Middle East Accelerates Ahead with Open Finance to Boost Financial Inclusion

The Middle East is rapidly emerging as a global leader in open finance, leapfrogging traditional markets by adopting more comprehensive data-sharing frameworks aimed at accelerating financial inclusion.

Speaking on the region’s transformation, Nihal Abughattas, General Manager for Middle East and Africa at Ozone API, highlighted how countries across the region are moving beyond the foundations laid by Europe and the UK to implement broader open finance ecosystems from the outset.

From Open Banking to Open Finance

While Western markets initially focused on open banking—primarily enabling data sharing between banks and third-party providers—the Middle East is adopting a more expansive model that encompasses the entire financial ecosystem.

Abughattas, who also serves as co-chair of the Open Finance Working Group at the MENA Fintech Association, noted that the region’s strategy prioritises financial inclusion rather than competition alone.

This approach ensures that traditional financial institutions remain actively involved, fostering collaboration rather than resistance. Banks and third-party providers (TPPs) are increasingly working together to develop innovative, customer-centric financial solutions.

Building the Infrastructure for Transformation

Despite the rapid progress, Abughattas emphasised that foundational work remains critical. Developing robust infrastructure—particularly high-quality APIs and secure data-sharing systems—is essential to addressing real-world challenges.

One example is the transformation of rent payments across the Gulf Cooperation Council (GCC). By leveraging account-to-account payment systems and variable recurring payment APIs, the region is moving away from its long-standing dependence on physical checks, enabling faster and more efficient transactions.

The Role of AI in Open Finance

A key driver of the next phase of innovation is the convergence of open finance with artificial intelligence. According to Abughattas, the integration of data-sharing frameworks with agentic AI technologies has the potential to significantly enhance financial services.

With user consent, AI-powered agents could analyse financial data to identify optimal mortgage rates, loan products, or investment opportunities—dramatically improving decision-making and access to financial tools for consumers.

Shifting Focus to Real-World Impact

As open finance frameworks mature, the industry’s focus is expected to evolve from technical implementation to measurable outcomes.

Abughattas predicted that within the next year, discussions will move beyond infrastructure readiness toward tangible benefits—particularly improved access to capital for small and medium-sized enterprises (SMEs) and individuals.

A New Global Benchmark

The Middle East’s proactive and inclusive approach positions it as a potential benchmark for open finance globally. By combining regulatory support, technological innovation, and a strong focus on inclusion, the region is redefining how financial ecosystems can be built from the ground up.

As adoption accelerates, open finance is set to play a pivotal role in shaping a more accessible, efficient, and intelligent financial future across the Middle East.