MENA

HOW MONEY MOVES IN

— Middle East and North Africa | 2024 REPORT

 CHAPTER PAGE

—1 Introduction 03
—2 Country overviews 05
—3 Economy 19
—4 Trade Agreements and 27

Contents—5
—6
—7
—8
Political Relations
Regulations
Payment Methods
Remittances
Fintech Industry
33
41
46
52
—9 Conclusion 58

How Money Moves in MENA - report 2024 —2

 1 —

Introduction

How Money Moves in MENA - report 2024 —3

1 — Introduction

The Middle East has seen a remarkable

post COVID boom, with their fast growing
and inflation resilient economies
generating global interest. For decades the
region has been defined by its rich oil
reserves and dominance in the Oil & Gas
supply chain, but today we see a different
story emerging - one of diversification with
finance and payments at its heart. As the
world looks to MENA with optimism and
excitement, this region remains one of the
last to be conquered by payment
innovation. This report serves to highlight
the key information required by global
businesses to understand how money When building Fuse, we found information surrounding
moves within these markets, the untapped payments and finance in the region sparse and difficult to
interpret. The MENA market is, in our opinion, the most
opportunities that exist, and the cultural
exciting in the world and is currently seeing a transformation
considerations required to accelerate their akin to that of LATAM or APAC - yet the information available
MENA expansion. makes it inaccessible to businesses with a global focus. So,
like the Fuse product, this report is built for businesses who
lack the local and regional expertise in payments but are
pulled to expand to these markets by their customers.

George Davis
Co-Founder & CEO

How Money Moves in MENA - report 2024 —4

 2 —

Country

overviews

How Money Moves in MENA - report 2024 — 5

2 — Country overviews

The boundaries of the

Middle East and North Africa

region change depending on
the literature you are reading.

Our list doesn’t serve as an

exhaustive overview of every
country, but instead focusses
on the markets that we at
Fuse see demand for.

Every country in the region

is unique, with different

currencies, economies and
cultures, and as such their
own individual trajectories

for growth.
How Money Moves in MENA - report 2024 —6
2 — Country overviews

GCC (The Gulf

Cooperation Council)
The GCC is a political and economic
alliance of six regional nations that border
the western and southern coast of the
Persian Gulf: Bahrain, Kuwait, Oman, Qatar,
Saudi Arabia, and the UAE.

Gulf Cooperation Council

Bahrain Kuwait Oman

United Arab
Qatar Saudi Arabia
Emirates

It was founded in 1981 to strengthen relations and promote

coordination and cooperation between its member countries.

Several trade agreements have established free trade areas, and

formalised tariff exemptions and eliminations, including with non-GCC
countries in the region.

How Money Moves in MENA - report 2024 —7

2 — Country overviews

Bahrain GDP ECONOMY

46 billion USD1
A rich country, with an economy dependent on oil and
gas, international banking and tourism
Although small in size, Bahrain is
Home to one of the most valuable currencies in the
unafraid of change and development, world.

particularly when it comes to boosting

GOVERNMENT
their economy. They have initiated
reforms with passion, frequently Constitutional Monarchy
with a King and a Prime Minister.
introducing and revising their goals for
the future, whilst staying true to their GEOGRAPHY
heritage and prioritising the well-being ± 770km2
of their people. Bahrain is an archipelago (east of Saudi Arabia)
consisting of Bahrain Island and more than 30 smaller
islands.
CURRENCY

Bahraini Dinar Languages

Arabic (official)
English is widely spoken and is a compulsory second
language at all schools. 

Persian (Farsi) is also common, and other languages are

spoken among expatriates, including Urdu and Hindi.

Median Age

± 33
FUN FACT
In 3,000 BCE, which was around the Bronze Age, Bahrain Population
BHR
was known as ‘Dilmun,’ and was one of the most
important trading centers in the region.” ± 1.6 million

1 IMF

How Money Moves in MENA - report 2024 —8

2 — Country overviews

Egypt GDP ECONOMY

347 billion USD2

The largest economy in North Africa
Egypt has a famously rich, long, and Recently promoted from low income to lower middle
income by the World Bank.
storied history with ambitious goals for
the future: their ‘Vision 2030’ aims for GOVERNMENT
inclusive sustainable development Semi-presidential Republic
based on economic, social and
GEOGRAPHY
environmental pillars. As such, Egypt is a
dichotomy of old and young, tradition ± 1 million km2
Egypt has three coastlines: the Mediterranean Sea,
and technology. Red Sea, and the Nile River
With most of the country being desert, 95% of Egypt’s
CURRENCY population lives along the banks of the Nile.

Egyptian Pound Languages

Arabic (official)
Median Age

± 24
Population

± 114 million
FUN FACT
Egypt is preparing to spend billions doubling the size of a
new capital in the desert 45 km (28 miles) east of Cairo.
It’s the biggest of several mega-projects that President
EGY
Abdel Fattah al-Sisi says are needed for economic
development and to accommodate a growing population.

2 IMF

How Money Moves in MENA - report 2024 —9

2 — Country overviews

Jordan GDP ECONOMY

53 billion USD3
Classified as a lower middle-income country
Jordan is a resilient nation that has The third freest economy in the MENA region

consistently overcome setbacks whilst Ranked by Forbes as having the 4th strongest
currency in the world in 2023.
striving for economic excellence by
steadily implementing strategic goals. GOVERNMENT

With both an elaborate history and a Constitutional Monarchy

vision for the future, Jordan is with a King and a Prime Minister.

embracing technology and their

GEOGRAPHY
potential to flourish as an innovative and
resourceful country.
± 89,000 km2
85% of the population is urban
75% of the nation is desert.
CURRENCY
Mostly landlocked, sharing borders with Israel, Iraq,
Jordanian Dinar Saudi Arabia, Syria, and a some of the Palestinian
territories (West Bank). Jordan has a maritime border
with Egypt across the Gulf of Aqaba.
Jordan’s strategic location makes it paramount in
ensuring smooth international relationships and trade.

Languages

Arabic (official)
English is an officially adopted foreign language, and is
largely spoken.

FUN FACT Median Age

Jordan is known for its natural beauty, including: Petra,
± 24
JOR
the “Rose City,” a UNESCO World Heritage site and 7th
Wonder of the World; Wadi Rum, “The Valley of the
Moon,” the Dead Sea and the Red Sea.
Population

± 11 million
Jordan’s population has more than
doubled over the last two
decades.

3 IMF

How Money Moves in MENA - report 2024 — 10

2 — Country overviews

Kuwait GDP ECONOMY

60 billion USD4
One of the world’s five wealthiest countries and, like
It might surprise most people that the many of their neighbours, is a tax-free nation.

Kuwaiti Dinar is the world’s highest GOVERNMENT

valued currency. Income from oil sales, Constitutional Monarchy
which make up 75% of recorded with an Emir who appoints a Prime Minister.
revenue, is used to support economic
stimulation and infrastructure GEOGRAPHY

development. ± 18,000 km2

Kuwait borders Saudi Arabia to the south, Iraq to the
north and north west, and shares a maritime border
CURRENCY with Iran to the east, with a coastline near the

Kuwaiti Dinar
northern tip of the Persian Gulf
Kuwait is situated in one of the driest, least hospitable
deserts in the world, and has no permanent surface
water.

Languages

Arabic (official)
English is the second language, and is taught in schools.

Median Age

FUN FACT ± 18
The name “Kuwait” comes from the Arabic word “Kut,”
meaning “fort”. Population
KWT
± 4.4 million
– more than 70% of which live in Kuwait City.

4 IMF
How Money Moves in MENA - report 2024 — 11
2 — Country overviews

Lebanon GDP ECONOMY

23 billion USD6
The currency has lost 98% of its value since 2019.
Lebanon is a small but diverse country.
A free economy, with a strong private sector
Despite current economic struggles, the
Classified as a developing lower middle income
people remain entrepreneurial and economy.
resilient. Much of Beirut has been

GOVERNMENT
rebuilt and restored, and a review

of the city called it “by far the most Parliamentary Republic

with a Prime Minister.
cosmopolitan, liberal and even

Western of Arab cities5.” GEOGRAPHY

± 10,000 km2
CURRENCY Located on the eastern side of the Mediterranean
Lebanese Pound Sea.
Shares land borders with Syria and Israel, with Cyprus
not far from its coast.
Around 60% of people live on the coast.

Languages

Lebanese Arabic (official)

French and English are widely spoken.

Median Age
FUN FACT
Lebanon is the only Arab country without a desert.
± 29
LBN
Population

± 5.4 million

5 City Journal
6 Trading Economics - Lebanon GDP
7 The National

How Money Moves in ME NA - report 2024 — 12

2 — Country overviews

Morocco GDP ECONOMY

152 billion USD8
Industry and mining contribute about one third of this
Whilst many people may think of
Morocco has nearly halved its levels of poverty in the
last decade.
movies (Casablanca) or football
(Morocco reached the semi-finals
GOVERNMENT
of the 2022 FIFA World Cup and will co- Constitutional monarchy
host the 2030 tournament), the country with a parliamentary system. It has a King and

a Prime Minister.
is also politically stable, infrastructurally
solid and strategically located, making
GEOGRAPHY
it an important commercial and
± 450,000 – 710,000km2
cultural centre. (depending on the source and whether disputed
territories and parts of the Sahara are included).
CURRENCY Morocco occupies a strategic position along the trade
routes between Africa, Europe and the Middle East,
Moroccan Dirham including coastline along both the Atlantic and
Mediterranean.

Languages
Arabic, Standard Moroccan
Berber
French and Spanish are also spoken.

Median Age
± 29
FUN FACT
Morocco’s mountainous terrain in the Atlas and the Rif
ranges includes the highest ski resort in Africa, with an Population
MAR
altitude of more than 10,000 feet.
± 37 million

8 IMF

How Money Moves in MENA - report 2024 — 13

2 — Country overviews

Oman GDP ECONOMY

108 billion USD9
A high income country
According to the ‘Oman Vision 2040’, the More than 80% of revenue is generated from oil.
country aims to have a diversified,
GOVERNMENT
competitive, and sustainable economy.
It plans to reduce the focus on oil and
Hereditary Monarchy
with a Sultan and a Prime Minister.
gas, shifting to cleaner fuels with the
goal of becoming net-zero by 2050. GEOGRAPHY
They also aim to build world-class ± 310,000km2
infrastructure to enhance family and Oman has coastline on the Arabian Sea, the Gulf of
Oman, and the Persian Gulf. It also controls the Strait
community health, whilst upholding of Hormuz, one of the most important gateways in the
Oman’s identity and heritage. region - linking the Gulf of Oman with the Persian Gulf
for all ships coming from the Indian Ocean and the
Arabian Sea.
CURRENCY Oman shares land borders with the United Arab
Emirates to the north west, Saudi Arabia to the west,
Omani Rial and Yemen to the south west. It shares marine
borders with Iran and Pakistan.

Languages
Arabic (official)
Median Age
± 29
N ACT
FU F

Oman’s rich history dates back 100,000 years. It is the

Population
± 5 million
OMN
oldest independent state in the Arab world, and in the Around 40% of the population are
18th century the Omani Empire stretched from present
day Oman down Africa’s east coast. expatriate workers, most of whom
are from India, as well as
Bangladesh and

Pakistan.

M
9 I F

How Money Moves in MENA - report 2024 1

— 4
2 — Country overviews

Qatar GDP ECONOMY

244 billion USD11

Ranked by Forbes as the world’s 4th wealthiest country
in 2023.
Qatar has regularly ranked among the
top 30 in the World Economic Forum’s GOVERNMENT
Global Competitive Index. With regional Constitutional Monarchy
tensions recently resolving between with an Emir and a Prime Minister.
Qatar and its GCC neighbours, the
GEOGRAPHY
country has strong diplomatic relations
in the region. Their national vision “aims ± 11,500km2
Shares a land border with Saudi Arabia. Most of the
to transform Qatar from a developed country is coastal, with Bahrain to its north west and
economy to an advanced country by UAE to its south east.

2030, capable of sustaining its own

Languages
development and providing a high
Arabic (official)
standard of living for current population
Other commonly spoken languages include English,
and future generations.”10 Farsi, Urdu, and Sinhalese.

Median Age
CURRENCY

Qatari Riyal ± 33
Population

± 2.9 million
– of which only around 11% are citizens.


The population is more than 70% male, most of whom are

expatriate workers, many in the construction sector.
Roughly 14% of the total working population is female.
QAT
FUN FACT
Despite being the most water-stressed country in

the world, Qatar ranks 25th in terms of water

resources thanks to its wastewater management and

desalination technology.

10 QATAR NATIONAL VISION 2030

11 IMF

How Money Moves in MENA - report 2024 — 15

2 — C ountry overvie s w

Saudi Arabia GDP ECONOMY

1.1 trillion USD12

One of the world’s wealthiest countries by net worth per
capita.
The Kingdom of Saudi Arabia boasts

one of the fastest, most innovative GOVERNMENT

transformations of finance and Monarchy
infrastructure, from a largely agricultural with the King as Head of State.
society into a global economic leader.
GEOGRAPHY
The Kingdom remains a leading
producer and exporter of oil, but has ± 2 million km2
also begun diversify its economy at an
impressive rate. Its extensive coastlines provide great leverage on
shipping through the Persian Gulf and the Suez Canal.

C RRENCY
U Languages

Saudi iyal R Arabic (official)

English is widely spoken, and is taught as a compulsory
second language in schools.

Median Age

± 30
Population

± 27 million
FU N ACTF Around 8.5 million of these are foreign residents.
King ahd International is the largest airport in the world.
F

hen it opened in , its land area was nearly almost

KSA
W 1999

78 s uare kilometers.
0 q

12 I M F

How M
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oves in ME A
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4 — 1
6
2 — Country overviews

Türkiye GDP ECONOMY

1.1 trillion USD14

– among the 20 largest economies in the world
Straddling Europe and Asia, Türkiye's Türkiye has been one of the world’s fastest growing
economies since the global pandemic of 2020
strategically important location has
Considered to be an upper middle class country.
given it great regional influence,
including control over the entrance to GOVERNMENT
the Black Sea. After two decades of
Constitutional Republic
high economic growth of nearly 6% per within a multi-party system. President is Head of State.
annum, the country has ambitious plans
GEOGRAPHY
within ‘Vision 2030’ to double its current
GDP to over 2 trillion USD.13 ± 780,000 km2
It is surrounded by sea on three sides: the
Mediterranean in the south, the Aegean in the west,
C RRENCY
U
and the Black Sea in the north.

Turkish ira L
It shares maritime borders with 5 countries and land
borders with 7 countries.

Languages

Turkish
Median Age

± 31
Population

FU N ACT
F
± 85 million
TUR
The legend of Santa Claus can be traced
back to a monk named St. icholas, who is
N

belie ed to ha e been born around 00C in

v v 3 E

Patara, Türkiye.

13 C ayan Group

14 I M F

How Money Moves in M E A

N - report 202 4 — 17
2 — Country overviews

United Arab GDP ECONOMY

527 billion USD15

Emirates Often ranked among the top 10 richest countries in
the world.

For more than 7,000 years, pearl diving GOVERNMENT

dominated industry in the area now Constitutional Federal
known as the UAE. The discovery of oil Monarchy
in the 1970s led to an incredible boom, of seven emirates, with a President.

and as a result the UAE now has the

GEOGRAPHY
world’s 4th biggest sovereign wealth
fund and is a global centre for finance.
± 84,000km2
Bordering the Gulf of Oman and the Persian Gulf, and
sharing land borders with Oman and Saudi Arabia.
C RRENCY
U

Emirati Dirham Languages

Arabic (official)
Median Age

± 33
Population

± 10.5 million
Only around 1 million are UAE nationals, with
FU N ACTF
the majority being expatriates.

Although culturally and visually dominated

by camels, the UAE s national animal is the
UAE
’

Arabian Oryx .

15 I M F

How M
oney M
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 3 —

Economy

How Money Moves in MENA - report 2024 — 19

3 — Economy

With a strong foundation

built on rich oil reserves, the

economies of the region are
amongst the strongest in

the world. A continued

focus on diversification has

led to a wholly positive
outlook, as proven by their
recent resilience to global
inflation rates.

How Money Moves in MENA - report 2024 — 20

3 — Economy

Chief Executive Optimism

A 2024 survey by
PWC found that: 73%
44%
of CEOs in the
Middle East

of Global CEOs

are optimistic about regional are optimistic about growth

growth. in their own region.16

202217

Combined GDP of

the MENA region: 4.43

trillion

USD
2002 x4

500
Combined
population

of the MENA

million
region:18

16 PWC

17 World Bank

18 Statista

How Money Moves in MENA - report 2024 — 21

3 — Economy

JOD
BHD
MENA currencies,
0.376
0.709

US Dollar pegged.
OMR SAR
With oil priced globally in
3.64
0.384
USD, many oil-driven
economies peg their currency
to USD to avoid the risk of USD
exchange rate fluctuation.
This brings economic

stability, but reduces QAR AED

3.672
3.64
economic policy flexibility.

Bahraini Dinar (BHD) Pegged at 0.376

Egyptian Pound (EGP) Not pegged

Jordanian Dinar (JOD) Pegged at 0.709

Kuwaiti Dinar (KWD) Pegged to a basket of currencies

Lebanese Pound/Lira (LBP) Not pegged

Moroccan Dirham (MAD) Pegged to a basket of currencies

Omani Rial (OMR) Pegged at 0.3849

Qatari Riyal (QAR) Pegged at 3.64

Saudi Riyal (SAR) Pegged at 3.75

Turkish Lira (TRY) Not pegged

United Arab Emirates Dirham (AED) Pegged at 3.6725

How Money Moves in MENA - report 2024 — 22

3 — Economy

Oil and gas rich.

MENA includes some of the
world’s top oil-producing
countries, accounting for

38%
of the world’s oil and gas
supply.19
This has created some of the strongest
economies globally.

Oil producing nations GDP (USD)20 GDP per capita (USD)

Bahrain 46 billion 28,800

Kuwait 160 billion 31,720

Oman 109 billion 20,910

Qatar 244 billion 81,400

Saudi Arabia 1.1 trillion 33,040

UAE 527 billion 53,920

Other countries GDP (USD) GDP per capita (USD)

Germany 4.5 trillion 54,290

United Kingdom 3.5 trillion 51,070

United States 28.7 trillion 85,370

19 Statista 20 IMF

How Money Moves in MENA - report 2024 — 23

 THE
3 — Economy WORLD

Oil and gas resilient.

THE
MIDDLE
EAST

As of 2022, the Middle East In the last 20 years, the average annual
Brent crude oil price has fluctuated
accounts for

44%
considerably between around 40 and 110
USD. 

In the 25 years before that, it never

exceeded 40 USD.22

Even so, the region is resilient against low

oil prices because of low extraction costs.
Unlike the US, billion dollar rigs are not
of the world's total remaining required to tap oil reserves. For example,
breakeven in the US is 54 USD. In the
natural gas supply.21 UAE, it’s just 16.8 USD.

21 Statista

22 Statista

How Money Moves in MENA - report 2024 — 24

3 — Economy

Inflation resilient.
For the most part, the region
has managed comparatively
well post-Covid.
In GCC (Gulf Cooperation Council) countries,
inflation has mostly returned to pre-pandemic
levels, compared with global inflation, which the
IMF expects to remain elevated at around 6%.23

e
ag
er
av
al
ob
gl
6%

23 PWC

How Money Moves in MENA - report 2024 — 25

3 — Economy

Diverse and diversifying

economies.
Most of the oil-producing nations have
The notable diversification of
deliberately looked to boost economic growth by
regional economies directly building industries like construction, technology,

influences their resilience.

infrastructure and services. However most
notably, tourism.

The Middle East has experienced one of the

strongest post-pandemic tourist booms
worldwide.

Top destinations, including Türkiye, UAE, Saudi

Arabia and Qatar (which hosted the 2022 FIFA
World Cup) have seen large increases in tourist
spending.24

tourism

infrastruc
ture
and servi
ces

technology

24 HSBC

How Money Moves in MENA - report 2024 construction — 26

 4 —

Trade
Agreements
and Political
Relations

How Money Moves in MENA - report 2024 — 27

4 — Trade Agreements and Political Relations

The creation of freezones and

strong diplomatic relations
with the United States makes
the MENA region a fertile
ground for global businesses.
Simple incorporation,
taxation, and trade are
amongst the many attractive
features of these markets for
international corporations.

How Money Moves in MENA - report 2024 — 28

4 — Trade Agreements and Political Relations

Free Zones
Free zones, also called free economic
zones or free trade zones, are designated
areas within countries that allow for 100%
foreign owned businesses to operate
without needing to comply with normal
regulations and bureaucracy - often
without having to pay customs or taxes.

These incentives make it attractive for businesses to set

up local subsidiaries, and encourage international trade
and investment.

UAE
The UAE has around 40 free zones, offering several economic
incentives such as tax exemption and full foreign ownership with
100% profit repatriation.
Financial free zones were set up to quickly enable international
businesses to base in the UAE. The businesses include investment
funds, investment banks, and fintechs
The UAE free zone corporate tax regime was recognised as ‘non-
harmful’ by the Paris-based policy forum, the Organisation for
Economic Co-operation and Development.

Türkiye
19 free zones are strategically located close to the EU and Middle
East, with easy access to international trade routes via ports on
the Mediterranean, Aegean, and Black seas.

Jordan
Has more than 30 free zones.

How Money Moves in MENA - report 2024 — 29

4 — Trade Agreements and Political Relations

Free Zones
Egypt
9 free zones are spread strategically around the country
In addition to free zones, Egypt has created special economic
zones to serve as international business hubs, with various
incentives and guarantees to spur investments and labour
opportunities in the country.

Lebanon
The main free zone in Beirut offers 100% foreign ownership and
customs exemptions. It accommodates companies that operate in
transport, transit, export, logistics and international trade.
Tripoli also has a free zone, and two new free zones are planned in
the north.

Morocco
As part of Morocco’s strategy to attract foreign investors, six
industrial free zones were established around Tangier, each
dedicated to a different sector, including car manufacturing,
aeronautics and sports.
Two newer free zones have been established in Kenitra and Oujda.

Kuwait
Kuwait’s single free zone opened in 1999, just west of Kuwait City,
and encompasses a port, a power station and a desalination plant.

How Money Moves in MENA - report 2024 — 30

4 — Trade Agreements and Political Relations

Free Zones
Oman
The development of 4 free zones has been a centrepiece of
Oman’s economic diversification, catering for industries like
manufacturing, shipping and logistics.

Qatar
The Qatar Free Zones Authority conceived its first two free zones
at Ras Bufontas and Umm Al Houl. Within them, traditionally
underrepresented or underdeveloped sectors - including
chemicals, agriculture, food processing, health research,
pharmaceuticals, logistics, and especially IT - are more easily able
to establish themselves in Qatar.

How Money Moves in MENA - report 2024 — 31

4 — Trade Agreements and Political Relations

MENA-US Relations
As many of the MENA countries peg their currencies to, and
therefore reliant on, the US Dollar, it’s economically crucial for them
to maintain good relations with the US. Consequently, many have or
are working towards agreements with the US.

Free Trade Framework Policy Dialogue

Agreements (FTAs) Agreements The UAE and the US have
iterated an Economic Policy
Several MENA nations have Trade and Investment
Dialogue, which provides a
FTAs with the United States, Framework Agreements are
platform to collaborate on
including Bahrain (this FTA, in significant steps toward
economic issues and address
2006, was the first between the developing trade liberalisation
obstacles to the bilateral
United States and a Gulf state), criteria and strengthening
commercial relationship.
Jordan (fully implemented in economic relationships. The
2010) and Morocco. GCC and US have a Framework
Agreement for Trade, Economic,
Investment, and Technical
Cooperation. Framework
Agreements also exist between
the US and Saudi Arabia (since
2003), and Kuwait (since 2004).

How Money Moves in MENA - report 2024 — 32

 5 —

Regulations

How Money Moves in MENA - report 2024 — 33

5 — Regulations

Regulations in MENA look,

from the outside, very similar
to those of Europe and the UK
- some even sharing the same
names and terminology.
However, in practice,
regulators and their regimes
operate in a different way.
Each country approaches
payment and stored value
licensing individually and it is
important to understand the
key differences.

How Money Moves in MENA - report 2024 — 34

5 — Regulations

MENA regulators are amongst

the most forward-thinking in

the world.

Morocco was an early mover in the field of digital payments,

introducing “payment institutions” in the 2014 Banking Law.

Türkiye is one of the most welcoming and diverse jurisdictions for

fintech services. For example, no legal regulation or administrative
decision prohibits the use of blockchain technology or crypto assets.

UAE regulators have accommodated new entrants into financial

markets to allow for accelerated innovation in payments. Whilst
centrally regulated banks are the only direct members of payment
schemes, partnership with fintechs and payment companies have
become common.

Saudi Arabia’s central bank has a mandate to accelerate the Kingdom

forward-

into a global financial hub, and has created initiatives to encourage

new entrants to test solutions ahead of the introduction of new
regulations. For example, a regulatory sandbox acts as a ‘safe space’
to encourage local and international companies to explore innovative
products in Saudi Arabia.

Egypt has a similar “sandbox” testing environment. New laws in 2020

and 2022 paved the way for digital banks, e-payments and other e-
banking solutions, and the Egyptian government has actively
promoted financial inclusion and digitisation through these
frameworks.

How Money Moves in MENA - report 2024 — 35

5 — Regulations

PSP, SVF, EMI… and other

regulatory terms in
simpler English.
Banking licenses legally permit the holding
and lending of customer deposits. Financial
institutions must hold accounts with locally
regulated banks to conduct their business.

PSPs / Payment Service Providers

enable companies or merchants to accept electronic payments
(including credit and debit card payments, bank transfers and direct
debits). PSPs are essentially intermediaries between those making
payments (e.g. consumers) and those receiving them (e.g. retailers).

SVFs / Stored Value Facilities

also called Electronic Money Institutions (EMIs) - enable customers to
pre-pay money into the facility and store it there, in order to later use
it to pay for goods or services.

Exchange Houses
also known as Remittance Houses or Remitting Agencies - facilitate
the exchange of money from one currency into another.

How Money Moves in MENA - report 2024 — 36

5 — Regulations

Banking and Fintech

Regulation

Bahrain Jordan Morocco

A license, issued by the The central bank, as the Morocco was an early mover

central bank, is required to regulatory authority, allows in digital payments

undertake regulated other entities to operate regulation, introducing

services. payment systems under its “payment institutions” in the

oversight, as long as they are 2014 Banking Law. The law

Regulations are the same for
licensed to do so and meet allows newer, non-traditional
large banks and small-scale
operating, technical, financial institutions to offer certain
fintechs. High compliance
and accounting services, subject to
costs make it difficult for
requirements. regulatory approval and
smaller companies
license allocation.

Recent amendments to

investment-specific licensing Lebanon

requirements may indicate a Oman
wider willingness to foster The central bank regulates

innovation. and supervises all entities The National Payment

whose activities involve Systems Law, introduced in

monetary transactions, 2018, supports fintech by

Egypt including commercial and licensing various non-

specialised banks, financial banking institutions to

The fintech regulatory and exchange institutions provide electronic payment

framework has seen a services. The regulation

There is no fintech-specific
significant shift with the covers, inter alia, licensing,
legal framework. Many
introduction of the Banking electronic money, and direct
fintech products and
Law in 2020 and the Non- debit.
services are offered by
Banking Fintech Law in 2022.
traditional banks, and
Both laws form the primary
financial and insurance
legislative basis for
institutions. Fintech
governing fintech activities in
companies may be subject to
Egypt. Before this, Egypt
specific laws and regulations
lacked specific regulations
that apply to these
for the fintech industry. The
institutions.
laws pave the way for digital

banks, e-payments and other

e-banking solutions.

How Money Moves in MENA - report 2024 — 37

5 — Regulations

Banking and Fintech

Regulation

Saudi Arabia Türkiye UAE

The central bank is the Regulations on digital Regulators have begun to

Kingdom’s regulator for banking were introduced in accommodate new entrants

banks and financial 2021, paving the way for and accelerated innovation in

institutions. It is an Islamic branchless banks offering payments. Centrally

institution, with a non-profit services entirely through regulated banks are the only

status. digital channels. direct members of payment

schemes, but partnerships

New regulations were The central bank has
with fintech and payment
introduced in 2022 to assumed regulatory and
companies have become far
promote investment and supervisory responsibility for
more common
innovation electronic money and

payment institutions. Two different licenses are

There are two key payment
Centralisation of regulations relevant to payment
licensing regimes. One
has enabled faster companies: a Retail Payment
applies to payment
introduction of innovative Services & Card Schemes
institutions, and one to EMIs
regulations, systems and (RPSCS) license, and a
that both facilitate payment
open banking infrastructure Stored Value Facilitator
services and hold funds. The
license. Providers looking to
latter supersedes the former, No legal regulations prohibit
both accept payments and
so institutions only need to the use of blockchain
store value must have both
hold one license, rather than technology or crypto assets,
licenses
both.
although there are some

restrictions UAE has three regulators of

financial activity
Company shareholders and

board members do not need The Central Bank is the

to be Turkish citizens or be federal regulator, responsible

based in the country, but for regulating banks and

partnering with local firms or financial services providers

having a representative can that serve UAE residents

be advantageous.
The Dubai Financial Services

Authority, an offshore

regulator

The Financial Services

Regulatory Authority, also an

offshore regulator.

How Money Moves in MENA - report 2024 — 38

5 — Regulations

PSP Licences
Payment licensing regimes are largely
aligned with those in Europe.

Saudi Arabia UAE

Similar to the United The RPSCS regulatory regime
Kingdom, Saudi Arabia licenses payment companies
categorises payments facilitating the collection and
licenses as either major or remittance of funds,
minor. Smaller institutions including provisions for
can obtain a lighter license, companies operating in
which facilitates fewer cryptocurrency. It’s similar to
transactions with less Authorised Payment
onerous supervision. This is Institution licensing in the UK
aimed at encouraging and EU.
innovation and early stage
ventures.

How Money Moves in MENA - report 2024 — 39

5 — Regulations

SVF Regulation

Oman

Regulations are somewhat ambiguous.

Manager of the licensed entity must be an Omani national.

Saudi Arabia

Regulators are responsive and adaptive. Regulation has been in

place for a while and provides clear instructions and compliance

requirements.

Licensed entity must be incorporated in Saudi Arabia as a joint

stock company, and key control functions must be based in Saudi

Arabia

Maximum licensing fee currently 50,000 SAR (approx 13,500 USD)

Good legislation around data privacy.

UAE

Central bank intends to regulate SVFs while providing a clear path

for them, but there is some uncertainty with regulation still

emerging.

SVF licensee, including its head of operations, compliance officer

and head of technology, must be based in the UAE

Currently no SVF licensing fee.

How Money Moves in MENA - report 2024 — 40

 6 —

Payment
Methods

How Money Moves in MENA - report 2024 — 41

6 — Payment Methods

Acceleration to instant.
Like the rest of the world, the Middle East has experienced a rapid
increase in Instant Payment schemes in recent years.

The UAE has recently launched Aani, an instant payment

platform for peer to peer transfers built on top of IPP
(the Instant Payment Platforn). Saudi Arabia launched
SARIE (the Saudi Arabian Riyal Interbank Express).
Bahrain has Fawri+. Egypt has IPN (Instant Payment
Network).

All these schemes, with the exception of IPN, operate

24/7 and operate in near real time, settling payments
within 30 seconds.

How Money Moves in MENA - report 2024 — 42

6 — Payment Methods

Mobile or Nobile?
Mobile money services have taken off in some parts of the 

world, especially Africa, where a majority of the populations 

are underbanked.

While mobile payment services exist in Jordan

and Egypt, these countries are regional outliers.
In the Middle East, most people have a bank
account. Consequently, with less need and less
demand, mobile money services haven’t seen
much uptake.

How Money Moves in MENA - report 2024 — 43

6 — Payment Methods

Card control.

Some GCC countries have created government-run card issuing

schemes. These schemes control credit and debit card usage for

local transactions, and make it difficult for international businesses to

acquire payments without paying high cross border fees.

Kuwait Saudi Arabia UAE

KNET, the country’s most The card scheme, mada, is JAYWAN is a new service

popular payment service responsible for 92% of all issued offered by Al Etihad Payments, a

provider, enables electronic cards in the country. Only 8% of subsidiary of the Central Bank,

banking services to all of the cards are issued by international that allows banks to issue

Kuwaiti banks. The KNET card schemes, and many domestic cards with preferential

payment gateway allows retailers don’t support Visa, fees and "co-brand" alongside

payment collection through Mastercard or AMEX payments, Mastercard and Visa for

bank-issued debit cards. Almost 
 so it’s difficult for international international usage.

80% of digital transactions are tourists to make payments 


conducted via a KNET card. while visiting.

How Money Moves in MENA - report 2024 — 44

6 — Payment Methods

Cash is still king,

but change is afoot.

In most MENA nations, cash is the dominant payment method.
However, many are working towards becoming cashless.

Large unbanked populations in several Some examples

countries have led to a push for financial In Bahrain, the volume of e-wallet
inclusion. 

transactions almost tripled from 2020 to

2021.2
At the same time, substantial In Egypt, nearly nine in ten consumers said
investment in technological they had used at least one emerging payment
transformation makes the region ripe for method over the prior 12-month period.2
development and innovation. 

In Morocco, 75% of people used at least one

emerging payment method in 2022.2
Abuzz with fintech services, open
banking platforms and e-payment In Oman, MpClear (launched in 2017) enables
activity, MENA is moving digital and customers to transfer funds using mobile
numbers.

introducing new ways to pay.

The innovations also include some world firsts

In Qatar during the 2022 FIFA World Cup,
customers could “Pay with your Face,” a
system that authenticated payments using
facial biometrics, and without physical cards
or mobile devices.
Merchants in the country have also offered
checkout-free payments that allow customers
to walk into the store and then simply walk
out with goods. They are identified via a
combination of cameras, sensors, and
contactless technology, and their cards are
charged automatically.

25 CBB Financial Stability Report

26 Fintech News AE

27 Mastercard

How Money Moves in MENA - report 2024 — 45

 7 —

Remittances

How Money Moves in MENA - report 2024 — 46

7 — Remittances

Remittances form a key

pillar of each economy

within the MENA region. With

one of the highest expat
populations in the world, the
Middle East not only ranks at
the top for outbound
remittances, with residents
sending money home on a
regular basis, but also in
inbound remittances between
Middle Eastern nations.

How Money Moves in MENA - report 2024 — 47

7 — Remittances 2029

The value of total

1T
USD
global remittances is

expected to exceed
1 trillion USD
by 202928

The transaction value

of digital remittances is
projected to be around
18 billion USD
by 2028, with 18 million users.29

2028

18B
USD

28 Research & Markets

DIGITAL GLOBAL
29 Statista

How Money Moves in MENA - report 2024 — 48

7 — Remittances

Outgoing…
The 6 GCC countries alone
host around 35 million migrant
workers - around 10% of
global migrants.30

The region is No. 1 for

outbound remittances. 

25B2021
In 2021, total outbound
remittances from GCC 134B
countries was 134 billion USD USD
– up from 25 billion USD in
the early 2000s.31

2000s

25B
USD

TOTAL OUTBOUND REMITTANCES

30 Zawya
FROM GCC COUNTRIES
31 Tranglo

How Money Moves in MENA - report 2024 — 49

7 — Remittances

Incoming…
Workers within MENA also
drive a large amount of
inbound remittances.

The three countries that contribute most to

UAE’s inbound remittances are Oman (29.7%),
Kuwait (14.4%) and Jordan (6.2%).3

In 2020, inbound remittances from the UAE

alone accounted for 26% of Lebanon’s total
GDP.3
UAEs

Morocco is the 2nd biggest recipient of Inbound

remittances in MENA. Remittances amount to
around 6.6% of the country’s GDP.34 Remittances

OMAN 29.7%

KUWAIT 14.4%

JORDAN 6.2%
32 Linkedin ECM TOP 3 COUNTRIES CONTRIBUTING TO
33 Fuse Blog
UAEs INBOUND REMITTANCES
34 Morocco World News

How Money Moves in MENA - report 2024 — 50

7 — Remittances

So many transfers,
in so little time.
Cross border remittances
around the region are so
prominent that multiple
payment schemes have been
created by MENA nations to
facilitate these transfers.

AFAQ
The Arabian Gulf System for Financial Automated
Quick Payment Transfer, launched in 2020, is a
regional payment system that enables the
transfer of funds between MENA nations without
interfacing with the SWIFT network - avoiding
high transaction fees and lengthy payment
delays with international correspondent banks.

BUNA
The Buna payment platform, also launched in
2020, is a multi-currency cross-border payment
system, designed to enable central banks and
financial institutions in the MENA region to send
and receive payments in a safe, risk-controlled
environment, in real time. Offering the same set
of benefits as AFAQ.

How Money Moves in MENA - report 2024 — 51

 8 —

The Fintech
Industry

How Money Moves in MENA - report 2024 — 52

8 — The Fintech Industry

Positioning as a world leader

in Fintech, the region is
experiencing an exciting
transformation. With some of
the most profitable banks
globally taking centre stage,
there is a huge amount of
opportunity for new entrants
to take a share of the market.

How Money Moves in MENA - report 2024 — 53

8 — The Fintech Industry

The region has several

thriving fintech hubs.

2023
Bahrain UAE
791M

The Central bank wants to A supportive government has

USD
make Bahrain a key fintech launched the FinTech Office
player through innovation, and various other initiatives
talent, and supportive to promote financial
2022
policies. innovation

Home to more than 350 239M

Has over 1,000 fintech
financial institutions with a USD startups
workforce of over 13,000.
While worldwide fintech
The number of fintechs has investment nearly halved in
Funding in fintech36
doubled since 2018 2023, in UAE it nearly
doubled
FinHub973 offers hundreds
of APIs to develop banking Now one of the world’s 10
Saudi Arabia
and financial solutions. best funded fintech hubs.

Under its Vision 2030 and

FINTECH MARKET

Financial Sector
BY 202537
Development Program, the
2024
Kingdom aims to become

5B

FIN
cashless, with a target of

TECHs 70% by 2030

Fintech Saudi was launched

USD
in 2018 as a catalyst and

x2 ecosystem builder under the

supervision of the Kingdom’s
2018 financial regulators

Funding in the fintech sector

more than tripled from 2022
Number of fintechs

to 2023 (from 239 million

in Bahrain35
USD to 791 million USD).

35 Mondaq

36 Saudi Gazette

37 Linkedin Elements Next Generation

How Money Moves in MENA - report 2024 — 54

8 — The Fintech Industry

Other countries are also

accelerating their plans
and pace.
Egypt
Central bank established a Regulatory Sandbox Framework in 2018
– among the earliest in the region – to inspire innovation and
encourage new fintechs with supportive regulation.
Startups and payment service providers have increased five-fold in
five years, driven by increasing demand and a young, digital-savvy
population.

Jordan
Central bank introduced its Financial Technology and Innovation
Vision in 2023, in line with the Economic Modernisation Vision
Jordan hosted the 2023 Fintech Summit Middle East.

Kuwait
Vision 2035 illustrated the government’s appetite, aiming to foster
innovation and enable new fintechs.
Central bank launched a regulatory sandbox for fintechs to test
products and services in a secure environment.

Lebanon
Many fintechs in the region have Lebanese founders or were
started in Lebanon.
Before financial hubs such as Dubai and Abu Dhabi, Beirut was a
major banking centre for the Middle East.

How Money Moves in MENA - report 2024 — 55

8 — The Fintech Industry

Other countries are also

accelerating their plans
and pace.
Morocco
Predicted to become one of the African countries where fintech
will be concentrated
A Fintech Times report rated Morocco one of the “Markets to
Watch”.38

Oman
Has several initiatives to foster fintech growth, and a fintech
ecosystem has been prioritised in line with Oman’s Vision 2040.

Qatar
Central bank launched the Qatar Fintech Strategy in 2023 to
become a leader in financial services.
It aims to triple the number of fintech companies in the next five
years.
Qatar is less saturated than neighbouring countries and is
considered a promising launch pad for penetration into the MENA
market.

Türkiye
Finance Office aims to make Türkiye a world leader in financial
technologies, with innovation and digital-friendly regulations
Fintech funding in 2022 defied global trends, increasing 30% to 89
million USD.39

38 ISSUU

39 Fintech News AE

How Money Moves in MENA - report 2024 — 56

8 — The Fintech Industry

Opportunity knocks
The lucrative payments and exchange spaces are dominated by
traditional banks. And they are some of the most profitable banks 

in the world.

Q1/2023

200%

Q1/2023

96% Q1/2023

70%

NET PROFIT GROWTH Q1 / 2023

In Q1 2023, ENBD’s profit was more than

double that of the previous quarter. Net profit There’s a gap for
for 2022 was 3.6 billion USD

Mashreq’s Q1 2023 net profit was up 96%

innovative fintechs

year on year. FAB’s was up 70% for the same

period to pursue a share of
this market.
Much of this profit comes from payments and
currency exchange: 40% for ADCB, 31% for
Mashreq, 23% for ENBD.

How Money Moves in MENA - report 2024 — 57

 9 —

Conclusion

How Money Moves in MENA - report 2024 — 58

9 — Conclusion

The Middle East and North

Africa region is experiencing

a powerful growth curve that is

hard for global businesses to
ignore. The Middle East is not

a simple market to crack but

whilst it may be challenging

to enter, it is very much open

for business - understanding

the unique differences

between each country, their

economies and cultures, is

key to expansion.

MENA is going through a process of

redefining its place in the global economy,
transitioning away from their infamous Oil
& Gas reputation to a financial and
innovation hub for growth.

From new payment schemes and financial

licensing regimes, to the formation of
political alliances and trade agreements -
MENA is becoming exciting and relevant on
the global stage.

How Money Moves in MENA - report 2024 — 59

Contact us to learn more 

about payments in MENA.
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