Open Banking in United Arab Emirates

The United Arab Emirates has entered the open finance space with an ambitious framework led by the Al Etihad Credit Bureau (AECB) in coordination with the Central Bank of the UAE (CBUAE). Launched in 2023, the framework takes a broad "open finance" approach rather than limiting itself to open banking, reflecting the UAE's ambition to be a leading global financial hub.

The UAE Open Finance framework covers data sharing across banking, credit information, and insurance sectors. AECB, which already maintains comprehensive credit data on UAE residents, is well-positioned to facilitate data exchange. The framework establishes licensing requirements for third-party providers, consent management standards, and API security specifications.

The UAE benefits from a highly developed financial infrastructure, with two major financial free zones (DIFC and ADGM) that attract international fintech firms. The country's 99% internet penetration, high smartphone adoption, and a population accustomed to digital financial services create favorable conditions for open finance adoption.

Dubai's position as a global fintech hub, combined with Abu Dhabi's growing financial technology ecosystem, provides a vibrant market for open finance innovation. The framework builds on existing digital payment infrastructure, including the UAE's Instant Payment Platform (IPP), and complements broader government digitalization initiatives under the UAE Centennial 2071 vision.

The UAE's open finance initiative is expected to catalyze innovation in personal financial management, credit scoring, insurance comparison, and cross-selling of financial products, leveraging the country's diverse and international population.