cutting-edge digital platform tailored to bridge the funding gap faced by SMEs. The initiative connects SMEs and lenders through its seamless digital platform, featuring tools designed to financially empower and support the growth of the SME ecosystem across the UAE.

Monsha’at, the Small and Medium Enterprises General Authority of Saudi Arabia, has played a crucial role in supporting the kingdom’s SME sector through its Kafalah loan guarantee program. By the end of 2023, Kafalah had issued guarantees totalling over SAR 12.1 billion, enabling 5,476 SMEs to secure financing in excess of SAR 15.6 billion.

Similarly, Bahrain Development Bank unveiled its digital arm, ‘tijara’, in January 2023 to empower the country’s SME and startup ecosystem through a simplified digital banking offering and easier access to financing solutions to fuel their growth.

Financial inclusion is pivotal, serving not only as a basis for economic growth but also contributing to the reduction of poverty and inequality. Its importance is underscored by the fact that it has been identified as a vital enabler for seven of the 17 UN Sustainable Development Goals. Banks, fintechs and other financial institutions should capitalise on tech advancements to harness the innovations to deliver both social impact and sustainable business value.

AI - Improving Credit

As part of our Leadership Series interviews, Joaquín de Valenzuela Managing Director EMEA at nCino, made time to talk with MEA Finance about their background, their interest in our region and role in helping financial institutions hone a competitive edge through the utilisation of AI and data

Please tell us about nCino and the range of financial institutions and businesses your work with. We are powering a new era of financial services. We created an intelligent banking world that fuels dreams, builds communities and drives prosperity. We are helping more than 1,800 banks all around the globe to help individuals, businesses and entrepreneurs, and we feel very proud of that.

So, all these financial institutions are using our intelligent banking cloud platform to manage their clientele lifecycle management from onboarding, loan origination, credit monitoring portfolio and regulatory compliance, and we do that across all different segments, so retail, SME, commercial banking and corporate banking.

Where does nCino stand in the region, and globally in the provision of cloud banking?

We have a tremendous competitive advantage because we were born in the cloud. That is pretty unique thinking in a banking software company. So, we started operations in Europe, Middle East and Africa in 2017 and we have been present in the Middle East since 2023. So, we have our first customer live, so that is amazing, and we are expanding our footprint not just in UAE but also in other countries in the region.

Basically, we see that there is a tremendous opportunity to help financial institutions to transform their lending processes and to re-imagine the way how they engage with their customers using our platform. So, we have made

Joaquín de Valenzuela, Managing Director EMEA, nCino

significant investments, not just in resources and headcount but we are also on the way to open a legal entity in the region. That shows our commitment in the UAE but also with Middle East.

How does nCino help financial institutions utilise data and AI to remain competitive?

This idea of being born in the cloud has helped us to adapt AI very, very quickly. So, we started working with AI solutions years ago and we have been helping banks to solve very specific business challenges using AI tools. So, we are speaking about auto-spreading, locate and file, credit memo. So, we have done that across many different financial institutions.

We are now moving forward, transforming a company and embedding AI across all of our platform, so that means that we are also adapting or releasing agentic AI solutions. So that is going to be very relevant for our customers because they will be able to manage let’s say, the workflows through conversations. So, it’s about moving from a world where we were clicking on a screen to a world where we are having a conversation related to lending processes to underwriting, to origination, to credit monitoring, just having a conversation with an agent.

We think that this is going to be very relevant for the banks. We have also seen so far that we are able to save up to 10 hours per banker per week because of the gains they produced, or we give them in terms of productivity and efficiency, and that is massively

I THINK THAT WE ARE IN THAT SECOND PHASE IN THE ADOPTION OF AI, AND WE EXPECT EVEN BIGGER GAINS IN TERMS OF EFFICIENCY

helpful in terms of cost optimisation, but also thinking in how to grow the loan book without adding more and more expenses resources in the financial institutions.

What does nCino see as unique and interesting about our regional banking and financial services ecosystem?

I think the banking system if you are in Middle East is pretty unique. The appetite to grow the business, the appetite to grow the loan books, the appetite also to be much more efficient, and even more innovate, it’s pretty unique in the industry. I am based in Europe and the banks there are pretty conservative I would say in general terms. So also, the business is not growing as in the Middle East.

And honestly, it’s a unique opportunity. It’s a unique opportunity for us in helping all those financial institutions that are adopting very quickly a cloud and also AI, but it’s also a unique opportunity for the banks to make a difference in a very, very competitive world because, I see that Middle East is progressing, is growing quickly, but this is also becoming a very competitive market.

CLOUD BANKING HAS BECOME A REALITY ACROSS ALMOST EVERY GEOGRAPHY. THIS HAS HAPPENED BECAUSE OF THE ECONOMIES OF SCALE THAT IT PROVIDES TO THE FINANCIAL INSTITUTIONS

What can eCino bring to the MEA region’s banking and financial services?

I think it’s about efficiency. We are really helping the banks all around the globe to be much more efficient. What we see are gains between 30 and 50% in our installed base, so quite a dramatic change in terms of how efficient they are in the processes, the level of automation, the level of straight-through processing. So, I could say that that is very important.

But it’s not just that, it’s also about agility, so they are much more flexible to react to the new market needs, to adapt their products to create new products. So that is important from a business point of view.

And it’s about being cost-efficient also. It’s about being able to grow that loan book. And I understand that that is an aspiration that every bank in the Middle East has without adding more and more expensive resources.

And I could say that finally, and even more important that all of this is the access to innovation. We provide a very innovative platform, so we have hundreds of engineers that are very focused on creating innovation in the lending business, for the lending business, and we produce 12 releases a year. So, it means that they have access to new capabilities, to new features every month. And this is really relevant in such a competitive banking market.

Explain current trends in cloud banking and why banks need to be on the cloud?

Cloud banking has become a reality across almost every geography.

This has happened because of the economies of scale that it provides to the financial institutions. We are also speaking about the agility, the flexibility in terms of deploying new services.

But I could say that the most important feature or benefit that they are getting when using cloud is related to innovation. So, the level of innovation that is provided using cloud, using software as a service, is unparalleled. It’s really incredible. And that is very important for a financial institution because access into that innovation keeps them being competitive in very challenging markets.

I think that this is not a one-off journey. It’s a process. So, banks need to transform their culture, their operating models to really make good use of the cloud. And I think that the regulators play a very relevant role in this journey because it’s not just about accessing the technology, it’s also about establishing the guardrails in the financial sector related to data, related to the resilience of the system that helps the banking industry make good use of that technology.

What impact is AI having, and will continue to have on the lending business?

AI is not new. Banks have been using artificial intelligence for the last decade at least. I remember the first project I made with a very large financial institution, a systemic bank, in Western Europe ten years ago.

But what is different this time is genAI, the democratisation of the access to the data, and the computing power that the banks have now. So that is very, very different.

We have seen that AI is producing significant benefits for the banks in the lending processes. We have seen gains of 30 to 50% in terms of efficiency. We have financial institutions who have shared with us KPIs, the improvements in the KPIs that are super significant and show that there are bankers that are basically saving 10 hours a week using our AI solution.

So, for specific use cases, so we are speaking about financial auto-spreading, we are speaking about locate and file, we are speaking about a tactical use of our artificial intelligence. But I think that that is the beginning of the journey.

So, I think we, for example, are releasing the first agentic AI solutions that are really going to transform the level of automation in the workflow processes, in the lending processes. Meaning that you are going to have conversations with the agents to go through their lending processes and all the different areas not just when you captured a data but also when you start

the way how they engage with their customers, but also to be much more efficient in terms of cost-to-income ratios.

How does the automation of the credit process benefits banks?

I think that the automation is a must now. So obviously, when you’re thinking SME, the SME segment, so you are always thinking about a high-level of automation because you are managing a massive amount of loans, and you need to provide an answer to the small business in a very short period of time.

But you also need automation when you are thinking in CIB (corporate &

AI IS NOT NEW. BANKS HAVE BEEN USING ARTIFICIAL INTELLIGENCE FOR THE LAST DECADE AT LEAST. I REMEMBER THE FIRST PROJECT I MADE WITH A VERY LARGE FINANCIAL INSTITUTION, A SYSTEMIC BANK, IN WESTERN EUROPE TEN YEARS AGO.

origination, you make the underwriting, you monitor your portfolio, all of that.

I think that we are in that second phase in the adoption of AI, and we expect even bigger gains in terms of efficiency. But we think that the future is really coming soon. We think that what we will see loan or lending autonomous systems. We will see that the individuals, the businesses will make banking using agents. That’s the future. And again, we think that that is coming in one or two years and we are working in that direction.

This has just started. I think that it’s really going to reshape their financial services sector and it’s going to be very, very beneficial for businesses and individuals in terms of customer experience. I think that it’s going to give the banks a ton of fire power to re-imagine

investment banking), you are thinking in deals that need to go through many different committees, get approval from many different participants. You are speaking about very complex products, very complex credit memos. So, we are able to manage that complexity, to manage all those products, and to provide the right level of automation across all the different segments.

But I think we need to consider automation also in the context of artificial intelligence because what we want is to super charge not just the customer, but also the bankers. So, we want to help the banker to automate the low-value tasks, to free time for him or her to manage their relationships and to focus on those things that really create value for the customer and for the financial institution.

Where community meets

NAVIGATING THE UPCOMING IRB REGULATIONS IN THE UAE:

A Practical Perspective

Nicoleta Remmlinger Director at 4most Analytics Consulting (with insights from 4most Client Partner, Daniel Hensel) lays out why the journey to Internal Ratings-Based (IRB) accreditation will be demanding and lengthy, but will bring enduring value, enhance reputations, and will underpin the UAE’s place as a leading world financial centre

Nicoleta Remmlinger, Director, 4most Analytics Consulting

The landscape for risk management in banking is evolving in the UAE with the Central Bank of the UAE releasing a package of measures over the last few years to strengthen risk management of their supervised institutions, such

as the Model Management Standards and Guidance and the Credit Risk Management Standards. The introduction of new Internal Ratings-Based (IRB) regulations have long been muted in the UAE and it is a good moment to reflect on what this means for banks.

1. The Changing Capital Benefits of IRB

Historically, the IRB approach was seen as a way for banks to achieve significant capital relief compared to the standardised approach. By using their own risk models, banks could demonstrate a more nuanced understanding of their portfolios, often resulting in lower capital requirements. However, over time, global regulatory reforms—such as Basel III and the introduction of capital floors— have narrowed the gap between IRB and standardised capital requirements. Today, while IRB can still offer capital benefits, these are less pronounced than they were a decade ago, and the focus has shifted towards robust risk management and governance.

2. The Reputational and Strategic Value of IRB

Even as the direct capital benefits have diminished, the reputational advantages of achieving IRB status remain significant. For investors, IRB accreditation signals that a bank has reached a high standard of risk management maturity. This can enhance market confidence, potentially lower funding costs and make the bank more attractive to institutional investors who value strong governance and transparency.

For the UAE banking sector, widespread adoption of IRB will help align local practices with international standards, supporting the country’s ambition to be a leading global financial centre. It also encourages a culture of continuous improvement in credit risk management, data quality and governance.

It is worth noting that even in mature markets like the UK, a number of banks are still on the journey towards IRB accreditation. This ongoing interest is

reflected in industry events such as the Aspiring IRB roundtable hosted by 4most, where banks share experiences and best practices on navigating the IRB journey. The fact that many UK banks are still aspiring to IRB status highlights that this is not just a regulatory hurdle, but a strategic milestone that continues to be valued by leading institutions.

3. Key Challenges and Steps in Setting Up an IRB Programme

Implementing an IRB programme is a complex, multi-year transformation that extends far beyond model development. 4most has a long track record of supporting banks in the UK and Europe achieve regulatory approval for the Advanced and Foundation IRB Approaches to capital. Drawing on insights from 4most’s extensive experience to understand the practical steps required for a successful IRB journey, several critical success factors and challenges emerge:

a. Board and Executive Engagement

A successful IRB application requires active involvement from the Board and executive leadership. This includes training, ongoing governance and direct participation in regulatory interviews. The Board must be able to articulate the bank’s IRB strategy, readiness and governance arrangements—not just delegate to technical specialists.

b. Programme Approach and Governance

Banks must establish a robust programme structure, with clear roles and responsibilities, effective steering committees and well-defined stage gates for module submissions. Programme governance should be distinct from, but aligned with, ongoing IRB governance to avoid duplication and ensure accountability throughout the process.

c. Documentation, Validation and Audit

Comprehensive documentation

is essential, covering everything from model inventories and financial impacts to IT, data and audit structures. Independent model validation and internal audit functions must be embedded and mature, with evidence of rigorous challenge and oversight.

d. Stress Testing, Data and Use Test Regulators expect to see that IRB models are genuinely embedded in business processes - used for credit approvals, limit setting, portfolio management and capital planning. Stress testing and scenario analysis should be integrated, and data quality must

expertise of a company such as 4most, our experience is that the most successful programs are those where our clients take full ownership and accountability for the deliverables and work in close partnership with the consultants who are supporting the program.”

f. Phased, Modular Approach

The application process is typically modular, with phased submissions and iterative feedback from regulators. Banks must be prepared to respond to feedback, remediate issues and resubmit as needed. Building robust remediation plans and maintaining momentum across phases is critical.

IMPLEMENTING AN IRB PROGRAMME IS A COMPLEX, MULTI-YEAR

TRANSFORMATION THAT EXTENDS FAR BEYOND MODEL DEVELOPMENT

be demonstrably robust, with clear remediation plans for any gaps. The “use test” is not a box-ticking exercise; it requires real evidence that IRB outputs drive decisionmaking across the bank.

e. Ownership, Stakeholder Coordination and Regulatory Engagement

The IRB journey is cross-functional, involving risk, finance, technology, internal audit and commercial teams. Preparation for regulatory engagement—including mock interviews and Q&A repositories— is vital. Regulators will expect to interview a range of senior stakeholders, not just model developers. Daniel Hensel, 4most Client Partner said “Ownership of the program is critical to success. Whilst an organisation may rely on the support and

Conclusion

As the UAE moves towards updated IRB regulations, banks should recalibrate their expectations around capital benefits, but recognise the enduring value of IRB in enhancing reputation, investor confidence and sectoral resilience. The journey is demanding, requiring strong leadership, crossfunctional collaboration and a relentless focus on governance and data. The experiences of UK and European banks—many of whom are still aspiring to IRB status—offer valuable lessons, and forums like the 4most Aspiring IRB roundtable, and our industry insight workshops with clients (both those who have adopted and are yet to adopt), provide a platform for shared learning. For UAE banks, embracing the IRB challenge is not just about compliance, but about building a world-class risk management culture for the future.

Empowered Commitment

Adam Jones Division President, West Arabia at Mastercard explains their genuine commitment to the region, not only in terms of service levels and investment in cyber resilience, but also solidified by significant initiatives and partnerships that add real value to the communities in the territories they cover

How is Mastercard adapting to the current and projected growth of Saudi Arabia’s economy?

At Mastercard, we are committed to playing a key role in the growth of the Kingdom’s digital economy in line with Vision 2030. That is why we are co-creating locally relevant digital payment solutions with the Saudi government. Our Mastercard Gateway technology helps merchants comply with Saudi Payments’ requirements to route all domestic transactions through the national payment scheme “mada”. We also collaborated with Saudi Payments to develop the national real-time payments system “sarie”.

Last year, marked a new milestone in supporting the transformation of Saudi Arabia’s digital payment ecosystem with the launch of world-class technology infrastructure powered by Mastercard Gateway that enables the processing of ecommerce transactions locally. Executed under the patronage of the Saudi Central Bank (SAMA), the move enables the Kingdom’s merchants to benefit from support for 30+ payment methods and risk management solutions, while consumers can enjoy a seamless and secure online payment experience.

We also initiated a collaboration with MyFatoorah to bring a new digital payment platform, powered by Mastercard Gateway, to its 75,000+ merchants in the region.

What partnerships is Mastercard fostering with government bodies in Saudi Arabia?

In addition to the wide-ranging collaborations on Mastercard Gateway, we are helping the Saudi government drive fintech innovation in the Kingdom.

In line with its Fintech Strategy, Saudi Arabia aims to become a leading

Adam Jones, Division President, West Arabia, Mastercard

global fintech hub, creating 525 fintech companies by the end of the decade. The Kingdom has made considerable progress towards accomplishing this goal, with the total number of active fintech companies in the country reaching 280 by the end of H1 2025.

We are working with Fintech Saudi to accelerate the growth of the Kingdom’s fintech industry and advance meaningful collaboration in this space. We use our expertise, advisory services and solutions to help fintech innovators go to market faster, scale their businesses and unlock new opportunities.

To simplify how we work with fintech companies, we launched Mastercard Accelerate – a global single-entry point to our wide portfolio of specialised programs. We have four initiatives within Accelerate, catering to SMEs at different stages of their life cycle – Mastercard Developers, Mastercard Engage, Mastercard Fintech Express and Mastercard Start Path.

How is Mastercard adapting to ensure market-leading service effectiveness across both the business and consumer sectors?

We are working with our partners across the ecosystem to accelerate the digital transformation of the Saudi commercial payments landscape.

Most recently, we announced a multimarket commercial collaboration with HyperPay to issue commercial cards in Saudi Arabia, the UAE and Qatar with the aim of modernising business payments and streamlining expense management. We also joined forces with SingleView to offer access to corporate and commercial payments solutions for businesses.

Cross-border payments serve as a lifeline between expats working in Saudi Arabia and their families back home. According to SAMA , the total value of expat remittances from the Kingdom increased by 15% year on year to around SAR 13.83 billion in June 2025.

At Mastercard, we provide communities with fast, convenient, secure and affordable ways to send

money internationally. Mastercard Move, our comprehensive portfolio of money movement capabilities, facilitates the transfer of funds to any end point in over 150 currencies across more than 200 countries and territories through one secure connection, reaching over 95% of the world’s banked population.

In Saudi Arabia, we offer consumers and businesses access to Mastercard Move in collaboration with urpay, tiqmo and barq. In addition, we provide users in the Kingdom with a direct connection to over 1 billion accounts in China through our collaboration with Alipay.

On the consumer side, we joined forces with LikeCard to introduce an innovative digital family banking platform. We also launched the Flexi credit card, the first of its kind in Saudi Arabia, allowing customers to shop and pay in four easy instalments without fees. This marked the debut of the Mastercard Instalments program in the Kingdom.

To advance financial inclusion for people with disabilities, we introduced the Touch Card in Saudi Arabia. The innovative solution facilitates payments for blind and partially sighted people by allowing them to easily distinguish between their cards with just a touch.

As AI’s role in the relationship between business and the customer grows, what can Mastercard point at to highlight its upkeep of humancentric interactions and dialogue?

AI is among the most critical tools we have at our disposal today, as evidenced by the positive impact of our AI-powered fraud solutions like National Fraud Service and Transaction Risk Management (TRM) in Saudi Arabia. However, AI alone is rarely a silver bullet, and when it comes to something as nuanced and as complex as the customer journey, this technology is likely to be just a part of the solution. We believe that customer service and experience are equally important in the fight against fraud and that is why our endeavour is to provide our customers with end-to-end services so that they

can make the most of our solutions and stay protected against fraud. For instance, Mastercard has orchestrated a dynamic offering providing seamless and secure payment experiences for merchants and their customers by enabling Mastercard’s Gateway advanced TRM technology to deliver safe and seamless digital transactions, customer protection from cybercrime and payment fraud prevention. Driven by cutting-edge AI capabilities, this technology helps to reduce financial risk by proactively assessing transactions for vulnerabilities thus enabling acquirers to better protect their merchants and help them reduce fraud and approve more legitimate transactions. We are further enhancing these capabilities by introducing features to create and manage industry-specific transaction authorisation rules dynamically.

At Mastercard, AI has been integral to us for two decades, proving invaluable when it comes to addressing key

WE ARE ON A MISSION TO POWER ECONOMIES AND EMPOWER PEOPLE

challenges, such as fraud. We use AI to help drive better insights and actions, for example, by empowering banks to decide the best actions for their cardholders and supporting retailers with real-time personalised offers for their customers. We leverage leading-edge AI tools to create better predictions and improve measurements by removing bias. We are also placing even greater emphasis on training fraud models to increase transaction approvals for our customers. In doing so, we leverage AI models to increase both fraud detection and approval rates. As part of this focus on security, we have vast numbers of

people who are constantly monitoring the algorithms, checking for blind spots and trying to account for the idiosyncrasies of normal human behaviour.

In keeping in mind the human aspects of AI , we must remember that this technology is only as good as the inputs we feed it. Limited information may lead to misleading conclusions, while even massive datasets need to be scrutinised closely to account for potential biases. Situations may arise where machine learning can help us better predict the needs of individuals that roughly align with our existing customer base, but it fails to help us understand how we are underserving some parts of the population. Without due care, it is possible that an overreliance on AI could exclude whole groups of people, hurting our business in the long run.

How is Mastercard applying its skills, experience and resources to assist the economically vital SME sector in Saudi Arabia and the wider region?

We believe SMEs are key drivers of economic growth and the lifeblood of communities. That is why we are committed to equipping every business with the digital tools, insights, technology services, cyber assessments, digital training, mentorship and knowledge they need to thrive.

To advance financial inclusion, we pledged to bring 50 million micro, small and medium enterprises (MSMEs) worldwide into the digital economy by the end of this year. We already achieved our target one year ahead of the deadline, and our efforts continue.

According to Monsha’at’s Q1 2025 SME Monitor, Saudi Arabia is home to 1.68 million SMEs. In the first quarter of this year, the number of new SME registrations witnessed 48% year-on-year growth. The Kingdom’s Vision 2030 seeks to increase SME contribution to the GDP to 65% by 2030.

We are collaborating with Monsha’at to provide relevant solutions and services to

SMEs in Saudi Arabia through its Mazaya platform. We also joined forces with the fintech company SiFi to equip small businesses with a range of innovative offerings. In collaboration with Saudi Awwal Bank (SAB), we introduced an SME Business credit card to the Kingdom.

In Bahrain, we initiated a landmark collaboration with Tamkeen to explore the launch of Mastercard Strive, our global program that aims to advance financial and digital readiness for SMEs, marking its first implementation in the Middle East. We are also supporting the Startup & SME Excellence Awards, run by Capital Governorate, Diwan Hub and Manama Entrepreneurship Week.

In Egypt, we are working with MaxAB to equip its network of 100,000 MSMEs with advanced digital payment solutions that allow them to accept contactless payments. Most recently, we worked with PayTabs to launch an SME digital payment platform, optimised for mobile users.

In Jordan, we introduced SME and commercial instalment payment options,

such as the prepaid commercial card with Zain Cash and SME solutions with Gate to Pay. We also joined forces with Jordan Ahli Bank to launch the World for Business and Executive Platinum cards targeting the SME segment.

In addition, we are equipping small businesses with the knowledge and capabilities that empower them to go digital and grow digital. In this context, we curated The Entrepreneur’s Odyssey – a free online learning platform designed to equip entrepreneurs with practical, real-world knowledge at every stage of their journey.

How is Mastercard positioning itself across the regional markets covered from your Saudi hub to connect and enhance the broad payments ecosystem?

In addition to Saudi Arabia, our West Arabia headquarters in Riyadh cover Egypt, Bahrain, Iraq, Jordan, Lebanon and other Levant countries. We are on a mission to power economies and empower people. As part of our commitment to serving as a force for good in the markets we support, we are harnessing the power of advanced technology to improve access to digital payments.

To advance digital transformation in the region, we initiated a long-term strategic collaboration with Areeba , a leading regional payment processor, to bring new Card-as-a-Service (CaaS) and Bank-as-aFintech (BaaF) propositions to selected Arab countries, spanning from Levant to North Africa. We also teamed up with tmam to help SMEs across GCC markets digitise their corporate expenses.

In Bahrain, one of the region’s rising financial hubs, we focus on driving fintech innovation. We joined forces with The BENEFIT Company, the operator of the national electronic payment system, to co-create advanced payment solutions with the aim of fast-tracking the development of the country’s digital economy. Most recently, we launched Mastercard Receivables Manager with EazyPay to streamline business-tobusiness (B2B) virtual card payments.

In Egypt, we support the government’s digital transformation and financial inclusion efforts. We joined forces with Reimagining Industry to Support Equality (RISE) and the Centre for Development Services (CDS) to launch a wage digitisation project. To date, the initiative has benefited over 24,000 workers, including 43% women, in nine factories across five governorates. Moreover, we collaborated with BSR’s HERproject and the Ministry of Social Solidarity’s Women’s Program to establish the country’s first government disbursement model for social benefits, providing digital wallets to over 60,000 women.

We also supported the Central Bank of Egypt (CBE) and the Egyptian Banks Company (EBC) in the implementation of card tokenisation regulations. Last December, we brought Apple Pay to the country in collaboration with these two entities. In addition, we are working with the Administrative Capital for Urban Development to build efficient digital infrastructure that will enable the New Administrative Capital to become the first cashless Egyptian city. In the private sector, we joined forces with Ingiz, a family financial management startup, to launch a next-generation digital payment app designed to drive financial literacy and inclusion among the nation’s youth.

In Iraq, Jordan and Lebanon, we collaborate with our partners to build robust digital payment ecosystems and expand their benefits to underserved segments of society. In Jordan, we work with the Greater Amman Municipality on the capital’s digital transit payment system. We also supported the launch of digital banks, such as Bank ABC’s ila and Jordan Kuwait Bank’s eliWallet, as well as crypto and multi-currency cards.

In Iraq, we are assisting the Central Bank of Iraq and the Prime Minister’s Office in implementing digitisation initiatives in the country. In addition, we collaborated with Qi Group to fast-track Iraq’s digital economy journey.

In Lebanon, we initiated a gamechanging alliance with MyMonty to scale its digital payment solutions. We also provide

access to Mastercard Move through our partners Whish Money and Credit Libanais.

In Syria, we have recently signed an agreement with the Central Bank of Syria to work together on developing the national payments ecosystem. This strategic alliance will open doors to the world of global payments and expand access to essential financial services for millions of people.

Given the inevitability and sheer magnitude of cyber-attacks, is cyber resilience becoming the more favoured strategy for dealing with this problem?

Cyber-resilience is an absolute must for companies that want to succeed in the digital age. According to data by Statista, the annual cost of cybercrime is expected to hit $15.63 trillion by 2029.

According to PwC’s 28th CEO Survey, 49% of CEOs report their companies as highly or extremely exposed to cyber risks.

We work with our partners to develop innovative cybersecurity solutions, powered by advanced identity and AI technologies. Over the past six years, we have invested $10.7 billion in cybersecurity innovation.

We have acquired several companies with industry-leading AI and machine learning capabilities, such as RiskRecon and NuData, that have enabled us to enhance our cybersecurity offerings. We are protecting the entire payments ecosystem with end-to-end encryption, tokenisation, authentication and fraud prevention solutions.

Threat intelligence is an area we have prioritised to complement our existing suite of services. Last year, we acquired Recorded Future that delivers the most comprehensive and unbiased threat intelligence in real time, powered by the world’s only AI-driven Intelligence Graph®.

This May, we launched the Mastercard Cyber Resilience Centre in Riyadh that aims to help counter the evolving threat landscape and the expanding cyberattack surface across the region. The initiative focuses on collaborating with governments, financial institutions and businesses to provide real-time risk assessment, biometric authentication and threat intelligence services. In addition, it plays a crucial role in building a secure and trustworthy digital landscape by fostering local talent and expertise. Riyad Bank has become the first partner of the centre, testifying to its commitment to driving cybersecurity innovation and embracing best practices.

In addition, we are working with SAB to use Mastercard Gateway’s advanced TRM solution to protect customers from cyber-crime and prevent payment fraud.

From Mastercard’s perspective, what do you judge to be the most encouraging elements of the region managed from your Saudi hub? West Arabia stands out as one of our most dynamic regions, its diverse countries are united by a keen appetite for disruption and willingness to embrace emerging technologies.

Over the years, West Arabia has become a launchpad for innovation, it no longer follows trends – in many ways, itis shaping them.

At Mastercard, we are proud to be part of West Arabia’s ambitious digital future. Our true reach and diverse impact is evident; from driving financial inclusion and empowering small businesses to advancing innovative infrastructure and developing national payment ecosystems. We are committed to adding value to the region’s economy and unlocking new growth opportunities.

EQUITY CAPITAL MARKETS

Market Momentum

The GCC’s capital markets are undergoing a profound shift, with enhanced governance and sweeping reforms fuelling high levels of listings, a growing secondary market and interest from both domestic and international investors

The GCC region finished 2024 as one of the rare bright spots in global equity capital markets, a momentum that has carried into this year. The region saw 27 listings raising $4.1 billion, compared with 23 deals that brought in $3.57 billion during the same period last year, according to S&P Global Market Intelligence.

“Volatility in 2025 should not detract from the achievements made by GCC equity markets in the last five years, nor cloud opinion concerning the opportunities for investors in a maturing market,” according to global consultancy firm APCO.

The pipeline for IPOs in the GCC has continued to move full steam ahead,

despite global market turbulence and geopolitical tensions. However, some offerings have been pushed back to late 2025 or into next year – most notably Etihad Airways’ planned $1 billion initial public offering (IPO).

“The outlook for MENA IPOs for the rest of 2025 remains positive, with 21 companies intending to list on the region’s exchanges across various sectors. Saudi Arabia leads the pipeline, with 17 firms cleared by the Capital Market Authority, while three companies in the UAE have also unveiled listing plans,” said EY.

Dubai’s ALEC Engineering & Contracting has become the latest firm to pursue a public listing in the GCC region, adding to the IPO wave that has

gripped the Middle East since 2021 and attracted tens of billions of dollars in investor demand.

Meanwhile, GCC companies are ramping up follow-on equity offerings, driven largely by government-related entities as they seek to diversify their investor base and boost prospects for inclusion in global emergingmarket indexes.

There are signs of growing optimism in H2 2025, and analysts indicate that some degree of investor confidence appeared to be returning, as reflected in the number of companies planning to go public in the second half of the year.

“The GCC remains a hotspot in terms of size of the IPOs with the combined region ranking fourth globally after China in terms of total IPO proceeds,” KAMCO Invest said in a report, adding that the UAE ranks fifth in terms of proceeds, while Saudi Arabia ranked seventh globally after Japan.

GCC economies continue to be resilient to elevated macroeconomic risks such as trade tariffs and geopolitical tensions, investor inflows and strong demand for share sales have resulted in an IPO boom.

The new chapter GCC stock exchanges are entering a new stage of development as successive years of reform edge the region’s bourses higher in the global rankings of significant capital raising hubs.

“Following years dominated by government privatisation programmes and an uptick in private sector IPOs, Gulf bourses are turning their attention to improving secondary market liquidity,” said HSBC.

The secondary market boom is part of a broader strategy by local bourses to boost global index weightings and provide both local and international investors with greater trading opportunities and tools. Secondary offerings in the UAE outpaced IPOs in H1 2025.

Abu Dhabi’s wealth fund Mubadala Investment Company raised about $858 million from the sale of a stake in Emirates Integrated Telecommunications, known as du, in September after pricing the deal at the lower end of a planned range. The state investor offered a 7.55% stake in the telecoms firm at AED 9.20 ($2.50) apiece.

“The offering increases du’s free float to 27.7%, enhancing trading liquidity, broadening access to a wider base of investors,” the telecoms firm said in a statement.

Abu Dhabi’s ADNOC Group raised $317 million in an institutional placement of a 3% stake in its logistics and services unit through a bookbuild offering in August. The state-owned energy firm completed the pricing of a placement to institutional investors of about 222 million shares in ADNOC L&S at AED 5.25 dirhams per share.

“The transaction improves the liquidity in ADNOC L&S’s shares by increasing its free float to 22% and further diversifies the company’s investor base,” the energy firm said in a statement.

Earlier this year, ADNOC Group raised $2.84 billion (AED 10.4 billion) from a secondary offering in its gas business, ADNOC Gas. The marketed offering was oversubscribed 4.4 times and was priced about 43% above the initial public offering price of AED 2.37 per share.

An undisclosed First Abu Dhabi Bank shareholder, whose identity was not disclosed, also conducted a secondary offering to raise around $480 million by selling around 113 million shares at AED 15.50 apiece.

“The nature of IPO proceeds in Q2 2025 reflects a notable shift, with secondary listings accounting for 64.3% of all IPOs, up from 35.7% in Q1 2025.

This suggests a preference among issuers for shareholder exits over new capital raising, further demonstrating a more cautious approach amid ongoing market uncertainty,” EY strategists said in a report.

in global emerging-market indexes, as industry analysts expect private companies to soon follow state-backed peers.

A robust IPO activity

GCC stock markets have continued to show resilience in 2025, recovering from the disruption caused by US trade tariffs more quickly than other regions, while mitigating the impact of prolonged geopolitical risks. Attention now turns to the post-summer pipeline, with investors weighing the timing of the next issuance wave.

Industry analysts say investors in the region consider shares of well-known companies, especially state-backed ones,

VOLATILITY IN 2025 SHOULD NOT DETRACT FROM THE ACHIEVEMENTS MADE BY GCC EQUITY MARKETS IN THE LAST FIVE YEARS, NOR CLOUD OPINION CONCERNING THE OPPORTUNITIES FOR INVESTORS

IN A MATURING MARKET

– APCO

Meanwhile, secondary share sales in Saudi Arabia, involving Saudi Aramco and telecoms giant STC Group, raised more than $13 billion in 2024. The government in Riyadh netted a total of $12.35 billion from Aramco’s secondary offering by offloading a 0.64% stake at $7.26 (SAR 27.25) a share.

Saudi Arabia’s wealth fund PIF raised $1.03 billion (SAR 3.86 billion) last November by offloading 100 million shares in STC, about 2% of the company’s issued share capital. PIF, which holds a 62% stake in the telecoms group after the offering, sold a 6% stake in STC for $3.2 billion in 2021.

GCC government-related entities (GREs) are ramping up secondary share sales to attract a broader investor base and improve their prospects for inclusion

as an excellent way to diversify their investments from real estate, a sector that is highly subject to swings in demand and supply and bank deposits that yield low returns.

Saudi Arabia’s flynas fell in its Riyadh trading debut in June, closing 3.4% lower at SAR77.30 per share compared to its listing price of SAR80, the top end of the marketed range, which valued the lowcost carrier at SAR13.7 billion.

flynas, backed by billionaire Prince Alwaleed bin Talal, is the Middle East’s largest IPO so far this year and is the first airline in the region to go public in almost two decades. EY said flynas was Saudi Arabia’s largest IPO in Q2, accounting for 44% of total proceeds during the quarter.

Saudi developer Umm Al Qura for Development & Construction drew

EQUITY CAPITAL MARKETS

about $126 billion in orders for its $523 million Riyadh IPO, underscoring a strong appetite for new listings in the region. The Mecca-based firm has surged nearly 60% since its March debut, lifting its market value to $9.2 billion, compared to a 1.7% average gain in Saudi IPOs this year.

Over in the UAE, Dubai Holding’s $584 million residential REIT soared in its trading debut, underscoring the strength of the emirate’s property rally that continues to attract global capital.

Dubai Residential REIT, which closed 14% higher after climbing as much as 19% intraday, is the first IPO of 2025 in the city and adds momentum to a privatisation program that has already floated utilities, a parking operator and a taxi company.

“Dubai Residential REIT’s debut in Q2 2025 marks a landmark moment for the UAE, representing the first new REIT listing since Emirates REIT’s launch in 2014,” said PwC.

Oman’s bid to deepen its capital markets gathered pace as Asyad Shipping raised $333 million at the top end of its price range in March. The deal comes as the sultanate prepares to privatise 30 state-linked companies, including Oman Electricity Transmission, in a push to broaden its investor base.

Muscat has already emerged as one of the most active IPO hubs, with 2024 volumes surpassing those of London, following the state energy giant OQ’s flotation of two subsidiaries in record $2.5 billion deals.

Dubai’s ALEC Holdings is the latest state-backed entity to list in the emirate, following a trend that has carried out over the years as GREs step up efforts to boost domestic equity markets while helping governments diversify their economies away from reliance on oil revenues.

The developer’s IPO, which was priced at the top of the range, raised $381 million in September after demand surged to more than 21 times the shares on offer. ALEC has delivered some of the region’s large-scale projects, including airports, energy infrastructure, hospitality and leisure developments such as

Abu Dhabi’s SeaWorld and Dubai’s One Za’abeel tower.

“The outlook for MENA IPOs in the second half of 2025 remains strong, supported by a healthy pipeline of 14 planned listings across a range of sectors,” said EY.

The GCC will continue to generate interest for its strong, distinctive businesses and family office listings from international investors, given its competitive positioning and established reach in the market.

across the Gulf region to support private and state-owned entities on their path to IPO.

Earlier in October, the kingdom’s Capital Market Authority said it is seeking feedback on a draft law that would open the main market to all categories of nonresident investors. Current rules stipulate that foreigners must meet certain qualifications, such as having at least $500 million in assets under management.

Qatar Investment Authority officially launched the Gulf state’s $275 million (QAR1 billion) market-maker programme

THE OUTLOOK FOR MENA IPOS FOR THE REST OF 2025 REMAINS POSITIVE, WITH 21 COMPANIES INTENDING TO LIST ON THE REGION’S EXCHANGES ACROSS VARIOUS SECTORS. SAUDI ARABIA LEADS THE PIPELINE, WITH 17 FIRMS CLEARED BY THE CAPITAL MARKET AUTHORITY, WHILE THREE COMPANIES IN THE UAE HAVE ALSO UNVEILED LISTING PLANS

EY

Deepen capital markets

The privatisation programs in the GCC, along with the rules and guidelines for equity capital market issuance, particularly for IPOs, are driving an increase in public offerings that is heightening competition among local and international banks for advisory mandates.

“The increased demand for MENA listings has led to developments in market infrastructure through new products, enhanced governance standards and a focus on transparency and accountability,” said Gregory Hughes, EY-Parthenon MENA IPO Leader.

Saudi Arabia’s plans to open its equities to all foreign investors by easing existing restrictions are the latest in a string of initiatives that are being implemented

in June, an initiative that will run for the next five years and offers an economic incentive by way of a rebate to lower trading costs for established market makers.

The Saudi Exchange, Abu Dhabi Securities Exchange and Dubai Financial Market have all, in the past, unveiled an array of initiatives, including flexibility on the minimum stake size required for share sales and promised to reduce or waive listing fees in a bid to encourage more domestic listings.

Following a wave of large-cap IPOs over the past two years, resilient investor appetite and the GCC’s push to diversify economies and expand capital markets suggest a steady flow of deals in 2025 and 2026. The region’s pipeline remains robust even as global issuance lags.

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Citi’s Enduring Partnership with Sub-Saharan Africa PIONEERING PROGRESS:

More than just because the time and opportunities are now better than ever, Citi’s presence in Sub Saharan Africa actively contributes to the continent’s growth trajectory and reflects their long-held commitment to this increasingly promising region

The Strategic Imperative

Sub-Saharan Africa (SSA) stands as more than a collection of frontier markets - it represents a thriving region of opportunity, innovation and accelerating economic growth. As the continent continues to strengthen its influence in the global economy, a dynamic financial sector is powering driving momentum. Citi, backed by its deep regional roots and enduring commitment, is driving connections that unlock new opportunities across SSA. This article sets the scene for an in-depth exploration of how Citi is not merely participating in Africa’s growth story, but actively writing it, as the largest international bank operating in the region.

The Unrivaled Footprint

Citi’s advantage is defined by more than numbers - it is the power of presence. The bank’s leadership in SSA comes from its ability to operate at scale while staying deeply embedded in local markets. The bank builds enduring relationships while matching regional ambition with global opportunity. With direct, on-the-ground presence in 12 key countries and a

comprehensive reach extending to an additional 21 hub-managed markets, Citi boasts the most extensive network of any international bank on the continent.

This deep integration allows Citi to serve African corporates, financial institutions

and governments by connecting them to global capital markets, cutting-edge financial solutions and a vast network of international investors.

Charting Africa’s Financial Future

Africa’s growth story has long been recognised and today it is unfolding at a remarkable scale and pace. Trade and investment are evolving, sectors are diversifying, and new opportunities are emerging across SSA. With decades of experience operating in the region, Citi’s leadership is uniquely positioned to harness this momentum, connecting communities, enabling growth and helping to build a resilient financial future for SSA.

Ebru Pakcan, Citi’s CEO for Middle East & Africa (MEA), has been steering strategic initiatives that unlock opportunities across the region. “Africa continues to play an important role in our strategy. With expanding trade and investment flows we can better connect regional growth to global markets, deliver value to clients and foster innovation across the continent.”

Building on this perspective, Akin Dawodu, CEO for Sub-Saharan Africa (SSA), who oversees SSA added: “Across SSA, growing trade and investment are creating opportunities that extend across borders and boundaries. By leveraging Citi’s network and technology while forging strong partnerships, we are helping clients unlock new avenues for growth.”

Nigeria is one of SSA’s most dynamic markets, and Citi plays a critical role in supporting economic inflows and

Ebru Pakcan, CEO for Middle East & Africa (MEA), Citi

fostering investor confidence. For Nneka Enwereji, CEO of Citibank Nigeria

Limited, the bank’s strong capital base and deep local presence enhances the banks position in supporting investor flows and long-term growth in the country. “Nigeria continues to attract strong investment flows. With a diversified offering and deep local expertise, Citi is well positioned to meet client needs and contribute to the country’s economic progress.”

Catalysing Progress Through Expertise

Citi extends its role beyond presence by being a catalyst of progress. The bank channels its strength into sectors and communities by connecting ideas and people through innovative solutions like Citi Optimised Pay. Developed in Kenya, this global payment solution streamlines payments, helps clients navigate local complexities, optimises cash flow and enhances efficiency. Citi Optimised Pay ultimately provides greater transparency, control and agility, supporting improved cash flow management and strategic decision-making.

Catalysing progress also means applying expertise to the enablers of commerce. Other areas where Citi’s expertise is driving change include:

Payments Modernisation: As digital economies sweep across SSA, Citi plays a pivotal role in transforming payment ecosystems. The bank is working closely with central banks and financial institutions across SSA to build secure, efficient, and inclusive digital payment infrastructures, accelerating financial inclusion and enabling the seamless flow of commerce.

Trade Finance Empowerment:

Global trade is the backbone of African economies. Citi’s robust trade finance platforms provide essential liquidity, risk mitigation and advisory services, supporting the complex supply chains that connect African producers to international markets and fostering economic diversification.

Sovereign & Public Sector Financing:

Citi is a trusted partner to governments across SSA, providing critical advisory and financing solutions that enable nations to access global capital markets for infrastructure development, social programs and economic stabilisation.

Pioneering Sustainable Finance:

Recognising SSA’s immense potential for sustainable development, Citi is a key architect of green finance solutions. We structure and facilitate transactions that support renewable energy projects,

Citi’s strategic vision and the dedicated efforts of its teams.

What Lies Ahead: Partnering for Africa’s Prosperity

Citi remains a catalyst for meaningful progress and will continue to champion initiatives that drive positive change in the communities it serves. Over the past year it has celebrated milestone anniversaries across many markets in SSA. One notable anniversary is Citi South Africa 30th anniversary. This milestone is

AFRICA’S GROWTH STORY HAS LONG BEEN RECOGNISED AND TODAY IT IS UNFOLDING AT A REMARKABLE SCALE

AND PACE

climate resilience initiatives and other Environmental Social and Governance (ESG)-aligned investments, contributing to a greener, more sustainable future for the continent.

These critical levers help to build a more connected and resilient African economy.

Benchmarking Excellence

Through its consistent performance and industry recognition, Citi has distinguished itself as a benchmark for excellence. The various accolades and awards highlight the bank’s dedication to operational rigor, clientfocused solutions and leadership. The bank was recently honored with the Euromoney’s Best Investment Bank for Financing in Africa 2025. This distinguished award recognise Citi’s renowned capabilities in structuring complex and impactful financing solutions, the bank’s deep client relationships, and consistent delivery of market-leading outcomes across the diverse economies of the continent. It stands as a powerful validation of

more than a celebration – it reflects a legacy of resilience, trust and leadership. Speaking on the significance of this milestone in South Africa, Peter Taylor, CEO for Citi South Africa highlights Citi’s continued commitment to the market.

“For 30 years, resilience has been at the core of our approach. We have supported our clients, helping them navigate change and seeing opportunities. We remain committed to partnering with our clients and focusing on shaping solutions that create meaningful impact for our clients and communities.”

Citi’s journey in Sub-Saharan Africa is a narrative of profound engagement and strategic partnership. With the broadest international banking presence, visionary leadership, specialised sector expertise and consistent industry recognition, Citi is more than a financial services provider; we are a dedicated collaborator in Africa’s ongoing economic renaissance. As the continent continues to chart its course for unprecedented growth, Citi remains committed to connecting, enabling and contributing to a future of shared prosperity for all.

Partnership and Trust

Chuck Long Managing Director, Head of Family Wealth Services, BNY Wealth underlines BNY’s strong belief in the region as a leading wealth and investment hub, detailing their increasing commitments including new branches, a regional headquarters license in Riyadh and their investment in people

Please tell us about the background to BNYWealth’s presence in the GCC and wider Middle East?

The Middle East is one of the fastestgrowing markets for BNY Wealth, and we have built a strong presence across the GCC. Over the years, we have worked alongside families and institutions not just to provide access to global markets but also help build local market infrastructure and support the evolution of GCC capital markets. For us, it is not simply about offering services - it is about being a trusted partner in helping families achieve their ambitions across generations. This focus on partnership, consistency and creativity defines our heritage and shapes our presence in the Middle East.

What are you noticing about the wealth and investment environment of our region at this time?

The Middle East is emerging as a global financial hub, attracting wealth and setting the tone for innovation and growth. According to a PWC report, GCC ultrahigh-net-worth individuals (UHNWIs) are projected to transfer between US$500 billion and $700 billion in wealth to the next generation by 2035, primarily from

Saudi Arabia and the UAE. That scale of wealth transfer will be transformational. It reinforces the importance of intergenerational planning, thoughtful structuring and long-term preservation strategies.

We are seeing greater demand for diversification as clients blend traditional assets with alternative strategies, global equities and private markets.

Developed-market public equities and private equity are at the forefront of their growth strategies: over the next 18 months, 52% plan to increase exposure to developed-market public equities, while 45% aim to boost allocations to private equity. They are demanding greater transparency, more robust reporting and increasing innovation, reflecting the market’s growing sophistication.

The environment is evolving, driven by economic diversification, regulatory developments and technological adoption. There is tremendous opportunity – for families to grow and preserve wealth and for us to serve as their trusted partner.

With its long-standing presence in the region, what is BNY now doing to deepen regional commitments?

Our commitment to the Middle East is stronger today than any point in our history. We are investing in technology, partnerships and most importantly, people. Building on long-standing relationships, we are focused on being even closer to our clients through a stronger presence.

We recently opened a branch in Abu Dhabi’s ADGM, positioning us at the centre of a fast-growing financial hub. We also secured a Regional Headquarters license in Saudi Arabia, aligning our strategy with the Kingdom’s Vision 2030. Alongside this, we formed strategic alliances with DIFC and Dubai Chambers, reinforcing our support for the UAE’s ambition to be a global leading financial hubf allowing us to work hand-in-hand with key institutions shaping the future of regional markets. These steps allow us not only to serve our clients better but also support the broader development of local markets.

Equally important is investment in our people. We are building local talent and fostering a culture of innovation

Chuck Long, Managing Director, Head of Family Wealth Services, BNY Wealth

and collaboration, ensuring our teams combine global expertise with deep regional knowledge and genuine commitment. To further strengthen leadership in the region, we have recently created a dedicated MEA Market President Role and promoted our senior client strategist Shadi Alnasr to it, embodying our presence on the ground and leading our strategic expansion.

Deepening our presence here is about trust. Families and institutions want to know that their partner is invested in the long-term. By expanding our footprint, forming strategic partnership and aligning with the priorities of the local economics, we are showcasing that BNY is here for generations to come.

As the regional Wealth and Investment markets expands, what does BNY offer that elevates you over the growing competition?

BNY brings a unique combination of global scale, deep expertise and an unmatched track record of trust. As the world’s largest global custodianover $55.8 trillion in assets under custody/ administration – roughly 20% of the world’s investable assets – we have the infrastructure and insight to support families and institutions across multiple asset classes, geographies and structures.

For over 240 years, we have helped clients build, manage and preserve wealth across generations, guided by a commitment to stability and innovation. We translate that scale, and the perspective gained from over 240 years into clarity for clients: simplifying the complexity of managing wealth across multiple managers, asset classes and jurisdictions.

However, what truly sets us apart is our people, who are the core of everything we do. We have built a team of professionals who combine technical expertise with a deep understanding of client needs. Their ability to translate global capabilities into locally relevant solutions is a defining strength. We take pride in fostering long-term

relationships built on trust and collaboration, bringing both cultural fluency and a client first mindset to every interaction.

Which regional nations are BNY currently focusing their energies on at this time?

BNY is focusing our energy on the markets where we can have the greatest impact: UAE, Saudi Arabia, Qatar and Bahrain, countries at the centre of economic diversification efforts, making significant investments in financial market infrastructure.

Our Abu Dhabi’s ADGM branch is an example of how we are embedding ourselves in the region’s financial ecosystem. Likewise, our Regional Headquarters License in Saudi Arabia reflects our commitment to supporting the Kingdom’s Vision 2030 and its ambition to become a leading global financial centre.

human oversight. From advanced risk and performance analytics, our clients can make confident decisions with timely and relevant information. For regional families, where wealth is often multi-generational and diversified, this level of precision and accessibility is essential. Technology is woven into every stage of the client journey. It enhances engagement, supports intergenerational wealth transfer and ensures families can navigate today’s dynamic markets with clarity and confidence.

How do you envisage the medium and long-term future for our region among the leading global wealth and investment hubs?

I believe the region will become one of the world’s leading wealth and investment hubs. I expect to see greater sophistication in financial services, stronger regulatory framework and more

I BELIEVE THE MIDDLE EAST IS ON A TRAJECTORY THAT WILL FIRMLY ESTABLISH IT

AS ONE OF THE WORLD’S LEADING WEALTH AND INVESTMENT HUBS

By focusing on these key markets, we can ensure we are positioned to serve our clients with the best of our global capabilities, adapted to local needs.

How is BNY leveraging technology to enhance its wealth offerings to regional families?

We are investing heavily in digital platforms, data analytics and reporting capabilities to give families greater clarity and control over their wealth. By harnessing technology, we simplify the complexity of managing wealth across asset classes, jurisdictions and generations, providing real-time insights and a seamless client experience.

Technology also helps us to deliver more personalised solutions with

global capital flowing into the region. Families will continue to expand their reach internationally while also looking for new opportunities closer to home.

Over the long term, its strategic location, economic diversification strategies and commitment to sustainability will differentiate it more from established markets. Add the entrepreneurial spirit and long-term vision of its people, and you have a unique formula for success. What excites me the most is the sense of ambition and purpose here. This is a region that is not just participating in global finance. It is actively shaping the future of it. I see the region becoming a centre of excellence for wealth creation, preservation and transfer for generations to come.

Your AI Adoption Crisis Is a Mirror STOP BLAMING THE ALGORITHM:

Sanat

Rao Cofounder and Managing Director, Within The Box.ai looks at how banking executives can feel reduced or threatened by AI, but explains that this can be eased by consideration of the human behavioural angle

Last month, I sat across from a bank’s Chief Digital Officer (CDO) who had just called off a 2-milliondollar AI implementation. On paper, the system was flawless.

Nine-month pilot: successful; ROI projections: compelling; User testing: clean. And yet the rollout had stalled. Three months in and adoption rates hovered barely above the 20% mark. “The algorithm isn’t ready,” the CDO said flatly. “It’s missing certain critical variables.”

I thought he would have more to say, but he did not. I then asked “Has anyone shown you evidence that the algorithm is actually the problem? Or is the algorithm the convenient scapegoat for something much harder to fix?” He went quiet. Then, after a thoughtful pause, he leaned back and admitted “Our senior relationship managers think the system makes them look bad. They see it as a threat. So, they buried it.”

Sounds familiar? I have now had versions of this same conversation across many financial institutions. When banks say they have an “AI adoption challenge” what they really mean is they

Sanat Rao, Cofounder and Managing Director, Within The Box.ai

have a people problem. And they are not ready to say it out aloud.

The Easy Way Out

Is it not far easier to blame technology than to look in the mirror? Technology is an external problem. It has bugs. It needs upgrades. You can commission a vendor to fix it. You can throw money at it and look decisive. And if all else fails, you can

point a finger at technology and even at the vendor. A people-problem, however, is different. It means acknowledging that your organisational culture, your power structures, your incentive systems and maybe even your leadership DNA, are not fit for the future you claim to be building. Research has shown that a large majority – as high as 70% - of AI implementations fail, but only a small handful fail for technical reasons. And the rest? Organisational dysfunction, resistance, misalignment between strategy and behaviour.

The Three Dimensions of Behavioural Resistance

1. The Ego Barrier

Your most experienced bankers, the ones who built their careers on instinct, networks and judgment, now face algorithms that can outthink them at scale. This is no longer a technical problem. It is a threat to identity. A senior credit officer said recently “The AI recommended we approve a loan I would have normally rejected. I dug in. Turns out the AI was right. But you know what? I felt smaller that day.” That feeling will not disappear through training. It will disappear only when leadership reframes AI as augmentation, not replacement; when override moments are celebrated, not hidden; when compensation recognises human + machine synthesis, not just solo genius.

2.

The Control Paradox

Banking is hierarchical. Information is power. I am sure you have observed

that the person who controls the data controls the room. However, AI disrupts this. It democratises information, exposes decision-making, flattens hierarchies. A mid-office team at one bank deliberately misused training data, not to break the system, but to make it look ineffective. Why? Because the old system made them gatekeepers. The new one made them coordinators. No algorithm can fix that. Only leadership can.

3. The Competence Cliff Ironically, the people most resistant to AI are often the most intelligent ones. They are not Luddites; they are scared of the black box. In a sector such as banking that is built on explainability and regulatory scrutiny, uncertainty breeds defensiveness. So they ask smart but paralysing questions such as “How do we know the data isn’t biased?” or “What happens in market conditions we’ve never seen?” or “Can we trust this with client decisions?” All important questions, but when driven by fear, they turn into infinite loops of due diligence. A sophisticated but a sure way of burying adoption under procedural weight.

The Cognitive Design Prescription

At Within The Box.ai, we have learnt that the adoption battle is fought in human behaviour, not through code. Code solves technical problems. But adoption is not a technical problem, it is an organisational psychology problem. The algorithm is not broken. The adoption strategy is because it treated the institution as a machine rather than as a living system of people with fears, incentives and identities at stake.

Your adoption crisis is not really about algorithms. It is a confession of organisational sclerosis. The code is just the messenger you are shooting. We use a Cognitive Design approach to rewire how people think, act and build trust with AI systems. Cognitive Design is not soft. It is the architecture for sustainable adoption.

Why Should This Matter To Banks in the UAE

In relationship-driven banking ecosystems like the UAE, ignoring human factors is a strategic mistake. A foreign-built AI model might flag Ramadan donation spikes as suspicious. A local banker knows this is cultural context; a credit algorithm may penalise informal collateral structures in family businesses. A banker with cultural

I have made in this paper is that over and above technology, there is a human behavioural angle that exists – and it is this that needs to be addressed

1. Treat adoption as organisational therapy, not tech roll-out. Audit how your institution handles change, ego, emotion and power.

2. M ake behavioural readiness nonnegotiable. Run structured Ego Integration programmes before go-live.

3. R eframe override authority as strategy, not exception. Celebrate the banker who questions the system and improves it.

4. Accept that human timelines do not follow Gantt charts. AI adoption is behavioural adoption. It does not obey deadlines.

IN RELATIONSHIP-DRIVEN

BANKING ECOSYSTEMS LIKE THE UAE, IGNORING HUMAN FACTORS

IS A STRATEGIC MISTAKE

intelligence interprets them differently. AI misreads culture when people are not ready to interpret it. Cognitive Design fixes this.

How to Break the Adoption Deadlock

There are no easy answers to this question. And there certainly is not a one-size-fits-all approach. And while sometimes adoption can be impeded because of the technology, the argument

The Truth We are Avoiding

Your AI adoption crisis is not about the machine. It is about your leadership’s willingness to confront itself. It is a referendum on whether your institution rewards courage or compliance. Whether you treat employees as cost centres or as learning organisms. And whether technology amplifies intelligence or threatens the old order. The algorithm did not fail. Your organisation did. The machines are ready. The question is whether your people, and your leaders, are brave enough to change.

Sanat Rao is Cofounder and Managing Director of Within The Box.ai, an AI enablement and behavioural design company headquartered in the UK and based at the DIFC Innovation Hub in Dubai. Their Cognitive Design Practice helps banks, hedge funds and fintechs build Human + Machine architectures that drive adoption and impact.

The New World of Payments Takes Shape

As mandated deadlines and AI powered technologies coincide to impact the world of payments, and as our region edges to take a global lead in this increasingly essential sector, leaders and innovators from the regional world of payments met again at our 2025 Leaders in Payments Summit

The payments landscape has undergone a dramatic shift over the past decade, transitioning from cash-based transactions to a diverse array of electronic payment methods, including real-time payments, contactless payments, digital wallets, split payments and instant transfers.

“The global payments industry is vast and growing, expected to generate more than $3 trillion by 2026,” French consultancy firm Capgemini said in a report, adding that payments account for about 40% of global banking revenues.

Changes in the payments space have been accelerated by advancements in innovative technologies and evolving customer expectations, which have

shattered the status quo and opened the window for new players challenging legacy processes and systems.

The pursuit of convenience in the payments sector has been a catalyst for innovation. The payments landscape is ripe for artificial intelligence (AI) transformation, with automation, advanced customer service and increased service value as key use cases.

While AI holds great potential for new use cases, other payment trends offer significant opportunities to create value for businesses and consumers. “How to buy goes hand in hand with what to buy as payment systems integrate new technologies to keep pace with consumer demand and business needs,” according to Visa.

Meanwhile, the modernisation of the payments sector is an important journey that economies around the world are either embarking on or experiencing right now.

Globally, real-time payments are gaining traction in over 85 regions, offering the benefit of immediate funds transfer. The GCC is aligning with this global trend, with Bahrain, Saudi Arabia and the UAE launching their real-time payment systems (FAWRI+, SARIE, and Aani, respectively) and Kuwait, Qatar and Oman are expected to follow suit.

MEA Finance hosted its Leaders in Payments Conference and Awards 2025 in September at The Ritz-Carlton Hotel - JBR in Dubai. Under the working theme for the event, The New World Payments Takes Shape, a select group of finance, fintech and technology professionals gathered at the annual forum to discuss the future of payment services and identify promising trends and opportunities in the region.

Attendees at the summit discussed the growth of nationally instituted payment initiatives, competition in the payments space, the advancement of cross-border payments and the role of innovative technologies such as AI and cloud solutions in driving the adoption of instant payments.

Osama Al Rahma, Head of Business Development at WM Emirates Investment Bank and Chairman of FERG - Foreign Exchange Remittance Group, said in his opening remarks that banking customers in the UAE are increasingly embracing digital channels.

“The Central Bank of the UAE recently reported a significant milestone for its switch system, the UAE Funds Transfer System. Between January and June of this year, the system processed nearly AED 11.5 trillion in payments,” said Al Rahma.

Al Rahma underscored that the adoption of digital payments, particularly through superapps, has accelerated significantly in the post-COVID era. Customers who were once sceptical or hesitant have not only embraced these digital tools but are now using them with a high degree of confidence and regularity, he added.

Globally, digital payments are projected to reach $320 trillion by 2032 from $194.6 trillion in 2024, driven by the rapid expansion of real-time payments – especially in the UAE. The transaction volume in the real-time payments segment is also projected to grow at a CAGR of about 35% from 9 billion in 2024 to 284 billion by 2032.

“We’re seeing powerful growth across the payment industry. This kind of growth

doesn’t happen by chance, but it demands a robust, collaborative ecosystem. The network – comprising vital infrastructure and key players such as banks, fintechs, outlets and financial regulators – is what actively enables and supports this rapid evolution,” said Al Rahma.

He highlighted that the UAE is firmly establishing itself as a leader in the financial and payment space. “The CBUAE has gone beyond theoretical planning, rolling out a robust strategy that includes advanced digital infrastructure, open finance and its own Central Bank Digital Currency (CBDC).”

Al Rahma closed by explaining that the global payments sector is in a transformative phase, driven by strategic vision, collaboration, new technology and regulatory action.

Panel One: Challenging Times

The GCC payments landscape, long seen as a key driver of innovation and resilience in the financial services sector, is entering a new phase of turbulence. Though innovative technologies such as artificial intelligence and the cloud have made payments faster and more inclusive, it is also compounding the risks and regulatory pressures facing payment service providers.

Moderated by Anna Zeitlin , Partner at Addleshaw Goddard, the panel Challenging Times highlighted the significant headwinds facing the payments industry, including strict regulatory deadlines, increasing demands for fraud prevention and financial crime mitigation and the growing pressure on regulators to keep up with rapid industry developments.

The discussion had the participation of Dr. Joseph George , Chief Digital and Information Officer (CDIO) at Doha Bank; Rashid Basheer , Head of Digital Channels at Al Ansari Exchange; Paul Carey at EVP Cards, Payments & Fintech, Al-Futtaim Financial Services; Sara Raza, Head of Cobrands - Cards Business at Emirates NBD and Nauman Hassan , Regional Director for MENA at Paymentology.

Quizzed about reconciling payments in a fragmented industry, Carey said Al-Futtaim Group’s multi-faceted portfolio, spanning retail, real estate and financial services, inherently creates a highly complex and fragmented environment for managing its payment ecosystem.

“Customers today expect to pay however they choose, whether it’s credit cards, Apple Pay, BNPL, digital wallets or any other method. We want to enable that flexibility. But with such fragmentation comes increased cost, complex contract management, varying settlement times and the challenge of managing multiple payment service providers,” Carey said, adding that it becomes a significant operational burden.

To address the fragmentation, Al-Futtaim Group is adopting payment orchestration at the group level.

Carey explained that payment orchestration gives the group the flexibility to plug in different payment methods rapidly, eliminating the extensive work of rebuilding systems for each individual market or payment provider.

The ongoing transformation in the GCC payments landscape, driven by instant settlement systems, open banking and API-driven gateways, has expanded

access and convenience for consumers and businesses alike. However, the pace of change is stretching operational, compliance and cybersecurity frameworks to their limits.

The fast-changing regulatory and mandated deadlines in the payments industry, such as cross-border standards such as ISO 20022, have increased the burden on financial firms to modernise legacy systems, maintaining uninterrupted service.

From the exchange house perspective, Basheer said compliance is too often perceived as a speed bump that impedes innovation.

“While businesses prioritise moving forward, doing things better and faster, the added layer of regulation is often seen as an unwanted constraint,” he said.

However, the solution lies in changing perspective. Basheer underscored that businesses should prioritise the values customers care about most, including speed, convenience and security. For payments, Basheer said this boils down to ensuring every transaction is instant and safe.

“The regulatory landscape is quickly evolving in the Middle East. Though we often innovate for speed and user experience, we don’t always place equal focus on customer and societal protection – a gap that makes the role of compliance critical,” said Basheer.

The payments industry continues to drive towards providing faster, cheaper and more transparent payment services. However, compliance processes, such as KYC mandates, anti-money laundering (AML), and fraud, often operate at a much slower pace. To meet the growing challenges, KPMG said payments firms may find it difficult to adapt, especially those already investing heavily in service delivery.

Emirates NBD’s Raza said the initial perception of any new compliance regulation as a burden is common. She explained that this is because organisations must suddenly fit strict new mandates into their pre-existing IT roadmaps and frameworks.

“Compliance frameworks consistently enhance the security and safety of the customer experience. However, the progress is often challenged as technological advancements and AI expand the pool of available information, the threat of fraudsters also advances to exploit these new opportunities,” said Raza.

Meanwhile, the incidence of fraud and scams, ranging from account takeover and authorised push payment, is growing at an alarming rate globally. Juniper Research projects that online payment fraud will exceed $362 billion globally between 2023 and 2028, while TransUnion reports that over half of consumers surveyed across 18 countries said they had been targeted by fraud attempts.

“The rapid growth will likely be fueled by the use of generative AI and agentic AI to create highly realistic deepfake content, impersonate people and execute large-scale, targeted scams,” according to a report from Deloitte. Financial institutions have invested heavily in upgrading payment systems to curb fraud, particularly push payment fraud.

Global payments giant Visa prevented $40 billion in fraudulent activity from October 2022 to September 2023, using artificial intelligence and machine learning.

From a banking perspective, George said, as the core of the payment ecosystem in any market, financial institutions rely on APIs to drive and modernise payment offerings.

“Customers expect speed today, and the payment experience must be frictionless to keep pace. The speed is a two-sided coin - one side is the customer and the other is the bank,” said George.

“For the customer, speed translates to secure payment with enhanced experience and delivery. For the bank, the responsibility is to build the smart payment ecosystem that makes this delivery possible. The payment experience only becomes truly frictionless when these two sides align.”

Competition, too, is intensifying. Traditional payment gateways are under pressure from new entrants offering seamless, API-first architectures that promise speed and integration flexibility. McKinsey noted that what was once a pursuit of universal efficiency has evolved into a competition among various market systems, each with its own distinct capabilities and constraints.

Hassan said the legacy environment was characterised by slow change, high risk aversion and static data that remained stored away. However, today’s next-generation environment has completely flipped this dynamic, establishing speed and flexibility as standard and transforming data into an actively leveraged, true superpower.

“APIs are a key enabler of this modern mindset and technological shift, as they have levelled the playing field. Now, virtually any fintech can easily plug in, launch and scale rapidly.

By drastically reducing the barriers to entry, APIs are driving innovation faster than ever before,” Hassan said.

The GCC payments industry is no longer merely adapting to technological or market changes. It is fundamentally reshaping its very foundations amid geopolitical shifts, emerging digital ecosystems and the rapid advancements in AI.

Panel 2: Teamwork TestedPayment Gateways and APIs

The real-time payments revolution is rapidly reshaping the financial services sector, opening vast opportunities for institutions to develop innovative products and deliver hyper-personalised customer experiences.

The discussion around payment gateways and APIs, titled Teamwork Tested was moderated by Rajesh Nagpal, Director of Technology at GBM. The panel had the participation of Ramana Kumar, Chief Executive Officer in the Middle East at Paytm; Saud Al Dhawyani , Chief Platforms Officer at Emirate NBD and Vibhor Mundhada , Chief Executive Officer at Neopay.

Nagpal opened the panel by highlighting that the payments industry has undergone a tremendous evolution, driven by the three key pillars of convenience, speed and access.

However, despite the progress, Nagpal said there remains immense room for further innovation and growth. The potential is reflected in the global value

of the payments industry, which exceeds $250 trillion, with digital payments alone contributing over a billion dollars and expanding rapidly, Nagpal said, adding that this scale underscores both the progress achieved and the enormous opportunity ahead.

Reflecting on the evolution of the payments industry, Paytm’s Kumar said the pace of change in the payments landscape is astonishing.

“While Bitcoin began reshaping the landscape sixteen years ago, even the last three or four years have seen remarkable shifts. What was once an innovation, the payment gateway, has now become commoditised,” said Kumar.

He underscored that the rapid obsolescence highlights the speed of technology. “Today, when offering a payment gateway, a merchant’s typical response is, I already have eight options, what makes yours different?” Kumar said, while explaining that success hinges on payment gateway modernisation, focusing on building value-added services, monetising data and effectively leveraging AI for functions such as routing, orchestration and lifecycle product integration.

Payment gateways, the customerfacing technology that securely captures and encrypts payment information during checkout, play distinct roles in the world of payment processing. The world of payment gateways is rapidly evolving, and businesses need to keep pace to deliver exceptional customer experiences.

Neopay’s Mundhada said regulations were a highly fluid issue just two or three years ago, as launching a payments or wallet business often lacked clear guidance on applicable frameworks or required licenses.

However, Mundhada acknowledged that the CBUAE provided much-needed clarity by introducing well-defined regulations that effectively levelled the playing field. He said the frameworks clearly outline the scope of activity for payment companies, creating a more structured and secure environment for innovation.

“Once the compliance layer is established, it unlocks new opportunities where traditional banks may be less active, such as lending. For instance, at Neopay, we plan to enter merchant lending – not to compete, but to fill specific market gaps,” he said.

Banks often avoid segments like low-ticket, short-tenure loans due to the complexity and cost of underwriting and management. Mundhada explained that this creates a clear opportunity for fintechs like ours to step in, using merchant data, AI-driven risk models and robust distribution capabilities to serve this underserved segment efficiently.

“Beyond this, we are seeing a rise in private credit opportunities and increased activity from non-banking financial institutions (NBFIs) across the region. Since many NBFIs lack the infrastructure or reach to execute their own underwriting, distribution and collection models effectively, strategic partnerships between fintechs, payment providers and NBFIs are becoming crucial,” said Mundhada.

Banks in the GCC are at the forefront of this transformation, acting as essential intermediaries between merchants, consumers and payment processors.

“Payments have become more accessible, with innovations such as digital wallets, QR codes and mobile money accelerating financial inclusion in developing economies,” according to Boston Consulting Group.

Modern integrated payment platforms from companies such as Network International, Magnati and NeoPay empower banks and payment providers to design and launch new products and services through their own APIs, using a standardised catalogue of modular features and add-ons.

Emirate NBD’s Al Dhawyani said only about 33% of payments were made through digital or e-payment channels in 2014, but today that figure has more than doubled to around 70%, and in Saudi Arabia, it has reached nearly 80%, according to recent data published by SAMA.

He attributed the tremendous growth to changing consumer behaviour and the advancement in financial technology.

“When we talk about payment gateways, it’s clear that their role has fundamentally changed. We have moved away from a centralised traditional gateway model to a distributed, edgebased ecosystem,” said Al Dhawyani.

He explained that in today’s operating environment, payment wallets are incorporating many of the features and functions that once sat exclusively within traditional gateways, with the innovations happening at the edge of the ecosystem – closer to the consumer.

“We are witnessing advances such as tokenised transactions, which have enhanced security and improved customer protection, as well as the emergence of Request to Pay systems,” said Al Dhawyani.

Financial institutions in the Gulf region are augmenting services and products to meet evolving consumer, and business demands as the industry continues to grow.

Payment systems have emerged as the backbone of modern commerce, facilitating seamless transactions between businesses and consumers. A boom in e-commerce, the digital economy, tech advancements in payment systems and the increasing globalisation of trade are fueling their growth.

Al Dhawyani closed the panel by noting that the world of payments is

shifting rapidly, and this transformation challenges us to rethink the role of gateways altogether. The payment gateways of the future must evolve to support this new ecosystem – one defined by AI-driven interactions, realtime processing, enhanced security and seamless consumer experiences.

Before the start of the third discussion panel, the audience at the summit were treated to a presentation by Ahmad Jishi, Data and AI Leader at GBM, who provided some fascinating insights with his look at - Improving the Payment Process with AI Agents – Intelligent Orchestration.

Panel 3: Dealing with Deadlines

GCC banks must ensure that by November 2025, all payment messages between banks, both for sending and receiving, are based on ISO 20022. ISO 20022 aims to provide more structure and granular data that can enhance several aspects of banking operations, as well as end-customer payment processing and reconciliations.

The discussion around meeting approaching payments related deadlines such as ISO 20022 was moderated by Isha Chander, Chief Administrative Officer for CEEMEA, Payments at J. P. Morgan. The panel included the participation of Alaa AlRousan, Head of Middle East and North Africa for Swift,

Ana Rita Sa , Head of Transaction Banking Product Management and Cash Management at ADCB and

Anand Sampath, Managing Director and Head – Payments, Collections and Client Implementation at First Abu Dhabi Bank.

FAB’s Sampath said the payments industry is undergoing one of the most significant transformations in its history and ISO 20022 is at the centre of it all.

“We are looking beyond a mere messaging standard to a strategic enabler that is fundamentally transforming the conduct of the payments business worldwide,” said Sampath.

Sampath said that the transformative shift centres on three key areas. Speed and efficiency are dramatically improved as the ISO standard eliminates errors and reduces exceptions, accelerating the entire payment process.

He highlighted that this is coupled with significant data enrichment, meaning payments now carry detailed information such as remittance data, addresses and purpose codes, which makes reconciliation faster and highly accurate.

Finally, Sampath said in terms of compliance and transparency, the standard, especially when combined with Swift GPI, enhances AML and screening procedures, introducing far greater clarity across all payment flows.

The use of ISO 20022 replaces the existing format, known as message type or MT. It is planned that MT will be phased out from November 2025, when ISO 20022 becomes compulsory.

AlRousan concurred with Sampath and Rita Sa, saying that as a representative of

the creators of the ISO 20022 standard, “I can confirm its purpose was never mere technicality”.

“While older financial messaging standards served well for decades, their design is over 35 years old. The speed of modern payments demands a more advanced and structured approach to get it right the first time,” said AlRousan.

AlRousan emphasised that ISO 20022 is no longer just a SWIFT network initiative. “Most modern payment engines and networks, particularly instant payment systems, are now natively built upon it. The shift is driven by a simple fact that today’s retail and corporate customers demand speed, transparency and accuracy, expecting payments to be processed instantly and correctly on the very first attempt,” he added.

ISO 20022 enables the transmission of more structured data, allowing financial institutions to offer enhanced digital services, improve compliance and achieve greater automation. It could also drive product innovation in areas like enhanced reporting, automated reconciliation, and real-time cash flow forecasting.

Rita Sa emphasised that the central challenge in legacy systems and technology is the need for comprehensive changes to our payments infrastructure, which is currently hindered by the ongoing demands and constraints of existing legacy projects.

She underscored that this creates a significant drag, not merely on team capacity, but also due to the sheer volume and complexity of simultaneous modernisation efforts.

“We frequently get absorbed in technical specifics, such as messaging formats and system details. The key challenge, however, is the successful translation of these technical changes into demonstrable client value and a superior client experience,” said Rita Sa.

“The meaningful outcome must be visible and consistent across all client channels. Fully bridging this gap is a critical priority leading up to the November go-live for ISO 20022.”

From a regional perspective, Sampath closed by underscoring that the financial services industry is witnessing significant progress. He highlighted that key initiatives, including the UAE’s Aani, Saudi Arabia’s Sarie and Egypt’s Instant Payment Network, are built as ISO-native systems. The foundational approach ensures payment infrastructure is both future-proof and fully interoperable.

Coming after the conclusion of Panel 3, followed the event’s Industry Address given by Cem Soydemir , Regional Head of Payments, Go-ToMarket, at Swift, titled ISO20022, From Readiness to Impact, where he outlined the approaching deadline for the ISO 20022 migration and what this will mean for cross-border payment from then on.

Panel 4: Cross-Border Payments and Remittances

The future of payments lies in adapting and catering to the diverse needs of customer segments and emerging trends. There is a rising demand for a cross-border payment system that offers speed, security, and

efficiency as global economies become increasingly interconnected.

Siddharth Ghaisas , Payments Strategy and Technology at Accenture, moderated the discussion around crossborder payments and remittances. The panel had the participation of Sagar Chandiramani , Chief Financial Officer at Virtuzone; Ahmed Salahy, Director of Strategic Partnerships at Careem Pay; Osama Al Rahma, Chairman of Foreign Exchange and Remittance Group (FERG) and Head of Business Development and WM at Emirates Investment Bank, and Kerim Yebari , Director, Head of Institutional Cash and Trade, Eastern and Southern Africa at Deutsche Bank.

Quizzed about Careem Pay’s fintech journey, mirroring Careem’s overall path, has been an exciting one. “Over the past three to four years, we have made significant investments to build a robust payment and fintech infrastructure. The foundation not only supports crossborder payments but also powers all payment processing across the entire Careem ecosystem,” said Salahy.

“Our remittance service is extensive, covering more than 30 countries and the majority of key receiving markets. We have achieved about 85% coverage of all markets that receive remittances from the UAE, giving us a robust footprint across the most important corridors.”

Global payments are expected to reach about $290 trillion by 2030, according to FXC Intelligence, supported by trends such as borderless e-commerce, cross-border trade and digitalisation of payments across industries.

From a correspondent banking perspective, Deutsche Bank’s Yebari pointed out that correspondent banks are the critical infrastructure for global financial flows.

“Our essential role demands strict adherence to the regulatory regimes, including AML, KYC and sanctions screening, of both the sending and receiving countries. Failure to perform these checks correctly is a significant liability, resulting in delayed transactions,

client dissatisfaction, crippling financial penalties and severe reputational damage,” said Yebari.

He emphasised that Deutsche Bank is making strategic investments in systems and processes to ensure full compliance. “Our objective is to swiftly and accurately identify, stop and report illicit financial activity,” added Yebari.

Cross-border payments are an integral feature of today’s world. They play a vital role in keeping the economy healthy and stable. The payments typically require three to five days of end-to-end processing before reaching the intended recipient and the shortcomings are compounded by high costs, lengthy settlement times and opaque processes.

Virtuzone’s Chandiramani said the entrepreneurial landscape has radically changed. He emphasised that in the postCOVID era, businesses no longer start locally; instead, they begin with a global mindset and the ambition to go international.

“The global vision creates a crucial set of financial demands and Virtuzone is here to meet them. First, founders need the ability to pay and get paid effortlessly, which is vital for managing offshore employees and international freelancers with cost-effective, frictionless transactions. Second, for those trading internationally, the ability to collect money quickly is paramount to maintaining healthy working capital. Third, entrepreneurs require the speed and convenience of domestic payment channels for their global transactions, ensuring costs are kept low,” said Chandiramani.

He notes that all of this financial activity, from managing international operations to collecting revenue, is fundamentally tied to the banking and financial services sector and this is where Virtuzone’s vital role begins.

Al Rahma, speaking from his perspective as Chairman of FERG, made a key point in this discussion, “Remittances remain a lifeline for millions of people across our region, and innovation in this space has a human impact that goes far beyond the financial. With the right

balance between regulatory oversight and technological progress, we can make cross-border transactions faster, cheaper and safer. Collaboration is critical — regulators providing clarity, banks providing scale and fintechs bringing agility. Together, we can ensure that every dirham remitted arrives quickly, transparently and at the lowest possible cost to those who need it most”, said Al Rahma.

Cross-border payments are an integral feature of today’s world. They play a vital role in keeping the economy healthy and stable. The payments typically require three to five days of end-to-end processing before reaching the intended recipient and the shortcomings are compounded by high costs, lengthy settlement times and opaque processes.

Panel 5: Technology and AI, Present in the Future

AI is revolutionising the GCC payments landscape by automating tasks like cash flow forecasting, offering valuable insights into industry trends and enhancing security through account validation and fraud management.

The discussion was moderated by Bryan Stirewalt , Executive Advisor at Grant Thornton and the panel included the participation of Gyan Prakash Srivastava, Group Head, One Data and Analytics at Mashreq; Dr. Abdulla AlTaee , Chief Operating Officer at United Arab Bank; Venkata Prasad Indraganti, Senior AGM, Head of Transaction Banking at Commercial Bank and Somu Roy, Managing Director for

Outsourced Payment Services in the UAE at Network International.

The innovative technology can significantly improve the payment experience by offering personalised solutions, enhancing security and streamlining digital transactions. The advancements in payment technology are benefiting businesses and consumers alike, making payments more efficient and secure.

Stirewalt opened the panel by emphasising that though the financial services industry is undergoing massive change, the payments space has been more dramatically disrupted over the past decade.

“Historically, a bank’s payments department was a quiet, back-office function – often literally tucked away, far from the spotlight. That era is over. Today, the payments arena is packed with new, aggressive entrants, including fintechs, neobanks and major non-financial players that are all competing to redefine how value moves,” said Stirewalt.

Just as the AI industry is facing upheaval as it develops and grows, the use of the technology is still finding its way into the payments space and iterative processes and experimentation are slowly uncovering the potential, limitations and opportunities.

Roy said Network International has a privileged vantage point, working with over 250 banks and more than 40 financial institutions in the UAE alone, which gives the payments firm a front-row view of exactly how the market is embracing AI.

“From what we are seeing on the ground, the conversation isn’t about if payments firms should use AI, but where. We have identified three clear and undeniable use cases that every player in our industry should be prioritising, including customer service, software development and fraud detection and risk scoring,” said Roy.

“GenAI enables us to simulate millions of potential scenarios in a single day, significantly strengthening our scoring and fraud prevention models – leading to smarter, faster and more adaptive protection for our clients,” he added.

Most of GenAI’s potential in the payments space rests on the operations side because the industry has many aspects for which the new technology is applicable, including high-volume, high-frequency and data-rich operations that involve human-intensive workloads, according to BCG.

Srivastava said banking is fundamentally a business built on trust and behind every successful payment lies a massive amount of data.

“Transactions across retail, corporate, and SME systems, from channels such as Aani, UAE FBS, QuickRemit and crossborder payments, all feed into a single, powerful dataset,” Srivastava said, adding that this data is the engine of modern banking.

“Our AI journey at Mashreq began about two years ago, rooted in a vision formulated three or four years prior. Our

core strategy was simple yet revolutionary – to treat every business domain as a data domain,” added Srivastava.

“Payments are naturally a key example of this approach. By treating payment data strategically, we can generate multiple derived data domains, which are essential for driving advanced customer insights and sophisticated decisionmaking across the entire bank.”

BCG projected that the UAE’s payments industry is poised for significant growth, with total revenue expected to reach $19.8 billion in the next five years. The growth is driven by the increasing adoption of digital payments and technological innovations, including the emergence of GenAI.

Indraganti explained that every jurisdiction has its own unique financial regulatory requirements. “We must not only meet these mandates but also ensure appropriate reporting to regulators. However, attempting to manage this manually, particularly with vast amounts of historical data, is unsustainable,” said Indraganti.

“Leveraging AI, automation in regulatory compliance is a good start, but it’s not enough; we need an AI that can reason through exceptions, think like a human and guarantee that every single transaction successfully passes all required checks. This level of comprehensive, fail-proof compliance is precisely what we are implementing at the Commercial Bank of Qatar,” he said.

Indraganti said Commercial Bank of Qatar is also leveraging AI to process raw information, such as in document verification.

Though the technology is still nascent, its impact on specific payment operations could be profound. It can potentially provide comprehensive solutions for all stages of the payment process, including marketing, sales, customer acquisition, identity verification, customer support and fraud prevention.

“AI is no longer an emerging technology, but it is permanently embedded in our existence. It powers the core functions of

the financial services sector – whether it’s fraud prevention, customer service and operational efficiency – AI is the silent engine operating behind the scenes,” said Al Taee.

Al Taee continued that AI transforms banks into “intelligent banks”, scaling their ability to deliver personalised services that perfectly match individual customer needs. He emphasised that the transformative technology offers predictive insights into customer behaviour, allowing banks to offer the right products and services exactly when they’re required.

“Agentic AI goes beyond simple data analysis, but it actively makes decisions and provides actionable insights. The advancement in AI enables smarter, faster decision-making, while significantly reducing the need for human intervention,” Al Taee added.

Banks and payments companies are leveraging AI to streamline operations, personalise customer experiences and drive sustainable business expansion.

Panel 6: Real Time Leaders

Real-time instant payments, driven by both regulatory mandates and market demand, have experienced steady growth since the UK introduced Faster Payments in 2008. The development is reflected in the 266.2 billion transactions accounted for globally in 2023, representing a 42.2% year-on-year increase, as reported in a joint study by ACI Worldwide and GlobalData.

Bryan Stirewalt, Executive Advisor at Grant Thornton, moderated the discussion about why our region seems to be taking a lead in the world of real-time payments.

The panel had the participation of Naman Kapoor, Managing Director, Head of Payments for Middle East and Africa at Citi; Uzair Kapadia, Managing Director, Head of Cash Products, Transaction Banking AME for Standard Chartered and Gregory Thomas, Head of Group Strategy and Corporate Development at RAKBANK. Opening the discussion, Stirewalt stated, “The Middle East’s payments transformation is one of the most dynamic in the world. Having lived here for

over 17 years, I’ve seen the region evolve from an emerging market to a genuine innovation hub”.

The implementation of real-time payment systems across the GCC region is driving significant benefits for businesses and consumers alike, ushering in a new era of financial innovation and opportunity.

“The energy, ambition and collaboration across regulators, banks, fintechs and investors are unparalleled, and that’s what’s driving the region’s leadership in real-time payments and financial innovation,” said Stirewalt.

Quizzed about the paradigm shift in the financial services sector, RAKBANK’s Thomas said the most significant change in institutional governance is the explosive growth in interconnected external systems.

“The rollout of new systems such as Aani and the adoption of open finance have fundamentally altered our operating model. Banks can no longer operate in isolation, but they must now actively manage interconnectivity with numerous external partners,” said Thomas.

He explained that the interconnected nature of modern finance means that failure in any partner system often results in customers defaulting to their bank for resolution, elevating the bank’s accountability beyond its own infrastructure and into the broader ecosystem.

Real-time payments are revolutionising the payment industry by addressing inefficiencies in traditional payment systems and enabling entirely new business models and use cases that were previously unimaginable.

Payroll processing has emerged as a significant driver of real-time payment growth globally, enabling employers to offer instant payroll and employees to access their earned income immediately. However, instant payment services have much broader potential applications.

Beyond facilitating cross-border business growth and market access, real-time payments offer greater transparency in the often fragmented and unpredictable business-to-business payments landscape.

From a bank’s perspective, Kapadia said, internally, AI is already wellestablished, driving improvements in critical areas such as payment screening, credit scoring and backend process automation. He explained that specific use cases of AI include processing check deposits, identifying fraudulent transactions and streamlining operational tasks.

“AI is proving valuable in improving data hygiene and standardisation, which is crucial given the existing inconsistency of APIs across the industry – the offerings from banks such as Standard Chartered, Citi or RAKBANK can vary significantly. While automation helps to bridge some of these integration gaps, the governance framework for this data-driven space continues to evolve,” Kapadia added.

The majority of instant payment systems are leveraging ISO 2022 messaging standards, enabling two-way communication through messages such as requests for payment, requests for information and confirmation of payment.

The growing popularity of real-time instant payments is driving consumer expectations for faster, more convenient transactions, putting pressure on market infrastructures to keep pace.

Real-time payment systems such as Aani in the UAE, SARIE in Saudi Arabia and FAWRAN in Qatar are revolutionising the speed of money transfers and account settlements across the GCC region. By embracing innovation, leveraging

technology and partnering with other industry players, stakeholders can navigate the changing landscape and capitalise on the opportunities presented by the digital payments revolution.

Kapoor said governance around AI is critical in the banking sector because, unlike non-financial institutions, banks operate with a zero tolerance for inaccuracy.

“Even a 1% error rate is unacceptable in financial services. Therefore, governance frameworks for AI in banking must be significantly more stringent, ensuring that all AI systems are rigorously vetted for safety, accuracy, and efficiency,” Kapoor added.

He emphasised that banks must implement robust oversight to ensure AI models perform flawlessly, thereby upholding the absolute need for precision and trust in all financial operations.

Bankers and tech experts at the MEA Finance Leaders in Payments & Awards summit agreed that the digitisation and application of new and emerging technologies, both domestically and globally, is significantly increasing the nature, volume and frequency of payment schemes.

The outlook for the payments sector remains strong, with five-year growth projected at or above the long-term average. The vectors of growth are evolving, however, and banks must optimise the profitability of such growth.

The MEA Finance Leaders in Payments Awards 2025 –Celebrating Those Defining the Future of Payments

The annual MEA Finance Leaders in Payments Awards shine a spotlight on the companies, innovators and visionaries driving the transformation of payments across the region and securing its place on the global stage.

The MEA Finance Leaders in Payments Awards 2025 returned in style on 11th September , gathering the industry’s brightest minds and boldest innovators at the Ritz-Carlton, JBR in Dubai . Against a backdrop of rapid change and remarkable growth in the payments landscape, the evening honoured those leading the charge — from trailblazing fintechs and pioneering

banks to standout individuals shaping the future of how money moves.

More than just an awards ceremony, this annual celebration recognises the people, companies and ideas propelling the Middle East and Africa to the forefront of the global payments revolution. As payments technology becomes ever more integral to the way societies and economies function, these awards highlight the talent and innovation

ensuring our region remains ahead of the curve.

Organised by MEA Finance Magazine, the Leaders in Payments Awards have become the benchmark for excellence and leadership in this dynamic sector. Year after year, they cast a spotlight on groundbreaking achievements, standout performances and transformative technologies that are redefining the way we think about payments.

Reflecting the sector’s extraordinary growth and rising importance, this year’s awards attracted the highest number of entries to date. Each submission was carefully reviewed by an independent panel of industry experts, who evaluated their impact and contribution to the regional ecosystem. After a rigorous judging process, thirty-one winners were announced — each one a standard-bearer of innovation, leadership and excellence in the payments space.

Here follows the full list of the MEA Finance Leaders in Payments Awards 2025 winners:

Best Payments Inclusivity Initiative –Banque Misr – Egypt

Best Real-Time Payments Provider –Infosys Finacle

Best Real-time Payments Implementation

– Qatar National Bank & Infosys Finacle

Best Payment Technology Implementation – UAE

– Network International

Best Payment Technology Implementation – KSA

– Standard Chartered

Best User Experience in Payments –

First Abu Dhabi Bank – FABeAccess

Best Cross-Border Payments

Technology Provider

– Blue Remit Limited

Landmark Innovation in Cross-Border Payments Award – Mashreq

Best Payment Gateway

– Checkout.com

Best Open Banking Payments Project

– First Abu Dhabi Bank – Cash Management API Solutions

Best Digital Payment Transformation Initiative – Paymentology

Best Instant Payments Technology Implementation

– Mashreq & GBM

Best Instant Payments Technology Solution

– Infosys Finacle

Best User Experience in Payments –Cloud Solutions – DiXiO

Outstanding Contribution to SME Tax Compliance

– Taxready.ae, A Virtuzone Company

Best Customer Experience in Payment Authentication

– Giesecke+Devrient (G+D)

Best Remittance and Foreign Exchange Services Provider

– Al Ansari Exchange LLC

Overall Best Payments Platform in the Middle East

– Network International Payments Innovation of the Year

– Standard Chartered

Best Innovation in Payments Technology

– NEOPAY

Best AI Application in Payments

– First Abu Dhabi Bank

Best Payments Cyber Security Implementation – myZoi

Best Payments Inclusivity Provider –HPS – PowerCARD platform

Best Mobile Payment App

– e& money

Best Payment Gateway Implementation

– Skiply by RAKBANK

Best Payments as a Service Award –

HSBC Bank Middle East

Payments Technology Executive of the Year in Banking

– Santosh Vaidya, Senior Vice President – Head of Payments and Digital Services, Mashreq Payments Executive of the Year

– Dr. Abdulla AlTaee, Chief Operating Officer, United Arab Bank

Payments CEO of the Year – Vibhor Mundhada, Chief Executive Officer, NEOPAY

Payments Technology Executive of the Year in Financial Services

– Melike Kara Tanrikulu, Chief Executive Officer, e& money

Digital Payments Leader of the Year

– Abdallah Muhana Jamil Muhana, Senior Vice President – Head of Skiply & Head of Education Payments Solution, RAKBANK

Nap Estampador Group Director, MEA Finance

Celebrating Excellence in the New Era of Payments

As the payments landscape continues to evolve at an unprecedented pace, 2025 marks a pivotal moment — one defined by bold innovation, cross-border collaboration and a shared commitment to shaping a more inclusive, secure and connected financial ecosystem. The MEA Finance Leaders in Payments Awards 2025 celebrate the visionaries and innovators at the forefront of this transformation — the institutions and individuals redefining how money moves, how trust is built and how technology is harnessed to serve people and businesses across the region and beyond.

In an environment where real-time transactions, embedded finance, AI-powered fraud detection and the rise of CBDCs are rapidly reshaping the industry, this year’s winners have set new benchmarks for leadership and resilience. Their forward-thinking strategies and groundbreaking solutions — from modernising payment rails and embracing open finance frameworks to deploying advanced cross-border settlement platforms — are not only enhancing operational efficiency and security but also broadening access and inclusion for millions of users.

The 2025 awardees exemplify how innovation in payments goes far beyond transactions. They are building future-ready ecosystems that anticipate and respond to evolving customer needs, strengthening the digital economy through seamless, scalable and secure solutions. Whether through AI-driven risk mitigation, biometric authentication, tokenisation or embedded finance capabilities, they are redefining the customer experience and enabling businesses to thrive in a rapidly digitising marketplace.

Beyond technology, these leaders recognise that the future of payments must also be ethical, sustainable and inclusive. With ESG principles becoming integral to financial strategies, this year’s honourees demonstrate how payment innovation can be a catalyst for positive societal change — driving financial inclusion, empowering underbanked communities and fostering trust through transparency and accountability.

As we celebrate their achievements, we also recognise the broader significance of their contributions. Payments lie at the heart of economic development, powering commerce, enabling innovation, and connecting communities. The trailblazers we honour today remind us that this industry’s greatest impact is not just measured in speed or scale — but in the lives it transforms and the opportunities it creates.

We extend our warmest congratulations to all the winners of the 2025 MEA Finance Leaders in Payments Awards. Their success is not only a testament to their ingenuity and leadership but also a powerful reflection of the region’s growing influence on the global financial stage.

Join us in celebrating their vision, resilience, and transformative impact as we step confidently into the new world of payments.

Best Payment Gateway Checkout.com

Checkout.com were recognised at our 2025 Leaders in Payments Awards for their best-in-class payment gateway, and for their consistent delivery of innovative merchant solutions. In just one of many available examples of market leading services, their Intelligent Acceptance product - via an AI-powered engine designed to help enterprise businesses boost their payments performance had, by March 2025 generated over US$10 billion in additional merchant revenue since its launch in the second half of 2023.

Best Payment Gateway Implementation

Skiply by RAKBANK

RAKBANK’s Skiply, their own gateway implementation, continues in its run of awards successes with their education payment and management system, making this essential task for families and educational institutions across the nation much easier and more convenient. The provision of a seamless payment journey, that is entirely digital also incorporates helpfully flexible options such as 0% processing fees on 3, 6 and 12-month instalment plans for education fees, which helpfully empowers more than 185,000 users.

Best Real-Time Payments Provider Infosys Finacle

Infosys Finacle’s Payments Suite is a truly digital, real-time payments platform that has accelerated the payments modernisation journey of banks. It supports banks throughout their transformation journey to modernised payments solutions, allowing them to deliver real-time, frictionless payments anytime, anywhere. Built on a modern architecture, this componentised suite has allowed banks and payments-focused fintechs to reimagine their businesses with digital technologies that drive new revenue streams.

Best Real-time Payments Implementation

Qatar National Bank & Infosys Finacle

Qatar National Bank, well aware of the wave of digitisation that was sweeping the world, wanted to ensure they retained their market leadership, and so embarked on a mission to consolidate their payments systems into a single, more efficient and modern platform. Then, with their technology partner in this important quest, Infosys Finacle, they implemented their next-gen Payments platform to successfully ensure the delivery a fully composable solution that transformed the bank’s payments infrastructure.

Best Payment Technology Implementation – UAE

Network International

Network International have been behind the implementation of numerous technologies by developing integrated, secure and scalable solutions such as their One and their Lite platforms, being recognised in these awards. In addition, they are noted for their frequently adopting new digital solutions and collaborative partnerships with other businesses like Mastercard and the Government of Dubai, with examples of solutions including N-Genius POS terminals, cloud-based APIs and SoftPOS technology for mobile devices.

Best Payment Technology Implementation – Kingdom of Saudi Arabia

Standard Chartered Bank

Standard Chartered Bank’s success in this category has come from the implementation of systems and solutions that are both regulatoryready and adaptable to the Kingdom of Saudi Arabia’s quickly evolving banking and finance market requirements. Notably, this includes their transformative API-driven Payouts as a Service (PaaS) platform that redefines payment processing and collections across the nation, and that successfully navigates market challenges and structural hurdles such as Fragmented validation, operational bottlenecks and exposure to fraud.

Best User Experience in Payments

First Abu Dhabi Bank for FABeAccess

First Abu Dhabi Bank’s success in this category comes from their consistently demonstrating innovations in the banking sector by introducing groundbreaking solutions and redefining the customer experience.

They have set new standards for digital channels and payments with examples of standout differentiators that include their eAccess Account Services, their Corporate Cheque Deposit scanning with multi-factor authentication that speeds up the cheque clearing process and remote cheque printing, as just part of an extensive list of their practical solutions.

Best Cross-Border Payments Technology Provider

Blue Remit Limited

Blue Remit Limited, winer of the Best Cross-Border Payments Technology Provider award, retains a strategic focus on B2B operations. As a premium money transfer operator, they partner with businesses to provide secure, speedy and reliable cross-border payment solutions. They integrate advanced financial technologies with their deep understanding of global remittance dynamics, enabling them to deliver tailored solutions that adhere to the highest standards of regulatory compliance, risk management and data security.

Landmark Innovation in Cross-Border Payments Award

Mashreq

Mashreq, the winner of the Landmark Innovation in Cross-Border Payments Award, did so for addressing the cross-border payments risk management challenges for globally active banks.

Built for today’s highly dynamic regulatory and financial ecosystem, they developed the Cross Border Payment Monitoring & Risk Analytics Solution –“X-Border RISK View - Payment Monitoring, Risk Exposure & Limit”. This important innovation is a first-of-its-kind integrated analytical tool for monitoring payment trends, risk exposures and limit utilisation across high-risk jurisdictions and countries.

Best Payments as a Service Award

HSBC

HSBC collects the Best Payments as a Service Award for the launch their Bulk Beneficiary Validation feature on their Corporate Channels. This feature is a value-add service solution that will enable validation of the card numbers of suppliers, of vendors or employees to which the customer intends to make the payments. This solution acts to mitigate frauds associated with IBAN related impersonations and to provide a greater assurance to customers that their payments are being safely sent to the correct beneficiary.

Best Payments Cyber Security Implementation

MyZoi

MyZoi, the winner of Best Payments Cyber Security Implementation, succeeds by facing into the increasing blizzard of cyberthreats by embedding cybersecurity into all layers of their product with robust infrastructure, innovative use of biometrics, contextual fraud prevention and PCI-DSS Level 1 certification. Their ongoing commitment to educating and protecting the most vulnerable in society, fuels their drive and determination to purposefully distinguish themselves by moving beyond and exceeding compliance standards.

Best Open Banking Payments Project

First Abu Dhabi Bank for their Cash Management API Solutions

The winner, First Abu Dhabi Bank redefines how payments happen through their Open Banking API platform, that lets businesses initiate, track and reconcile transactions in real time with one of the region’s most advanced and comprehensive payments API ecosystems for corporates. Through this, and also as only two examples of many more service options, they deliver real-time capabilities and features including the moving of funds between corporate accounts instantly and securely, and cross border payments with FX support and full compliance.

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Best Digital Payment Transformation Initiative

Paymentology

Winning the Best Digital Payment Transformation Initiative award, Paymentology is a global leader in next-generation issuer-processing, empowering regional fintechs, banks and institutions to effortlessly launch and scale innovative payment solutions. They are set apart by a platform enabling intelligent card issuing, real-time data insights and compliance-driven fraud prevention, and so bring clients to market faster, and helping them to hone a more competitive edge. They also receive additional recognition for their nurturing of key partnerships such as with Wio Bank and Mamo.

Best Mobile Payment App e& money

The winner of the Best Mobile Payment App award, e& money, provides a realtime example of the increasing intermingling of once distinctly separate sectors to provide more agile and convenient financial services. Their financial super app is notably the first digital wallet licensed by the Central Bank of the United Arab Emirates, and allows users to manage these services with their Emirates ID and mobile number, and offers international and local money transfers, bill payments, merchant payments and gifting.

Best Payments Inclusivity Initiative

Banque Misr – Egypt

Banque Misr – Egypt wins the Best Payments Inclusivity Initiative award for an inclusivity policy that supports underserved and marginalised groups, and people of determination via specific initiatives in their regional branches. Their focus on women, youth and the promotion of financial literacy are also part of the initiative through partnerships and digital programmes. Additionally they support entrepreneurship with their “Nile Pioneers,” initiative, and on all business levels, cater for the whole customer and client ecosystem to aspire to be the leader bank for everyone.

Best Payments Inclusivity Provider HPS for their PowerCARD platform

Winning the Best Payments Inclusivity Provider award, HPS is a pioneer in developing financial inclusion solutions that ensure payments are accessible to everyone. A splendid example of this is seen with their PIN Express, making POS payments accessible for the blind. Additionally, through their PowerCARD Platform, which promotes inclusivity more widely still by enabling financial institutions, fintechs and other providers can launch digital payment solutions that serve wider ranges of users, including the underbanked and unbanked.

Best Instant Payments Technology Implementation

Mashreq & GBM

The winners of this award celebrate an effective collaboration to launch Mashreq’s implementation of the Aani instant payment system via IBM API Connect. This proved to be a pivotal enabler by defining the value proposition and strategic roadmap, finely architecting the solution, sizing the platform capacity and providing continuous review, tuning and enhancements. This successful implementation means that the bank reinforces its leadership in payment innovation and provision of a top-level digital customer experience.

Best Instant Payments Technology Solution

Infosys Finacle

Winning the Best Instant Payments Technology Solution award, Infosys Finacle Payments Suite allows banks to successfully develop, modernise and keep pace with today’s accelerating payments landscape. It brings the ability for them to deliver real-time, frictionless payments experiences at anytime and anywhere. This is achieved by way of a full range of solutions incorporating examples such as an open and a cloud native microservices driven enterprise payments platform, a microservices driven enterprise message transformation hub and a blockchain-based payments solution.

Best User Experience in Payments –

Cloud Solutions

Dixio

Dixio takes this award based on their provision of cloud-based financial messaging solutions connecting financial institutions to global networks and facilitating international payments, FX deals, trade finance and securities settlement with their Smart Messaging Platform. This is a secure, scalable, cloud-native platform designed to simplify SWIFT connectivity and modernise legacy systems, offering innovative services to banks, corporations and fintechs with enhanced user experience premiums based on simplicity, security and efficiency.

Outstanding Contribution to SME Tax Compliance

Taxready.ae A Virtuzone Company

Taxready.ae, the winner of this award, did so for their provision of a key, and essential service that is definitively vital to the large and ever-growing ecosystem of SMEs that are engaged in using their services (more than 7,000 supported by them to date). Accredited by the Federal Tax Authority, they helpfully provide services which include corporate tax filing, VAT registration and returns, audit support and book keeping for all payments due requirements.

Best Payment Technology Implementation – Kingdom of Saudi Arabia

Giesecke+Devrient (G+D)

Giesecke+Devrient took the Best Payment Technology Implementation – KSA award for providing the Out-of-Brand or biometric authentication method - fingerprint scan or face recognition, as the most convenient method for customers and cardholders to conduct secure and flawless e-commerce, making transactions easier, simple, and even an enjoyable experience. With their RBA - Risk Based Authentication solution, they offer a flexible and highly configurable risk assessment and fraud prevention solution that allows the monitoring of online payments and card processing services.

Best Remittance and Foreign Exchange Services Provider

Al Ansari Financial Services

Collecting the Best Remittance and Foreign Exchange Services Provider award, Al Ansari Financial Services, will next year celebrate their 60th year since launch. Their extensive branch network is the UAE’s largest remittance and foreign exchange provider offering fast, secure and affordable financial solutions for individuals and businesses. In the process they also marked some additional notable achievements that include 50 million transactions conducted in their 2024 financial year and reaching over 270 branches in their network, as only two of numerous other examples.

Overall Best Payments Platform in the Middle East

Network International

Winning the Overall Best Payments Platform in the Middle East award, Network International has a multi decade track record of delivering and continuing innovative solutions for businesses by simplifying commerce and payments, such as with their N-Genius One SoftPOS. This example of continuing innovation turns you smartphone into a POS terminal. They remain the region’s largest digital payments business having expanded to include international locations with operations centres now in Egypt, Jordan, South Africa and Nigeria.

Payments Innovation of the Year

Standard Chartered Bank

Standard Chartered Bank picked up the Payments Innovation of the Year award with their Payouts as a Service platform which offers a fully automated, API-first approach that embeds directly into clients’ operations. The platform, consisting of two seamlessly integrated components - Beneficiary Name Validation and Automated Payment Initiation, is differentiated by automation at scale, realtime processing and the integration their innovative Straight2Bank capabilities with client ERP systems to create a true end-to-end digital experience.

Best Innovation in Payments Technology NEOPAY

Neopay was the recipient of the Best Innovation in Payments Technology award. Neopay is an acknowledged trailblazer in the UAE’s payments landscape and are no strangers to innovation. They are in possession of a generous portfolio of new and enhanced services and key achievements in the market, such as Wireless POS Integration for Sharjah Taxi, being first-to-Market with VISA EPP in the UAE and notably their becoming the first to enable Aani instant payments on POS terminals.

Best AI Application in Payments

First Abu Dhabi Bank

First Abu Dhabi Bank wins the Best AI Application in Payments award through their introduction and integration of advanced Voice Analytics AI. This innovation has brought about a transformative capability that extracts actionable intelligence from millions of customer interactions which allows them to understand behavioural patterns, identify pain points and proactively design solutions that are more relevant, efficient and personalised, and is now capable of analysing voice data 400% faster than before.

Payments Technology Executive of the Year in Banking

Santosh Vaidya, Senior Vice President - Head of Payments and Digital Services, Mashreq

Santosh Vaidya, named as Payments Technology Executive of the Year in Banking at the 2025 Leaders in Payments Awards, is an innovative executive whose expertise spans payments, digital services, BPM, enterprise architecture and advanced analytics. Known for his strategic foresight and hands-on execution, he consistently delivers measurable business impact. Santosh has successfully led Mashreq in a transformation journey which includes the implementation of modern payment systems, modernisation of legacy infrastructure, scaled automation and enterprise-wide innovation.

Payments Technology Executive of the Year in Financial Services

Melike Kara Tanrikulu, Chief Executive Officer, e& money

Melike Kara Tanrikulu, our 2025, Payments Technology Executive of the Year in Financial Services, joined e&, one of the most wellknown businesses in the UAE and the business she now heads, in 2021, and lead the expansion of their financial services in the region by constructing their financial super app. The transformation she has led has been powered by her direction of organic as well as inorganic growth initiatives and backed by her extensive experience in payments and digital banking.

Payments Executive of the Year

Dr. Abdulla AlTaee, Chief Operating Officer, United Arab Bank

Dr. Abdulla AlTaee, the winner of Payments Executive of the Year award has a long and successful track record of modernising the vital payments ecosystems for several of the UAE’s leading banks. Currently, AlTaee successfully manages the dual responsibility of spearheading and shaping the future of the payment landscape, not just for United Arab Bank, but also for the wider community of financial institutions within UAE in his role as member of the UAE Banks Federation Operations Committee.

Digital Payments Leader of the Year

Abdallah Muhana Jamil Muhana, Senior Vice President - Head of Skiply Program & Head of Education Payments Solution, RAKBANK

Abdallah Muhana Jamil Muhana, the winner of the Digital Payments Leader of the Year award has been credited with delivering a banking-backed payments product that arose from innovative leadership and vision in identifying an important niche - education payments management. Additionally of note is his ability to deliver and execute with precision, thus he was able to successfully shape the UAE’s education payments landscape in a pioneering move by creating the UAE’s first platform dedicated to education related payments.

Payments CEO of the Year

Vibhor Mundhada, Chief Executive Officer, NEOPAY

Vibhor Mundhada, Chief Executive Officer, NEOPAY was recognised as the Payments CEO of the Year at the 2025 Leaders in Payments Awards. Under his guidance and direction, the business he heads has become a leader in the market, and almost a byword for innovation, known for pioneering bio-metric checkout solutions and prioritising customer-centricity and security. And just in case his role as the CEO of a power in regional payments is not enough, he also serves as the Chairman of the UAE Banks Federation Acquiring and Payments Committee

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