AI and Digital Currencies Transform MENA Into Rising Fintech Leader

By Naser Taher, Chairman of MultiBank Group

The Middle East and North Africa (MENA) region has become the leading laboratory for financial innovation, where artificial intelligence (AI), central bank digital currencies (CBDCs), and sovereign wealth fund (SWF) strategies converge to reshape global cash flows. According to the World Economic Forum, venture capital investments in MENA grew by about 33% a year from 2015 to 2023, with funding reaching $644 million in 2024. This surge reflects deliberate efforts to position the region as a fintech powerhouse for the new economy.

One of the most significant developments is the strategic collaboration between the Abu Dhabi Investment Office (ADIO) and the Trump Organization to establish an AI and Web3 Free Zone. The $6.6 billion initiative aims to attract global tech firms, AI researchers, and fintech ventures to the UAE, further cementing MENA’s leadership in next-generation digital infrastructure.

Machine learning algorithms now process trades worth billions on Saudi Arabia’s Tadawul exchange daily, while automated risk assessment systems evaluate loan applications in real time from Dubai to Riyadh. Saudi Arabia’s Financial Sector Development Program has embedded AI throughout its capital markets ecosystem as part of Vision 2030’s broader economic transformation. PwC analysis projects this technological integration will generate almost $135 billion for the country’s economy by 2030, fundamentally altering how banks manage liquidity, assess credit risk, and compete regionally.

Central banks across the Gulf have moved beyond theoretical frameworks into live testing of digital currencies. The UAE’s Digital Dirham is set to enter retail circulation through licensed banks and fintech companies by late 2025, enabling near-instant cross-border payments where traditional banking requires days and charges hefty fees. Meanwhile, Saudi Arabia and the UAE have jointly piloted Project Aber, issuing a single wholesale CBDC. 

Gulf SWFs are reshaping the region’s infrastructure landscape, no longer content with simple portfolio plays. These institutions now control $4.9 trillion in assets, with projections reaching $7.3 trillion by 2030. In the first nine months of 2024, they accounted for 40% of all international SWF transactions, deploying $55 billion across 126 deals. Notably, Abu Dhabi’s Investment Authority and Saudi Arabia’s Public Investment Fund (PIF) are increasing allocations to blockchain and digital projects. In Qatar, the Qatar Investment Authority is working through the Qatar Financial Centre’s new Digital Asset Regulations 2024 to trial real-world asset tokenization.

Alongside these public sector moves; private institutions are also innovating on a scale. MultiBank’s new Electronic Communication Network (ECN) will introduce the Gulf’s first interbank trading and prime brokerage ecosystem, linking BRICS and GCC jurisdictions. Designed to compete with Western counterparts such as Bloomberg and Reuters, it connects conventional trading desks to machine-driven order routing and the MultiBank Chain’s tokenization layer. Cross-border deals become faster, safer, and more transparent, with settlements possible in gold or a mix of currencies instead of U.S. dollars alone. By opening the door to tokenized real-world assets and other decentralized products, the network sharpens the Gulf’s bid to serve as a global finance hub.

However, important challenges remain. Fintech ventures still need to navigate a maze of rules that shift from one border to the next; a single, region-wide framework would let ideas—and capital—move faster. As more money flows online, hackers gain fresh openings, and cybersecurity becomes even more critical. And while Gulf youth embrace tech with ease, the GCC needs far more specialists who can work with blockchains, train risk models, and secure CBDC payment rails. That calls for a push on everything from university courses to mid-career reskilling.

The next breakthrough won’t come from technology alone but from how well policymakers, entrepreneurs, and the sovereign heavyweights backing them work in sync. CBDC pilots are live, AI already guides trading desks, and deep pools of patient capital sit ready to fund new ideas. If the region’s key players keep pulling in the same direction, the Gulf won’t just join the digital finance conversation—it could end up leading it.