Open Banking
As of 2022, the internet user penetration rate in the United Arab Emirates (UAE) was approximately 99 percent, one of the highest globally. This figure is expected to remain steady, given the UAE’s focus on digital transformation.
The UAE population’s internet usage has remained high over the years, driven by advancements in infrastructure, widespread adoption of smart devices, and robust government-led digital initiatives.
The UAE’s regulatory approach to Open Finance is underpinned by its strategic emphasis on fostering innovation while ensuring robust data security and consumer protection. The UAE Central Bank (CBUAE) plays a pivotal role in regulating financial technology and data sharing. In recent years, these authorities have issued guidelines to facilitate innovation in financial services while maintaining data privacy standards.
In August 2024, CBUAE released their first Open Finance standard, covering data sharing, payments and motor insurance. This was followed by an updated version in December 2024 which includes bank product data. The standard is one of the most comprehensive by global standards and implementation is expected in the first half of 2025.
The UAE’s vision for Open Finance is aligned with the country’s broader economic diversification strategy, leveraging technology to enhance financial inclusion, competitiveness, and efficiency in financial services. The regulatory framework seeks to strike a balance between enabling innovation and protecting consumer interests.
The UAE has taken steps to align its financial systems with global standards, drawing on security standards such as FAPI 2.0 to enhance interoperability. Licensed Financial Institutions (LFIs) are mandated to offer APIs for secure and efficient data exchange and payments, improving user experience and fostering innovation.
The UAE has a high level of financial inclusion, with over 90% of adults owning a bank account, according to the World Bank’s Global Findex Database. Consumer adoption of digital financial services has been on the rise, driven by initiatives like Emirates Digital Wallet and the rise of FinTech platforms offering personal finance management tools.
Open Finance in the UAE is expected to drive further innovation in areas such as payments, access to credit, and financial decision-making. Early adopters of Open Finance solutions report benefits such as improved financial planning, better access to credit, and reduced transaction costs.
The UAE government has prioritized digital transformation. These efforts aim to create a knowledge-based economy by fostering technological innovation, including in the financial sector. Open Finance is seen as a critical enabler of these goals, enhancing transparency, efficiency, and financial inclusion.
To support this vision, the CBUAE is working towards implementing frameworks that enable Open Finance while ensuring data protection and compliance with international standards.
The UAE’s financial technology sector has grown rapidly, with over 200 FinTech companies operating in the region as of 2024. These firms offer a range of solutions, from digital payments and wealth management to lending and insurance. Open Finance is expected to further expand the ecosystem by enabling new data-driven business models and services.
According to recent studies, the UAE ranks among the top adopters of digital banking services in the Middle East and North Africa (MENA) region. The market is projected to grow significantly as Open Finance initiatives mature, unlocking opportunities for innovation and collaboration between financial institutions, FinTechs, and other stakeholders.
The rapid pace of technological change has created a demand for specialized skills in areas such as data science, cybersecurity, and financial technology. Reports indicate a shortage of skilled professionals to support the UAE’s digital transformation goals, particularly in emerging fields like Open Finance.
The UAE government has launched several initiatives to address this skills gap, including partnerships with educational institutions and upskilling programs for the workforce. These efforts aim to equip professionals with the expertise needed to drive innovation in the financial sector.
The UAE offers support and tools in different forms. The DIFC Fintech Hive has been working with local banks on introducing an API sandbox programme to encourage the development of new and innovative digital journeys and experiences for consumers. In addition, The ADGM has developed The ADGM RegLab, which is a specially-tailored regulatory framework providing a controlled environment for Fintech participants to develop and test innovative Fintech solutions. While The Innovation Testing Licence (ITL) Programme is the DFSA’s version of a regulatory sandbox, the Central Bank of UAE (CBUAE) has launched the Insurtech regulatory sandbox, which aims to transform the UAE insurance market into a smart insurance market, supports the emerging Emirati Fintech companies and contributes to achieving the UAE Vision 2021to create a competitive knowledge economy based on innovation.
The UAE offers one of the most comprehensive Open Finance standards globally, covering data sharing, payments and insurance. It is in the early stages of implementing the Open Finance standards, drawing on global frameworks such as ISO 20022 and FAPI to guide this process. Efforts have been made to develop a unified standard that balances innovation, security, and user experience.
