Over the past decade, the banking sector in the Gulf Cooperation Council (GCC) has undergone significant transformation, solidifying its position as a leader in the global financial services market. Factors such as favorable macroeconomic climate, government support, and joint efforts among different players in the industry have pushed the market forward, resulting in remarkable growth and resilience even amid economic uncertainties. 

Today, consumers and businesses – particularly SMEs – are increasingly looking for banking services that address their unique needs and are conveniently accessible through their mobile devices. However, the penetration of digital banks in the region remains relatively low across both retail and corporate segments. While countries like the UAE, Saudi Arabia, Bahrain, and Kuwait have witnessed some growth, others, such as Oman and Qatar, have yet to establish any digital-only banking institutions. This presents a significant opportunity for digital banks, especially in markets that still rely on traditional banking models. 

The digital infrastructure is already mature enough to support this growth. According to statistics, internet penetration exceeds 99% in the UAE, Kuwait, Saudi Arabia, Bahrain, and Qatar, while Oman closely follows at 97.8%. Additionally, the region boasts high literacy rates above 93% and a youthful, tech-savvy population eager to embrace digital solutions. These factors create a fertile environment for financial institutions and FinTechs to innovate and capitalize on the opportunity. 

Download our report on “The Case for Launching an SME Digital Bank in the GCC” to understand the market positioning, opportunities available, and a roadmap for launching a successful digital bank in the region.