MENA 2024 Banking Report

The MENA 2024 Banking Report analyzes banking activities in the MENA region. It provides in-depth insights in terms of sector insights, banking performance, outlook for the financial year and macroeconomic overview.

The MENA banking sector has made significant progress while witnessing considerable changes throughout 2023. Despite the challenges of rising inflation and evolving regulatory landscapes, banks have started to focus more on responsible banking and sustainability. They have proactively responded by investing more in technology-led innovation to address customer needs. As MENA banks look to the future, they must consider seven trends to continue their transformation journey and deliver long-term value for all their stakeholders. MENA banks are actively supporting small and medium-sized enterprises (SMEs), which are the backbone of the region's economy. SMEs in the MENA region, especially in the KSA, Qatar, and the UAE, are optimistic about their growth prospects for 2024.

The competition for skilled professionals, particularly in the financial services sector of the MENA region, remains intense due to ongoing growth. Financial organizations are prioritizing nationalization, developing new skill sets, and fostering leadership to steer through rapid changes. Success for these organizations depends on effectively managing these interconnected aspects. Those that successfully navigate the evolving talent landscape will benefit from the successful execution of their strategies.

The artificial intelligence (AI) landscape in MENA banking is rapidly evolving, with a notable shift toward generative AI (GenAI) models. This opens up transformative potential in areas such as risk assessment, fraud detection, hyper-personalized customer experiences and intelligent virtual assistance. As MENA banks continue to adopt and refine these advanced AI capabilities, the region is poised to lead the way in innovative, AI-driven banking solutions that cater to the evolving needs of the customers.

The year 2023 witnessed a regulatory transformation in MENA’s financial sector, with the UAE and the KSA leading the way. Their initiatives aimed to enhance market stability, attract foreign investment and embrace technological advancements. While the financial sector in KSA focused on simplifying foreign investment and opening up new sectors, that of UAE concentrated on digital transformation and expanding its investment fund landscape. These reforms reflect a growing commitment to modernization and financial inclusion, positioning the region as a dynamic hub for financial growth.

With a robust performance in 2023, MENA banks are looking for further growth and expansion within the region and beyond the MENA region. Despite several global and local challenges and risks, the outlook for 2024 is positive, based on market indicators and consistent investor interest. The primary drivers are ambitious plans, projects and supportive budgets by the governments across the region. The MENA region is increasingly viewed as a stable investment destination compared to major global economies facing high inflation and energy prices.