UAE Banking as a Service Market Overview,2030

The development of banking as a service in the UAE picked up pace after 2022, coinciding with a rise in digital banking and a roadmap for open banking; it now facilitates flexible financial services for digital banking, businesses, and platforms, navigating initial challenges related to licensing, regulations, and Sharia compliance with the help of cloud technology, API networks, and experimental projects. On a scale, BaaS has emerged to separate banking systems from delivering products, allowing fintech companies to introduce services via APIs. In the UAE, the spurt in BaaS popularity took place around 2022 to 2023, driven by initiatives such as the Central Bank’s Financial Infrastructure Transformation Programme and the Open Finance Regulation of 2024. Early challenges included unclear licensing, requirements for compliance across jurisdictions like DIFC and ADGM, and ensuring Sharia compatibility, which necessitated that Islamic fintech companies integrate ethical checks and profit-sharing systems into their BaaS offerings. Nonetheless, companies like Tarabut Gateway, Lean Technologies, and Mambu empowered digital banks like Zand and Wio, businesses, and platforms for embedded finance to provide payments, savings, loans, and foreign exchange services through modular APIs. Various BaaS model types feature embedded finance, white-label banking, and API orchestration. These largely depend on cloud-native microservices, instantaneous data streams, and secure API gateways that work with the UAE's API Hub and consent systems. Real-world advantages include quicker user onboarding, management of cross-border foreign exchange, and Sharia-compliant savings solutions. For example, ADIB’s API portal allows external platforms to provide Islamic finance options with built-in compliance mechanisms. Advancements in research and development such as regulatory testing environments, cloud-based infrastructure, and AI-enabled risk management systems hastened the adoption process, enabling fintechs to trial their offerings under oversight and expand across the MENA region. , the rise of BaaS in the UAE combines international modularity with local regulatory expertise, transforming financial accessibility through flexible, compliant infrastructures.

According to the research report, "" UAE Banking as a Service Market Overview, 2030,"" published by Bonafide Research, the UAE Banking as a Service market is anticipated to grow at 18.43% CAGR from 2025 to 2030. Recent changes include the UAE Central Bank's Open Finance Regulation 2024 and the introduction of the Financial Infrastructure Transformation FIT Programme, which established a foundation for secure data sharing and API standardization as well as embedded finance. Regulatory sandboxes located in DIFC, ADGM, and SAMA have allowed fintech companies to trial BaaS solutions under oversight, speeding up the time to market. Prominent local providers consist of Tarabut Gateway offering open banking APIs across the GCC, Lean Technologies focusing on data aggregation and payment initiation, and Mambu providing core banking-as-a-service. Their services include digital onboarding, multicurrency wallets, Sharia-compliant savings, and corporate payment APIs, customized for local requirements. Market potentials are focused on expat banking cross-border remittances and multicurrency accounts, corporate APIs automated payroll and FX hedging, and embedded finance BNPL, insurance, and savings solutions integrated into non-financial platforms. These opportunities cater to the GCC’s large expat community, the uneven access to banking services, and the need for flexible financial solutions. For instance, platforms designed for gig workers or small businesses might use BaaS to provide instant salary payments, foreign currency conversion, and compliance documentation all through modular APIs. Adherence to regulations and certification relies on local central bank licensing, data residency rules for example, hosting requirements in the UAE, Sharia compliance involving profit-sharing methods and ethical scrutiny, and AML/KYC measures biometric onboarding and transaction oversight. These strategies minimize risk by guaranteeing identity verification, regulatory conformity, and ethical soundness, particularly in the contexts of cross-border transactions and Islamic finance.

UAE Banking as a Service by component is divided into Platforms and Services work together in supportive roles Platforms supply open-banking APIs that facilitate modular financial advancements, whereas Services emphasize risk oversight and Sharia compliance to maintain trust, ethical standards, and regulatory adherence. Platforms examples include Tarabut Gateway, Lean Technologies, and local BaaS providers deliver API gateways connecting banks, fintech companies, and external service providers. These APIs make essential banking capabilities available, such as consolidating accounts, starting payments, and verifying identity, so that digital banking entities, businesses, and integrated finance solutions can create customized financial offerings. For instance, a ride-hailing service can leverage open-banking APIs to provide immediate payments to drivers, tools for saving, or small loans none of which require owning banking facilities. These Platforms speed up innovation by simplifying old systems and allowing safe, consent-based data sharing in line with the UAE’s Open Finance Regulation. Services integrate risk management, AML/KYC procedures, and principles that comply with Sharia within fintech processes. They guarantee that financial solutions adhere to moral and legal requirements across different regions. Risk Services employ AI systems to track transactions, identify unusual patterns, and apply real-time compliance measures. Sharia Services evaluate contracts, implement profit-sharing structures, and examine assets based on Islamic finance criteria. For example, a Sharia-compliant fintech providing savings accounts must verify that returns come from halal investments and are structured using mudarabah or wakalah contracts roles fulfilled by integrated Sharia Services. In conjunction, Platforms and Services create a strong fintech framework Platforms provide access and flexibility, while Services maintain integrity and conformity. This combined structure is vital in GCC markets, where cross-border transactions, ethical finance, and diverse regulations intersect. By merging open APIs with built-in protections, fintech companies can grow responsibly delivering flexible, Sharia-compliant, and regulation-ready financial tools that cater to the region’s changing digital banking demands.

UAE Banking as a Service by deployment model is divided into On-Premises and Cloud-based the use of On-Premises solutions continues among regulated traditional firms for management and adherence to rules, while Cloud-based solutions are prevalent in fintech free-zones, allowing for quick scaling, international access, and swift innovation Established financial institutions like traditional banks and insurers prefer On-Premises systems to uphold data control, operational management, and regulatory compliance. These organizations function under strict requirements from central banks and financial regulators, demanding local data storage, live audit trails, and specific security measures. On-Prem solutions enable them to connect with older systems, satisfy internal governance benchmarks, and handle risks across different jurisdictions. For instance, a major bank in the UAE might implement BaaS components within its private data center to adhere to the UAE Central Bank’s data residency regulations and internal auditing requirements. On the other hand, fintech companies located in zones such as DIFC, ADGM, and Bahrain Fintech Bay adopt Cloud-native BaaS solutions for swift and economical scaling. These areas provide regulatory testing environments, simpler licensing, and cross-border API collaboration, making cloud adoption suitable for new ventures and digital innovators. Cloud BaaS allows immediate development of multicurrency wallets, Sharia-compliant savings options, and integrated finance APIs eliminating the need for physical infrastructure. Companies like Mambu, Tarabut Gateway, and Lean Technologies provide flexible solutions hosted on AWS, Azure, or local cloud platforms, facilitating quick updates and secure scaling. This division highlights different strategic focuses traditional firms seek control and compliance, while fintechs emphasize speed, adaptability, and expansion. Adoption of cloud-based solutions also enhances regulatory flexibility, enabling fintechs to promptly adjust AML/KYC processes, FX limits, and Sharia guidelines.

In UAE Banking as a Service, both Large Enterprises and SMEs follow different approaches digital-first banks incorporate BaaS to broaden their ecosystems and strengthen customer interaction, while SMEs utilize modular BaaS solutions for better adaptability in international markets, trade finance, and integrated payment systems.Large Enterprises like Wio, Zand, and traditional banks undergoing a digital shift employ BaaS to create comprehensive financial ecosystems. They aim to integrate banking features such as savings, loans, foreign exchange, and customer onboarding into larger digital platforms, frequently combining them with services for loyalty, lifestyle, and investments. These banks adopt BaaS to improve their operations, tailor their service offerings, and maintain authority over customer experiences. For instance, Wio Bank utilizes BaaS to provide SME banking services, invoicing, and payroll management all in one platform, supported by secure API management and cloud-based technology. Their main concerns revolve around scalability, adherence to regulations, and monetization of the ecosystem. SMEs implement BaaS as a strategic measure to address specific operational challenges particularly in areas like international payments, trade financing, and integrated financial processes. A logistics SME could take advantage of BaaS APIs to facilitate currency conversions from USD to AED, create virtual accounts for suppliers, and secure invoice financing without needing to establish their own banking systems. These SMEs focus on cost-effectiveness, quick execution, and straightforward regulatory compliance, frequently operating within fintech-friendly zones such as DIFC and ADGM. BaaS firms like Lean Technologies and Tarabut Gateway provide pre-set modules for KYC, foreign exchange, and payment processing, allowing SMEs to expand internationally with ease. While enterprises develop vertically integrated digital banking systems, SMEs connect with horizontal BaaS solutions to improve their operations. Regulatory compliance is crucial for both groups, but SMEs gain from pre-tested, cloud-based modules that simplify complexities.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Banking as a Services Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Component
• Platforms
• Services

By Service Type
• Banking & Payment Services
• Lending & Credit Services
• Wealth Management & Insurance Services
• KYC, Compliance & Fraud Management Services

By Deployment Model
• On-Premises
• Cloud-based

By Organization Size
• Large Enterprises
• Small & Medium-sized Enterprises (SMEs) Show more