According to IMARC Group’s latest research publication, GCC fintech market size reached USD 7.3 Billion in 2025. The market is projected to reach USD 26.8 Billion by 2034, exhibiting a growth rate (CAGR) of 15.52% during 2026-2034.
How AI is Reshaping the Future of GCC Fintech Market
- Fraud Detection and Security: Machine learning algorithms analyze millions of transactions in real-time, detecting suspicious patterns instantly and reducing fraud-related losses by up to 60% for Middle East banks while minimizing false positives.
- Personalized Financial Services: AI-powered platforms deliver tailored investment advice, budgeting tools, and spending insights by analyzing individual behavior patterns, supporting the 1.2 million high-net-worth individuals across GCC seeking customized wealth management solutions.
- Automated Credit Scoring and Underwriting: Advanced algorithms process alternative data sources to assess creditworthiness instantly, enabling faster loan approvals and expanding access to finance for SMEs that traditionally faced lengthy evaluation processes.
- Conversational Banking and Support: Natural language processing powers virtual assistants like Emirates NBD’s EVA and Qatar Islamic Bank’s Zaki, handling customer queries 24/7 and cutting customer service costs by up to 60%.
- Regulatory Compliance Optimization: AI-driven compliance systems automate KYC processes, monitor transactions for regulatory adherence, and streamline reporting, helping institutions scale efficiently while meeting the region’s evolving fintech regulations and open banking requirements.
How Vision 2030 is Revolutionizing GCC Fintech Industry
Saudi Arabia’s Vision 2030 and similar national strategies across the GCC are fundamentally transforming the fintech landscape by prioritizing financial diversification and digital innovation. Saudi Arabia has exceeded its interim targets, growing from 76,000 BNPL users in 2020 to over 10 million by 2022, while achieving 79% digital transaction rates in 2024—surpassing the 70% target set for 2025. The Kingdom now hosts 261 fintech companies as of mid-2025, with a goal of 525 by 2030, and has created over 11,000 direct jobs in the sector. Investment momentum remains strong, with cumulative funding reaching SAR 7.9 billion exceeding targets by 204%. The UAE leads regional startup growth with over 5,600 startups registered in a recent quarter, benefiting from investor-friendly free zones like Hub71 which attracted $224 million in early-stage investments. Regulatory frameworks supporting open banking, launched by SAMA in 2022, enable secure API-based data sharing between banks and licensed fintechs. Meanwhile, initiatives like regulatory sandboxes in Saudi Arabia (with 70+ admitted fintechs and 25+ graduates), UAE, and Oman are accelerating innovation in digital payments, blockchain, and AI-driven finance, positioning the GCC as a global fintech powerhouse.
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GCC Fintech Market Trends & Drivers:
The GCC fintech market is experiencing rapid digital transformation driven by exceptionally high smartphone penetration rates reaching 97% and mobile wallet adoption surpassing 60% in the UAE. Young, tech-savvy populations—with 71% under age 35 in Saudi Arabia—are embracing cashless payments, digital banking, and innovative financial products. Governments have established fintech-friendly regulatory environments including open banking frameworks, e-KYC systems, and AI sandboxes that lower barriers to entry while maintaining stability. Real-time payment systems like Saudi Arabia’s instant settlement infrastructure are accelerating the shift from cash to digital, with electronic payments now accounting for 79% of retail transactions. This digital-first mindset, combined with 5G coverage exceeding 90% across GCC countries and widespread affordable connectivity, creates an ideal environment for fintech innovation and adoption across payments, lending, wealth management, and insurance sectors.
Investment activity in GCC fintech is breaking records, with over $6.1 billion raised in the first half of 2025 alone—a 37% increase from previous periods. Venture capital, government-backed funds, and international investors are pouring capital into the region, attracted by strong growth potential and supportive ecosystems. Hub71 in Abu Dhabi exemplifies this momentum, attracting $224 million in early-stage investments and creating 400+ jobs recently. Major funding rounds include Omnispay’s $1.5 million seed funding for SME payment solutions, FlapKap’s $34 million, and Pemo’s $7 million for spend management. Infrastructure investments are equally significant, with Saudi Arabia’s LEAP 2025 conference announcing $14.9 billion in new AI investments. This capital influx supports development across critical areas: digital payments infrastructure, blockchain applications, AI-powered analytics, embedded finance platforms, and open banking solutions. About 65% of regional consumers now prefer digital-first financial services, validating investor confidence and driving continued funding into innovative fintech startups and scaleups.
Embedded finance and cross-border payment innovations are reshaping how GCC consumers and businesses access financial services. Non-financial platforms are integrating payments, lending, insurance, and wealth management directly into their ecosystems, with the embedded financial services market projected to reach USD 690 billion globally by 2030, up from USD 146 billion in 2025. In the GCC, partnerships like Xpence and Paymob enable seamless digital payments for SMEs across online and in-person channels, while Ottu’s integration with Mastercard Merchant Cloud connects businesses in Kuwait, Qatar, Bahrain, and Oman to 200+ acquirers globally. Buy-now-pay-later adoption has exploded, with over 40,000 GCC companies implementing BNPL solutions. Cross-border payment capabilities are critical given the region’s large expatriate population and strong trade links—real-time transaction values are expected to increase by 289% between 2023 and 2030. Blockchain technology and cryptocurrency adoption are growing, exemplified by National Bank of Bahrain and ARP Digital launching the GCC’s first Bitcoin-linked structured investment in October 2024, offering 100% capital protection while providing exposure to digital assets.
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GCC Fintech Market Industry Segmentation:
The report has segmented the market into the following categories:
Deployment Mode Insights:
Technology Insights:
- Application Programming Interface
- Artificial Intelligence
- Blockchain
- Robotic Process Automation
- Data Analytics
- Others
Application Insights:
- Payment and Fund Transfer
- Loans
- Insurance and Personal Finance
- Wealth Management
- Others
End User Insights:
- Banking
- Insurance
- Securities
- Others
Country Insights:
- Saudi Arabia
- UAE
- Qatar
- Bahrain
- Kuwait
- Oman
Competitive Landscape:
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Recent News and Developments in GCC Fintech Market
- September 2024: Xpence and Paymob partnered at the 24 Fintech conference in Riyadh to enhance digital payments for SMEs across the GCC, integrating Paymob’s advanced payment processing technology into Xpence’s platform for seamless online and in-person card payments.
- October 2024: Mashreq introduced the NEO CORP digital banking platform in Kuwait for corporate clients, offering efficient cash management and trade services through an intuitive interface with real-time data analytics capabilities and advanced security features.
- October 2024: National Bank of Bahrain and ARP Digital launched the GCC’s first Bitcoin-linked Structured Investment, offering accredited investors exposure to Bitcoin’s growth with 100% capital protection on the downside, reflecting Bahrain’s position as a leading fintech hub.
- December 2024: Ottu and Mastercard partnered to streamline digital commerce across Kuwait, Qatar, Bahrain, and Oman, integrating Mastercard Merchant Cloud to provide businesses access to 200+ acquirers and 110 million locations globally through a single connection.
- September 2025: Fintologya, the Bahrain-based fintech infrastructure company, secured USD 1 million in seed funding to build secure, modular, cloud-native payment platforms empowering banks and fintechs across the GCC to launch next-generation digital products and services.
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