Western fintech models don’t always translate in the Gulf. Not because the products are wrong, but because the context is entirely different.
Many of the assumptions that work in markets like the US or Europe don’t apply in the Gulf – for example how to engage regulators, or how trust is built with customers. Local dynamics shape everything from product design to partnerships.
In this article, we break down the key differences founders need to understand before entering the MENA region, and how to build fintech solutions that work from the ground up in Saudi Arabia and the UAE.
At first glance, fintech solutions in Saudi Arabia and the UAE may look similar to those in the US or Europe – digital wallets, BNPL services, wealth platforms. But the foundations they’re built on are very different.
In the Gulf, regulators play a proactive role, guiding rather than just overseeing innovation. The market is expanding rapidly, and Islamic finance shapes many of the product expectations. Fintechs grow in alignment with national strategies, not in isolation.
The table below highlights some of the structural differences that set the Gulf apart from markets like the US and EU:
These differences shape how products are built, how companies go to market, and how consumers decide what to trust. Let’s take a closer look at what these distinctions mean for new market entrants.
In the West, fintech matured over the past two decades – and in many cases, growth has started to slow. In contrast, the Gulf’s fintech market is still just getting started.
In Saudi Arabia, the number of fintech companies grew from just a handful in 2018 to over 220 by 2024, surpassing national targets. The country now aims to reach 525 fintech companies by 2030. The UAE’s market is on a similar track: valued at $3.56 billion today, it's expected to nearly double by 2030.
What’s driving this growth? Two things stand out: government-led initiatives and a young, digital-native population.
Gulf fintech isn’t growing in a vacuum. The momentum we’re seeing is the result of two distinct forces: top-down policy from governments pushing the sector forward, and a digitally fluent population creating strong demand for smarter financial services. Let’s break that down
In both Saudi Arabia and the UAE, governments are playing an active role in building a modern fintech ecosystem. Regulatory bodies are driving innovation, not just responding to it. This includes licensing frameworks, public-private sandbox programs, state-backed initiatives that reduce time-to-launch, and encouragement of experimentation.
In Saudi Arabia, Vision 2030 set fintech growth as a national priority. The UAE, meanwhile, has launched over 140 incubators and accelerators, many tied to free zones or central bank programs. This support gives startups easier access to funding, mentorship, and regulatory alignment from day one.
Toughly 28% of the GCC population is under 30 – and they’re not just mobile-first. They’re also fintech-ready.
In Saudi Arabia alone, over half the population is under 30, making it one of the youngest markets globally. This demographic is open to digital wallets, instant pay-ins, and embedded finance, creating strong demand for financial products that are fast, convenient, and aligned with how people live.
In the Gulf, consumer trust isn’t earned through disruption or independence. It’s earned through alignment.
Startups in the West often build credibility by positioning themselves as bold challengers. But in Saudi Arabia and the UAE, the fastest way to gain trust is by showing you're part of the system, not fighting against it.
Consumers are more likely to trust services that are licensed, backed by regulators, or tied to well-known brands. A fintech that highlights its partnerships with government entities or established players will often be taken more seriously than one that emphasizes being “new” or “different.”
This doesn’t mean you need to water down your value proposition. It means shaping it in a way that aligns with national priorities and builds familiarity.
Positioning yourself as a responsible, aligned player, not just an innovator, can accelerate adoption and make it easier to build partnerships with local banks, regulators, or infrastructure providers.
Fintech in the Gulf is being shaped from the top down – by regulators setting the pace, governments backing innovation, and consumers embracing digital services on their own terms.
For Western founders, this means success isn’t just about having a great product. It’s about understanding the structure you’re stepping into: where compliance isn’t optional, where Islamic finance matters, and where building trust means showing alignment with national goals.
The opportunity is real, but it takes a local-first mindset from day one.
If you're expanding into Saudi Arabia or the UAE and want to build with confidence, get in touch with our team. We’ll help you design a market entry strategy that fits.
