Middle East Leads the Way in Open Finance Standards
Nihal Abughattas, General Manager for Middle East and Africa at Ozone API, recently joined Mark Walker to explore the rapid advancements in data-sharing frameworks across the region. While Europe and the UK laid the groundwork for open banking, Abughattas contended that the Middle East is now leapfrogging these established markets by adopting comprehensive open finance standards right from the beginning.
As co-chair of the Open Finance Working Group at the MENA Fintech Association, Abughattas emphasized that the regional approach stands in stark contrast to Western models, focusing on inclusion rather than competition. This paradigm shift ensures that banks have “skin in the game,” fostering a collaborative environment where financial institutions and third-party providers (TPPs) jointly create value propositions.
The advantages of open finance, according to Abughattas, come from not having to start from scratch. She acknowledged that while the arduous task of building infrastructure and developing quality APIs takes time, it serves as a vital foundation for addressing local challenges. A notable instance is the modernization of rent payments in the Gulf Cooperation Council (GCC) region. By implementing account-to-account payments and variable recurring payment APIs, there is a significant opportunity to reduce the longstanding reliance on physical checks.
The discussion also ventured into the impact of emerging technologies, particularly at the intersection of data and artificial intelligence. Abughattas referred to the combination of open finance and agentic AI as a “marriage made in heaven.” When consumers provide consent, these AI agents can leverage their data to identify the best mortgage rates or loan products, thereby accelerating the effectiveness of financial services significantly.
Looking ahead, the emphasis is set to transition from merely establishing technical connectivity to demonstrating measurable outcomes. Abughattas predicted that by next year, the conversation will evolve beyond assessing whether the “pipe work” functions properly, shifting towards evaluating how open finance initiatives have enhanced access to capital for small and medium-sized enterprises (SMEs) and individuals.