Financial
Middle East’s Strategic Priorities: Economic Diversification, Visionary Reforms, and Stability

By Dr. Sunita Mathur, Assistant Professor at Heriot-Watt University Dubai

The Middle East has experienced a remarkable transformation in recent years, establishing itself as a global centre for diverse industries and sectors. Once primarily recognized for its rich cultural heritage, expansive deserts, and complex geopolitics, the region is now emerging as a dynamic and influential force on the international stage. Strategic investments, economic diversification, and a strong emphasis on innovation have fueled this evolution. This article delves into the factors driving this shift, highlighting the Middle East’s growing prominence in business, technology, culture, and diplomacy.
The Middle East’s rise as a global hub is driven by its dedication to economic diversification, significant advancements in technology and innovation, and a revival in cultural heritage, which together draw worldwide attention. Additionally, the region has made notable contributions to global diplomacy, exemplified by the historic Abraham Accords of 2020, which brought the UAE, Israel, and Bahrain together in agreement. Substantial investments in education and talent development have led to the development of human capital and the establishment of world-class universities, attracting students and researchers globally. This focus on knowledge sharing and innovation has further strengthened the Middle East’s position in the global arena.
Growth as a Financial Hub
The discovery of oil in Saudi Arabia in 1938 led to an oil boom across the Gulf Cooperation Council (GCC) member states, including the UAE, Bahrain, Oman, Qatar, and Kuwait, driving significant economic growth. However, GCC leaders are shifting toward alternative sectors like finance to lessen their dependence on oil for environmental and economic reasons. This industry is ideal for diversification due to the substantial resources generated from oil revenues, which can be invested in financial sectors like asset management investment services, and other financial sectors. Also, the region’s strategic location at the crossroads of Europe, Africa, and Asia makes it a trade hub for oil and other commodities, including tourism and agriculture. This strategic shift underscores the region’s vision for a sustainable and diversified economic future. The GCC nations boast a debt-to-GDP ratio of approximately 20 per cent per cent, significantly lower than countries like the United Kingdom and the USA, where it exceeds 100 per cent, and Japan, where it surpasses 200 per cent. This comparatively low ratio gives GCC countries greater flexibility to leverage their GDP and secure additional investment capital.
When combined with their economic history, competitive advantages, and pro-business policies—such as low taxes and the availability of free zones—these factors enhance the GCC’s appeal as an emerging financial hub for the future of work. Recent legislative changes, like the UAE’s decision to allow non-nationals to establish onshore businesses without local partners, further solidify the region’s reputation as an attractive destination for international companies. The free zone laws in the UAE and Saudi Arabia, which designate specific areas as technically offshore, exempt companies established there from older legal frameworks. This approach enables governments to maintain critical laws while creating environments where international businesses feel more at ease setting up operations, further driving the region’s economic appeal.
Future Projections
The Middle East contributes only 4 per cent of global GDP, yet its rich cultural heritage, strategic geographic position, and vast natural resources make it a key hub for business, investment, and innovation. Historically reliant on oil revenues, the GCC nations—Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain, and Oman—are now diversifying their economies through significant reforms. Ambitious initiatives such as Saudi Arabia’s Vision 2030 and the UAE’s Vision 2031 exemplify efforts to reduce dependence on hydrocarbons and build resilient, future-ready economies.
The UAE’s Vision 2031 aims to drive economic diversification and sustainable growth, targeting a GDP increase from AED 1.49 trillion to AED 3 trillion. The plan seeks to reduce oil dependence by raising the non-oil GDP to 64 per cent, generating AED 800 billion in non-oil exports, increasing tourism’s GDP contribution to AED 450 billion, and growing foreign trade value to AED 4 trillion, reinforcing the UAE’s role as a global economic hub. Furthermore, Saudi Arabia’s Vision 2030 focuses on diversifying the economy away from oil. It aims to boost non-oil revenue from SAR 163 billion to SAR 1 trillion and increase private sector contribution to GDP from 40 per cent to 65 per cent. The initiative includes mega projects like NEOM, a USD 500 billion city powered by renewable energy, and aims for small and medium enterprises (SMEs) to contribute 35 per cent to GDP while increasing women’s workforce participation from 22 per cent to 30 per cent.
The September 2024 edition of PwC’s Middle East Economy Watch highlights two key developments set to shape the future of the Middle East positively. First, a USD 35 billion investment from the UAE has driven a remarkable economic recovery in Egypt this year. Second, the GCC’s growing prominence in the global AI landscape is underscored by robust ICT infrastructure, strategic government initiatives, and substantial capital, making the region an attractive hub for top AI firms. Additionally, the GCC is well-positioned to capitalize on AI’s economic potential by enhancing efficiency and fostering innovation across various sectors. The region’s economies are forecasted to grow at an average annual rate of 3–4 per cent through 2026.
The Middle East’s transformation from a region marked by geopolitical tensions to a global centre for business, technology, culture, and diplomacy is remarkable and full of potential. Driven by visionary leadership, strategic investments, and a focus on diversity and innovation, the Middle East is poised to significantly shape the future worldwide. As the region continues to evolve and redefine its identity, it will increasingly influence global affairs, fostering unprecedented cooperation, innovation, and cultural exchange.
Financial
Reimagining Banking: Unlocking Endless Potential and Unlimited Growth in the Middle East

By Keith Redding, Chief Revenue Officer, Universal Banking at Finastra

Reimagining banking in the Middle East is redefining how financial institutions grow, engage, and innovate. As digital transformation accelerates, banks must evolve to deliver seamless, secure, and personalized experiences that meet rising customer expectations.
Across the UAE and Saudi Arabia, adoption of digital banking continues to surge. According to Capco’s “Bank of the Future” survey, 89% of UAE customers have become more confident using mobile banking services, while 83% now access them primarily via mobile apps. Similarly, Saudi Arabia expects online banking penetration to grow by over 16 percentage points between 2024 and 2029, underscoring the region’s momentum toward smarter, connected financial ecosystems.
Reimagining Banking Middle East with Data and Analytics
Data has become the new cornerstone of success. Through AI, analytics, and machine learning, banks can decode customer behaviour and anticipate needs more precisely than ever. As a result, they can personalize offerings, boost retention, and reduce friction across the customer journey.
A clear example of this transformation is Riyad Bank’s Centre of Intelligence (COI) — Saudi Arabia’s first AI-focused banking hub — which enhances operational efficiency while driving innovation in customer engagement.
By reimagining banking in the Middle East with data-driven strategies, institutions can align financial products with real-time insights and deliver experiences that feel intuitive, predictive, and human.
Hyper-Personalization and Omnichannel Growth
Customers today interact through multiple touchpoints — mobile apps, websites, and physical branches — expecting consistent, personalized service. Therefore, delivering a seamless omnichannel experience has become the foundation of loyalty.
In the UAE, 70% of consumers are willing to share personal data for tailored experiences, while in Saudi Arabia, the number climbs to 71%. This readiness empowers banks to use analytics ethically and transparently, transforming everyday banking into relationship-driven engagement.
Digital Sales Outreach and New Engagement Models
Digital outreach is not an option — it’s essential. Mobile-first strategies, social media engagement, and AI-driven marketing are now central to how banks connect with customers.
Take D360 Bank, one of Saudi Arabia’s first digital-only institutions. It attracted over 600,000 customers within two months of launch, proving that mobile-first banking can scale fast when powered by user-centric design.
Ecosystem Collaboration: Powering Innovation in the Middle East
Another major force reimagining banking in the Middle East is ecosystem collaboration. By partnering with fintechs, big tech firms, and infrastructure providers, banks can expand capabilities faster than ever before.
Globally, fintech startups have surged from 12,000 in 2020 to nearly 30,000 in 2024. The Dubai International Financial Centre (DIFC) now hosts over 1,000 fintech firms, while Saudi Arabia’s fintech ecosystem has more than doubled within a year. This growth underscores the importance of collaboration as a driver of agility and innovation.
Such partnerships empower banks to deploy advanced solutions like AI-powered risk scoring, embedded finance, and real-time payments — all while ensuring compliance with regional and global standards.
Looking Ahead: Building a Future-Ready Financial Ecosystem
The future of reimagining banking in the Middle East lies in intelligent, insight-led operations. Automated recommendations, predictive support, and AI-driven decision-making will soon define how banks engage customers.
Forward-thinking institutions in the UAE are already adopting AI-assisted frameworks that streamline service and elevate the customer experience. In Saudi Arabia, agile innovation models like Alinma Bank’s digital factory accelerate product launches and improve customer alignment.
As the region continues to evolve, banks that combine innovation, collaboration, and customer-centric transformation will achieve sustainable growth and long-term market leadership.
Check this out UAE Crypto Regulation Sets Global Blueprint
Financial
UAE Crypto Regulation Sets Global Blueprint

By Karl Naïm, Group Chief Commercial Officer, XBTO
The UAE has evolved from a crypto sandbox to a global model for digital asset regulation, demonstrating how policy clarity, investor protection, and innovation can coexist. Once a regional testing ground, the nation now leads in tokenization, blockchain adoption, and institutional-grade compliance — setting a framework others are eager to emulate.
Institutions Move from Observation to Adoption
Over the last two years, institutional investors — from sovereign funds to global asset managers — have shifted from cautious exploration to structured allocations in digital assets. Yet, these investors only engage when they see robust regulatory infrastructure.
Here, UAE crypto regulation stands apart. While the U.S. remains divided over jurisdictional control and Europe’s MiCA awaits full rollout, the UAE offers a complete ecosystem where policy meets execution. This maturity has transformed the country into a trusted base for large-scale blockchain initiatives.
Two Regulatory Paths, One Unified Objective
The UAE’s approach balances innovation and oversight through two distinct yet aligned regulatory arms.
- Abu Dhabi Global Market (ADGM): Through the Financial Services Regulatory Authority (FSRA), it licenses custody, tokenization, and brokerage activities under strict governance criteria.
- Dubai’s Virtual Assets Regulatory Authority (VARA): Instead of classifying asset types, VARA regulates activities, giving firms flexibility to innovate without restarting their licensing process.
This dual model ensures both stability and adaptability — a rare equilibrium that reinforces confidence among enterprises and investors.
Tokenization Moves from Pilot to Production
In 2023, Neovision and Realize launched one of the first tokenized U.S. Treasury funds under ADGM’s oversight, now part of a market valued at over $2.4 billion. Soon after, HSBC piloted tokenized gold settlement in the Emirates, leveraging the UAE’s mature legal and technical infrastructure.
Unlike most markets, where tokenization remains conceptual, the UAE has operationalized it across corporate bonds, commodities, and private equity. This tangible progress makes UAE crypto regulation a benchmark for turning blockchain theory into enterprise-scale reality.
Proven Resilience Through Market Turbulence
The UAE’s frameworks were tested during the 2022 digital asset downturn. While some regions froze licensing or enforcement, VARA introduced stricter custodial and marketing rules while continuing to issue licenses transparently.
In 2024, both VARA and ADGM demonstrated accountability by penalizing unlicensed operators and enforcing compliance — signaling a regulatory environment that values both innovation and discipline.
Blockchain Beyond Finance
Beyond crypto trading and tokenization, the UAE is using blockchain to drive cross-sector innovation.
- Ras Al Khaimah has built a dedicated Web3 zone for decentralized applications.
- Sharjah is piloting blockchain in public services, from identity to supply chain tracking.
This diversification proves the national model’s flexibility and depth, blending economic and civic value under a unified UAE crypto regulation framework.
Geography Meets Governance
Situated between Asia and Europe, the UAE benefits from time-zone overlap, U.S. dollar settlement, and investor-friendly tax structures. Yet its real advantage lies in policy precision. Since 2023, VARA has issued frequent updates and consultative papers, responding dynamically to industry input.
Following its removal from the FATF grey list in 2024, the UAE has accelerated compliance reforms faster than most peers, turning global scrutiny into strategic progress.
A Replicable Blueprint for the World
While the U.S. debates regulatory ownership and Europe await MiCA’s maturity, the UAE has implemented a live, multi-emirate framework. It balances openness with oversight — a model now studied by global policymakers.
For institutional investors, the question has shifted from if to were. Increasingly, the answer is clear: the UAE — where crypto regulation is no longer an experiment, but the emerging global standard.
Read our previous post, UAE Depreciation Rules Boost Real Estate Investment
Financial
UAE Depreciation Rules Boost Real Estate Investment

By Shabbir Moonim, CFO, The Continental Group

A Sharper Edge for UAE Property Depreciation Investors
The UAE property depreciation is reshaping how businesses and family offices view property as an investment. Real estate has always anchored wealth and stability, but its treatment within corporate tax frameworks now determines how effectively it performs over time.
The latest guidance allows depreciation deductions on properties valued at fair market value, adding a layer of fiscal precision. Companies choosing the realization basis—deferring tax until sale—can now claim an annual deduction of up to 4 percent on the property’s original cost or written-down tax value. This refinement strengthens property’s role inside long-term, tax-efficient portfolios.
How Depreciation Boosts UAE Property Cash Flow
Investment success depends not only on appreciation but also on liquidity and reinvestment power. Depreciation lowers taxable income, improving post-tax returns for assets that are typically illiquid.
For structured property holders, claiming depreciation under fair-value accounting boosts internal yield and aligns property with other income-producing assets. Even at a modest 4 percent, the deduction releases capital that can be reallocated or retained, enhancing overall portfolio efficiency.
Moreover, this recurring offset stabilizes cash flows, giving investors predictable returns that complement the long-term nature of property ownership.
Aligning UAE Property Depreciation with Tax Efficiency
Previously, owners had to choose between fair-value accounting and depreciation benefits. Businesses valuing properties at market rates lost tax deductions, while those using historical cost models retained them. The new UAE depreciation rules remove this compromise.
Now, companies can maintain up-to-date valuations and still claim depreciation, ensuring transparency and consistency. This alignment allows property to compete directly with other investment classes, from private equity to listed securities, on a balanced tax basis.
Consequently, financial planners can make clearer, data-driven decisions about capital allocation and portfolio composition.
Small Rule, Big Impact on UAE Property Investment
While no single regulation redefines real-estate logic, subtle fiscal changes can transform investment behavior. This policy turns property from a passive holding into an active component of strategic capital management.
It also reflects the UAE’s commitment to predictable, rules-based governance that supports investment without distorting markets. For business owners and families planning across generations, this stability builds confidence and encourages long-term commitment to the country’s economy.
Ultimately, the UAE depreciation rules help transform real estate from a static asset into a dynamic tool for tax optimization and sustainable growth.
A Foundation for Smarter Real Estate Portfolios
These reforms make it easier to incorporate real estate within diversified investment portfolios. They support businesses in balancing cash flow needs, compliance requirements, and performance targets.
For investors, the message is clear: property can now compete with other asset classes not only on returns but also on efficiency and resilience. The UAE continues to build a financial landscape where predictability and innovation work hand in hand.
About the Author
Shabbir Moonim is the Chief Financial Officer at The Continental Group, with over 25 years of experience in finance, strategy, and governance. He aligns financial operations with enterprise growth, oversees risk management and treasury, and drives regulatory readiness and data-driven decision-making across the organization.
About The Continental Group
Founded in 1994 by Ashok Sardana, The Continental Group is a leading insurance and financial services provider licensed by the UAE Insurance Authority, SCA, and DFSA. With over 250 professionals operating across Europe, the Middle East, and Asia, the Group offers customized solutions in investments, wealth management, succession planning, and insurance. Its core values — integrity, insight, and innovation — continue to drive client trust and long-term financial well-being.
Check out our previous post, ADIB Launches Remit Service, Expands Digital Banking Solutions
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