TLDR:
- The Open Banking market in the Middle East is expected to experience a 25% annual growth rate over the next five years, reaching a value of $1.17 billion in 2024.
- Sustainable finance is gaining prominence in the region, with the UAE banking sector committing to mobilize over AED1 trillion in sustainable financing by 2030.
- Blockchain and AI technologies are reshaping the fintech ecosystem in the Middle East, with potential applications in areas such as cross-border transactions and financial inclusion.
- Decentralized finance (DeFi) and cryptocurrencies are also emerging trends in the region, with a focus on tokenization of real estate and the mainstreaming of stablecoins.
- Other notable trends include niche fintech and upgraded security measures, such as biometric authentication.
red_mad_robot’s report on fintech trends in 2024 highlights the growing importance of Open Banking, sustainable finance, and emerging technologies such as blockchain and AI in the Middle East. The report predicts a significant annual growth rate for the Open Banking market in Arab countries, driven by technological advancements and changing regulatory landscapes. The UAE banking sector has made a bold commitment to sustainable finance, aiming to mobilize significant financing for environmentally and socially responsible projects by 2030. The report also emphasizes the transformative potential of blockchain and AI technologies in reshaping the fintech ecosystem, as well as the increasing global momentum of Central Bank Digital Currencies (CBDCs). Decentralized finance and cryptocurrencies are gaining prominence in the region, with efforts to tokenize real estate and expand the use of stablecoins as payment methods. Niche fintech and upgraded security measures are also identified as important trends in the evolving fintech landscape of the Middle East.
