September 2025

Nina Auchoybur, Country Head, UAE, Ocorian

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The Here and Now

As an effect of the pace of change in our lives, our attention is increasingly focused on the current moment; there is a lot happening in the world at this time. This is not necessarily a bad, nor a particularly good thing, it is just the present we find ourselves at. In a regional financial services context, the here and now is pretty positive with much of the region's banking and digital payments sectors still determinedly modernising and even taking leads in some areas. Key aspects of the industry are surging ahead with the fast development of open finance and increasing regulatory sophistication, placing our region at the top table of global financial hubs. So, and as we regularly highlight in MEA Finance, (welcome to the September 2025 edition, btw.) the here and now, when observing the current regional banking and financial zeitgeist, is vibrant, hopeful and enthusiastic.

Our cover story this month highlights this as Nina Auchoybur, Country Head for the UAE at Ocorian talks about their growth and how it parallels our region's rapid ongoing development, especially in the provision of essential services for the region’s cohort of HNWIs. Staying with the prosperous and their ongoing migration to the region, George Hojeije, Group CEO at Virtugroup points to the UAE as the dominant recipient of capital flight from traditional financial centres

This issue showcases the current speed of evolution, the expansion of new, more agile options in banking and finance, and the role of technology behind all of this with our focuses on Open Finance, Digital Payments and Neo Banking.

"The institutions that succeed will not be the ones with the biggest tech budgets, they will be the ones who move fast, scale smart and collaborate well", points out Niraj Naetsawan at additiv.

Our interview with Kawa Junad, Founder and Chairman of First Iraqi Bank, Iraq's first digital only bank, also underlines this pace, and also the importance of regional banking development, "In a country where only 30% of adults currently have a bank account, these changes are foundational for economic growth".

Taking a time-out to consider life beyond the here and now, Dinesh Sharma Head of International Wealth and Premier Banking, MENAT, at HSBC, discusses the changing shape of retirement and life planning, pointing out that, "it is interesting to see how attitudes towards retirement are evolving in the UAE".

Then back to the present with Amol K Bahuguna, regional banking industry expert and Sanat Rao, the Cofounder & Managing Director, Within The Box.ai, both with their own special takes on the AI and the development of regional banking, " The Middle East is not just joining the race; it is building the roads", states Amol, while Sanat advises that in our age of AI, our bankers must become cognitive interpreters, "The modern banker must create value not through knowledge hoarding, but through cognitive synthesis and contextual insight".

Infosys Finacle with their regular banking technology insights, this month describes how banks are offering a broad spectrum of services by transforming into comprehensive service hubs. And finally, the country focus this month is on Kuwait which, in handling its issues has, by encouraging economic diversification and fiscal sustainability, is now on the right track with the banking sector playing a vital and active role in supporting the economy.

So, here and now, it is time to enjoy your read.

From Concept to Competitive Advantage OPEN FINANCE IN THE GCC

The GCC, is entering a pivotal phase in its financial services evolution with Open Finance fast becoming a critical enabler of innovation, particularly in wealth, insurance and credit, says Niraj Naetsawan General Manager Middle East, Financial Services Technology, at additiv

Which recent technological and market developments have most accelerated the shift toward Open Finance?

The shift toward Open Finance is driven by a combination of regulatory push, evolving customer expectations and rapid technological advancements. Regulators are expanding Open Banking frameworks into Open Finance, promoting broader data sharing and interoperability across financial products — not just payments. Several developments are converging to accelerate Open Finance adoption across the GCC.

First, the adoption of cloud-native and API-first platforms is lowering traditional integration barriers, long considered one of the biggest obstacles to digital transformation. Historically, integration between legacy systems and new digital services has been slow, expensive and cumbersome. That is changing. With modular, API-driven platforms, institutions can integrate once and innovate continuously, extending services

Niraj Naetsawan, General Manager Middle East, Financial Services Technology at additiv

across wealth, lending, insurance, without overhauling their infrastructure.

Second, we are seeing the rise of financial orchestration platforms that unify fragmented data, streamline business logic and enable institutions to build hyper-personalised client journeys. With orchestration, firms can move beyond product silos and design seamless, context-aware financial experiences.

Third, AI is a game-changer. From real-

time personalisation and savings nudges to automated portfolio rebalancing and predictive client servicing, AI is enabling smarter, faster and more relevant interactions. At additiv, we are embedding AI across the wealth value chain—from onboarding and profiling, to advisory and reporting.

Finally, consumer expectations are evolving. Investors, particularly younger, affluent clients, demand real-time visibility and control. The shift toward digital-first, self-directed experiences is pushing banks and insurers to rethink how they deliver and personalise wealth services.

How are regulators and central banks in the region shaping an environment that supports scalable and secure Open Finance adoption?

GCC regulators are taking a structured, forward-looking approach to Open Finance, laying the groundwork through phased frameworks, controlled innovation environments and a strong focus on data sovereignty. In Saudi Arabia, SAMA’s staged rollout — starting with retail and moving into corporate, wealth and insurance is creating a model for gradual, use-case-driven adoption. Similarly, the UAE’s DIFC Open Finance Lab is enabling live experimentation between fintech’s and incumbents, helping validate interoperability and governance models in real market conditions.

A major enabler is the emphasis on local data hosting and sovereignty. In tightly regulated markets like KSA and the UAE, sensitive data must remain within national borders. This approach meets regulatory mandates and builds trust among mass affluent and HNW clients.

Importantly, regulators are encouraging modular adoption, allowing financial institutions to scale Open Finance one capability at a time rather than undertaking large-scale overhauls. Combined with enhanced cybersecurity and operational resilience standards, this approach ensures innovation advances without compromising safety, stability, or customer trust.

At what pace do you expect regional financial institutions to move from exploring Open Finance to embedding it in their business models?

We are already moving past the experimentation stage. Early pilots are live, particularly in the neobank, Insurtech and fintech-led wealth space. Players are aggregating data, offering embedded investment tools and integrating digital advisory into consumer apps.

Now, we are entering the acceleration phase, especially as regulators extend clarity beyond retail into wealth, insurance and pensions.

We are seeing a shift from “rip and replace” to “stop replacing, start innovating.” Institutions are realising that they do not need to replace their core systems, they just need to orchestrate them better. By layering orchestration platforms and APIs on top of legacy infrastructure, they can launch new offerings in weeks, not years.

The need to provide differentiated services to the mass affluent and retail segments will be key drivers of Open Finance adoption in wealth management. This group is hungry for digital-first, lowercost investment options, and they are less tied to traditional advisory relationships. Institutions that move quickly can capture this growing demand and expand their customer base without expanding their overhead.

There is also a growing need to bridge the advice gap, particularly for middleincome and younger investors. Digitalfirst wealth journeys, powered by AI and embedded advice, offer scalable ways to deliver contextual, regulated guidance without requiring full advisory relationships.

How will Open Finance reshape competition in the regional banking sector, and what new opportunities will it create for cross-sector collaboration?

Open Finance is redrawing the competitive lines in the region’s financial sector. Banks are no longer just competing with other banks. They are up against digital-native

challengers from adjacent industries i.e. telcos, retailers, ride-hailing apps, that are embedding financial products directly into everyday user journeys. These players do not require licenses or infrastructure of their own; they tap into BaaS models to go live fast, often delivering more intuitive, seamless experiences.

This creates a tipping point. Traditional financial institutions can no longer rely on scale or brand loyalty; they need to rethink their role entirely. They must evolve from product-centric entities into platform orchestrators: enabling, embedding and scaling financial services across thirdparty ecosystems.

This shift is unlocking a new wave of cross-sector collaboration. We are seeing banks co-create contextual experiences with insurers, asset managers and lifestyle platforms, embedding savings into salary accounts, or integrating credit within supply chain platforms.

The outcome? Financial services that are more embedded, personalised and accessible, serving more segments, more efficiently. Open Finance is not just increasing competition; it is reconfiguring the entire financial services value chain across the GCC.

What opportunities will the growth of Open Finance unlock for new distribution models and partnerships in the regional fintech ecosystem?

The growth of Open Finance is breaking down traditional distribution silos, enabling banks, insurers and fintechs to embed financial services into broader digital ecosystems. This unlocks new partnership models, where products can be distributed through super apps, e-commerce platforms and wealth marketplaces — reaching customers where they already are. BaaS models are democratising access to infrastructure.

Wealth managers, digital insurers and startups can plug into a bank’s licensed backbone to scale regulated services without needing to acquire their own licenses or infrastructure.

This creates a more level playing field and accelerates innovation.

We are also seeing the rise of fintech marketplaces, offering curated thirdparty funds, ETFs, sukuk, Crypto and ESG products. These platforms let users assemble their own financial stack, selecting services from multiple providers in a single, seamless experience.

In the GCC, we are also seeing the rise of modular offerings such as End-of-Service Benefits platforms and digital pensions, two categories gaining traction amid demographic and regulatory shifts. Open Finance allows these products to be embedded within employer platforms or offered via lifestyle apps, creating new engagement models and unlocking access to longterm financial planning for previously underserved segments.

This is the power of the open sourcing model. Institutions can offer their own products or source third-party offerings and distribute them across any channel. It is a win-win: better outcomes for customers and diversified revenue streams for providers.

How do you see Open Finance shaping the future of financial services in the region?

Open Finance is evolving from a compliance obligation to a strategic growth engine.

It allows institutions to serve more segments, more efficiently, with more relevance. The institutions that succeed will not be the ones with the biggest tech budgets, they will be the ones who move fast, scale smart and collaborate well.

For the GCC, the opportunity is unique. With progressive regulators, a digitally native population and no legacy drag, the region can leapfrog traditional models and set new standards globally.

The future of financial services is not closed, siloed, or slow; it is open, orchestrated and AI-powered — creating simpler, more inclusive and more innovative pathways for consumers and investors alike.

The Algorithm Whisperers - Why Your Bankers Must Become Cognitive Interpreters

Sanat Rao, Co-founder & Managing Director, Within The Box.ai while acknowledging the helpfulness and inevitability of AI in banking, nevertheless explains why your AI is only as intelligent as the humans who interpret it

The algorithm did what it was supposed to do – it had crunched thousands of data points such as market volatility, risk tolerance, portfolio diversification and many more. It was brilliant. It was comprehensive. And yes, it was completely wrong.

Not technically wrong, mind you. After all, the math behind it was flawless. But the AI had missed something crucial, the client’s recent divorce, mentioned casually a few meetings ago. That event had shifted his financial priorities from wealth accumulation to liquidity preservation.

The algorithm saw numbers. The (human) banker saw narrative…and context.

This moment captures the central challenge of AI in banking today where we are building powerful digital brains but not focusing sufficiently on evolving the human minds that must interpret them.

The Rise of the Cognitive Interpreter

Welcome to the era of the Algorithm Whisperer – they are bankers who don not just use AI tools, but also intuit how they think, where they misjudge and when they need help. These are not traditional relationship

managers or back-office analysts. They are cognitive interpreters, the human bridges, if you like, between machine intelligence and meaningful decisions.

In the UAE’s rapidly digitising financial system, where several banks are reporting many transactions are now digital, I am not ideating on some speculative future. In fact, it is my submission that this is almost a present-day need. Banks are deploying AI in everything from onboarding and credit scoring to fraud detection and investment advice. Yet in many cases,

the most critical decisions still demand human oversight – not because AI cannot give you the answer, but because AI’s answer necessarily needs and benefits from human oversight.

The question therefore is no longer “Should banks use AI?” That is already settled. The real question is: “Who is interpreting the AI, and how well trained are they to do it well?”

The Four Roles of the Cognitive Banker

The traditional banker once held power by controlling information. That era is over. Customers now walk into branches with more data at their fingertips than the bank had ten years ago. The modern banker must create value not through knowledge hoarding, but through cognitive synthesis and contextual insight.

So, what are the key tenets of the role that the Cognitive Banker is expected to play? To my mind, there are four vital elements:

1. Contextual Pattern Recognition AI sees a sudden spike in income and flags it as positive. But a human may recognise it as a one-off crypto gain, or worse, a potential fraud. Context changes meaning.

2. Emotional & Cultural Intelligence

Sentiment analysis can identify the tone, but it does not adequately provide cultural subtext. For example, an Emirati client’s quiet withdrawal may signal discomfort, but not necessarily disinterest. On the other hand, a Lebanese trader’s directness may be borne out of passion, and not to be misunderstood as aggression.

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

3. Bias Interruption AI systems are trained on historical data, and some of that may indeed include outdated assumptions. However, a good Cognitive Banker can spot when AI misrepresents a family business or unfairly penalises a certain demographic group.

4. In terpretive Override Knowing when to trust the machine, and when to say, “this recommendation misses the bigger picture,” is becoming a core skill. Especially when decisions affect livelihoods. Interpretative override requires self-conviction and confidence that comes from true knowledge of how to interpret the data

From Tool User to Algorithm Whisperer: The Maturity Journey

Today, most banks are somewhere between “trying to understand what is AI” and “beginning to experiment with AI.” But few have yet built the human capabilities needed to truly partner with machines.

Here’s a simple model we use at Within The Box.ai to describe this evolution:

families to unbanked migrants to digitalfirst Gen Z professionals, each customer operates with distinct cultural, emotional and behavioural expectations.

For example:

Islamic banking compliance requires a deep understanding not just of the associated technical criteria, but equally of moral intent. No algorithm, no matter how advanced, can replace a Shariacompliant banker’s instinctive grasp of what “feels right.”

Expatriate banking in the UAE often requires decoding invisible norms like why customers from certain sociocultural backgrounds might resist credit cards due to cultural aversion to debt, even though they might be perfectly creditworthy.

A cognitive interpreter translates not only across languages but also between logic and emotion, data and trust, code and culture.

Rewiring the Workforce: From Product Training to Cognitive Readiness

Many banks are still training their staff to use AI systems like any other tool whereby they click, submit and then interpret the

1. Tool User Accepts AI outputs at face value. No awareness of how decisions are arrived at.

2. Pattern Observer Notices inconsistencies or blind spots but cannot explain them.

3. Cognitive CollaboratorInteracts with AI meaningfully. Questions logic, understands limitations.

4. Algorithm Whisperer Achieves symbiotic intelligence - knows when to lean in, and when to override.

The UAE’s banking leaders must now ask “Where are our people on this curve, and how do we accelerate them forward?”

And this is not a question for HR alone. It is not even a question just for the line manager. It is strategic to the enterprise and ties in directly with how integral the bank wants AI to be to their strategy

The Cultural Intelligence Advantage

Here is where regional banks hold a powerful edge. The UAE and indeed the wider GCC banking ecosystem serves one of the world’s most diverse populations. From high-net-worth GCC

output. Nothing wrong with this because maybe some roles require only this.

But real value for the bank will come from training cognitive readiness. This includes, amongst other things, -

• Algorithmic Literacy Not technical coding but understanding how AI makes decisions, what “confidence” means, and where training data can skew outcomes.

• Dialogue with Machines Knowing which questions to ask the AI, what data to feed it, when to challenge its assumptions. This is not just prompt engineering, it is prompt interpretation.

• Cultural Code Switching Building the

habit of mentally translating between local social norms and what the AI can and cannot see. Then feeding that insight back into the system, almost like a dialogue between man and machine

• Ov erride Confidence Perhaps most importantly, bankers must be empowered to override AI, not just permitted to. And they must know how to do it responsibly.

Competitive Edge: When Everyone Has AI, Human Design Wins

As AI becomes more accessible, what will differentiate one bank from another is not which tech stack they chose, but how they designed the human experience around it. It is very likely that those banks that develop Algorithm Whisperers within their teams will:

• Reduce false positives in fraud and compliance

• Increase customer trust in digital channels

• Improve investment advisory quality

• Lower regulatory exposure by making AI auditable and interpretable However, above all else, they are more likely than not, to create a reputation for intelligent banking that still feels human.

A Final Word: Whispering Back

AI whispers data. But it does not whisper in context.

The banks that succeed in this next decade will not be the ones who shout the loudest about innovation. Rather, it will be those who listen closely, interpret wisely and whisper back with intelligence. Because in the end, your AI is only as intelligent as the humans who interpret it. It is time to look beyond the technology. It is time to train your people to become Algorithm Whisperers. It will be an investment that will be worth it.

Sanat Rao is Cofounder and Managing Director of Within The Box AI Services Limited, an AI enablement and behavioural design company. They are headquartered in the UK and operate in the UAE from the DIFC Innovation Hub. Their Applied AI Studio and Cognitive Design Practise is leveraged by banks, hedge funds and fintechs.

Back Up and Running

It is a plain truth that diversification and fiscal sustainability are key to Kuwait’s long-term development and economic resilience, and the country has now embarked along the right track with the banking sector playing a vital and active role in supporting the economy

Kuwait’s Cabinet in March signed off on a long-delayed liquidity law, paving the way for the Gulf state to tap international debt markets for the first time in eight years, signalling renewed momentum in longstalled economic reforms under previous governments.

Fitch Ratings projected that the approval of a long-delayed draft financing and liquidity law would improve fiscal financing flexibility and remove a source of credit risk.

Kuwait’s Emir Sheikh Meshal al-Ahmad al-Sabah dissolved parliament in May 2024 for four years to end years of political gridlock. Sheikh Meshal has moved to reset the country’s growth

trajectory after years of setbacks, with long-delayed reforms now beginning to take shape.

For decades, Kuwait has stood out as both a political and economic outlier in the GCC, but prolonged political infighting has hampered progress on economic policy.

Kuwait’s economic outlook is tied to the whims of the oil market, which makes up about 90% of government revenues, a dependency that leaves it more exposed to volatility than its Gulf neighbours.

“The economy is highly exposed to a variety of global risks through its oil dependence, in particular to commodity price volatility, a global growth slowdown or acceleration and the further intensification

of geopolitical tensions,” according to the International Monetary Fund.

Following two years of contraction, 3.6% in 2023 and 2.7% in 2024, the country is finally on track for a much-needed rebound. Fitch Ratings projects a 3.1% expansion in the economy for 2025, driven primarily by an increase in oil production that came into effect in early April.

The promising growth, however, does not erase the deep-seated vulnerabilities that have plagued the economy for years. To address these persistent challenges, the government in Kuwait City is implementing a series of structural reforms under the New Kuwait 2035 Vision.

Chief among them is Kuwait’s fiscal position, which has been in deficit since 2015/16 (with the exception of 2022/23 when oil prices spiked following the outbreak of Russia’s war in Ukraine) due to high public spending.

However, away from its economic woes, Kuwait is one of the wealthiest countries in the world, with its currency (the Kuwaiti Dinar) being one of the highest-valued currencies in comparison with other global currencies.

Kuwait’s banking system is stable and systemic risk is contained, supported by a strong prudential framework

that should continue to be enhanced.

“Inorganic growth has supported Kuwait’s banking sector over the past few years, as banks aim to diversify and enhance their financial profiles against the backdrop of limited organic growth opportunities,” S&P Global strategists said in March.

Building back better

Kuwait Petroleum Corporation (KPC) unveiled an ambitious $33 billion (KWD 10 billion) investment plan last November to boost the Gulf state’s oil production capacity by 40%. The target is to increase output from 3.2 million barrels per day in 2025 to 4 million b/d by 2050.

“We’re looking to make massive investments,” Sheikh Nawaf Al-Sabah, the CEO of KPC, said in an interview with Bloomberg. That’s “not only to maintain our production capacity, but ultimately grow it like our strategy calls for us to do.”

To turn ambition into reality, Kuwait is restructuring its vast network of hydrocarbon institutions to boost efficiency. Kuwait National Petroleum Company commenced the merger process with Kuwait Integrated Petroleum Industries Company in April, while Kuwait Oil Company and Kuwait Gulf Oil Company began the consolidation process in June.

Kuwait’s economic growth typically mirrors global energy market fluctuations.

The Gulf state, one of the world’s top 10 oil exporters, enjoyed a strong start to the year with GDP growth of 1% year-on-year in Q1 2025 following seven consecutive quarters of contraction.

National Bank of Kuwait (NBK) said in a research note that Kuwait’s nearterm GDP outlook points to positive growth, supported by the restoration of 135,000 barrels per day of oil production between April and September 2025. The non-oil economy is also expected to post steady gains.

However, the decision by OPEC+ to gradually increase oil production from April 2025 has compounded some of Kuwait’s fiscal challenges by increasing an already-large projected fiscal deficit for the coming year.

THE ECONOMY IS HIGHLY EXPOSED TO A VARIETY OF GLOBAL RISKS THROUGH ITS OIL DEPENDENCE, IN PARTICULAR TO COMMODITY PRICE VOLATILITY, A GLOBAL GROWTH SLOWDOWN OR ACCELERATION AND THE FURTHER INTENSIFICATION OF GEOPOLITICAL TENSIONS

– the International Monetary Fund

Though higher oil output will boost the country’s economy, a lower forecast oil price will still dent the government’s primary balance. Fitch Ratings projected an average oil price of $69.4 a barrel in 2025, down 12% from a year ago, with crude output expected to rise to 2.49 million b/d as OPEC+ eases supply curbs.

Kuwait’s budget outcomes are highly sensitive to changes in oil prices and production. The fiscal break-even oil price, including investment income, is forecast at $58 a barrel in 2025/26, while the non-oil primary deficit is forecast at 70% of non-oil GDP, well above regional peers.

Earlier in February, the Gulf state approved its state budget for 2025/26, an 11.9% rise in the deficit to KWD 6.31 billion for the fiscal year that began April 1, 2025, and ends March 31, 2026.

The budget projects revenues of KWD 18.23 billion, down 3.6% and expenditures of KWD 24.54 billion, little changed from last year’s budget, according to the Ministry of Finance.

Kuwait’s 2025/26 budget sees nonoil revenue rising by KWD 2.9 billion (6% of GDP). Fitch Ratings projected the budget position to deteriorate in 2025/26, despite government spending rationalisation efforts.

The Gulf state’s heavy reliance on oil revenues makes its economy vulnerable to fluctuations in global oil prices. However, though Kuwait runs fiscal deficits, the IMF says that using a broader

definition, encompassing investment income from the sovereign wealth fund and profits transferred from state entities, the country has posted wide surpluses for several years.

Towards Vision 2035

Over the years, Kuwait has lagged behind its GCC neighbours in reforming and diversifying its oil-reliant economy, leaving the country particularly vulnerable. However, in an effort to tighten its belt, the government in Kuwait city has taken some decisions to rationalise spending, including cuts in health insurance for retirees and civil servants.

Kuwait introduced a 15% domestic minimum top-up tax (DMTT) for large multinational companies operating in the country, effective January 1, 2025, as part of the Gulf state’s strategy to increase non-oil revenue.

The DMTT ensures that large multinational companies pay a minimum effective tax rate of 15% on their profits generated in Kuwait. Kuwaiti authorities reckon the DMTT will raise about KWD 250 million annually, with tax collections starting from 2027.

“The law represents Kuwait’s commitment to the OECD/G20’s Inclusive Framework on the Base Erosion and Profit Shifting 2.0 project and allows Kuwait to retain the right to tax Kuwaitsourced income and prevent tax leakage of such income to foreign jurisdictions,” according to EY.

Kuwait is also set to introduce an excise tax, with Fitch Ratings research suggesting it will take effect in the 2025/26 fiscal year. The move would finally align Kuwait with other GCC states, which ratified a region-wide agreement in 2016 and have since implemented the tax.

The Gulf state is set to sell international debt for the first time in eight years after its cabinet approved a long-delayed public debt law in March. Fitch Ratings said the approval of a financing and liquidity law should improve fiscal financing flexibility and remove a source of credit risk.

“The approval of the draft law points to improved government effectiveness in advancing long-delayed reform plans from previous administrations,” the ratings agency said.

However, even without a liquidity law, Kuwait would be able to meet its financing needs, given the substantial assets at its disposal. The country’s juggernaut is the Gulf state’s $800 billion sovereign wealth fund - Kuwait Investment Authority (KIA). KIA controls the Kuwait Investment Office, which manages the General Reserve Fund and the Future Generations Fund.

Though Kuwait’s deep-seated fiscal traditions, such as generous public wages and extensive welfare programs, are proving hard to shift. The new cabinet is trying its hand at fiscal reform, with the aim of capping spending at KWD 24.5 billion or about 51% of GDP, and improving government efficiency. The initiative is a nod to the long-standing challenge of diversifying the Gulf state’s economy.

THE LAW REPRESENTS KUWAIT’S COMMITMENT TO THE OECD/G20’S INCLUSIVE FRAMEWORK ON THE BASE EROSION AND PROFIT SHIFTING 2.0 PROJECT AND ALLOWS KUWAIT TO RETAIN THE RIGHT TO TAX

KUWAIT-SOURCED INCOME AND PREVENT

TAX LEAKAGE OF SUCH INCOME TO FOREIGN JURISDICTIONS

Changing banking landscape

Kuwait’s banking system is a cornerstone of the economy. Banks in the Gulf nation, both conventional and Islamic, are exceptionally well-capitalised and profitable.

“Kuwait banks’ profitability improved in the monetary tightening cycle, as higher interest rates helped to expand margins. Now, amid declining interest rates, we expect profitability to follow,” said S&P Global.

The country’s banking sector is on the cusp of a potential new era of growth, buoyed by a wave of recent structural reforms. Fitch Ratings said the new reforms, including the public debt and residential mortgages, are set to create fresh lending opportunities and spur economic expansion.

The ratings agency forecast that wholesale lending is set to expand by 7% to 8%, driven by recent public-debt reforms. The agency said the new reforms will have a ripple effect, stimulating financing across various sectors.

The new law will also allow for the issuance of sovereign bonds, a move that is expected to bolster the liquidity of Kuwait’s banks.

Kuwait’s banking sector is playing a vital role in supporting the economy by financing development projects in line with Kuwait Vision 2035, while contributing to the diversification of the economy and the growth of the non-oil sector.

Following Kuwait Finance House’s acquisition of Bahrain-based Ahli United Bank and Burgan Bank’s acquisition of Bahrain’s United Gulf Bank, Warba Bank merged with Gulf Bank in August, creating one of the largest Shariah-compliant banks in the Gulf state.

“The recent increase in Kuwaiti bank mergers and acquisitions is credit positive for the sector, particularly as the market is overbanked,” Fitch Ratings said.

Banks in Kuwait have been increasingly turning to M&A as a strategic response to the limited organic growth opportunities, to diversify their business models and to strengthen their financial profiles.

KUWAIT BANKS’ PROFITABILITY IMPROVED IN THE MONETARY TIGHTENING CYCLE, AS HIGHER INTEREST RATES HELPED TO EXPAND MARGINS. NOW, AMID DECLINING INTEREST RATES, WE EXPECT PROFITABILITY TO FOLLOW

For the first time in a long while, the winds of change are blowing through Kuwait. By modernising its fiscal framework and accelerating project activity, Kuwaiti authorities are finally demonstrating a tangible commitment to the long-awaited reforms observers have deemed essential for the Gulf state to loosen its dependence on oil.

Where community meets collaboration

The Era of Enablement

As the Open banking evolves into Open finance, extending beyond banks to integrate data from pensions, insurance, mortgages, mutual funds and other financial products, it is inaugurating a time where modern banks are required to become trusted, behind the scenes enablers

The financial services sector is undergoing a structural shift, underpinned by frameworks that facilitate secure and transparent data exchange – arguably the most critical asset in the modern financial ecosystem.

With customers demanding more from their banking experiences, financial institutions are enhancing their offerings to deliver more seamless and engaging experiences. Open banking and Open finance present a significant opportunity

to reshape the GCC banking landscape, mirroring the tangible benefits seen in markets where these initiatives have already been successfully implemented.

“Technology forms the bedrock of Open banking and Open finance systems, providing the infrastructure and tools necessary for secure and efficient data sharing,” said the Asian Development Bank Institute.

Open banking and Open finance are prompting banks and fintechs to reassess how customer data is shared and utilised,

enabling innovation while maintaining strict controls over privacy and security.

The GCC region is accelerating the adoption of Open banking and Open finance frameworks, driven by regulatory support, technological innovation and cross-industry collaboration.

The momentum is fuelling rapid growth in digital payments, with mobile wallets, contactless cards and QR-based transactions gaining traction – particularly in the UAE and Saudi Arabia, where authorities are actively promoting cashless economies and broader digital payment ecosystems.

However, the MENA Fintech Association notes that Open finance extends beyond the account-level data of Open banking, offering “read” access to a customer’s full financial footprint, including product details, pricing and contractual information across savings accounts, mortgages, pensions, investments and equities.

Open finance represents a stepchange, moving beyond “atomic” APIs like

payment initiation requests. It establishes a unifying framework that links products and services, enabling seamless connectivity and broader data-driven innovation across the financial ecosystem.

Meanwhile, Open finance is moving up the regulatory agenda in the GCC. Policymakers view it as a mechanism to advance financial management for households and small and medium-sized enterprises; while reshaping the way banks interact with one another and engage with customers.

Open finance in the GCC is still taking shape, with no clear sense yet of which players will emerge as leaders. Fintechs are leveraging the technology to compete for customers and capital, while incumbents are expected to remain embedded in the system – even if their role shifts away from direct client relationships.

Capturing the opportunity

Open banking and Open finance are gaining traction across the Gulf region, reshaping how financial institutions and customers interact.

The era of exclusive, singlebank relationships is giving way to interconnected ecosystems, where fintechs – enabled by Open finance frameworks – are rolling out differentiated and personalised financial services and products. The tech-enabled advancements are expanding customer choice while compelling incumbents to reevaluate their value propositions.

Haytham Yassine, the Managing Director & Partner at BCG, said the era of customers relying on a single bank for deposits, lending, investments and payments is over.

“Today, diversified financial relationships across multiple providers are driving the implementation of Open finance, as institutions seek to meet rising demand for seamless data sharing and integrated services,” said Yassine.

Building on Open banking, Open finance extends the model by emphasising transparency in data usage, storage and portability. The push is being driven by

TECHNOLOGY FORMS THE BEDROCK OF OPEN BANKING AND OPEN FINANCE SYSTEMS, PROVIDING THE INFRASTRUCTURE AND

TOOLS NECESSARY FOR SECURE AND EFFICIENT DATA SHARING

– Asian Development Bank Institute

growing calls for transparency in how data is used, stored and transferred – a shift that could unlock new efficiencies and product innovations for both consumers and providers.

Though some markets initially treated Open finance primarily as a regulatory compliance exercise, similar to the European Union’s approach under PSD2, it has since evolved into a broader catalyst for innovation.

GCC regulators view the framework as a gateway to new business models, sharper customer experiences and greater operational efficiency across industries. Data from the Open Banking Tracker indicates a significant advancement in terms of bank APIs, API aggregators and third-party providers in the Middle East, compared to other emerging markets as of August 2025.

“Given the success of the Open banking market, which is projected to hit $123.7 billion by 2031, is any indication, Open finance represents a revolution within the financial services sector,” said PwC.

Open banking enables third-party access to select banking data. However, Open finance takes it further, spanning the full spectrum of financial services – from mortgages and investments to pensions and insurance – with the goal of creating a more integrated and comprehensive financial ecosystem.

Building stronger

Saudi Arabia, Bahrain and the UAE have been at the forefront of Open finance implementation in the Middle East. While the GCC region is recognised

for its progressive stance on Open banking, most countries have primarily relied on regulatory mandates to drive implementation, with the exception of the UAE.

PwC projected that Open banking has the potential to reshape the financial services landscape, and several financial centres in emerging markets, including the GCC region, are making considerable moves in this space.

Bahrain was the first to mandate open banking and the UAE and Saudi Arabia are now making moves to follow their neighbour’s example. The kingdom issued its open-banking rules in 2018, followed by a framework with guidelines on data sharing and governance in late 2020. The government is implementing a Europeanstyle regulation-driven approach.

Following the issuance of its open banking policy in January 2021, the Saudi Central Bank (SAMA) published its Open Banking Framework in November 2022, with an initial focus on account information services, to be followed in the second phase by a focus on payment initiation services.

SAMA introduced 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.

“To succeed in Open banking, banks in Saudi Arabia and the UAE should start

thinking like platform companies, flexing their business models to connect people and processes with assets and backing that up with technology infrastructure that can manage interactions from internal and external users,” said Accenture.

The Central Bank of the UAE is spearheading a comprehensive Financial Infrastructure Transformation Programme, an ambitious initiative that encompasses nine key projects, including the establishment of Open finance platforms, with a target completion date of 2026.

Open banking platforms, powered by APIs, enable both retail and enterprise clients to access real-time consumer financial data, facilitating the secure sharing of account information and transaction history with external entities, including vendors, suppliers, business partners and other banks.

The next frontier

The financial landscape is undergoing a profound transformation, with Open banking rapidly morphing into Open finance. The evolution is not just a technological shift, but a fundamental re-evaluation of how financial services are delivered and consumed.

The checking and current account, long the foundational asset of the depositbearing bank, is no longer sufficient on its own. Its value will increasingly be defined by the rich utility services and bespoke offerings built around it, which anticipate and fulfil customer needs beyond simple transactions.

The true strategic frontier lies in the first layer of Open finance, where consumer data, accessed via secure APIs, becomes the catalyst for innovation. The shift is transforming the traditional Know Your Customer (KYC) model. Instead of merely verifying identities, banks must pivot to ‘Understanding Your Customer’, leveraging data to personalise experiences and deepen relationships.

The vision of a shared KYC utility, potentially backed by a national identity platform, is not a distant fantasy but a

GIVEN THE SUCCESS OF THE OPEN BANKING MARKET, WHICH IS PROJECTED TO HIT $123.7 BILLION BY 2031, IS ANY INDICATION, OPEN FINANCE REPRESENTS A REVOLUTION WITHIN THE FINANCIAL SERVICES SECTOR

logical next step to streamline operations and free up resources for value creation.

The implications for lending are equally profound. The rise of credit-as-aservice signals a move away from static, historical credit scores toward dynamic assessments based on real-time cash flow. For a bank, this means a more accurate and nuanced understanding of a borrower’s actual ability to pay, as opposed to their historical willingness to pay.

With the rise of Buy-Now, pay-later (BNPL) and micro-lending, the granular data empowers more informed and responsible lending decisions, opens new markets and reduces risk in alternative lending products. This is a strategic opportunity to modernise the loan book and improve customer outcomes.

“Open data solutions have fuelled the expansion of BNPL services, allowing consumers to split payments into interest-free instalments, making highvalue purchases more accessible,” PwC said, adding that BNPL providers use APIs to access detailed transactional data, enabling better customer credit and risk assessments.

The payments domain, long a fortress for card networks and bank-to-bank transfers, is also under siege. Open finance enables account-to-account payments at the point of sale, directly challenging the interchange fees that have long been a significant revenue stream.

BCG strategists said innovations such as the Dutch payments system, iDEAL, demonstrate that this model is not only viable but can create a more seamless

and cost-effective payment experience for both merchants and consumers.

For banks, this necessitates a proactive re-evaluation of their payment strategies, moving from a fee-based model to one that creates value through efficient, embedded solutions.

Going forward, the proliferation of embedded finance represents a significant competitive threat and a powerful partnership opportunity. Non-financial institutions, from ride-sharing companies to retailers, are integrating banking services directly into their apps, capturing the customer experience at a deeper level.

“Open banking payments can play a pivotal role in the realm of embedded payments, offering substantial benefits that streamline and enhance the consumer experience across various platforms,” according to the Asian Development Bank Institute.

Banks that cling to a standalone appcentric model risk becoming invisible. The strategic imperative is to become a trusted, behind-the-scenes enabler, providing the core banking-as-a-service infrastructure that powers these new ecosystems. The democratisation of banking is underway, and success will hinge on a bank’s ability to become a versatile and indispensable partner in this new financial landscape.

Global Open finance adoption must occur responsibly, with robust strategies for data protection and the integration of systemic API security. Leaders who prioritise trust, resilience and customercentric innovation will unlock massive market potential.

REDEFINING FINANCE THROUGH BLOCKCHAIN

Introducing: GITEX Digital Assets Forum

Spotlighting the world's most disruptive startups and digital finance solutions. This is the region's flagship platform for alt-finance innovation.

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The Post-paperwork Place

Naman Kapoor Head of Payments for Middle East and Africa-Citi gives us an overview of the fast-expanding digital payment’s scene, detailing the leading factors that are driving its growth across our region

What are the demandside factors pushing the region’s boom in digital payments?

The young demographics of Middle East and Africa (MEA), with the median age in Africa only 19.3 years old, coupled with high smart phone dispersion, with 1.0 Bn SIM Connections in SSA 1, has led to a tech-savvy population with a preference for digital payments.

E-commerce Growth, on the back of the Covid-19 pandemic which created a surge in online shopping, has created the need for more convenient digital check out options. According to a prominent research institute, the e-commerce market in MEA is expected to reach US$854 million by 2030, with a compound annual growth rate of 21%. Additionally, Digital payments (49%) nearly reached parity with cash and cards (51%) in e-commerce transaction value in 2024, up from 29% in 2014.2

Digital assets, particularly stablecoins, are emerging as a potentially significant enabler for the next generation of digital payments. In a region where there

has long been substantial remittance flows from diaspora working in the Gulf, cryptocurrencies offer a decentralised alternative, that bypass intermediaries and potentially reduce fees and transfer times compared to traditional crossborder payment rails.

Have digital payments already made a difference in the region in terms of inclusivity?

In many emerging markets, low-to moderate-income consumers rely heavily on cash as their primary payment method, often due to the lack of access to traditional bank accounts. One of the ways central banks can harness the digital revolution to help extend the benefits of financial inclusion, is by developing robust digital payment infrastructure, particularly real-time payment systems. Kenya’s M-Pesa, a mobile money service launched in 2007, has been a major driver of financial inclusion, particularly in rural and underserved communities. Financial inclusion in Kenya rose from 26% in 2006 to 85% in 2024.3

One real-life example would be Citi’s mobile money solution with the One Acre Fund (OAF), whose Kenya program proudly serves over 1 million hardworking farmers, who adopted digital payments for their farmer loan repayments. This has enabled OAF to expand its reach and serve a larger number of farmers without a proportional increase in operational complexity. Mobile money has served as an entry point into formal financial services for those who previously relied solely on cash.

Naman Kapoor, Head of Payments for Middle East and Africa-Citi

What effects are digital payments having on regional economies at this time?

The main impact that the adoption of digital payments is having is the corresponding decline and hopeful elimination of Paper Instruments. We have seen the regulatory-driven elimination of checks in several countries including South Africa (2021), Botswana (2024), Malawi (2025) and Zambia (anticipated in 2026), Additionally, cash use has dropped from 82% of point-of-sale value in 2014 to 28% in 2024.4

Furthermore, the creation of Central Bank led Electronic Bill Presentment and Pay schemes that support the digitisation of statutory payments like Customs

What do you predict will be the top regional or priorities trends in digital payments in the coming five years?

Modernisation of Domestic Payment Rails - modernisation to ISO 20022, aligning with SWIFT’s cross-border transition, is driving cross-border interoperability via a global standard, increased transaction processing automation, and richer data for reconciliation. The number of ISO modernisation projects has significantly increased in 2025, with the upcoming SWIFT deadline, but also will continue into 2026 as regulators switch their focus to Automated Clearing House (ACH) and Instant Payment schemes.

THE MIDDLE EAST IS THE FASTESTGROWING REAL-TIME PAYMENTS MARKET GLOBALLY

Duty and Tax Payments (e.g. Fatourati Morocco, E-Finance Egypt, EFawateer Bahrain, eFawateercom Jordan) have led to increased governmental efficiency due to automated reconciliation and accurate payment values due to the enquiry leg.

Finally, we are seeing an evolving trend of digital payments as an enabler of economic integration within economic communities (Gulf Cooperation Council, East African Community, South African Development Community etc.) through the emergence of Intra-Regional Financial Market Infrastructure. These new infrastructures promote financial integration, provide an alternative to traditional correspondent banking and reduce the cost of transacting crossborder. Examples include AFAQ, EAPS and SADC RTGS - all in which Citi is a participant member.

Mobile Money Dominance – there is existing high adoption of mobile money, with 1.2 billion mobile money wallets across MEA.5 M-Pesa itself accounts for 98% of all transactions in Kenya.6 However, there is ongoing regulatory-driven integration of mobile money into real-time interoperable financial infrastructures to support financial inclusion which is expected to drive further usage. Of the ten real-time payment schemes that Citi participates in, seven support interoperability with mobile wallets, with two more in development.

Real-Time Payments Growth - the Middle East is the fastest-growing real-time payments market globally. Transactions are projected to increase from $855 million in 2023 to $3 billion by 2028, a 29% compound annual growth rate.7 Furthermore, Cross-border instant payments are emerging, with schemes having initially focused on domestic use

cases, with potential interlinking between platforms like the UAE’s AANI and India’s UPI. Recognising 24/7/365 real-time transaction processing is becoming essential for our clients in the cluster, Citi UAE will be rolling out its Citi® Payments Express Platform in 2026 which provides near instant payment verification at scale (handling volumes of more than 5,000 transactions a second) with resilience (99.99% uptime).

Disclaimer: Future product availability is subject to internal approvals and not guaranteed.

How long do you think the Middle East will remain the world’s fastest growing real-time payments market?

Real time payments in UAE in 2024 only accounted for a 1.5% share of the total payment volume and 4.9% of all electronic payment transactions. This is a low base compared to the 36% and 84% of electronic payments being real-time in Brazil and India respectively. Additionally, the launch of Aani with the required overlay services to drive adoption and an upcoming mandate to route eligible RTGS payments to Instant Payments will mean that the UAE is expected to remain one of the hot spots for real-time payments growth. Additionally, if we look at MEA more widely, most of the schemes are still nascent with a rapid creation of Instant Payment Infrastructures across MEA Presence Markets. 50% of the 10 schemes that Citi participates in (Aani UAE, RAAST Pakistan, Cliq Jordan, IPN Egypt and TIPS Tanzania) have launched since 2020. As they mature further, we expect to see increased corporate use cases that should drive growth further beyond peerto-peer transactions.

1 The State of the Industry Report on Mobile Money 2025 - GSMA

2 The Global Payments Report – WorldPay

3 Central Bank of Kenya, 2024 FinAccess Household Survey.

4 The Global Payments Report – WorldPay

5 The State of the Industry Report on Mobile Money 2025 - GSMA

6 Kenya Central Bank Supervision Annual Report 2023.

7 ACI Worldwide, 2024 Prime Time for Real-Time report

AuraData’s DIGITAL TAPTM Operationalising Digital Transformation

Srinivas Pramod Co-Founder & CEO, talking with MEA Finance, shares the growth story behind one of the most promising emerging companies in the region

AuraData Technologies LLC is a globally operating business with executive management counting 300+ years of financial industry experience and a team of banking domain and technology experts. We bring global best practices and a deep understanding of regional nuances to provide tailor-made solutions at an optimised cost for our customers across Middle East & Africa.

Says Srinivas Pramod, Co-Founder & CEO, “We are witnessing increasing adoption of our Digital TAPTM framework across leading banks in Middle East & Africa. Digital TAPTM is not just a methodology; it’s our promise to banks to guide them through

every step of their digital transformation journey, delivering measurable outcomes and larger stakeholder value.”

How Digital TAP TM Framework Delivers results for Banks

• Transform: We help reimagine core banking processes & customer interactions. We help transitioning/ modernisation by enhancing scalability, flexibility and real-time processing capabilities, through integrating and optimising diverse digital channels (mobile, web, ATM, branch) for a seamless, omnichannel customer experience, leveraging API-first architectures to facilitate open banking initiatives and foster collaboration within the financial ecosystem.

• Automate: Digital Lending Automation and Process automation is directly aimed at driving operational excellence and accelerating time to market for new financial products. We leverage advanced technologies such as digital lending, collections, Intelligent automation

and Robotic Process Automation (RPA) workflow orchestration to streamline repetitive tasks, reduce manual errors and accelerate operational processes.

• Protect: AuraData helps banks move from a reactive fraud and compliance approach to a proactive, real-time EFM approach for today’s ever-changing regulatory environment. Powered by AI and machine learning, advanced user behaviour patterns analysis, cross- channel real time enterprise fraud management, unusual system usage and anomaly detection, we ensure regulatory adherence. And with our regional regulatory reporting and comprehensive Anti-Money Laundering (AML) solutions, including transaction monitoring, customer due diligence (CDD), suspicious activity (SAR), we provide a smoother and more secure banking experience, protecting against novel and sophisticated fraudulent tactics or schemes which go unnoticed in siloed systems.

“ By harnessing a global talent pool with regional expertise and experience, we deliver on the promise to our customers using the AuraAssure Delivery framework, a combination of hybrid delivery model, agile project management, transparent communication and measurable outcomes coupled with extensive postimplementation support & continuous optimisation services, thereby maximising long-term impact and sustainable benefits for customers,” says Mahesh Cukkemane, Co- Founder & Chief Delivery Officer Kumar Dandapani, Director Financial Services adds, “The future of banking is predictive.With the advent of AI and increased regional digital thrust, banks across Middle East & Africa are trying to bolster their non-interest fee-based incomes, deliver hyper-personalised customer experience, launch new products and services rapidly at scale while striking a balancing act of managing operational efficiency, adhering to increasing compliance requirements and enhanced fraud detection. Digital TAPTM is an ideal framework to address this comprehensively.”

(website: https://www.auradatacorp.com/ )

L-R: Fadi Honein, Regional Director ME; CA J Sathish, Chief Financial Advisor; Pramod Srinivas, Co-Founder & CEO; Deepu Iyengar, VP Alliances; Mahesh Cukkemane, CoFounder & Chief Delivery Officer; Menka Singh, AVP Business Development; Kumar Dandapani, Director Financial Services.

TRANSFORMING REVENUE MANAGEMENT:

A Strategic Win for Customers and Financial Institutions

Modern banks are transforming into comprehensive service hubs, offering a broad spectrum of services, including digital payments, trade finance, embedded banking and interconnected APIs, creating new opportunities for fee-based income and sustainable growth

Siva Subramaniam, Head – Product Management – Payments, Cash & Revenue Management, Infosys Finacle

W. Edwards Deming famously said, “Profit in business comes from repeat customers, customers that boast about your product or service and that bring friends with them.” For financial institutions, this principle remains central, but the strategic approach to achieving it is evolving swiftly.

Sriranga Sampathkumar, Head of Business, VP and General Manager –Middle East and Africa, Infosys Ltd

Capitalising on Every Customer Interaction for Profitability

Today, every digital transaction and service touchpoint holds potential revenue if managed effectively. However, financial institutions often leave substantial profit on the table due to: Transactions that go unbilled or are underpriced because of outdated, inflexible legacy systems.

Zero-balance accounts, fee waivers and free services that dilute overall profitability when not strategically managed.

Static pricing models that fail to recognise the complexity and value of individual customer relationships. By modernising revenue management practices, banks can unlock significant value already embedded within their dayto-day operations, directly impacting their bottom line.

• Modern Revenue Management: Plug Leaks, Offer Personalisation and Drive Growth

Banks can improve revenue performance by:

• Treating every customer interaction as a revenue opportunity - capturing and pricing each service, transaction or value-added feature accurately, so the bank is fairly compensated for the value it provides.

• Using dat a to tailor pricing and offers - creating targeted

propositions and adjusting charges for specific customer segments in real time, improving satisfaction while maximising revenue potential.

• Automating controls to prevent revenue loss - ensuring charges align with agreed services and bundled offers, protecting earned revenue and maintaining compliance.

A modern revenue management platform brings transparency and flexibility needed to optimise income streams while improving customer experience.

Empowering Banks with Composable, Enterprise-Level Revenue Management Capabilities

Modern banking requires pricing and billing to be dynamic, customer-aware and consistent across all products and channels. To achieve this, banks need a composable, enterprise-grade revenue management layer.

With such a layer, banks can:

• Develop dynamic, context-specific pricing and bring innovative offerings to the market faster, securing a competitive advantage.

• Provide transparent, personalised billing, building trust and strengthening long-term relationships.

• Enable new monetisation models such as subscriptions, outcomebased pricing and bundled services, diversifying income while staying compliant and managing high transaction volumes with ease.

• Pr event revenue leakage and maintain strong regulatory compliance across all operations.

A robust revenue management solution must be purpose-built for banking, capable of managing product complexity, real-time transactions, transparent fees and the varied pricing models that define today’s banking environment.

Strategic Revenue Management Transformation

For end-to-end transformation, banks need a holistic revenue management system built on five strategic pillars:

1. R evenue Enhancement – Use customer, and product-level pricing capabilities to offer loyalty-based rates, targeted segment offers and relationship-based bundles.

2. Revenue Assurance – Capture and collect charges in real time or on schedule, ensuring accurate billing as transactions occur.

3. Re venue Leakage Prevention – Apply rule-based controls to enforce client commitments, such as minimum balances or service thresholds, and centrally track missed revenue opportunities.

if the price was zero. The vision also emphasised high scalability, given the massive transaction volumes processed daily and monthly. To support this, the bank leveraged Finacle Revenue Management hub.

The transformation enabled:

• A cen tralised pricing and billing system for current products and services, addressing revenue loss, unlocking new revenue streams and enhancing operational efficiency.

• Flagship application o f the federation layer in bank to enable seamless work with host systems

BY MODERNISING REVENUE MANAGEMENT PRACTICES, BANKS CAN

UNLOCK

SIGNIFICANT VALUE ALREADY EMBEDDED WITHIN THEIR DAY-TO-DAY OPERATIONS, DIRECTLY IMPACTING THEIR BOTTOM LINE

4. Customer Engagement – Deliver personalised offers and unified invoices across multiple products to improve satisfaction and loyalty.

5. Operational Efficiency – Replace manual, spreadsheet-based processes with automated business rules, enabling dynamic pricing and faster go-to-market for new offerings.

Strategic Revenue Management in Action: A Case Study

One of India’s largest banks embarked on a multi-phase revenue transformation initiative. The bank wanted to centralise its pricing and billing across its 30+ product lines and various customer segments through a platform that could serve as a horizontal capability spanning the entire enterprise.

Key objective was to consolidate billing into a single platform and ensure no transaction went unpriced, even

like Core, Loans, WMS etc., and customer-facing applications

• Cloud-native and highly scalable architecture handling 400 million transactions monthly (up to 6,000 transactions per second). Flexible integration framework – files, APIs, etc.

To Conclude

In markets like the Middle East, where regulatory reforms and rapid digital transformation are reshaping the banking landscape, pricing has moved beyond mere back-office functions to become a strategic driver of growth and competitive differentiation. For industry leaders, transforming revenue management capabilities means gaining critical business flexibility, ensuring robust compliance and strengthening monetisation, delivering tangible benefits for both customer experience and the bank’s ultimate profitability.

Instant Gratification

Digital payments in all their forms, allowing the rollout of real-time payment systems in the GCC region, and with AI nestling in, are yielding clear benefits for businesses and consumers alike, spurring financial innovation and new growth opportunities

The GCC payments landscape is undergoing rapid transformation, with a surge of new payment alternatives and channels competing for market share. Over the years, innovative technologies such as contactless and QR payments have gained traction, while ancillary services like Buy Now, Pay Later have become increasingly popular.

KPMG said the evolution and revolution of the payments industry is putting pressure on financial institutions and nonbanking players alike to deliver on shifting customer expectations.

Customers are increasingly clamouring for diverse payment options that are fast,

convenient and secure. Banking customers in the Gulf region now expect retailers and financial service providers to deliver seamless and consistent experiences across channels and payment platforms.

The modernisation of the payments industry is a crucial undertaking. Globally, more than 85 jurisdictions across six continents now support real-time payments, ensuring immediate fund availability to beneficiaries and providing a reliable and efficient system.

“Real-time payments are transforming the future of payments by broadening the speed, innovation and efficiency of digital payments solutions,” said J.P.Morgan.

The Middle East is now the fastestgrowing Real-time payments region in the world, with a projected CAGR of 30.6% between 2022 and 2027, reaching a value of $2.6 billion, driven by payments infrastructure modernisation initiatives in Saudi Arabia, Bahrain and the UAE.

Swift, the global financial messaging network, is at the forefront of reshaping cross-border payments, spearheading the industry’s shift to ISO 20022 and rolling out its Cross-Border Payments and Reporting Plus (CBPR+) initiative to deliver greater efficiency, transparency and interoperability.

With the value of cross-border payments forecasted to increase from $150 trillion in 2017 to over $250 trillion by 2027, according to Boston Consulting Group (BCG), making cross-border payments cheaper, faster, more transparent and easier to access globally is a priority for the G20.

“Traditionally, cross-border payments flow via the correspondent banking network, which most front-end providers use to settle the payment, but new back-end networks are emerging to optimise cross-border payments and enable interoperability between payment

methods and provide senders with more possibilities to reach the receiver,” according to EY.

Meanwhile, artificial intelligence (AI) is poised to transform the payments landscape, enhancing personalisation and security while driving greater efficiency across digital transactions. Its application stands to deliver tangible benefits for both businesses and consumers, marking a step-change in the way value is exchanged.

The GCC payments landscape has undergone significant evolution, shaped by shifting market dynamics, regulatory developments, technological innovation and the entry of new players. Market forces such as real-time payments and new regulatory requirements have created a springboard for financial institutions to advance customer experience and introduce value-added services.

The race to real-time

Real-time instant payments, driven by regulatory push and rising market demand, have grown steadily since the UK launched Faster Payments in 2008. Globally, realtime payments are projected to reach 575.1 billion by 2028, growing at a CAGR of 16.7%, according to a joint report by ACI Worldwide and GlobalData.

The implementation of real-time payment systems across the GCC region is revolutionising the banking landscape, accelerating transaction speeds while enhancing convenience and security for consumers and businesses alike.

Saudi Arabia currently leads the Middle East in real-time payment adoption, while the UAE’s Aani processed 64.1 million transactions worth AED 164.7 billion in 2023. Bahrain stands out globally for its high consumer adoption rate, and Qatar, Kuwait and Oman each launched their national real-time payment schemes in 2023.

“Navigating the evolving global payments landscape requires more than just adopting the latest technologies – it demands strategic partnerships, agile infrastructure and a forwardlooking approach to liquidity and risk management,” according to BNY.

ACI Worldwide and Kuwait’s KNET reported that WAMD, the country’s realtime payment platform, has experienced strong transaction growth since its launch in June 2024, positioning it among the fastest-adopted real-time payment systems globally.

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.

Many instant payment systems leverage ISO 20022 messaging standards, enabling two-way communication through messages such as requests for payment, requests for information and confirmation of payment.

Domestic payment infrastructures across the GCC – from instant payment platforms such as Saudi Arabia’s Sarie and the UAE’s Aani, to national card schemes like Mada and Jaywan and local digital wallets including Barq and Hala in Saudi Arabia, together with e& money and du Pay in the UAE - deliver instant and secure transactions backed by strong regulatory support.

The UAE central bank’s payments unit, Al Etihad Payments, rolled out Aani, its instant payments platform, in October 2023. The service has drawn 1.5 million users and onboarded 57 financial institutions and 80,000 merchants as of February 2025.

“Real-time payments have become ingrained in the fabric of the payment landscape and have spawned new expectations and demands from businesses to their financial services providers,” according to BNY Mellon’s The Current State of Play of Emerging Payments report.

Beyond the UAE’s Aani, GCC countries have rolled out their own real-time payment systems. Bahrain uses FAWRI+, Saudi Arabia runs SARIE, while Oman, Kuwait and Qatar all introduced instant payment schemes in 2023. The rapid uptake underscores the region’s push toward faster transactions and the broader digitisation of financial services.

“The contributions from real-time payments to Bahrain’s GDP are projected to rise from $537.0 million in 2023 to $677.6 million by 2028, 1.32% of formal GDP or equivalent to the output of 12,500 workers,” according to ACI Worldwide.

Similarly, Qatar’s payments industry is poised for significant growth, with total revenues projected to reach $4.15 billion by 2028, according to BCG.

Real-time payments are reshaping the GCC’s financial landscape, eliminating the delays and inefficiencies of traditional systems while opening the door to new business models and applications that were once considered out of reach.

Cross-border payments

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.

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

However, the cross-border payment space is being jolted by several trends that could fundamentally change competitive dynamics. The introduction of ISO 20022 has already displaced many legacy payment messaging schemes and this process is accelerating.

“The ISO 20022 messaging standard continues to gain momentum as more and more clearing and settlement mechanisms adopt the new ISO 20022 standard,” Celent said in a report, adding that payment modernisation enables banks to break free from legacy technology infrastructures and accelerate the evolution of their payments businesses to meet today’s demands.

The migration to ISO 20022, which began in 2022 and is set to be fully

implemented by November 2025, is a critical step toward enabling real-time cross-border payments. Through the standardisation of the way payment messages are formatted and transmitted, the standard eliminates inconsistencies and inefficiencies that have long plagued cross-border payments.

For real-time cross-border payments, ISO 20022 is a game-changer. It supports end-to-end data exchange, allowing financial institutions to include detailed remittance information, such as invoice details, tax information and payment purpose codes, directly within payment messages.

Meanwhile, in addition to the adoption of ISO 20022, Swift’s CBPR+ programme aims to standardise the implementation of the new messaging standard across borders. CBPR+ ensures that financial institutions worldwide can exchange ISO 20022 messages seamlessly, regardless of their internal systems or regional differences.

ISO 20022 and CBPR+ are pushing the financial industry toward real-time cross-border payments. While domestic systems, such as the UAE’s Jaywan and Saudi Arabia’s Mada, have already gained widespread adoption, cross-border transactions have lagged due to the complexities of different jurisdictions, currencies and regulations. Swift is tackling these hurdles with a unified, standardised framework.

Payments embrace AI

Agentic AI, a subset of deep learning, made headlines in 2024, encouraging banks to delve into its possibilities and fueling conversations about the potential of AI to revolutionise the payments landscape.

“AI presents many opportunities for treasurers and broader payments leaders. It can help automatically create insights such as cashflow forecasting while fortifying payments with account validation and fraud management,” according to J.P. Morgan.

The integration of AI technology in the payments industry offers businesses

THE ISO 20022 MESSAGING STANDARD CONTINUES TO GAIN MOMENTUM AS

MORE AND MORE CLEARING AND SETTLEMENT MECHANISMS

ADOPT THE NEW ISO 20022 STANDARD

substantial opportunities, including streamlining operations, reducing costs and delivering personalised experiences to customers.

Infosys said that while traditional automation and current AI tools have enhanced efficiency in areas such as fraud detection, they still fall short of achieving full end-to-end automation across the payment life cycle.

The gap has opened the door for agentic AI, autonomous agents capable of making decisions and carrying out tasks without human input, a shift that could redefine how money moves around the world.

For an industry that processes $26 trillion annually, according to Infosys, agentic AI represents an opportunity to address long-standing inefficiencies in payment processing while creating new capabilities for customer service and operational excellence.

However, the question confronting GCC financial institutions today is not if, but how quickly they can navigate the complex path from promise to practice.

Globally, Visa and Mastercard are experimenting with AI-driven agents while Circle is integrating blockchain into its stablecoin ecosystem. However, until regulators, banks and consumers are aligned on security and standards, autonomous payments will remain a fragmented reality.

PwC said that the implementation of agentic AI in the payments sector necessitates regulatory compliance, security considerations and stakeholder trust. It is a journey of evolution, not revolution and financial institutions that lead the charge will be positioned to capture substantial rewards.

AI-powered identity checks, blockchain audit trails and real-time transaction monitoring are crucial in combating money laundering and fraud. The global RegTech market, projected to top $22 billion by mid-2025, reflects growing demand for these tools.

Meanwhile, GenAI also has the potential to significantly impact largerscale operations, such as enabling virtual assistants for treasury tasks, supporting payments-related dispute resolution and providing developer tools.

The impact of AI on specific payment operations is projected to be profound as industry experts expect it to boost productivity by more than 20% at various stages of the development process.

Globally, some payment process giants have already started experimenting with cutting-edge technology. American Express is leveraging GenAI to accelerate product development, while Visa and Mastercard are utilising it to enhance fraud detection capabilities.

AI holds the potential to revolutionise payments by advancing personalisation, security and efficiency. The technology’s multifaceted approach benefits both businesses and consumers. From marketing and sales to eKYC, customer service and risk management, it offers comprehensive solutions for the entire payments ecosystem.

The payments landscape in the GCC is undergoing a period of rapid transformation, underpinned by advances in technology, the proliferation of new payment instruments and a market environment shaped by both regulatory oversight and new entrants.

– Celent

Enhanced Outcomes

Uzair Kapadia Head of Cash Products, AME & MENA Cluster, Standard Chartered discusses the roles and outcomes of digital payments for businesses and corporations and the effects it will have on performance, economies and the relationship between banks and their business clients

What client demands and industry trends are accelerating the adoption of digital payments among corporates in the region?

Over the past few years, we have seen a fundamental shift in how corporates approach payments. The demand for speed, transparency and cost efficiency is reshaping expectations across every industry. Clients are increasingly asking for real-time settlement capabilities, better visibility of their cash positions and integrated payment solutions that support both domestic and crossborder flows.

A younger and digitally savvy customer base is also playing a role. Many corporates want to mirror the convenience and immediacy of consumer payments within their own ecosystems, particularly for payroll, supplier payments and e-commerce settlement. On top of this, supply chain diversification is driving corporates to seek out faster and more reliable ways to transact across multiple markets. Together, these factors are creating unprecedented momentum behind digital payments adoption.

How are digital payments transforming financial inclusion for corporates, particularly in sectors traditionally reliant on cash?

Financial inclusion has historically been seen through the lens of individuals, but it is just as relevant for corporates and businesses. In markets where cash has

long dominated, digital payments are enabling businesses to participate more effectively in regional and global trade. Digital platforms lower entry barriers, provide secure transaction records and open doors to financial products such as credit and insurance that are often inaccessible to cash-based enterprises.

For example, businesses in retail and logistics are increasingly using digital payment channels to manage receivables and pay suppliers, which reduces cash-handling risks and builds stronger relationships with banks. Over time, this not only improves business efficiency but also broadens the overall reach of the financial system. Digital payments are, in that sense, a catalyst for economic empowerment across multiple layers of the corporate landscape.

How are innovations in digital payments changing cash management, liquidity and crossborder trade for businesses in the region?

One of the most significant developments is the rise of real-time liquidity management. Digital payments allow treasurers to monitor cash positions more accurately, reduce idle balances and optimise working capital. Instead of relying on traditional end-of-day reconciliations, corporates now have instant access to information that helps them make better funding and investment decisions.

In cross-border trade, innovations such as instant payment corridors are enhancing transparency and predictability. Businesses can track payments much like parcels, which improves trust between counterparties. This has real economic implications as faster settlement cycles free up liquidity, while enhanced visibility reduces disputes and administrative overheads.

Uzair Kapadia, Head of Cash Products, AME & MENA Cluster, Standard Chartered

The outcome is a more efficient regional trade ecosystem that supports growth and resilience.

Which technologies or business models do you expect to shape the next phase of corporate digital payments in the Middle East?

Several themes stand out. First, the integration of application programming interfaces (APIs) is transforming how corporates connect with their banking partners. APIs allow clients to embed banking services directly into their enterprise systems, creating seamless payment experiences. Second, artificial intelligence is increasingly being deployed for fraud detection, reconciliation and predictive cash flow analytics, giving treasurers more control.

On the business model side, collaboration will be key. We are seeing corporates adopt ecosystem-based models where banks, fintechs and technology providers work together to deliver comprehensive solutions. This trend is particularly visible in sectors such as e-commerce, where digital wallets and embedded finance are playing a growing role. The Middle East is well positioned to be an innovation hub, given the supportive regulatory landscape and appetite for new technologies.

With the Middle East currently leading in real-time payments growth, how do you see this momentum sustaining, and what opportunities does it create for corporates and financial institutions?

The Middle East benefits from a unique combination of factors. These include young populations, high smartphone penetration and governments with strong digital agendas. These have made the region fertile ground for real-time payments. Looking ahead, sustainability of this momentum will depend on continued investment in infrastructure, cross-border connectivity and interoperability between national systems.

IN ESSENCE, THE GROWTH OF REALTIME PAYMENTS IS EXPANDING THE ROLE OF BANKS FROM TRANSACTION PROVIDERS TO STRATEGIC PARTNERS

For corporates, the opportunities are significant. Real-time payments enhance supply chain efficiency, improve customer experiences and reduce settlement risk. Financial institutions also benefit from deeper client engagement, as treasurers increasingly seek advisory support in designing payment and liquidity strategies. In essence, the growth of real-time payments is expanding the role of banks from transaction providers to strategic partners.

How are corporates balancing the push for faster digital payments with the need for strong cybersecurity and fraud prevention?

Speed and security must go hand in hand. Corporates are acutely aware of the risks associated with faster payments, particularly the potential for fraud and cyberattacks. Many are investing in advanced security protocols, multi-factor authentication and machine learning tools to identify suspicious activity in real time.

Banks have a critical role to play here. By embedding security into payment platforms, conducting joint fraud simulations with clients and sharing intelligence across networks, banks can help corporates mitigate risks without slowing down innovation. Ultimately, trust is the foundation of any payment system, and maintaining it requires constant vigilance.

In what ways are partnerships between banks fintechs, and technology providers shaping the digital payments ecosystem?

No single player can deliver the breadth of solutions corporates now require.

Partnerships are therefore becoming the norm. Banks bring trust, scale and regulatory expertise; fintechs bring agility and innovation; and technology providers offer infrastructure and analytics capabilities.

We are seeing this collaboration manifest in areas such as embedded finance, digital wallets and cross-border remittances. For corporates, these partnerships translate into more choice, better integration and faster access to innovation. Over time, the winners will be those who can deliver ecosystems that provide end-to-end value to clients rather than siloed solutions.

Finally, what role will banks play in guiding corporates through this transformation, and how is Standard Chartered positioning itself to lead in this space?

Banks are no longer simply processors of payments; we are trusted advisors in helping corporates navigate complexity. Our role is to connect the dots between technology, regulation and client needs. This involves co-creating solutions with clients, leveraging our networks to support cross-border flows and ensuring security and compliance at every step.

At Standard Chartered, we see ourselves as a super-connector bank, linking corporates to growth corridors and enabling them to transact seamlessly across markets. We continue to invest in digital infrastructure, forge strategic partnerships and focus on building resilient solutions that help businesses thrive in an era of rapid change. The goal is not only to meet today’s payment needs but also to anticipate the challenges and opportunities of tomorrow.

Treasury Transformation

Digital payments are undoubtedly making significant changes and noticeable improvements to liquidity management, and Siddharth Sabherwal Head of Treasury Services Product, CEEMEA, J.P. Morgan Payments assesses these key developments with a view from the important treasury perspective

What are the demandside factors pushing the region’s boom in digital payments?

The Gulf Corporation Council (GCC) has become a hub for international businesses given its geographic location as the natural central point between East and West. Many are seeking to establish regional treasury hubs in the region, often with increasing importance as they oversee the emerging markets in the Middle East, Africa, Southeast Asia, India and Central and Eastern Europe. However, amidst economic and geopolitical uncertainty, treasurers face pressure to have better visibility and

control of their global cash positions. At the same time, they must navigate industry diversification, rapid technology transformation and a dynamic macroeconomic environment.

One key operational challenge for treasuries in this landscape will be liquidity management. Cash can become trapped in operating subsidiaries in different countries due to exchange controls or the lack of cross-border sweeping capabilities. There is also the evolving risk and compliance environment including anti-money laundering rules, fraud monitoring and reporting, which bring added complexities when it comes to moving money seamlessly across borders at scale. Digital payments can help manage liquidity in a fast, more secure and efficient manner in an everevolving global world.

What effects are digital payments having on regional economies at this time?

Strategic national initiatives like Saudi Vision 2030 and We the UAE have been drivers of significant change and adoption of digital payments. By reducing friction and increasing the speed of money movement, digital payments are driving economic growth and inclusivity

Siddharth Sabherwal, Head of Treasury Services Product, CEEMEA, J.P. Morgan Payments

in the region and contributing to GDP uplift. Studies from the World Bank and IMF link higher digital financial inclusion with a 1-3% increase in GDP in emerging markets. The reduction of analogue payments is also contributing to lower fraud risk, as digitising flows like government transfers, payroll and welfare reduces leakage.

The availability of better data from digital payments helps banks and regulators enforce global reporting standards and enhances AML/CFT compliance. Further, digital rails make it easier for regional players to plug into global networks like SWIFT CBPR+, crossborder networks and blockchain-based corridors. Digital payments are also more cost-effective, reducing the cost of cash handling for financial institutions and treasury management teams.

What do you think will be the top regional priorities or trends in digital payments in the coming five years?

Payments are no longer just about moving money; they are becoming the foundation for innovation and competitive advantage. Always on, borderless, realtime and frictionless, the evolution of payments is reshaping commerce, trade and remittances, with speed, transparency and interoperability the new currency of trust.

The expansion of real-time payments, with instant payment rails dominating, will continue to be a key priority for the region. Markets such as Abu Dhabi, Dubai and the Kingdom of Saudi Arabia are increasingly attractive to international businesses looking for a strategic base

DIGITAL PAYMENTS CAN HELP MANAGE LIQUIDITY IN A FAST, MORE SECURE AND EFFICIENT MANNER IN AN EVER-EVOLVING GLOBAL WORLD

in the region. With digital payments a core part of the financial infrastructure in these markets – such as Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) –the business environment this fosters is encouraging the rise of significant international businesses across a multitude of industries including banks, asset managers and fintechs. There is also a rise in multinational companies establishing regional treasury hubs in the region, often with oversight of the emerging markets in the Middle East, Africa, Southeast Asia, India and Central and Eastern Europe, making the importance of digital payments even more pronounced.

Blockchain technology will also have an impact on the region as it allows money to move near-instantly, 24/7 without the need for intermediaries. We will see central banks continue their Central Bank Digital Currency (CBDC) pilots, and the region could become a leader in wholesale cross-border settlements. Blockchain deposit account networks offer the promise of frictionless, seamless and borderless money movement and provide ‘just-in-time’ liquidity, removing the need for treasury management teams to pre-fund accounts with

PAYMENTS ARE NO LONGER JUST ABOUT MOVING MONEY; THEY ARE BECOMING THE FOUNDATION FOR INNOVATION AND COMPETITIVE ADVANTAGE.

specific currencies - thereby maximising liquidity management.

We will also see a significant uplift in account-to-account payments, with the push towards open finance. Payments are becoming increasingly integrated and invisible through the client journey, as eCommerce, platforms and marketplaces continue to scale up. Interoperability will be a key priority, ensuring schemes and payment methods can connect into global networks like SWIFT CBPR+ and blockchain-based corridors. This would enable a wider variety of options including account-to-account payments, digital wallets, mobile money and BNPL.

How long do you think the Middle East will remain the world’s fastest growing real-time payments market?

The Middle East is still at the early stage of its real-time payments journey, with many banks yet to fully adopt national schemes. As a global financial hub with domestic businesses increasingly global and strategic in their outlook as well as an attractive pull for international businesses looking for a strategic base in the region, there is substantial investment and the region has significant runway for continued expanded growth. While fragmentation of payment systems remains a challenge, increasing interoperability, strong regulatory support and technological advancements will fuel sustained momentum. The fundamentals suggest a prolonged period of investment, innovation and leadership in the region for years to come.

A Revolution in Evolution

Neobanks have set about reshaping the traditional banking landscape, delivering cost-efficient models alongside highly personalised, customer-focused services and experiences, but will need to incorporate more complex products and service to keep growing

UAE neobank Wio Bank has garnered significant attention since its 2022 launch, notably for its unprecedented start with a full banking license.

The challenger bank is among a select group of digital-only banks that have successfully achieved scale and profitability amid the current volatile economic climate. With a balance sheet of over AED 37 billion as of December 31, 2024, Wio Bank has moved swiftly from new entrant to market leader.

C-Innovation Market Research’s 2024 Global Neobank Profitability Report said the challenger bank’s rapid growth underscores its ability to pair scale with

sustainable profitability, setting it apart in a sector where many digital-only banks remain in growth mode without clear earnings visibility.

The banking industry is evolving rapidly, with innovative technologies driving products and services directly into the hands of customers. Banks are also reshaping their approach to delivering greater convenience, more competitive pricing and advance customer experience.

Global consulting firm BCG said while the traditional banking system in the GCC region provides one of the highest rates of returns on equity on a global level, the advent of challenger banks or digital attackers favoured by a highly

connected population would enhance the returns generated.

Banking customers’ growing and evolving demands require banks to go beyond a product lens and create customer experiences that are datadriven, consistent across channels and complete with personalised advice.

“Products and services rendered and built on disruptive technologies are increasingly being placed in the hands of end customers, and the behaviours of banks are changing in terms of customer convenience, transparency, pricing and customer service,” said PwC.

With customer habits and expectations evolving, so too must the architecture of banking. Retail and SME banking services in this new paradigm are increasingly offered through digital channels rather than traditional branch networks.

“Neo and challenger banks have developed global banking operating models that provide an end-to-end digital capability, and multi-service and multi-product coverage as well as an advantageous cost base in comparison to incumbents’ legacy models,” said Deloitte.

Beyond their customer-centric proposition, neobanks are facing unique hurdles. Though these digital attackers typically offer a better user experience, they will need to learn to accommodate more complex products if they are to grow their customer bases and become profitable.

The global neobank market, valued at $143.3 billion in 2024, is expected to grow at a compound annual growth rate of 48.6% to reach $3.41 trillion by 2032.

With their user bases growing, GCC neobanks are diversifying revenue streams through investment and cryptocurrency trading services, premium accounts for mass-affluent customers and licensing of proprietary banking software to other financial institutions.

Continuing to build scale

GCC central banks have long expressed an openness to neobanks even as regulations permitting such banks failed to materialise for many years. BCG projected that GCC’s neobank market will grow to a valuation of $3.45 billion by 2026, driven by the growth in digital payments (53%) and digital remittances (41%).

With over 45 active neobanks in the Middle East and Africa alone and global giants such as Nubank and Revolut expanding into the region, customer loyalty is becoming increasingly fragile, and the banking landscape is rapidly evolving.

UAE’s Ruya Bank is the latest neobank to join the GCC’s growing challenger bank ecosystem after it launched operations in 2024. In its first year, the shariah-compliant neobank has introduced personal banking services for retail customers, investment deposits, kids savings accounts and tailored business banking solutions, designed to meet the evolving needs of individuals and businesses in the UAE.

Digital-exclusive neobanks such as Wio Bank are already having a tremendous impact on SME and consumer finance, the digital economy and society at large. Wio became operational with the launch of its Wio Business last September.

The bank launched its retail banking proposition, Wio Personal, in August to complement its corporate banking offering. Wio Bank, which is jointly owned by Abu Dhabi’s ADQ Alpha Dhabi Holding, e& Group and First Abu Dhabi Bank, has three main business lines: digital banking apps, embedded finance and banking-asa-service solutions.

NEO- AND CHALLENGER BANKS

HAVE DEVELOPED GLOBAL BANKING OPERATING

MODELS THAT PROVIDE AN END-TO-END DIGITAL CAPABILITY, AND MULTI-SERVICE AND MULTI-PRODUCT COVERAGE AS WELL AS AN ADVANTAGEOUS COST BASE IN COMPARISON TO INCUMBENTS’ LEGACY MODELS.

– Deloitte

The UAE’s first digital community bank, Al Maryah Community Bank (Mbank), offers an omnichannel experience to individual consumers and small businesses. The Abu Dhabi-based digitalexclusive bank partnered with the Khalifa Fund to provide SMEs with tailor-made, convenient and secure banking and financial services while managing their financials more efficiently.

Zand Bank, another neobank in the UAE, is yet to start operations after receiving a banking license from the central bank in July 2022.

Global consulting firm Simon-Kucher & Partners said that if other markets are a good indicator of what will happen next, then the Middle East can expect more neobank competitors to appear very soon.

Though Saudi Arabia is yet to witness mainstream adoption of neobanks, the market is already showing an appetite for alternative solutions that enable banking customers to access services without stepping into brickand-mortar branches. Saudi Central Bank (SAMA) began publishing licensing requirements for digital-only banks in 2020, in line with Vision 2030 and the financial sector development programme. The kingdom currently has three licenced neobanks.

D360 Bank, a shariah-compliant neobank backed by the Public Investment Fund and Derayah Financial Company, launched operations last December. The challenger bank is targeting the first quarter of 2026 to close the Series

A funding, and the proceeds will help expand services to SMEs.

D360 Bank has more than a million users and aims to reach around four million before a potential public listing in four years.

stc Bank, the digital lender of the Saudi Telecom Company, commenced operations in January. The digital-only lender aims to roll out its full suite of services later in 2025, after getting a fresh $800 million cash injection from stc Group, its largest shareholder.

stc Bank recorded SAR345 million in gross profit in 2024 and counts Western Union as a key stakeholder.

Neobanks or challenger banks are unencumbered by the constraints of legacy business models and core systems. They leverage transparent product offerings to provide a wide range of easily accessible banking services in a platform approach that today’s digitally savvy customers expect.

Revving a second engine

To build business agility, boost innovation and enable growth, a fundamental shift is required from incumbent GCC banks – moving from inward-looking practices with rules and procedures to outward-looking engagements through partnerships and collaborations.

Retail banks in the region are leveraging their existing resources to introduce speedboats – cloud-native digital spinoffs that enable faster time-tomarket for the launching of new products and market expansion.

Mambu said in a report that a wellexecuted speedboat, often customercentric or targeting a niche segment, can be quickly scaled up according to the market requirements.

Nomo, a digital bank backed by Kuwait’s Boubyan Bank Group, partnered with Abu Dhabi Commercial Bank and Al Hilal Bank in April, giving UAE customers access to UK-based Shariah-compliant multicurrency current and savings bank accounts. The unique proposition enables customers to secure finance for purchasing properties in the UK, either as an investment or a second home.

Dubai’s Mashreq trimmed its nationwide branch network from 34 in 2019 to just 10 this year. The bank operates ‘digital spinoffs’ offerings with its consumer-facing Neo and businessfocused NeoBiz. In June, Mashreq Neo joined forces with India’s Federal Bank to facilitate digital Non-Resident Indian account opening for its customers in the UAE.

Emirates NBD launched Liv., a digitalexclusive bank for millennials, in 2017. Building on this success, the bank unveiled E20 in 2019, a digital bank that caters to the needs of small and mediumsized enterprises.

Similarly, Dubai Islamic Bank also introduced its digital spinoff rabbit in December 2021. The Shariah-compliant lender’s digital banking platform offers current accounts, globally accepted debit cards as well as payments and money transfer services.

The speedboat approach requires legacy banks to quickly develop new digital products and services that attract and delight customers. These offerings need less capital than traditional banking products and they are said to be far less expensive to support.

The GCC banking sector is at an inflexion point and the new innovative financial technologies are offering banks the potential to boost revenues at lower costs by engaging and serving customers in radically new ways using new business models.

PRODUCTS AND SERVICES RENDERED AND BUILT ON DISRUPTIVE TECHNOLOGIES ARE INCREASINGLY BEING PLACED IN THE HANDS OF END CUSTOMERS AND THE BEHAVIOURS OF BANKS ARE CHANGING IN TERMS OF

CUSTOMER CONVENIENCE, TRANSPARENCY, PRICING AND CUSTOMER SERVICE

The future of banking

The business of banking is changing rapidly, and open banking is the perfect growth catalyst for neobanks. Traditional banks can catalyse growth by operating a range of new models in parallel with the current core of the business.

McKinsey said though several banks are adopting open-banking enablers, successful challenger banks gain a competitive advantage by building an open platform from the outset.

To become a value architect, incumbent banks should consider playing a range of roles in the value chain. Furthermore, depending on the size, market and strength of the bank, a legacy bank can embrace any mix of these approaches to increase business model flexibility and differentiate itself from the competition.

PwC said that open banking has the potential to reshape the financial services landscape and several financial centres in the emerging markets, the GCC region included, are making considerable moves in this space.

Open banking in the Gulf region exists on a spectrum, from models driven by regulators to those led by industry. SAMA unveiled its ‘Open Banking Lab’ last December as part of the Gulf state’s broader strategies to speed up the development of open banking. 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.

Bahrain is implementing a Europeanstyle regulation-driven approach, and the UAE has adopted an Americanstyle market-driven approach under the guidance of the Abu Dhabi Global Market and Dubai Financial Services Authority.

Application Programming Interface (API), a set of communication protocols used to develop computer applications, is at the core of banks’ Open Architecture and plays a significant role in our digital strategy.

Abu Dhabi Islamic Bank (ADIB) launched its first API developer portal last June, allowing fintech developers to use the Shariah-compliant lender’s APIs. Emirates NBD also launched a ready-to-use API developer portal ‘Emirates NBD API Souq’, to provide fintech firms, developers and corporate clients an all-in-one ecosystem to build innovative financial solutions.

Open banking requires a robust, agile and scalable IT architecture to enable API integrations with multiple entities. Its implementation promises to create a new data-sharing infrastructure, which will form the basis of a much richer range of services and products across the whole of financial services.

For years, GCC regulators were perceived as cautious and slow-moving. However, the regulators are playing a pivotal role in accelerating digital banking, fast-tracking policies and frameworks to create an environment conducive to entrants and innovation-driven growth.

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Global HNWIs and corporates migrate to the UAE amidst increasing taxes

George Hojeije Group CEO at Virtugroup shows how the global landscape of wealth distribution is undergoing a fundamental shift, with the United Arab Emirates emerging as the dominant recipient of capital flight from traditional financial centers

Recent data from the World’s Wealthiest Cities Report 2025 reveals Dubai’s population of high-net-worth individuals (HNWIs) now comprises 81,200 millionaires and 20 billionaires, indicating growth rates that significantly outpace established financial hubs.

Market analysts expect this number to further increase, as the UAE is projected to welcome 9,800 new millionaires this year, signifying USD 63 billion in wealth migration.

In contrast, the United Kingdom saw 10,800 millionaires exit in 2024—a 157% jump from the previous year—with experts estimating an accelerated outflow of 16,500 millionaires in 2025.

This movement represents approximately USD 89.2 billion in investable wealth leaving UK markets, consequently impacting the nation’s investment capacity and tax revenue generation.

The driving forces behind the unprecedented wealth migration

While the UAE’s zero-tax framework on income, capital gains and inheritance provides immediate fiscal benefits for HNWIs, the sustainability of this wealth transfer depends on other critical factors, such as the country’s diversified economy, political stability and progressive legislative approach.

For instance, the UAE’s projected economic growth rate of 4.5% for 2025 substantially exceeds most developed economies, providing a stable and dynamic investment environment that complements tax advantages.

This growth trajectory, supported by robust foreign direct investment (FDI) levels, creates multiplicative wealth generation opportunities that extend beyond tax optimisation strategies.

International corporations building their HQs in the UAE

Corporate positioning data shows that Dubai and Abu Dhabi rank among the top 12 global cities for business environments, highlighting the comprehensive infrastructure the UAE has built to support both individual and institutional wealth management requirements.

Earlier this year, the Dubai Chamber of Commerce published data showing an increase in foreign companies setting up in the emirate, with people coming

George Hojeije, Group CEO at Virtugroup

from Iraq, Türkiye and the UK among the nationalities topping the list.

The government agency further revealed 70,500 new companies registered in 2024, with Iraqi companies showing a 37.8% upsurge, Turkish firms recording 25.5% growth and UK startups representing a 14.2% increase with 2,588 new companies, compared to statistics in 2023.

In addition, the trading and services sector attracted 29,000 new companies, while the construction sector grew by 33% with 7,434 new firms.

The UAE’s FDI inflows also reached USD 45.6 billion in 2024, complemented by a 4% boost in total gross domestic product (GDP) and a 2.8% uptick in the number of greenfield project announcements.

Ultimately, this rise in new business activity underscores Dubai’s appeal to global talent, capital and innovation, reinforcing its role as a regional economic and investment powerhouse.

Complementary geographic and socio-economic advantages

The UAE’s geographic positioning also offers unique strategic value for wealth management activities.

Located at the intersection of European, Asian and African markets, the country provides unparalleled connectivity for global investment strategies—an advantage that becomes increasingly valuable as geopolitical tensions often complicate traditional financial center relationships and create demand for neutral and accessible wealth management hubs.

Furthermore, the UAE’s golden visa program has proven to be an effective approach to attracting and retaining both talent and capital by providing long-term

THE

THE

UAE’S GEOGRAPHIC POSITIONING

ALSO OFFERS

UNIQUE STRATEGIC VALUE FOR WEALTH MANAGEMENT ACTIVITIES

residency and security, which address fundamental concerns about wealth preservation and family continuity.

In fact, national statistics show that the golden visas issued by the government more than doubled in recent years, showcasing a robust demand for longterm UAE residency pathways.

The latest figures from Dubai’s General Directorate of Residency and Foreigners Affairs show the agency issued 158,000 golden visas in 2023, nearly twice the number of golden visas released in 2022.

Another notable factor is the significant cost advantages that Dubai offers in comparison to established wealth centers such as London, New York and Hong Kong, while providing the same high quality of life, infrastructure and essential services, including education and healthcare.

Reshaping the current global economic landscape

The magnitude of this wealth migration suggests structural changes in our current global economic architecture rather than temporary opportunities. However, although current trends strongly favor continued wealth migration to the UAE, several factors warrant monitoring for long-term sustainability.

Global tax coordination efforts, particularly those addressing profit

MAGNITUDE OF

THIS

WEALTH MIGRATION SUGGESTS STRUCTURAL CHANGES IN

OUR

CURRENT GLOBAL ECONOMIC ARCHITECTURE RATHER THAN

shifting and minimum tax rates, could affect the UAE’s competitive positioning. Additionally, geopolitical developments in the Middle East region, though currently stable, might become variables that could influence investor sentiment.

On the other hand, the UAE’s economic diversification efforts, specifically in technology and renewable energy sectors, provide resilience against commodity price volatility that historically affected regional economies.

This diversification strategy promotes a sustainable wealth management infrastructure that is independent of traditional resource-based economic cycles.

Identifying opportunities and challenges

For global investors, the UAE’s emergence as a wealth management hub creates opportunities for portfolio diversification and tax-efficient structuring. To achieve long-term success, however, they need to understand the country’s local regulatory frameworks, cultural considerations and future goals.

Financial service providers must also recognise the UAE’s growing importance and role in global wealth management and provide the right ecosystem to support this wealth transfer, or risk losing clients that now require a different suite of services to meet their changing wealth migration needs.

As the UAE aims to preserve its status as the new hub for HNWIs, family offices and conglomerates, its ability to balance economic diversification, regulatory framework and geopolitical stability will determine whether it simply captures migrating wealth or permanently restructures the global finance market.

Right Time, Right Place

Nina Auchoybur Country Head for the UAE at Ocorian explains how Ocorian has adapted, incorporating new products and options, to remain at the forefront of private client services provision as our region undergoes sweeping market development and experiences significant business growth

Tell us about Ocorian’s services provided from the UAE and further afield.

At Ocorian, we deliver a globally integrated suite of services across five core pillars: Corporate services, Private Client, Asset Manager Services including Regulatory & Compliance solutions and Capital Markets. Our UAE operations embody this comprehensive approach, maintaining a strong and expanding presence across several of these areas.

Traditionally, our UAE business has concentrated on Corporate services, serving as a trusted provider to both international and regional clients. The introduction of the UAE Foundation regimes presented a strategic opportunity to leverage our global trustee expertise locally. Over the past seven years, we have developed a robust Private Client offering, supporting wealth managers, advisors, lawyers and private bankers with bespoke solutions for succession planning, asset protection and cross-border structuring. In response to the increasing number of regulated entities establishing themselves in the UAE, we launched our Regulatory & Compliance solutions arm in 2025. This supports both new and established firms in meeting their governance, AML and regulatory requirements.

Looking ahead, we are expanding our global Fund Administration capabilities into the region. We are currently in the process of obtaining the relevant license from DIFC, which will enable us to offer

Fund Administration services locally—an exciting development for asset managers and institutional clients seeking highquality, scalable solutions in the UAE.

Ben Hill, Global Co-Head of Fund Services at Ocorian says, “Once our DIFC license has been secured, this will mark a significant milestone for Ocorian as we broaden our services in the region to support our clients’ growth. Building on our longstanding reputation for Corporate and Fiduciary services, we are now ideally positioned to expand our offering to the asset manager community, enabling clients to unlock new opportunities and achieve their ambitions in the Middle East.”

What

leading concerns and trends are you noticing in the regional private client market in recent years?

The private client market in the UAE and wider GCC region has seen substantial evolution in recent years, influenced by global wealth migration, regulatory advancements and generational change. We have identified several key trends that are actively shaping the private client landscape.

Growing confidence in local legal structures

One of the most encouraging trends is the increasing use of the UAE Foundation and DIFC Trust regimes by both expatriate and Emirati families. These structures are no longer limited to local real estate or business assets, they are now being used to hold international portfolios, including real estate, liquid and semiliquid investments and even more fixed or strategic assets. This signals a deepening trust in the region’s legal and regulatory

Nina Auchoybur, Country Head, UAE, Ocorian

frameworks and positions the UAE as a credible premium jurisdiction for complex, cross-border wealth structuring.

Influence of the younger generation on asset composition

The next generation of wealth holders is playing a transformative role in reshaping private client structures. Unlike previous generations, they are more inclined to include non-traditional assets such as digital assets (cryptocurrencies, NFTs), aircrafts and vessels, ETFs and impactdriven investments. This shift reflects a broader desire for personalisation, innovation and purpose in wealth management. Structures today must be flexible enough to accommodate these evolving preferences while maintaining governance and compliance integrity.

Rise of governance and professionalisation

There is a growing recognition that wealth without governance is fragile. Families are increasingly embedding governance frameworks into their structures—whether through family constitutions, customised by-laws, or councils with professional members. This professionalisation ensures better decision-making, reduces intergenerational conflict and supports long-term continuity. It also reflects a shift from wealth preservation to family enterprise stewardship.

Surge in global wealth migration and regional opportunity

The UAE continues to attract a significant influx of global wealth, making it one of the top destinations for HNWIs and UHNWIs. This is driven by its political stability, tax efficiency and ambitious national strategies like Dubai Economic Agenda 2033 and Vision 2030, which are unlocking new investment opportunities in sectors such as technology, infrastructure and clean energy. Private clients are increasingly seeking direct exposure to these growth sectors, which requires more sophisticated advisory and access to private markets.

Digital expectations and technological sophistication

Clients in the region are highly digitally native and expect seamless, real-time access to their portfolios. They are also open to AI-powered tools for insights and portfolio optimisation. However, many firms still operate on fragmented legacy systems, which can hinder the client experience and limit scalability. There is a clear need for digital transformation to meet rising expectations and ensure operational resilience.

Evolving regulatory landscape and legal complexity

The region is actively modernising its legal and regulatory frameworks. The introduction of corporate tax, economic substance rules and the adoption of common law frameworks in financial free zones like DIFC and ADGM have enhanced transparency and investor confidence. That said, a key concern remains: these frameworks are still relatively new and untested. There is limited case law, and due to the confidential nature of these structures, there is little public precedent. This creates uncertainty, particularly around dispute resolution and enforcement.

ESG and thematic investing

Finally, we are seeing a growing appetite for ESG-aligned and thematic investments, especially among younger clients. They are looking for opportunities that align with global trends—clean energy, ethical tech and sustainability. While demand is strong, the regional market for ESG products is still maturing. Wealth managers must ensure credibility, transparency and measurable impact to build trust and deliver value.

How has Ocorian adapted to the region’s recent growth in the wealth and investment markets?

Ocorian has adapted proactively to the region’s rapid expansion in wealth and investment markets, especially within the UAE and broader GCC, by placing client

needs and market transformation at the core of our strategy.

To address the shift towards domestic wealth structuring, we have enhanced our onshore capabilities, becoming specialists in UAE Foundation regimes, DIFC Trust and ADGM structures. This expertise enables us to support clients with both local and international portfolios, including real estate but also for international portfolios, including liquid, semi-liquid and fixed assets.

We have also evolved our service offering to accommodate changing generational preferences. With younger clients increasingly holding digital assets and ETFs, our structures have been updated to remain flexible, compliant and aligned with evolving investment strategies.

Recognising the importance of robust governance among family clients, Ocorian now delivers comprehensive support for establishing formal frameworks—such as family constitutions, custom by-laws and professional family councils—ensuring resilience and a smooth transition of wealth across generations.

As the region’s regulatory landscape modernises, our teams are equipped to guide clients through developments like corporate tax introduction and economic substance rules, ensuring compliance and longevity for their structures.

We have further broadened our offering through a partnership with Ebdaa Islamic Finance Consultancy, allowing us to deliver Sharia-compliant wealth structuring and ethical investment options tailored to the cultural requirements of our clients.

In summary, Ocorian’s approach has been to anticipate market changes, embrace innovation and provide holistic solutions that are both future-ready and client-focused. Our commitment is not simply to keep pace with the market, but to actively help shape its evolution.

Which investment sectors are currently showing the greatest growth potential across our region?

The UAE and GCC region are undergoing a profound economic transformation,

driven by a strategic push to diversify away from hydrocarbons. This shift has unlocked significant growth potential across several key investment sectors; each aligned with national vision strategies and global trends.

1. Technology is at the heart of the region’s diversification efforts. Governments are investing heavily to position the GCC as a global hub for digital innovation. The UAE’s Digital Economy Strategy, for example, aims to double the sector’s contribution to GDP within the next decade.

Key growth areas include:

• Fin tech: With a young, mobile-first population, demand for digital banking, payments and wealth management solutions is surging. The UAE and Bahrain have emerged as fintech hubs, supported by regulatory sandboxes and startup-friendly ecosystems.

• AI and Cloud Computing: Substantial investments are being made in AI infrastructure, data centres and cloud technologies. These are being driven by digital government initiatives and the private sector’s appetite for scalable, intelligent solutions.

• Smar t Cities: Major urban developments across the region are integrating IoT, AI and data analytics to enhance urban living. These projects are attracting significant investment in infrastructure, connectivity and sustainability.

2 Real estate continues to be a cornerstone of investment in the region. Rapid population growth, a steady influx of expatriates and a robust pipeline of mega-projects are fuelling demand.

3 Cities such as Dubai and Riyadh are experiencing notable price appreciation alongside high rental yields, reinforcing real estate’s reputation as a safer investment option for global investors seeking stability and long-term value. In addition to the strong performance of the property market, substantial infrastructure investments—particularly those connected to tourism, logistics

and smart city developments— are generating further attractive opportunities for investors across the region.

4 The GCC is also positioning itself as a global tourism powerhouse. Governments are investing in world-class attractions, hospitality infrastructure and relaxed visa policies to attract millions of visitors.

• Rec ent high-profile events such as Expo 2020 and the FIFA World Cup 2022 have highlighted the region’s impressive capability to host international audiences. This has provided a significant boost to the tourism sector, which is now further benefiting from enhanced global connectivity and a rising appetite for luxury and experiential travel.

5 Sustainability remains a central pillar of the region’s economic vision. GCC countries are committing to ambitious clean energy targets, creating a fertile ground for investment in renewables, particularly solar power.

The UAE and Saudi Arabia are leading with large-scale solar projects and green hydrogen initiatives and investors are drawn to the long-term potential of these projects, especially as global ESG mandates gain traction.

5 Most importantly, the financial sector is thriving, fuelled by economic growth, regulatory modernisation and the influx of high-net-worth individuals and businesses.

• Wealth and Asset Management: As regional and international wealth grows, demand for sophisticated advisory and structuring services is rising sharply.

• Private Equity and Venture Capital: The region’s startup ecosystem is maturing, and there is a clear shift toward private market investments. Investors are increasingly targeting high-growth opportunities in tech, healthcare, logistics and consumer sectors.

How has the regional regulatory and compliance environment evolved for private client services?

The regulatory and compliance environment for private client services in the UAE and GCC has evolved significantly in recent years, reflecting the region’s ambition to become a leading global hub for private wealth management. This evolution has been both strategic and structural, with a clear focus on aligning with international best practices while addressing the unique needs of regional and international families.

The UAE has made it clear that it intends to position itself as the world’s leading private client jurisdiction. This ambition is being realised through a series of coordinated efforts involving government bodies, regulators and private sector stakeholders. The result is a robust and increasingly sophisticated ecosystem that supports complex wealth

structuring, succession planning and cross-border asset protection.

We have seen a wave of new regulations, legislative reforms and clarifications aimed at strengthening the legal infrastructure for private clients. Some of these new regulations include:

Amendments to Trust and Foundation laws in both DIFC and ADGM to enhance flexibility and governance.

The enactment of DIFC Family Arrangements Regulations, which replaced the Single-Family Office regime with a simplified framework that supports single family offices, while eliminating the need for DFSA registration.

The introduction of corporate tax and economic substance requirements, which have brought the UAE in line with global tax transparency standards.

Clarifications to existing laws to improve certainty and reduce ambiguity for advisors and clients alike.

A major milestone has been the launch of the DIFC Global Family Business and Private Wealth Centre, which is the first of its kind. This initiative consolidates services for family offices, UHNWIs and private wealth advisors, offering a central platform for education, certification and regulatory support.

In parallel, the DIFC has implemented a Private Register for family entities and family offices. While maintaining confidentiality, this register enhances regulatory oversight and supports better governance. It also reflects a broader shift toward greater transparency and accountability in private wealth structures.

Corporate Service Providers (CSPs) now face heightened compliance obligations, particularly around source of wealth and source of funds verification, ongoing due diligence and monitoring and internal controls and reporting standards.

These changes are designed to ensure that the UAE remains compliant with global AML/CFT frameworks and continues to attract reputable international clients.

The compliance environment has matured significantly. There is now a stronger emphasis on documentation, reporting and proactive risk management. These measures are helping to build a transparent and credible jurisdiction, which is essential for long-term investor confidence.

While the UAE is enhancing transparency, it continues to respect the privacy of private client structures. For example, DIFC’s Private Register is not publicly accessible, ensuring confidentiality while still enabling regulatory oversight. This balance is key to maintaining the region’s appeal to global families and wealth owners.

What is the Ocorian Group perspective of our region in terms of market growth, potential and global prominence?

From Ocorian’s perspective, the UAE and broader GCC region represent one of the most exciting and strategically important markets globally. The region is undergoing a transformational shift, driven by economic diversification, regulatory modernisation and a surge in private wealth creation. We see immense potential—not just in terms of market growth, but also in the region’s ability to establish itself as a global private client and financial services hub.

The GCC’s financial wealth is projected to grow at an annual rate of 4.7%, reaching $3.5 trillion by 2027, with the UAE alone accounting for $925 billion in individual wealth1. This growth is being fuelled by thriving businesses, appreciating asset values and a deepening sophistication in financial markets. Families are increasingly seeking institutional-grade solutions, and Ocorian is well-positioned to support this evolution.

The UAE offers a compelling proposition: a favourable tax regime, world-class infrastructure and a strategic location at the crossroads of Asia, Africa and Europe. These factors make it an ideal jurisdiction for wealth

structuring, succession planning and global investment diversification.

We have seen remarkable progress in the region’s regulatory landscape. Initiatives like the DIFC Private Wealth Centre, the Private Register and enhanced responsibilities for CSPs reflect a commitment to global standards and transparency.

This regulatory maturity is critical for attracting international families and institutions, and Ocorian has actively aligned its services to support clients navigating these changes.

There is a clear shift towards domestic structuring, with families increasingly using UAE Foundations and DIFC Trusts to hold both local and international assets. This reflects growing confidence in the region’s legal frameworks and a desire for greater control and continuity. We are also seeing a strong emphasis on governance, with nextgen family members driving the adoption of family constitutions, professionalised councils and succession planning tools.

Ocorian has responded to the growing demand for Sharia-compliant financial services with our strategic partnership with Ebdaa Islamic Finance Consultancy. This alliance enables us to deliver tailored Islamic wealth solutions, including Foundations, Sukuk structures and ethical investment strategies, catering to both Muslim and non-Muslim clients seeking values-aligned planning.

The next generation of private clients is reshaping the investment landscape. They are driving interest in ESG, impact investing, digital assets and more diverse asset classes. Ocorian is supporting this shift by offering flexible structuring options and advisory services that reflect modern values and long-term sustainability.

Ocorian views the UAE and GCC as a region of exceptional promise and global relevance. The combination of wealth growth, regulatory innovation and generational transformation makes it a key market for the Group. We are proud to be part of this journey—helping families, institutions and entrepreneurs structure their legacies and seize the opportunities of a rapidly evolving financial landscape.

Fit and Prepared

While explaining his route from telecommunications to starting Iraq’s first digital only bank, Kawa Junad Founder and Chairman of First Iraqi Bank (FIB) asserts that setting up such a business in a highly challenging market has honed a sharper and more innovative enterprise, equipping it to compete as it grows in the region

What did you notice while in the telecoms sector that led you into the fintech market?

When I worked in telecoms, I saw firsthand how connectivity can transform lives. Iraq went from almost no internet penetration to 4G in less than a decade, and that leap opened entirely new possibilities for people and businesses. But it also highlighted another gap: financial access. People could suddenly communicate and transact online, but most were still excluded from the formal banking system. Salaries were paid in cash; bills were paid in cash and sending money across borders was a complicated process. That reality is what drew me into fintech.

I knew that digital finance could unlock the same kind of transformation that mobile connectivity had, and that Iraq needed a new approach to leapfrog its legacy banking systems, just as we had in telecoms.

Does your telecoms background give you an advantage over others developing fintech businesses?

Absolutely. Telecoms taught me how to build infrastructure at scale and deliver essential services in difficult conditions. People associate telecoms networks with towers and bandwidth, but it is not just about infrastructure. Trust, uptime, customer care and compliance also matter. Those lessons translate directly into fintech. A bank is only as strong as the trust people place in it, and that trust is earned through reliability, security and transparency.

My telecoms experience also helped me understand how to drive adoption. When we launched 4G, we knew

Kawa Junad, Founder and Chairman of First Iraqi Bank (FIB)

technology alone was not enough; people needed affordable devices, education and confidence in using it. The same is true in fintech. That background gave me both the systems thinking and the customer empathy needed to build Iraq’s first digital-only bank.

With no legacy systems in place, was creating a digital only bank more, or less challenging?

It is a double-edged sword. On one hand, not having legacy systems meant we could design FIB from the ground up as mobile-first, compliant with international AML/CTF standards and fully integrated with biometric KYC. We didn’t have to spend years untangling outdated processes.

On the other hand, the absence of legacy systems also meant there was no established foundation for digital banking in Iraq. We had to build the infrastructure, design the customer journey and create awareness almost from scratch. So, while it gave us freedom, it also meant more responsibility. In the end, I see it as an advantage: it allowed us to leapfrog directly into the future of banking rather than being held back by the past.

How is FIB actively contributing to Iraq’s transition to a cashless economy?

Financial inclusion is at the core of our mission. We have made account opening simple and instant, available in Arabic, Kurdish and English, so anyone with a smartphone can join the system. We work closely with government ministries to digitise salary disbursements, which brings millions of public-sector workers into the formal economy. We have also partnered with merchants to expand acceptance networks so that people can use FIB to pay bills, shop and send money without cash.

Education is another key element. We invest in digital literacy campaigns that make first-time users comfortable with mobile banking. All of these steps create momentum toward a cashless society.

In a country where only 30% of adults currently have a bank account, these changes are foundational for economic growth.

How will both real-time payments and digital banking help foster greater inclusivity?

Speed and accessibility change behaviour. When people know they can send money instantly, pay bills on time, or receive salaries directly into a digital account, they are more willing to trust the system. Real-time payments reduce the reliance on middlemen, cut costs and make financial services accessible to people in rural areas as easily as those in Baghdad.

Digital banking also makes it possible to design products for groups traditionally excluded, such as women, small business owners, or the diaspora community. For

At FIB, we have embraced that reality rather than resisted it. We invested early in advanced AML/CTF systems, including biometric verification, AI-driven transaction monitoring and enhanced due diligence protocols. We have also partnered with international experts and training institutions to bring our staff up to the highest global standards.

This environment has forced us to be sharper, faster and more innovative in compliance than many banks operating in more stable contexts. The result is that FIB is not just a digital bank, but a trusted bridge connecting Iraq’s economy with the global financial system.

What is your future vision for FIB in our region?

From the outset, we built FIB with a regional outlook. Iraq was the launchpad, but financial exclusion, lack of digital

IN A COUNTRY WHERE ONLY 30% OF ADULTS CURRENTLY HAVE A BANK ACCOUNT, THESE CHANGES ARE FOUNDATIONAL FOR ECONOMIC GROWTH

example, only 19% of Iraqi women currently hold a bank account. With mobile-first platforms, we can reduce barriers and expand participation. Access to money matters, but inclusion means more; it is about enabling people to participate in the wider economy on equal terms.

Has operating with Iraq’s present national circumstances sharpened FIB acuity over other banks in terms of AML/CTF?

Operating in Iraq requires a heightened sensitivity to compliance. Geopolitical risk, sanctions and the legacy of financial isolation mean that every transaction must meet a higher standard of scrutiny.

infrastructure, limited cross-border access and the other challenges we are solving are not unique to Iraq. Our vision is to become a cross-border fintech enabler, providing the rails that allow people and businesses across the Middle East to transact seamlessly and securely. We have already begun expanding beyond Iraq, and we see strong opportunities in the Gulf and Levant. Ultimately, I want FIB to stand as proof that even in a market as complex as Iraq, you can build a worldclass digital ecosystem. The lesson we take to the region is simple: resilience, innovation and compliance can turn even the toughest environments into platforms for growth.

Keeping Pace with Growth

Harjit Kang Commercial Director, MEA at Mambu discusses the rise of Islamic finance and how they are taking a lead in ensuring regional banks and financial institutions are equipped to successfully manage in this important market

Kang, Commercial Director, MEA at Mambu

As an acknowledged leader in composable core banking technology, what distinguishes Mambu from other providers operating in our region?

You need to look at the fundamentals here. So, if you go back to the perspective of the actual founding principles of Mambu, it’s a single code base, pure SaaS provider,

which by itself is a key differentiator. On top of that, it is configuration only, so there is no customisation of the code whatsoever. However, you do adopt the speed to market benefits of it being configuration-driven. And of note, in addition to this, Mambu was the first business to ever coin the term composable banking.

So, what we mean by that is to give you the ability to leverage best of breed

components within the tech stack, rather than having to go with a legacy provider that will give you a one-stop shop, which is maybe not fit for purpose. Maybe they are not best of breed at KYC or from a UX channel perspective.

What we give the benefits of, leverage a lean core and plug in anything you want to. What that also gives the bank, is the benefit of a future-proof tech stack. Anything within that ecosystem can be replaced.

So, as we are in the market now in the GCC, and all the other providers coming in from Europe and America, there’s a plethora of modern tech that’s being developed within the region. So, if that KYC provider doesn’t work for you in three years, replace them. It’s all about giving the power back to the bank.

What areas of growth in terms

of the application of technology are you currently observing in the regional banking and finance markets?

There’s many. What we’re seeing being driven by the youth in the market is they actually want to go more towards ethical banking. We’re actually now starting to see a huge growth of, let’s say, digital Islamic banks that are coming to the market.

The legacy banks, the ones that have been there for a long time, they do have the market share. However, that market share is being taken. They are actually now looking to spin off neo projects or even projects that they’re looking to go into new segments for.

Harjit

For example, we’re having conversations even this week around banks looking to go into the SME segment, massively underserved. However, with their current tech stack, they can’t serve them properly. And for the SMEs, the onboarding time just takes too long.

So that’s just one example. You’ve got others that are looking to launch wallet propositions. But what we are typically seeing is the real push around ethical. And that’s not just from an Islamic Shari’ah compliance perspective, but also from the conventional side.

The Islamic banking sector is posed to exceed assets worth $4Tn. So how is Mambu positioning to help institutions best manage this growth?

When we see growth, we actually see that linked directly to technology. In my personal opinion, I believe technology enables growth.

You have to have a stable and an agile platform to enable it. You can have the best proposition in the market, but if you don’t have the fundamentals done correctly, you cannot scale, be it from launching a new product line to the market, being able to onboard your millions of customers that you want to do so. So, we’re actually enabling it from them leveraging a best of breed SaaS technology, which is built for horizontal and vertical scalability.

Also, the platform is poised to help with regional scale. We’ve seen it with many of our customers from European points of views. We’ve had customers move into 26 different markets. The technology is ready. We just need to ensure that the banks are also ready and have the right technology in place to do so.

What moves has Mambu made to help financial institutions quickly develop and scale their Shari’ah compliant products in this time of rapid market growth?

Mambu has continuous investment into the product itself. And that product is aligning to the Shari’ah principles that

we’ve seen taken to market. And you can see that with some of the recent releases we’ve taken to market.

Please provide some examples of Mambu’s upgraded capabilities for Islamic banking.

There are many, but let’s focus on a few. The first will be our profit-sharing capability. It’s a profit-sharing engine that we have created. Ultimately, what that is, it automates profit calculation and distribution.

Why is that important? First of all, it reduces operational risk. Second of all, it ensures transparency. And third of all, it guarantees compliance, which is very important with alignment to Shari’ah principles.

On top of that, Mambu, of course, is continuously evolving its product set. So, the product configuration to be from a no-code perspective, the financing

absolutely compliant and segregated from conventional banking. With Mambu, this can be achieved in multiple ways. Either you can spin a separate dedicated instance, which will be totally segregated, or we have seen some customers spin up a new tenant and that tenant has a separate database schema, which limits the amount of access of the conventional perspective. What we are trying to ensure here, there is no commingling of the two separate product sets. This can be achieved in multiple ways. It all just depends on which the bank prefers.

How can Mambu help banks operating across multiple nations manage the often-differing interpretations of Shari’ah finance in individual countries or regions?

Yeah, so what we’ve we are seeing, is there’s nuances from many jurisdictions

IT’S ALL ABOUT GIVING THE POWER BACK TO THE BANK

terms, the repayment structure, et cetera, can all be done within Mambu from a configuration perspective in alignment with a magnitude of Shari’ah compliant principles.

And of course, this all comes with the benefits of Mambu such as the quick time to market, the simplicity, et cetera.

How does Mambu’s dualbanking support maintain separation between Islamic and conventional banking to ensure Shari’ah compliance at financial institutions?

Yeah, so all Shari’ah products, the principles, the calculation, the logic associated to it, they need to be segregated to ensure that the bank is

that we operate in when it comes to Islamic banking, from KSA, for example, to Malaysia, to Indonesia. And also, actually, within each one of those individual regions, the committee, the Shari’ah committee, may have a different opinion of how the Wakala deposits should operate or the Wadiah principle should operate.

So, at the moment, we’re not seeing a standardisation. However, we do expect something like this to hopefully happen in the future, because this will really be to the benefit of the Islamic banks, because if they can standardise it, it gives them quicker time to market again, and all the other benefits of standardising your product, which is ultimately the definition of what a product is. It’s standardised.

Multi Retirements Concept Embraced by UAE

Dinesh Sharma Head of International Wealth and Premier Banking (IWPB), Middle

East, North Africa & Türkiye at HSBC presents a look at the changing approaches and attitudes to retirement and life planning across our region

Retirement is shifting from being a one-time milestone to a dynamic, modular journey – one that individuals in the UAE are embracing. HSBC’s Quality of Life: Affluent Investor Snapshot survey found that, of the people planning multiple ‘mini retirements’, UAE respondents’ confidence in financial planning to support themselves exceeds the global average (81% vs 74%). Of those planning ‘mini retirements’, 73% of UAE respondents plan two or more breaks to realign, reflect and pursue renewed goals.

• Ov er two-in-five (41%) affluent investors in the UAE plan on taking ‘mini retirement’ career breaks with

a strong majority of them, 73%, planning two or more breaks.

• Over four-in-five (81%) of those planning multiple breaks have the confidence in their financial planning to fund what appears to be a growing global trend.

• Globally and in the UAE, Gen Z and Millennials are leading the charge in planning multiple intentional pauses in their careers to focus on family, career growth and personal passions.

The key motivations behind this new trend in the UAE include spending quality time with family (31%), starting a business or entrepreneurial project (27%), and

Dinesh Sharma, Head of International Wealth and Premier Banking (IWPB), Middle East, North Africa & Türkiye

living an international lifestyle (27%). while the main challenges were anxiety about re-entering the job market (34%), family obligations (33%), and healthcare benefit concerns (33%).

Of the UAE respondents who plan to take a mini retirement, most plan to fund their breaks through personal savings (40%), investment returns (39%) and rental income (37%).

Commenting on the UAE findings, Head of International Wealth and Premier Banking (IWPB), Middle East, North Africa & Türkiye, Dinesh Sharma, said, “It is interesting to see how attitudes towards retirement are evolving in the UAE. The increasing confidence people demonstrate in considering and planning for multi retirements – and their appetite for multiple, intentional career breaks – demonstrates a more dynamic and rewarding vision of what retirement can be. In welcoming the diversity of ages and aspirations of the people who plan to look so far ahead, we can see the need for wealth planning in order to make sure each chapter of people’s lives are comfortable and enriching – no matter when career breaks occur”.

Generational differences emerge

UAE Gen Z and Millennials are leading the charge in planning multiple intentional pauses in their careers to focus on family, career growth and personal passions, with Gen Z aspiring to take the most mini retirements compared to their older counterparts.

Of those who plan to take more than one, the UAE’s average number of mini retirements per lifetime is 3.2, the highest among all surveyed markets. This new work-retire-realign-repeat model can follow a six-year cycle, with 51% of UAE respondents planning to take between two and three mini retirements during their lifetime – and a further 22% planning more than three with a preferred interval between breaks of approximately 6 years.

Of the UAE respondents planning ‘mini retirement’, 82% say it will positively

impact their overall quality of life, notably higher than the global average of 74%.

“The data shows multi retirements are not a generational fad or a more traditional ‘career break,’” says Dr Cora Pettipas, Financial Planner and Retirement Specialist, HSBC. “Multi retirements are a mindset shift, with some individuals increasingly taking time out to focus on living their wealth, not just accumulating it.

“They are creating space for it now –with careful planning to ensure they can fund multiple pauses over the course of their lives. They aren’t viewing it as

prioritise making progress on your goals, and time for your passions.

4. What’s powering your next chapter – a side hustle, a bold idea or the freedom you have been seeking?

Create a sensible budget strategy that aligns with your goals and consider how you will address your next step with confidence and clarity.

5. What would it mean to spend more quality time - not just your spare time - with the people you love?

Reflect on the relationships you would like to deepen. The impact on your quality of life could be profound.

IT

IS INTERESTING TO SEE HOW ATTITUDES TOWARDS RETIREMENT ARE EVOLVING IN THE UAE

stopping work or their careers, rather, taking new directions that feel more aligned to their values and needs of their families.” HSBC’s global network, suite of resources and partnerships equip customers with the tools to plan and budget for their retirement.

Dr Cora Pettipas shares six prompts to start living retirement aspirations today, or in the near future, “To support people, take control of their multi retirement planning, here are my six prompts:”

1. What would you do with your planned break to make it truly meaningful? Identify what you want to achieve and define the goals you would need to meet to make it happen.

2. If you could move anywhere without constraints to realise your goals, where would you go, and when? Immersing yourself in a new place and culture can be life changing.

3. What can you make part of your day, now, to realise your aspirations? Build a daily routine where you

6. Fast forward six years. What small step will your future self be thankful you started today?

Whether it’s big or small, implement the steps to start living your best life today.

About the survey

The Affluent Investor Snapshot 2025, a global Quality of Life special report by HSBC, delves into the investment portfolios, behaviours and priorities of affluent individuals worldwide. Conducted across 12 markets, the research captures insights from 10,797 affluent investors aged 21 to 69, with 697 from the UAE. All respondents held investable assets ranging from USD 100k to USD 2M. HSBC launched the inaugural edition of the Quality of Life report in 2023 to explore the concept of a good Quality of Life across different generation of affluent individuals and investigate the relationship between physical and mental wellness, and financial fitness.

Global Trends BANKING AT THE CROSSROADS:

Amol K Bahuguna regional banking commentator and industry expert, makes it very clear that banking is undergoing a complete, from the ground up transformation and that in the midst of this revolution, our region is building the roads and setting the course

The global banking industry is not just transforming; it is being rewritten from ground up. Artificial intelligence is not a guest speaker anymore; it is moving from the experimental stage to an embedded infrastructure. Blockchain and stablecoins are reshaping cross-border flows. Open finance is pulling down old data walls and giving people control over their financial lives again. At the same time, basic tech like SMSbased OTPs, if not being retired immediately, are at least being relooked at, and finally, regulators are trying to keep pace.

Enter the Middle East. It is not the understudy, but the R&D lab of modern finance. Riyadh is building AI infrastructure. UAE is phasing out OTPs. Bahrain’s courting crypto firms. These moves are not cosmetic; they are foundational and rewriting the banking playbook entirely.

This is not window dressing. These moves matter because they rebuild from the foundation. Not just changing features, but reshaping how money moves, how risks are managed and how systems are built to last for a long haul.

Global Tech Trajectory

Globally, AI is not a tool; it is architecture. By end of 2025, 75% of banks managing over $100 billion in assets plan full AI integration: agentic AI for complex decisions, multimodal models blending speech, text and visuals, federated learning for collaboration without compromising privacy.

Gartner and PwC estimate AI could generate trillions for the financial industry globally, with up to $320 billion generated in the Middle East by 2030.

As digital banking grows, so do attacks. Smarter systems invite smarter threats. A 2025 literature review flagged phishing and malware as top risks. MFA, biometrics, AI-powered fraud detection and even blockchain are beating back threats but third-party fintech partnerships introduce new blind spots.

Authentication is evolving. The UAE’s central bank mandates that, by March 2026,

Amol K Bahuguna, regional banking and industry expert

banks must retire SMS and email OTPs and shift to biometrics and passkeys, tying identity to devices. It is forwardleaning, but it also demands infrastructure updates and customer education.

Open finance extends finance beyond banking capturing investments, pensions, insurance - all via APIs. It hands control back to users—but it needs resilient and interoperable platforms.

On the crossborder side, blockchainbased solutions, especially stablecoins built under clear rules and backed by assets, are gaining ground in the Middle East. Think of them as programmable, regulated money rather than speculative playthings.

Infrastructure Build up

GCC is not just consuming AI; it is building for it. This is not for vanity. It is the computational backbone needed to train and deploy AI at scale and it also anchors national sovereignty over AI infrastructure. AI is already embedded across consumer touchpoints: roboadvisors, conversational bots, fraud detection, RegTech, risk scoring, even algorithmic trading and personalisation. By 2030, AI is projected to boost GCC GDP by 13.6%. Saudi Arabia’s Public Investment Fund launched, HUMAIN, in May 2025, which is developing data centres, AI models and an Arabic multimodal largelanguage model. Nvidia, AMD, Qualcomm, AWS and others are in partnership, delivering GPUs, AI zones and processing capacity.

Dubai banks are implementing blockchain-powered networks. That gives businesses near real-time validation of account data securing cross-border transactions while cutting settlement risk. Roughly 48% of banks in the Middle East and Africa are prioritising digital banking investments, modernising legacy systems, switching to cloud-native, databacked platforms. The market is expected to double from $11.6 billion in 2025 to $22.3 billion by 2030.

Bahrain is actively courting crypto firms and asset managers, with over 50 providers in talks, offering full foreign

ownership, tax-free terms and licenses for players like Binance and Crypto.com.

Meanwhile, the UAE, Bahrain and Abu Dhabi regulators are building frameworks where stablecoins are treated like programmable, permissioned cash, safe, governed entities, not speculative tokens.

Efficiency, Trust, Inclusion

Tech infrastructure like HUMAIN and blockchain networks, does not just modernise, it gives countries autonomy over digital infrastructure, reduces reliance on global providers and shielding against geopolitical concerns.

Combined with high smartphone penetration and youthful demographics, the region is set to leapfrog legacy markets in financial inclusion. AI regulated lending, signature-based authentication, secured rails and clear data practices,

The rise in digital threats means regulators must mandate real-time fraud detection, third-party risk audits and endto-end encryption, not just pilot programs. Standards around fintech onboarding, API security and cloudnative banking systems must be uncompromising.

Open finance in the region needs crossbank and cross-sector data standards. Bahrain and UAE are piloting, but frameworks should match Singapore’s APIX or MAS’ registry model - standardised, secure API architecture fostering collaboration and competition. Building national AI and cloud facilities with HUMAIN enables compliance with cross-border data flow laws and gives the autonomy to build sector-specific regulation on foundational infrastructure.

Here is the bottom line: global banking’s architecture is changing from AI-driven decisions to blockchain plumbing, from

THE MIDDLE EAST IS NOT JUST JOINING THE RACE; IT IS BUILDING THE

all these signal trust. Consumers want more than fancy tech; they need to know it is safe. AI infrastructure needs AI talent.

HUMAIN, FinTech hubs in Bahrain, KAFD’s growth in Riyadh, all are creating pipelines for digital banking innovation. Focusing on research, development labs, reskilling programs; this is not just software, it is national capacity building.

Progressive Regulation

GCC countries tend toward “soft regulation” policy frameworks, national AI strategies and ethical guidelines rather than hard limits. That allows rapid deployment, but risks ethics-washing. As the EU AI Act takes hold (Aug 2024 implementation, enforcement by Aug 2025) and G7 issues voluntary AI conduct standards, GCC regulators will need equivalently strong mechanisms for transparency, red-teaming and accountability.

ROADS

open data to sovereign infrastructure. The Middle East is not just joining the race; it is building the roads.

The region is designing digital rails with direction, regulation, with intent and infrastructure with sovereignty. AI independence, secure payments across borders, open finance and stablecoin frameworks are being built for the future. But this only succeeds if regulation works and is progressive, not as a barrier, but as an enabler. AI must be transparent. APIs must be secure. Stablecoins must be lawabiding. Crisis responses must be legal. What happens in Riyadh, Manama and Abu Dhabi will not stay there. These markets are setting agendas with tech, trust and policy.

MENA moves fast on CBDCs - are fintechs ready?

CBDCs

are here to stay, says

Enea Stucchi Head

of Growth EMEA at BNK301, and banks, neobanks and fintechs must act quickly

Anew digital currency era

For years, central bank digital currencies (CBDCs) were the kind of topic economists debated in conference halls and policy papers - interesting, but abstract. That is no longer the case.

This has been made clear in the MENA region in particular, where digital currencies are leaping off the whiteboard and into the real economy. Central banks are testing pilots, announcing rollouts, and signalling a shift to a new kind of money that could reshape how people pay for groceries, split a dinner bill, or transfer wages across borders.

The question now is not if CBDCs will arrive, but how ready financial institutions and fintechs are to support them.

Regional momentum builds Morocco is one of the most recent examples we can point to. Bank Al-Maghrib is piloting a CBDC, placing the country as a frontrunner. Beyond this pilot, Morocco is accelerating its broader digital payments agenda, including trials for cross-border settlement. The private sector is taking note. Global fintechs are eyeing Morocco’s market potential. Earlier this year for example, Revolut applied for a license, appointed a local lead, and identified the country as a priority growth market.

In the Gulf, the UAE is preparing for a landmark step - the launch of the Digital

Dirham in Q4 of this year. Imagine paying for your groceries or your child’s school fees through a dedicated digital wallet backed by the central bank. That level of convenience may well soon be reality for UAE consumers. And for businesses, it means payment infrastructure must be retooled to accept digital currency transactions just as easily as card swipes or cash.

Neighbouring Qatar is also advancing, with the Qatar Central Bank piloting its own CBDC initiative in collaboration with local and international banks. Even in countries that have not launched a CBDC yet, like Jordan, ongoing research and strategic initiatives highlight the region’s commitment to developing digital currencies. Together, these examples

show a region moving quickly from exploration to execution. Once CBDCs are launched, consumer adoption is expected to be swift, and businesses will need to keep pace.

What fintechs must do now

CBDCs may still be in their early days worldwide, but waiting on the sidelines is not an option. In MENA especially, rollouts are happening quickly, and financial institutions need to prepare now.

The challenge is that many banks and neobanks are still tied to legacy systems that were not built to handle something as new as CBDCs. This is where fintechs have a real opportunity. With modular, APIfirst platforms, they can help banks plug CBDCs into existing payment systems without the costly and time-consuming overhaul of ripping everything out.

A modular approach also brings clear advantages - faster deployment, lower costs and the flexibility to adapt as regulations and technology continue to evolve. In a market where digital wallets could soon replace cash at the corner shop or at the toll booth, fintechs that help businesses plug in CBDCs quickly will not only keep them compliant, they will also decide who gets to serve the first wave of digital currency users and who gets outpaced.

The way forward

The CBDC era is here, and banks, neobanks and fintechs must act quickly. Legacy systems need upgrading, neobanks must prove their agility and fintechs across MENA have a responsibility to provide the infrastructure that makes these digital currencies usable from day one, supporting this great innovation across the region.

Enea Stucchi, Head of Growth EMEA, BNK301

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