Priya Patel
TLDR: The Open Banking market in the Middle East is predicted to reach $1.17 billion by 2024, according to a report by red_mad_robot. The study also highlights the impact of blockchain and AI on the region’s FinTech landscape. It predicts a 25% annual growth in the Open Banking market across Arab countries over the next five years. The report also emphasizes the commitment of the banking industry in the UAE to mobilize over 1 trillion AED in sustainable financing by 2030. The report covers several key trends, including the adoption of central bank digital currencies, the development of green FinTech and sustainable finance practices, the rise of AI-driven businesses and services, and the focus on the tokenization of real estate and asset classes in the region.
The latest report by red_mad_robot predicts a significant growth in the Open Banking market in the Middle East, reaching $1.17 billion by 2024. The report attributes this growth to several factors, including the adoption of cutting-edge technologies like blockchain and AI, as well as the commitment of the banking industry in the UAE to sustainable financing.
One of the key trends highlighted in the report is the adoption of central bank digital currencies (CBDCs). The report suggests that CBDCs are gaining global momentum, with more countries researching and developing projects to integrate CBDCs into financial systems. This integration is expected to enable cross-border transactions, retail payments, and innovative applications, while also improving financial inclusion and reducing production costs for central banks.
Another trend identified in the report is the development of green FinTech and sustainable finance practices. Inspired by sustainability commitments made during COP28, banks and FinTech companies in the Middle East are expected to incorporate environmental, social, and governance (ESG) practices into their products and operations. This includes the use of green blockchains and eco-features in banks’ apps, as well as the integration of ESG practices into financial products.
AI-driven businesses and services are also anticipated to play a significant role in the future of FinTech in the Middle East. Governments in the region are taking measures to support the growth of AI in the financial sector, such as launching regulatory frameworks for digital payment service providers and promoting the adoption of AI through policies and initiatives. The report predicts that AI-driven businesses and services, including AI regulation, generative AI, and the integration of AI capabilities into digital products, will become more prevalent in the coming years.
Finally, the report highlights the development of decentralized finance (DeFi) and the tokenization of real estate and asset classes. The region is expected to focus on the tokenization of various asset classes, including real estate and financial tools, which aims to expand export potential, attract new users and investments, and facilitate the adaptation of stablecoins as payment methods.
Overall, the report provides valuable insights into the future of FinTech in the Middle East, highlighting key trends and growth opportunities in the Open Banking market, the adoption of CBDCs, the development of green FinTech and sustainable finance practices, the rise of AI-driven businesses and services, and the focus on DeFi and the tokenization of real estate and asset classes. This information is valuable for business enthusiasts, investors, and anyone interested in staying informed about the evolving economic agenda in the Middle East.
