GULF FINTECHS challenges the dominance of banks and long -term mediation, as the Gulf Cooperation Council has strongly followed a digital future.
Through the states of the Gulf Cooperation Council (GCC), a new generation of startups challenges the dominance of banks and current brokerage firms. With the emergence of Emirates Arab Air as a axis, the region is witnessing a wide range of financial services, driven by the first platforms of the mobile phone, specific regulations and the increasing demand for consumers on transparency, specialization, efficiency and speed.
“The GCC Fintech ecosystem is subject to a structural transformation, which is formed by diversifying the macroeconomic, digital policy schedules, and a wave of the first innovation of the consumer,” said Murad, a great partner at Global Ventures at Global Ventures, based in the United Arab Emirates. “The trends that attract the investor’s attention include the emergence of open banking services, the increase in the accreditation of integrated financial services, and the generalization of lending and alternative wealth solutions.”
Dubai International Financial Center (DIFC) at the forefront, the United Arab Emirates is now hosting more than 1304 artificial intelligence, Fintech and innovation companies. Meanwhile, the Abu Dhabi Global Market (ADGM) has become a test of open banking services and regulating digital assets. Together, they put the UAE as a major global ecosystem.
Of purchase and material services (BNPL), payment platforms to Islamic digital banks and brokerage applications, GULF FINTICS is gaining power with both users and investors. Emerging companies such as Tabby and Tamara have made their mark in consumer credit, while wealthte platforms like Sarwa have made investment more accessible to the broader demographic population.
“Digital payments dominate the GCC Fintech scene, which is expected to hold a 90 % stake in the market and 7 trillion dollars by 2032,” says Ivo Detelinov, the Salic Orix Fund, says. “Open banking services are gaining a traction, as the lists of the pioneer in Bahrain and the Kingdom of Saudi Arabia have implemented their open banking policy in 2022.
The old guard challenge
The development of Fintech is increasingly pressing banks and brokers in the current Gulf to adapt. Many traditional institutions still depend on old infrastructure, manual processes and strict compliance frameworks, slowing their ability to innovate and respond to changing consumer changes.
“Without a bold investment in the update, the founding players risk wandering by indigenous competitors who provide faster, more flexible and lowest services,” Sarah Grenstide, the manager of Alvarez & Marsal, warns Sarah Greenstide.
The mediation sector was slow to adapt. Although some companies have entered digital commissions on board or an idiot, many of them still lack easy design, transparency and the diversity of products that a more global investor base expects.
Sami Mohamed, CEO of Tabadulat, is arguing a major advantage of high technology is structural.
“The current intermediaries are often associated with old systems and is limited to local markets, which makes them slow and costly,” he says. “As an original digital platform, we have a great cost feature that we move directly to our customers.”
He adds that independence is the most powerful feature for Tabadulaat. “We are not debtor to the outdated models. This allows us to create new financial structures that are compatible with Sharia that cannot be achieved in the past for retailers.”
Calingar banks earn the land
The United Arab Emirates has become a hot point not only for Fintech’s growth but also in the leadership of institutional innovation.
UAE NBD, the first Abu Dhabi Bank (FAB), and Abu Dhabi Islamic Bank (AdIB) invested actively in the next generation platforms and API ecosystems. New projects such as WIO Bank, which were launched with support from ADQ, Alpha Dhabi, E & (Etisalat) and FAB, indicate a strategic shift towards digital banking infrastructure designed for this purpose while Fintechs fill the specified market gaps.
Ruya, a fully digital Islamic community bank, depicts this emerging model. Ruya provides integration in the United Arab Emirates, which allows the full digital plane in less than five minutes, the first banking services of the mobile phone, with no hidden fees or minimal balance and access to digital assets.
“We are the first Islamic bank in the world to offer direct access to cryptocurrencies such as Bitcoin and Ethereum in cooperation with our partner Finding Fuze (cloud communication platform and cooperation programs), and we are working to provide digital gold, stocks and etFs in addition to other asset classes, all of which are available in the Ruya application,” says CEO Christophe Coaster.
Koster Fintechs sees as Ruya as collaborators instead of traditional bank opponents.
“Fintechs Agility and Niche Focus; Ruya brings organizational credibility, customer confidence and moral control. Together, we can innovate faster, with confidence,” he says.
In the face of installation competition, traditional institutions are adaptive, albeit uneven. Some have launched digital subsidiaries, while others took stock shares in Fintechs or entered strategic partnerships.
For example, the UAE NBD has partnered with the BNPL TABY’A’A’A’A’An source source for its card. Mashreq, another Dubai -based lender, adopted a model of banking services as a BAS service, as it provided an essential infrastructure for emerging technology. FAB and Adib continue to expand their internal digital capabilities and innovation laboratories.
In the Kingdom of Saudi Arabia, some lenders launched their BAAS models while others cooperate with Fintech companies. In April 2025, Rajhi Bank announced a strategic partnership with Muhide, the Saudi Fintech platform, to ratify financial transactions for small and medium -sized companies.
“The banks in the Gulf Cooperation Council focused primarily on the digital transformation, as it made heavy investments in mobile phone channels, technology delivery corridors, and branches,” Shinal Gyantillal, his partner and retail -making leader in McKinsey and technology in Emea. “Some banks have rationalized their branches to reduce service costs, which were an important step in maintaining and meeting customer demands.”
However, the pace of change varies greatly. Heavy operations often hinder compliance, full decision -making, and cultural resistance.
“The Fintech competition has now become a tangible fact for banks in the Gulf Cooperation Council. It was not a theory one day that is now a source of concern for the attack,” says Mustafa Domanic, a partner in the Oliver and Iman office in Dubai. “The banks should not be afraid to deport customers; it is actually happening. The winners will be those who participate in this transformation, not resistance.”
The organizational catalyst
A large part of the momentum is fed in Fintech through the Gulf Cooperation Council by the organizers to think forward. ADGM and DICC in the United Arab Emirates have launched regulatory sandwiches, rapid track licensing plans, and frameworks for digital assets and open banking services.
Mohamed Fayrouz, the lead in the Middle East at Standard Hartrad’s SC Ventures, says that the UAE is standing as a progressive organizational environment in the Gulf Cooperation Council. “We see the organizer here proactively adopt Fintech, digital assets and sand boxes.”
The Kingdom of Saudi Arabia, too, is attached. Under Vision 2030, the Kingdom aims to host 525 Fintechs by the end of the contract. The Saudi Central Bank, the capital market power provided sand funds and digital financing strategies to attract innovation.
Other judicial states, such as Bahrain, offer emerging technologies in an attempt to attract technology companies and investors.
“Bahrain has emerged as an organizational bed thanks to the Central Bank of Bahrain Early embracing sand boxes and open banking services,” Grinstead is noted. “The creators of banking services technology and digital compliance have attracted, although the market size represents the limits of expansion without expansion across the border.”
In fact, the ability to expand across the border is still a pain point. The regulatory organization, the refined license, and the various compliance requirements through the judicial states hinder regional expansion.
Competitive stay
With GULF FINTICHS maturity, some will get full banking licenses while current banks and brokers will grow in an increasingly sought to include technology capabilities to survive competitive.
MCKINSEY expects MENA to be the fastest growing region in the world, with 35 % annual growth in net Fintech revenue until 2028, compared to a global average of 15 %. A large percentage of this growth will lead the banking sector in the Gulf Cooperation Council.
Sectors such as built -in financing, the personal finance driven by artificial intelligence, and Wealthtech the next wave of growth. M & A will also accelerate with banks ’acquisition of Fintechs to track innovation, according to a report issued by Dressidal Insights.
For traditional banks and brokers, staying alive will require more than digitizing old systems; It will require rethinking the entire value chain. Both pricing models, exposure of products, and ethical frameworks will need to re -join.
“To stay competitive,” Domanic says, banks must closely monitor developments in the Findte sector and understand how emerging business models can affect their basic operations. ”
