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The UAE banking sector entered a new phase of digital transformation in January 2026 as open finance services started to roll out across major institutions. Jamal Saleh, director general of the UAE Banks Federation, described the move as a quantum leap in financial service delivery that places the sector at the forefront of global innovation. The development allows individuals and businesses to share financial information with licensed third parties under strict consent rules, according to a Gulf News report. Saleh told the newspaper that open finance empowers customers while fostering competition and new product development across the ecosystem.
Under the model customers gain access to account aggregation, accelerated payments and more accurate credit assessments as institutions obtain a comprehensive view of financial profiles with permission. For small and medium enterprises the framework is expected to shorten approval times and align financing more closely with business requirements. Saleh noted that the shift supports entrepreneurship and productivity gains in line with national economic goals. The Central Bank of the UAE anchors the rollout through its open finance framework that includes a trust layer, API hub and shared infrastructure for secure operations.
Mordor Intelligence data places the UAE fintech market at $52.07 billion in 2026 with a forecast rise to $90.06 billion by 2031 at an 11.58 percent compound annual growth rate. A McKinsey assessment found that wider adoption of open finance could add between AED 80 billion and AED 90 billion to GDP by 2030. The Central Bank issued Circular No 3 of 2025 to set licensing, supervision and operational standards for participants including banks, insurers and authorised providers.
Abu Dhabi Islamic Bank completed its open finance rollout in the week of the January 23 report, giving clients greater visibility over accounts held at multiple institutions and the ability to initiate payments through approved platforms. The UAE Banks Federation is coordinating with the Central Bank, commercial banks, fintech firms and technology suppliers to broaden capabilities into savings, wealth management and insurance lines. OpenFinance-OS figures show the national ecosystem counted 26 registered participants by August 2026 with 12 operating live in production, including recent additions from the insurance sector such as NBF and Emirates Insurance Company.
The regulatory architecture requires open finance providers to maintain minimum capital of AED 1 million and adhere to cybersecurity and consent protocols that safeguard user data. Recent production milestones recorded in July and August 2026 included new account information services from NBF and live status for several insurance licensees, the OpenFinance-OS observatory reported. These steps build on earlier approvals granted to entities such as Fintech Galaxy and Mercury under the Al Tareq national initiative.
Saleh highlighted that the UAE banking industry has invested heavily in artificial intelligence and risk systems, creating a foundation for responsible expansion of open finance. The framework also aims to improve cross-border interoperability for trade and investment flows. Such advances align with the national strategy to lift the digital economy share of GDP above 20 percent, according to the UAE Banks Federation statement.
