Middle East's Embedded Finance Market Set for Major Growth by 2030
Middle East, Thursday, 20 November 2025.
The Middle East embedded finance sector is poised for significant growth, driven by ride-hailing and gig platforms. Regulatory support and e-commerce expansion are key factors in this transformation.
Market Dynamics and Growth Projections
The Middle East’s embedded finance sector is projected to experience substantial growth, driven by the integration of financial services within ride-hailing and gig platforms. The market has achieved a Compound Annual Growth Rate (CAGR) of 16.9% from 2021 to 2025 and is expected to continue expanding at a CAGR of 8.5% from 2026 to 2030, reaching approximately USD 45.7 million by the end of 2030 [1]. This growth is propelled by regulatory changes, digital platform expansion, and targeted efforts to reach underserved customer segments [1].
Regulatory Environment and Technological Integration
Regulatory support plays a crucial role in fostering the embedded finance ecosystem in the Middle East. Countries within the Gulf Cooperation Council (GCC), such as the UAE, Saudi Arabia, and Bahrain, have implemented fintech sandboxes and digital licenses, facilitating the integration of banking services into diverse platforms [1]. For instance, the UAE Central Bank introduced regulations for Payment Token Service Providers (PTSPs) in 2024, supporting the growth of embedded wallets and in-app payment solutions [1].
Impact of E-commerce and Digital Platforms
The rapid growth of e-commerce in the region is another significant driver of the embedded finance market. Major e-commerce and retail platforms, such as Amazon.sa, Noon, and Carrefour UAE, are integrating credit, payment, and insurance products [1]. Furthermore, mobility and gig platforms are offering financial tools like prepaid cards and instant payouts, enhancing financial inclusion and user engagement [1].
Opportunities for Banks and Fintech Collaborations
Banks in the Middle East are transitioning to embedded finance models by partnering with platforms and adopting Banking-as-a-Service (BaaS) models. For instance, banks like Alinma Bank and Emirates NBD have initiated API services for third-party integrations, allowing them to reach digital-native customers through trusted platforms [1]. This collaborative approach is evolving the market into a multi-player ecosystem where banks, fintechs, and platforms are working together via API-based partnerships [1].