New Report Calls for Open Banking Harmonization Across the Arab World

New Report Calls for Open Banking Harmonization Across the Arab World

Open banking is making inroads in the Arab world but visions and strategies between countries across the region vary dramatically. Defining a holistic vision for open banking in the region will allow Arab countries to fully reap the fruits of fintech innovation, according to a new report by the MENA Fintech Association.

In a report titled Open Banking: Vision from the Arab World, experts representing regional open banking pioneers DAPI, Tarabut Gateway and Lean, as well as Abu Dhabi Global Market (ADGM), Dubai International Finance Centre (DIFC), the Arab Monetary Fund, MasterCard and OneConnect, calls for the region's banks, fintechs and regulators to collaborate and come together around a common vision for open banking and open finance.

According to the report, jurisdictions across the Arab world have adopted varied strategies, making the open banking landscape in the region very heterogeneous. In order for open banking to reach its full potential, harmonization across these countries is needed.

For instance, Bahrain has adopted a European-style regulation-driven approach when it comes to open banking, while in the United Arab Emirates (UAE), the Abu Dhabi Global Market (ADGM) and Dubai International Finance Centre (DIFC) have opted for an American-style market-driven approach.

Meanwhile, Saudi Arabia's market-driven initiatives are now