Middle East Embedded Finance Market Size & Forecast by Value and Volume Across 100+ KPIs by Business Models, Distribution Models, End-Use Sectors, and Key Verticals (Payments, Lending, Insurance, Banking, Wealth) - Databook Q4 2025 Update

The embedded finance market in Middle East is expected to grow by 12.0% on an annual basis to reach US$32.9 billion by 2025.

The embedded finance market in the region has experienced robust growth during 2021-2025, achieving a CAGR of 16.9%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 8.5% from 2026 to 2030. By the end of 2030, the embedded finance market is projected to expand from its 2024 value of US$29.4 billion to approximately US$45.7 billion.

Key Trends and Drivers Shaping Embedded Finance in the Middle East

Embedded finance in the Middle East is being shaped by a convergence of regulatory evolution, digital platform expansion, and underserved customer segments. While fintech sandboxes and digital licenses are enabling experimentation, it is the commercial traction in e-commerce, ride-hailing, and cross-border payments that is accelerating real-world use cases. Over the next 2-4 years, the region is expected to transition from pilot-stage embedded finance experiments to broader, infrastructure-backed adoption - particularly in B2B2C banking, gig worker financial inclusion, and embedded retail credit.

Fintech Regulation Is Shifting Toward Embedded Models

• Regulatory frameworks across Gulf Cooperation Council (GCC) markets are increasingly accommodating embedded finance models, including Banking-as-a-Service (BaaS) and embedded payments. Central banks in the UAE, Saudi Arabia, and Bahrain have created dedicated fintech sandboxes and digital banking licenses that allow non-financial platforms to integrate financial services directly. For instance, the UAE’s Central Bank issued new digital payment regulations in 2024 that clarify the role of licensed Payment Token Service Providers (PTSPs), directly impacting embedded wallets and in-app payment solutions.
• Governments across the region are pursuing national digital transformation agendas (e.g., Vision 2030 in Saudi Arabia, UAE’s Digital Economy Strategy), which include the modernization of financial services infrastructure. This has led to the creation of specific licensing categories, such as Bahrain’s open banking regulations and Saudi Arabia’s fintech sandbox expansion. These enable telcos, retailers, and ride-hailing apps to offer regulated financial services without becoming full-fledged banks.
• Regulation will continue to formalize embedded finance offerings, especially in BaaS and open banking APIs. As central banks expand licensing frameworks for non-banks and clarify compliance for cross-border digital services, embedded finance will move from pilot programs to mass-market implementation, especially in retail, transport, and SME platforms.

E-commerce and Retail Platforms Are Accelerating Financial Integration

• Major e-commerce and retail platforms in the Middle East are embedding credit, payment, and insurance products into customer journeys. Amazon.sa and Noon have integrated Buy Now, Pay Later (BNPL) options via Tabby and Tamara, while Carrefour UAE offers embedded micro-insurance and loyalty-linked credit solutions in partnership with Majid Al Futtaim’s payment arm.
• The rapid growth of digital commerce post-COVID-19 and rising mobile penetration are prompting platforms to improve checkout conversion, customer stickiness, and average order value. Retail groups are also leveraging proprietary wallet ecosystems (e.g., Carrefour Pay, Noon Pay) to reduce reliance on card networks and capture payment margins.
• Embedded finance will become a standard feature in e-commerce ecosystems, with a broader rollout of embedded credit scoring, loyalty-based lending, and post-purchase insurance. Cross-sector expansion (e.g., from e-commerce to healthcare or education platforms) is also expected, contingent on further collaboration between retailers, banks, and fintechs.

Ride-Hailing and Gig Platforms Are Embedding Credit and Wallet Services

• Mobility and gig-economy platforms are embedding financial tools such as prepaid cards, instant payouts, and working capital loans for drivers and couriers. Careem, which has expanded into a “Super App,” now offers embedded wallet services, micro-loans, and peer-to-peer transfers across UAE, KSA, and Jordan.
• Many gig workers remain underserved by traditional financial institutions due to lack of formal income records or credit history. Embedded finance enables platforms to leverage alternative data (e.g., rides completed, on-time performance) to offer tailored products. This is also aligned with efforts to boost financial inclusion in low-to-middle income segments.
• The gig economy will be a key growth segment for embedded finance, particularly in Saudi Arabia, UAE, and Egypt. New offerings are likely to include income-smoothing tools, savings products, and embedded takaful (Islamic insurance), with platform-owned fintech arms gaining regulatory clarity to offer these at scale.

Cross-Border and Remittance Platforms Are Embedding Digital Wallets and Micro-Credit

• Cross-border payment players are embedding financial services such as savings wallets, remittance-linked credit, and international debit cards into their offerings. For example, Lulu Exchange and Al Ansari Exchange have introduced embedded wallets and credit scoring features that reward regular remittance users with micro-loans.
• The Middle East hosts a large population of migrant workers (especially in the GCC), creating high demand for low-cost remittances and adjacent financial tools. Embedded wallets help providers retain users and offer more sticky financial products (e.g., bill pay, micro-savings) beyond basic transfers.
• Embedded finance in cross-border platforms is expected to expand into migrant-specific financial ecosystems. Over the next 2-4 years, remittance apps may embed gold savings, family-linked insurance, or educational loans, supported by partnerships with local banks and regional fintechs.

Banks Are Shifting from Direct Distribution to Embedded B2B2C Models

• Several traditional and digital banks in the region are pivoting to embedded finance partnerships with consumer platforms, enterprise SaaS providers, and large retailers. Alinma Bank, Mashreq Neo, and Emirates NBD have launched BaaS initiatives and API gateways for third-party integration of accounts, cards, and financing.
• Facing margin pressures and changing customer acquisition dynamics, banks are increasingly viewing embedded finance as a channel for indirect distribution. The B2B2C model enables them to reach younger, digital-native customers via platforms with built-in trust and engagement, while leveraging real-time data for better credit underwriting.
• Over the next few years, expect broader adoption of modular banking stacks across the region, especially in the UAE, Bahrain, and KSA. Tier-1 banks will expand their API libraries and move towards middleware partnerships that allow faster embedding across telecom, SME, and digital commerce platforms.

Competitive Landscape in the Embedded Finance Market - Middle East

The embedded finance market in the Middle East is rapidly evolving into a multi-player, multi-sector ecosystem with intensifying competition across verticals. Banks, fintechs, and platforms are increasingly collaborating through API-based partnerships, while regulatory bodies are actively enabling this convergence through sandbox expansions and licensing reforms. Over the next 2-4 years, the competitive landscape will likely shift toward infrastructure-led growth, with BaaS, embedded credit, and super apps emerging as the dominant battlegrounds for consumer and SME financial services. Strategic positioning will hinge on execution speed, regional scalability, and regulatory alignment.

Embedded Finance Competition Is Intensifying Across Sectors

• The embedded finance ecosystem in the Middle East is seeing increasing activity across verticals such as retail, mobility, fintech infrastructure, and remittances. E-commerce platforms (e.g., Noon, Amazon.sa), super apps (e.g., Careem), and fintechs (e.g., Tabby, Tamara) are driving ecosystem-level integration of financial services, often via BaaS (Banking-as-a-Service) or regulated partnerships. The market remains highly fragmented, with country-specific dynamics - UAE and Saudi Arabia are the most mature, while Egypt, Jordan, and Bahrain are emerging hubs.
• Non-financial platforms are directly competing with banks and fintechs for wallet share, especially in areas like BNPL, embedded wallets, and SME financing. For example, Tabby and Tamara are competing not only with each other but also with bank-backed solutions from Emirates NBD and Alinma Bank. Embedded payments and lending now represent a key battleground for platform dominance.
• Competitive intensity will heighten over the next 2-4 years as more digital players - including telcos and super apps - enter the embedded finance space. Banks are responding by unbundling services and opening their infrastructure via APIs, while fintechs continue to scale rapidly through platform partnerships.

Regional Fintechs and Global Players Are Expanding via Platform Partnerships

• Major embedded finance players in the Middle East include: Tabby, Tamara (Saudi Arabia, UAE); Valu (Egypt); Postpay (UAE), Careem Pay, STC Pay (Saudi Telecom), Beam (UAE), Lean Technologies (UAE), Tarabut Gateway (Bahrain), Al Ansari Exchange, Lulu Exchange, Denarii Cash
• Players like Egypt’s Sympl and UAE’s Hubpay are targeting niche embedded use cases, such as offline retail financing and migrant remittance-linked wallets. Global players, such as Mastercard and Stripe, have also increased activity in embedded APIs and platform infrastructure across the region.
• Over the next few years, expect stronger convergence between regional fintechs and global infrastructure players. As platforms expand geographically, multi-market embedded finance partnerships (e.g., across UAE, KSA, and Egypt) will become a competitive differentiator.

Licensing Reforms and Sandbox Programs Are Reshaping Competitive Access

• The Saudi Central Bank (SAMA) expanded its fintech sandbox in 2024, admitting more firms offering embedded lending and insurance products.
• The UAE Central Bank issued new guidance in 2024 clarifying licensing requirements for Payment Token Services and stored-value facilities - directly impacting embedded wallet operators.
• Bahrain’s CBB (Central Bank of Bahrain) continues to promote open banking adoption with mandatory frameworks that enable account aggregation and data-sharing APIs for third-party fintechs.
• These frameworks lower entry barriers for non-banking platforms while ensuring regulatory compliance. They also enable banks to operate embedded finance rails (via BaaS) without taking on full platform risk. Over the next 2-4 years, sandbox-to-license transitions will become more structured, especially in Saudi Arabia and the UAE. Regulatory fragmentation will decline as cross-border embedded finance products - particularly across GCC - begin to receive passporting support and harmonized licensing treatment.

Banks Are Repositioning as Embedded Infrastructure Providers

• Major banks in the region are repositioning themselves as enablers of embedded finance rather than direct competitors. Mashreq Bank’s NEO platform, Emirates NBD’s API sandbox, and Alinma Bank’s fintech partnerships illustrate how traditional banks are enabling third-party platforms to distribute financial services.
• These banks are developing BaaS stacks, embedded lending APIs, and custom credit solutions that can be white-labeled or integrated into e-commerce, transport, and telecom platforms. This shift allows banks to diversify revenue through transaction fees and API monetization.
• Bank-fintech collaboration will intensify, and more banks may launch embedded finance arms (similar to FAB’s Magnati or SNB’s digital wallet play). Competitive differentiation will depend on the breadth of APIs, speed of integration, and ability to offer embedded compliance and KYC tools at scale.

This report provides a detailed data-centric analysis of the embedded finance industry in Middle East, covering five major verticals: payments, lending, insurance, banking, and investments & wealth management. It covers more than 100 KPIs, including transaction value, transaction volume, average transaction size, revenue indicators, and financial performance measures.

The report offers segmentation by business models (platform-based, enabler, and regulatory entity), distribution models (own and third-party platforms), and end-use markets, including e-commerce, retail, healthcare, travel & hospitality, utilities, automotive, education, and the gig economy. Together, these datasets provide a comprehensive, quantifiable view of market size, operational efficiency, risk, customer behavior, and user experience in the embedded finance market.

PayNXT360 research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

This title is a bundled offering, combining the following 5 reports, covering 750+ tables and 950+ figures:

1. Middle East Embedded Finance Business and Investment Opportunities Databook
2. Israel Embedded Finance Business and Investment Opportunities Databook
3. Saudi Arabia Embedded Finance Business and Investment Opportunities Databook
4. Turkey Embedded Finance Business and Investment Opportunities Databook
5. United Arab Emirates Embedded Finance Business and Investment Opportunities Databook

Scope

This report provides in-depth, data-centric analysis of the regional embedded finance market, with exclusive coverage of B2C transactions and adoption metrics. Below is a summary of key market segments.

Embedded Finance Market Size and Growth Dynamics

• Total Transaction Value
• Number of Transactions
• Average Value per Transaction

Embedded Finance Financial Performance Indicators

• Total Revenue
• Average Revenue per Transaction / Product

Embedded Finance Key Metrics

• Operational Efficiency Metrics: Transaction Success Rate, Automation Rate (Instant Decision %), Average Turnaround / Processing Time
• Quality & Risk Metrics: Fraud Rate, Error Rate
• Customer Behavior Metrics: Repeat Borrowing Rate, Customer Retention Rate, Churn Rate, Conversion Rate, Abandonment Rate, Cross-Sell / Upsell Rate
• User Experience Metrics: Average Transaction Speed, Average Order / Loan / Policy / Investment Size

Embedded Payments Market Size and Growth Dynamics

• Total Payment Value (TPV) and Growth Outlook
• Number of Transactions and Usage Trends
• Average Revenue per Transaction

Embedded Payments Key Metrics

• Transaction Metrics: Transaction Success Rate, Repeat Usage Rate
• Operational Efficiency Metrics: Chargeback Rate, Fraud Rate, Dispute / Resolution Rate
• Conversion & Retention Metrics: Conversion Rate, Abandonment Rate, Customer Retention Rate
• User Experience Metrics: Average Transaction Speed, Error Rate

Embedded Payments Market Segmentation by Business Models

• Platform-Based Model
• Enabler-Based Model
• Regulatory-Entity Model

Embedded Payments Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

Embedded Payments Market Segmentation by End-Use Markets

• E-commerce & Retail
• Digital Products & Services
• Travel & Hospitality
• Leisure & Entertainment
• Health & Wellness
• Utility Bill Payments
• Other Sectors

Embedded Lending Market Size and Growth Dynamics

• Loan Disbursement Value
• Number of Loans Issued
• Average Loan Size

Embedded Lending Key Metrics

• Credit Quality & Risk Metrics: Delinquency Rate (30/60/90 Days), Approval Rate, Default Rate, Loss Given Default (LGD)
• Monetization & Unit Economics Metrics: Interest Revenue per Loan
• Adoption & Usage Metrics: Repeat Borrowing Rate
• Operational & Platform Efficiency Metrics: Loan Origination Time (TAT), Automation Rate (Instant Decision %)

Embedded Lending Market Segmentation by Business Models

• Platform-Based Model
• Enabler-Based Model
• Regulatory-Entity Model

Embedded Lending Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

Embedded Lending Market Segmentation by Product Types

• Buy Now, Pay Later (BNPL)
• Point-of-Sale (POS) Lending
• Personal Loans
• Gig Worker Income Advances
• Other Loan Types

Embedded Lending Market Segmentation by End-Use Markets

• E-commerce & Retail
• Gig Economy
• Travel & Hospitality
• Healthcare
• Education & EdTech
• Automotive & Mobility
• Other Sectors

Embedded Insurance Market Size and Premium Dynamics

• Gross Written Premium (GWP)
• Number of Policies Issued
• Average Premium per Policy

Embedded Insurance Key Metrics

• Policy & Premium Metrics: Renewal Rate
• Claims & Risk Performance Metrics: Claims Ratio (Loss Ratio), Claim Frequency, Claim Settlement Time, Fraud Rate
• Platform Monetization Metrics: Embedded Insurance Revenue per User (RIU)
• Distribution & Conversion Metrics: Attachment Rate, Quote-to-Bind Conversion Rate, Cross-Sell / Upsell Rate

Embedded Insurance Market Segmentation by Policy Type

• Life Insurance
• Non-Life Insurance (Motor Vehicle, Home/Property, Accident & Health, Others)
• Motor Vehicle
• Home/Property
• Accident & Health

Embedded Insurance Market Segmentation by Business Models

• Platform-Based Model
• Enabler-Based Model
• Regulatory-Entity Model

Embedded Insurance Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

Embedded Insurance Market Segmentation by End-Use Markets

• E-commerce & Retail
• Travel & Hospitality
• Automotive & Mobility
• Healthcare
• Other Sectors

Embedded Banking Market Size and Account Dynamics

• Total Deposits / Inflows
• Account Fee Revenue

Embedded Banking Key Metrics

• Account Metrics: Account Churn Rate
• Risk & Compliance Metrics: Fraudulent Transaction Rate

Embedded Banking Distribution by End-Use Markets

• Gig & Freelance Platforms
• E-commerce & Marketplaces
• Fintech Apps & Neobanks
• Other Platforms

Embedded Investments & Wealth Market Size and User Dynamics

• Total Assets Under Management (AUM)
• Number of Investment Transactions
• Average Investment per User

Embedded Investments & Wealth Key Metrics

• Returns & Performance Metrics: Annualized Portfolio Return
• Retention Metrics: Account Churn Rate

Embedded Investments & Wealth Market Segmentation by Business Models

• Platform-Based Model
• Enabler-Based Model
• Regulatory-Entity Model

Embedded Investments & Wealth Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

Embedded Investments & Wealth Market Segmentation by End-Use Markets

• Fintech & Neobank Apps
• E-commerce & Super Apps
• Gig & Freelancer Platforms
• Other Platforms

Reasons to buy

• Comprehensive KPI Coverage: Access over 100 key performance indicators (KPIs), including transaction value, transaction volume, revenue, and average transaction size.
• Complete Vertical Coverage: Structured datasets across all five embedded finance verticals - payments, lending, insurance, banking, and investments & wealth.
• Granular Market Segmentation: Detailed data by business models (platform-based, enabler, regulatory-entity), distribution models (own vs. third-party platforms), and product types.
• Sector-Level Data Tracking: Coverage across B2C end-use markets such as e-commerce, retail, healthcare, travel & hospitality, utilities, automotive, education, gig economy, and others.
• Operational & Performance Metrics: Provides data on efficiency, quality & risk, monetization, customer behavior, and user experience indicators for a rounded view of market performance.