Open Banking is quickly moving from concept to cornerstone in the gulf. Both the UAE and Saudi are leading the region’s push toward secure data sharing, digital payments, and API-driven financial services – each taking a distinct path shaped by local priorities and regulatory strategies.
In Saudi Arabia, the rollout of the Open Banking Framework began in 2022 as part of the country’s Vision 2030 goals. By 2030, Open Banking adoption is projected to reach 20% of retail banking customers, driven by structured, security-first regulations from the Saudi Central Bank (SAMA).
The UAE, meanwhile, has taken a rapid infrastructure-focused approach. In 2024, the Central Bank of the UAE issued its Open Banking Finance Regulation and launched Nebras, a centralised API platform now mandated for all licensed institutions. The goal: to streamline secure access to financial data across banking, insurance, and investment services.
This article unpacks how both countries are shaping their Open Banking ecosystems, and what businesses and fintechs should know before entering these fast-changing markets.
This article explores the Open Banking Regulations in UAE and Saudi Arabia and the impact of these regulations on financial innovation.
Open Banking doesn’t happen in a vacuum. It thrives or stalls based on how it's regulated.
Robust regulatory frameworks aren’t just boxes to tick. They influence everything from consumer trust to product innovation, shaping how quickly and securely fintech ecosystems can grow.
Here’s why regulation plays such a central role:
- It builds trust. Security mandates like strong customer authentication ensure that financial data is protected. Without that baseline, users hesitate to opt in, and Open Banking doesn’t take off.
- It fuels competition. Clear rules make it easier for new entrants to launch and compete. This levels the playing field and encourages innovation from both startups and traditional banks.
- It empowers consumers. Regulations that require data transparency and consent give users control over who accesses their financial information and how it’s used.
- It makes things work together. Interoperability standards reduce friction between platforms, allowing banks, fintechs, and aggregators to connect without reinventing the wheel every time.
- It keeps the system stable. Guardrails help prevent overreach, fraud, and systemic risks that could threaten trust or economic stability.
In short, good regulation isn’t a blocker. It’s a catalyst. The countries that get it right are not only protecting consumers, but also unlocking new waves of innovation.
That’s why the regulatory strategies of the UAE and Saudi Arabia matter – not just as national policy, but as blueprints for how Open Banking could unfold across the wider MENA region.
While both the UAE and Saudi Arabia are advancing Open Banking through strong regulatory oversight, their approaches diverge, reflecting different national priorities, institutional structures, and timelines for fintech growth.
The UAE has taken a proactive stance on financial innovation, aiming to position itself as a global fintech hub.
- In 2022, the Central Bank outlined its vision for Open Finance as a catalyst for innovation.
- By 2024, it issued the Open Finance Regulation, introducing a phased rollout requiring banks, insurers, and other financial institutions to offer API access.
- The regulation also led to the creation of Nebras Open Finance.
To support adoption, the UAE offers:
- A centralized trust framework for secure data sharing,
- Regulatory sandboxes for testing new fintech products,
- Streamlined licensing to reduce go-to-market friction.
In short, the UAE has focused on infrastructure and interoperability first, building a robust environment where fintechs can scale quickly without compromising compliance.
Saudi Arabia has pursued a more structured, security-first path to align Open Banking with its broader Vision 2030 economic goals.
- The Open Banking Framework, launched in November 2022, set clear security and compliance standards for all participants.
- This was followed by the Open Banking Lab in 2023, which provides a controlled testing environment for banks and fintechs to develop and certify API-based services.
- The rollout is phased, starting with account information services (AIS) and expanding to payment initiation services (PIS).
Rather than racing to deployment, SAMA’s strategy is to learn from global missteps and ensure strong oversight from the outset. The approach prioritizes:
- Rigorous licensing and audits,
- Gradual integration with traditional banks,
- Alignment with broader consumer protection mandates.
As a result, Saudi Arabia may move slower, but its model offers stability and long-term confidence for large institutions and international investors.
The pace and shape of fintech adoption often comes down to regulation. Countries that prioritize innovation tend to move fast. Others take a more cautious, security-first approach, aiming for long-term stability over speed.
The UAE leans into innovation. Its flexible regulations, supportive licensing policies, and strong digital infrastructure have accelerated the rollout of Open Banking. Fintech startups benefit from regulatory sandboxes, simplified procedures, and proactive engagement from government bodies like the Central Bank of the UAE. The launch of the Open Finance Regulation in 2024 formalized this posh, requiring financial institutions to provide API access in phases. This is now being supported by Nebras Open Finance.
As a result, the UAE has become a launchpad for digital wealth platforms, AI-powered financial tools, and embedded finance solutions across sectors like e-commerce, mobility, and real estate.
Saudi Arabia takes a more structured path. Its regulatory framework is focused on consumer protection, cybersecurity, and phased rollouts. The approval process is more involved, but once fintechs are licensed, they gain access to a large, digitally engaged population with rising demand for financial services. The Kingdom’s financial sector is still dominated by large banks, which have historically been slower to adopt Open Banking. But partnerships with fintechs are gaining traction – particularly in areas like digital lending and cross-border payments.
As part of Vision 2030, Saudi Arabia aims to establish 525 fintech companies and 18000 fintech-related jobs. Its strategy may be slower, but it’s backed by long-term national goals and steady momentum.
Expanding into the UAE or Saudi Arabia means navigating different regulatory environments, customer expectations, and market dynamics. Here’s what fintechs should keep in mind before entering either market.
The UAE offers a faster licensing track, especially for companies entering through regulatory sandboxes or government-backed programs. However, fintechs must still comply with the Open Finance Regulation, including data protection requirements and API integration with the Nebras platform.
In Saudi Arabia, licensing is more rigorous. SAMA requires a multi-stage approval process, including cybersecurity assessments and compliance checks aligned with its Open Banking Framework. Startups should expect a longer lead time before launch, but a clear pathway is defined.
The UAE has a mature Open Banking environment and strong public-sector support. But it’s also a crowded market, home to over 4,000 and digital financial service companies. To succeed, new centrants need to offer a clear differentiation or niche.
In contrast, Saudi Arabia presents more whitespace. The market is still developing but has a large, digitally enabled population. Consumer demand for modern financial tools is rising, and Open Banking infrastructure is expanding. Success here often depends on building strong partnerships with local institutions and navigating a more structured regulatory landscape.
Fintech growth depends on more than just product-market fit. It’s also about choosing the right regulatory environment, infrastructure, and local dynamics.
The UAE offers a startup-friendly ecosystem with faster licensing and a mature Open Banking infrastructure. Saudi Arabia brings a massive, digitally engaged population and growing institutional support, but with stricter entry requirements and a more gradual rollout.
Both markets are evolving fast. To succeed in either, fintechs need more than a product. They need regulatory clarity, strong partnerships, and local insight.
Ripae helps fintech companies make that leap. If you're exploring opportunities in the UAE or Saudi Arabia, we can help you navigate what’s ahead. Let’s talk.
