By Claudio Di Zanni, Managing Director, Edenred Middle East

One of the most critical issues faced by low-income employees across the UAE and the broader Gulf region is achieving true financial empowerment. In the UAE, over 60% of the workforce comprises low-income migrant workers earning less than AED 5,000 per month. These employees are the backbone of the nation’s key industries, yet many still struggle to access the benefits of a fully digital financial ecosystem.

While the UAE’s Wage Protection System (WPS) was introduced to safeguard workers’ rights—ensuring salaries are paid accurately, on time, and through traceable digital channels—the banking system’s minimum salary requirement prevents a large portion of the workforce from opening traditional accounts. This creates a structural gap that payroll solutions are designed to fill, enabling compliant salary payments and basic access to digital finance.

As the Middle East accelerates its digital transformation and workforce reforms, how workers are paid and supported financially has become as important as how they contribute to growth. This shift has put a renewed spotlight on the systems managing their wages and day-to-day financial needs. For low-income employees, these systems determine not just how they are paid, but how securely they live—affecting access to savings, remittances, and their ability to handle emergencies.

When Digital Pay Isn’t Enough

The introduction of the Wage Protection System marked a turning point in the UAE’s journey toward fair and transparent wage practices. Today, nearly all employees are paid through digital channels, ensuring salaries are disbursed accurately and on time. Yet despite these advances, a significant percentage of wages are still withdrawn in cash each month, showing that digital pay does not automatically translate into digital financial inclusion.

For many employees, limited digital literacy, mistrust of financial systems, and unfamiliarity with digital tools prevent them from engaging fully with the digital economy. As a result, the very system designed to protect and empower workers can feel more like a compliance obligation than an opportunity for empowerment.

This is where payroll providers play a critical role. Too often, the industry stops at compliance—ensuring wages are delivered digitally—without addressing the human factors that determine whether employees can truly benefit from financial technology. Empowerment comes not from the transfer itself, but from helping workers understand, trust, and use digital money confidently. Only then can payroll innovation translate into lasting financial well-being and equal access to economic opportunity across the UAE.

Digital salary management platforms have already transformed how employees receive and manage their earnings. Mobile apps and prepaid cards now give workers immediate access to their wages, allowing them to make purchases, send remittances, and track expenses in real time. Many solutions integrate seamlessly with the WPS, enabling even unbanked employees to participate in the digital economy for the first time. A recent study found that organizations implementing mobile-accessible payroll solutions report up to 25 percent higher employee satisfaction, underscoring the clear business value of digital inclusion.

Empowering Through Education

Financial literacy programs are equally critical in helping employees make informed decisions about saving, budgeting, credit, and long-term planning. In the UAE, less than 31 percent of the population demonstrates basic financial literacy, highlighting a major opportunity to empower workers through education.

From workshops to mobile-based learning tools, such programs can equip employees with the practical skills to use digital salary systems effectively, avoid debt traps, and build savings or plan remittances. Employers that distribute salary cards directly at worker accommodations and provide multilingual support during onboarding see much higher adoption rates, as these field-level activations build trust and make digital tools easier to use.

Employers who take financial education seriously often see a clear business impact. Companies that invest in onboarding sessions and field engagement consistently report higher digital adoption rates. These activations not only build trust but also transform digital payroll from a compliance task into a tangible employee benefit.

When workers understand and trust digital tools, they gain control over their finances—and that stability shows at work. Financial stress is one of the most common challenges among low-income employees, limiting their ability to manage urgent expenses and affecting productivity, retention, and overall well-being. In sectors such as construction, this stress can even impact concentration and safety, as employees distracted by financial worries are less able to perform at their best.

Partnerships between employers and fintechs like Edenred are expanding this approach, combining digital wage tools with financial education programs that improve confidence, satisfaction, and long-term well-being.

The Next Phase of Financial Empowerment

Employers remain central to driving inclusion. By choosing payroll partners that provide multilingual support, education, and easy mobile access, companies can reduce disputes, strengthen retention, and improve overall workforce stability.

A growing number of organizations are now exploring earned wage access programs, which allow employees to access a portion of their earned income before payday. Surveys show that most low-income workers value this flexibility to cover urgent expenses, medical bills, or family emergencies—without resorting to high-interest loans or informal borrowing. When paired with education and budgeting tools, earned wage access can provide not just relief in emergencies but also encourage more responsible money management.

This flexibility can increase employees’ sense of financial security, yet it should complement—not replace—broader financial literacy and planning initiatives. The most successful models combine accessible financial products, user education, and ongoing engagement, ensuring workers have both the tools and the confidence to manage their finances effectively.

As technology evolves, artificial intelligence and data analytics will make financial support more personalized and accessible. Predictive models can help employers identify employees under financial strain, while new digital products can guide users toward healthier financial behaviors. But technology alone will not close the gap.

Real progress will depend on collaboration between fintechs, employers, and regulators to build an ecosystem that blends technology, education, and empathy. Businesses increasingly recognize that supporting workers in their financial journeys fosters a more engaged and loyal workforce, directly impacting productivity and retention. Selecting payroll partners that combine compliance with education, multilingual support, and mobile accessibility helps companies reduce payroll disputes and improve satisfaction.

The trajectory of financial empowerment for low-income employees in the UAE is promising. The next stage will depend on how effectively stakeholders align innovation with understanding—ensuring every salary payment becomes an opportunity for inclusion and growth. When that happens, financial empowerment will move from aspiration to reality.

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

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