MENA open finance frameworks advance inclusion agenda
Middle East and North Africa nations deploy open finance frameworks ahead of European counterparts, prioritizing financial inclusion over competition-driven models. Dubai leads regional implementation through the UAE’s Open Finance Regulation mandated by the Central Bank. Saudi Arabia and Bahrain advance parallel frameworks, with infrastructure development targeting underserved populations through secure data-sharing protocols beyond traditional payment systems.
Overview
The MENA region constructs open finance ecosystems that enable secure data sharing across financial services, bypassing the open banking phase that preceded European and UK regulatory evolution. The approach targets unbanked populations and small-to-medium enterprises through collaboration between traditional banks and third-party providers.
The UAE’s Central Bank mandates open finance participation for all licensees, establishing Dubai as the regional anchor for framework development. Saudi Arabia and Bahrain implement similar structures, expanding initial open banking concepts to comprehensive finance-wide protocols. The Gulf Cooperation Council addresses region-specific challenges including rent payment modernization and expatriate financial access through application programming interfaces.
Nihal Abughattas, General Manager for Middle East and Africa at Ozone API and co-chair of the MENA Fintech Association’s Open Finance Working Group, oversees regional coordination efforts. Regulators including the Central Bank of the UAE drive policy implementation across jurisdictions with varying maturity levels.
Collaborative implementation over competition models
MENA jurisdictions bypass the competition-focused phase that characterized European open banking rollouts, launching comprehensive open finance frameworks through stakeholder co-creation. Banks and third-party providers develop solutions jointly, ensuring mutual investment in system success.
“The beauty of open finance is we’re not starting from the ground up.”
The strategy unites financial institutions, technology providers, and regulators to serve unbanked SMEs and individuals across high-growth markets. The UAE and Saudi Arabia lead implementation, with frameworks designed to accelerate inclusion rather than merely increase competitive pressure on incumbent banks. This collaborative model contrasts with European approaches that initially positioned open banking as a mechanism to challenge traditional banking dominance.
Significance: The collaborative framework reduces implementation friction and accelerates time-to-market for inclusion-focused products, particularly benefiting populations underserved by traditional banking infrastructure.
Infrastructure development addresses regional requirements
GCC nations build API infrastructure targeting specific regional challenges, including the replacement of check-based rent payments with account-to-account transfers. The technical work focuses on quality API development despite its routine nature.
“building infrastructure and quality APIs is ‘boring’ work but essential”
Infrastructure modernizes daily transactions in Dubai and Riyadh, reducing friction for expatriates and local populations reliant on cash-based systems. The technical foundation enables third-party providers to access standardized data feeds across participating institutions, creating the interoperability required for cross-platform services.
Significance: This infrastructure investment addresses tangible pain points in regional payment systems, enabling digital transformation of high-frequency transactions that currently rely on physical instruments or cash settlement.
AI integration amplifies data utility
Open finance frameworks pair with agentic artificial intelligence deployment, enabling consented data use for product optimization including mortgage offerings. The combination produces exponential service improvements.
“marriage made in heaven”
AI-driven personalization enhances credit access in Abu Dhabi and across the region, supporting economic diversification objectives. The integration allows financial institutions to leverage standardized data feeds for automated decision-making, reducing underwriting timelines and expanding eligibility for previously excluded populations.
Significance: AI integration transforms open finance from a data-sharing protocol into an active optimization layer, accelerating financial inclusion outcomes through automated product matching and eligibility assessment.
What’s next / Outlook
By 2027, MENA open finance initiatives shift focus toward measurable outcomes including SME capital access metrics. The UAE’s framework expansion and Saudi Arabia’s open finance rollout represent key implementation milestones. Bahrain’s regulatory initiatives and MENA Fintech Association programming signal deeper AI integration across regional frameworks.
Regulatory coordination between GCC member states will determine cross-border interoperability timelines. Third-party provider licensing frameworks remain under development across multiple jurisdictions, with varying approaches to consumer protection and data security requirements.
Conclusion
MENA’s open finance implementation prioritizes financial inclusion through collaborative frameworks and regional infrastructure development. Dubai-led regulations establish implementation pace, addressing specific regional requirements through API standardization and AI integration. The approach positions MENA jurisdictions as alternative models to European competition-focused frameworks, with measurable inclusion outcomes expected as systems reach operational maturity. Cross-border coordination and third-party provider licensing represent remaining implementation challenges ahead of 2027 outcome assessment periods.
Sources: The Fintech Times, Pinsent Masons, DLA Piper, Fiskil, The Asian Banker, Market Data Forecast
