FINAL WORD to fortify financial institutions to bolster support for the private sector . The programme seeks to elevate the proportion of non-cash transactions from 36 % in 2019 to 70 % by 2025 .
One of the goals outlined in Saudi Vision 2030 is to diminish reliance on physical currency within the country . This involves enhancing the national financial infrastructure to facilitate a shift towards electronic payment methods . Conversely , Egypt ' s Financial Inclusion Strategy concentrates on collaborating with governmental bodies to furnish practical and costeffective banking services for all sectors of society .
Dr Ullas Rao , Assistant Professor at Dubai Social
Sciences , Heriot-Watt University Dubai
entry . This , in turn , would be supported by a credit rating that enhances the credibility and legitimacy of businesses in the global markets .
The amalgamation of technological advantages , market accessibility , and credit ratings plays a pivotal role in achieving a competitive cost of capital , which is crucial for success in the SME sector .
Medium term challenges
Despite the promising trajectory , the fintech revolution in the Middle East has its challenges . Cybersecurity concerns , regulatory hurdles , and a digital skills gap pose significant obstacles to adopting fintech solutions . Cybersecurity threats are particularly pressing , with the Gulf region experiencing a surge in cyberattacks .
Securing sensitive financial information is paramount as financial services become more reliant on digital platforms . Policymakers and industry stakeholders must collaborate to develop robust regulatory frameworks and invest in cybersecurity infrastructure to safeguard the financial ecosystem .
Regulatory frameworks , while necessary , must strike a delicate balance . Overly stringent regulations can stifle innovation , hindering the growth of the fintech sector . Policymakers should focus on creating an enabling environment that fosters innovation while ensuring consumer protection and financial stability .
Governments have introduced diverse initiatives in the Middle East to enhance financial inclusion within their nations . Saudi Arabia , for instance , is executing the Financial Sector Development Program , which strives
Addressing the digital skills gap is crucial for the sustainable growth of the fintech sector . As technology evolves , there is a pressing need for a skilled workforce capable of navigating the complexities of digital finance . This can be done by streamlining Know Your Customer , KYC processes and establishing transparent regulations .
Cross-border partnerships
Collaborative efforts between governments , educational institutions , and industry players can bridge this gap by implementing training programmes and promoting STEM education . Policymakers can further foster a more inclusive financial ecosystem by promoting public-private partnerships .
The government ' s role extends beyond regulation to actively supporting fintech initiatives that prioritise financial inclusion . Collaboration with industry stakeholders can lead to the development of innovative solutions that address specific challenges faced by marginalised communities . Education and awareness campaigns are also pivotal in promoting financial literacy and encouraging the adoption of digital financial services .
The fintech revolution in the Middle East holds immense promise for advancing financial inclusion . As digital technologies reshape the banking and finance landscape , the unbanked and underbanked populations are gaining access to essential financial services .
In collaboration with industry stakeholders , policymakers must navigate challenges and leverage opportunities to ensure that the benefits of fintech are realised across all strata of society .
By fostering innovation , implementing effective regulations , and promoting education , the Middle East can usher in a new era of financial inclusion , unlocking the economic potential of millions and driving sustainable development . p
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