World Bank and Arab Monetary Fund to discuss financial technology

The World Bank and the Arab Monetary Fund will hold a virtual conference today about digital payments and e-banking.

The proliferation of digital banking in the Middle East and North Africa (MENA) has promoted joint strategies between the two organizations.  Today’s meeting will raise awareness of how digital payments can support job creation, enhanced service delivery, and the inclusion of youth and women. Specifically, the Emirati financial centers Abu Dhabi and Dubai have established technology hubs to bring together banking, financial technology innovation and cutting-edge financial services into their economies. Bahrain, Saudi Arabia and other Gulf states are following suit.

In the medium-term, expect the digital payments market to boom as the region becomes one of the fastest-growing e-commerce and remittance markets. With financial support from the Bank and the Fund, expect further investment in digital payment platforms to accelerate digital transformation and drive economic recovery. However, obstacles, such as the size of the informal sector and early technological developments of some nations might delay the process. To counter this, it is likely that the UAE will invest in tech partnerships with neighboring countries—including Oman and Israel—to strengthen its presence and expand its reach to diversify its oil economy.