Middle East Payment Systems in Detail (2025 Update)

Payment systems in the Middle East are characterised by diversity, rapid development and regional differentiation, influenced by a combination of religious culture, policy regulation and technological innovation. The following is a professional analysis of the three dimensions of the core model, regional characteristics and future trends:

I. Core payment system architecture

  1. Traditional banking networks:
  • The Gulf States (GCC) have established a dual SWIFT/GCC-RTGS clearing system
  • Saudi Arabia's SARIE system handles $12bn in average daily transaction volume
  • UAE IPN enables real-time interbank settlement

  1. Islamic Finance Compliance System:
  • Sharia-compliant payment gateway standalone deployment
  • Murabaha trade finance model embedded in the payment process
  • Profit-sharing alternative interest settlement mechanism

  1. Emerging Digital Infrastructure:
  • Bahrain's 'Benefit Pay' biometric authentication rate reaches 78%
  • Saudi SAMA approves 17 open banking service providers

Middle East payment systems in detail (continued)

II. Analysis of regional market characteristics

  1. Gulf Countries (GCC) - High digital penetration, policy-driven innovation

    • Saudi Arabia (Vision 2030 to promote cashlessness)::

      • SAMA-regulated SADAD system covers 90% bill payments
      • STC Pay (the first fintech company to get a digital banking licence) has over 8 million users
      • API transaction volume growth of 300% by 2023 under the Open Banking framework

    • UAE (Global Fintech Testbed)::

      • Two FTZs, DIFC and ADGM, attract international organisations such as PayPal and Checkout.com
      • Alipay+ deepens cross-border payments with local wallets like Careem Pay

  2. North Africa & Levant - Mobile Wallet Dominates, Agent Banking Network Key

    • Egypt's Fawry captures 75% e-billing market share, processes 4 million transactions daily
    • Jordanian government forces utility payments to connect to eFAWATEERcom national clearing system

  3. Conflict and Unstable Markets - The Rise of Cash Alternatives::

    • (Restricted content omitted)

III. Regulatory sandbox and compliance challenges

  • AML/CFT Special Requirements::
    • UAE Requires All Payment Institutions to Access GoAML Anti-Money Laundering Monitoring Platform
  • Data Sovereignty ActImpact:
    • KSA requires all payment data to be stored locally in SAMA-approved data centres

IV. Core trends for the next three years

  1. Regional interconnections for instant payments::
    Six GCC countries plan to build the Gulf Instant Payments Network (GIPN) by 2025 to reduce reliance on US dollar clearing

  2. CBDC Practical Landing::
    Saudi Arabia's Aber Digital Currency Project Enters Second Phase of Wholesale CBDC Testing

3.Super App Syndication War Heats Up:
Careem (which has been acquired by Uber) is expected to integrate 16 major e-wallets in the Middle East by 2024