Over the past few years, Open Banking – a technology that gives consumers and businesses the legal right, for the first time, to access their payment accounts via third-party providers (TPPs), has become a global phenomenon, with studies estimating that the Open Banking market will be valued at $123.7 billion by 2031 from the $13.9 billion in 2020. 

As a catalyst for sustainable and innovative financial services, financial inclusion and breakthrough technologies like big data, AI, and cybersecurity, Open Banking is taking off to open up more markets for fintech companies and unlock new business opportunities for banks. The backbone of Open Banking is account information and payment initiation services. The account information service (AIS) enables customers to share their data held at banks and other institutions with third parties via APIs, while the payment initiation service (PIS) is an account-to-account payment method that is a faster and more secure alternative to card payments.

Since its launch in 2018, mainly in the UK and Europe, Open Banking has gained popularity worldwide. More and more countries are adopting Open Banking solutions towards enhancing customer experience, opening access to data and providing a simple, secure, and frictionless payment journey.

The Middle East follows and speeds up the trend, with countries actively pushing to fasten their positioning as global fintech hubs. Over the past three years, the region has seen an astonishing financial transformation, following innovative and exciting Open Banking frameworks across various countries in the area. 

In this article, we’ll walk you through the Open Banking journey of several Middle East countries: how it’s shaping up, the approach and measures taken so far by the authorities and the industry players as well as what’s next for them.