Banking on Transformation: The Sector Powering National Progress

May 21, 2025 | Industry Insights    

 Amidst the wave of changes overtaking the GCC in line with governmental aims and reforms, the banking sector stands as a critical tool enabling economic transformation. Driven by national visions, including the Kingdom of Saudi Arabia’s Vision 2030 and the United Arab Emirates’ Centennial 2071, the GCC’s banking sector is actively responding to evolving regulatory frameworks and technological innovation.

Strategic Regulatory Reforms

Strategic regulatory reforms across the GCC serve to foster innovation within the banking sector. In the KSA, the Saudi Arabian Monetary Authority (SAMA) has implemented numerous regulations encouraging financial inclusion and advancing the digital banking ecosystem to enable growth and collaboration between established banks and emerging fintech innovators (PwC, 2024). Moreover, the Financial Sector Development Program (FSDP), one of the key initiatives within the KSA’s Vision 2030, has aimed to create a robust financial sector. This, in turn, would allow the broader Vision 2030 objectives to be realized through a more resilient and diversified economy underpinned by innovation, competition, and digitization within the economy (Deloitte, 2025). Similarly, in 2024, the UAE launched the pioneering Regulatory Sandbox, providing a space that encourages fintech innovation. Earlier, in 2019, the UAE joined the collaborative mBridge project, a blockchain-based cross-border payment system developed by several central banks, including the Central Bank of the United Arab Emirates (CBUAE), which set new standards within the banking industry (MEA Finance, 2024).

Market Landscape: Conventional Banks and the Rise of Neo Banks

In both the KSA and the UAE, conventional banks serve as the foundation of the financial landscape. In the UAE, conventional banks are embracing digital transformation, integrating AI and blockchain technology to ensure secure payments and optimized logistics (Gulf Business, 2024). Concurrently, the KSA’s conventional banks combine technological advancement with a focus on cultural values. The rise of neo banks represents a pivotal moment in both markets. Appealing to younger consumers, Neo banks like Mashreq Neo (UAE) and STC Pay (KSA) are redefining customer expectations with their innovative and technologically advanced offerings. Indeed, in the banking sector, Fintech firms can offer faster, more flexible customer-oriented solutions, which attract a younger demographic (Deloitte, 2025).

Risks and Strategic HR Solutions

These emerging technological changes can offer both opportunities and risks. While fintech solutions can greatly streamline the customer experience and optimize operations, they come at the cost of the heightened risk of cyber threats. Thus, the banking sector in the GCC necessitates experts in domains including cybersecurity, digital banking, risk management, and regulatory compliance (Deloitte, 2025). In addressing the mounting risks faced by the banking sector in the GCC, such as cybersecurity threats, regulatory evolution, and regional labor market imbalances, Fisher offers numerous HR solutions that help avoid losses and build long-term resilience. Through services like Workforce Needs Analysis and Market Talent Mapping, Fisher enables banks to proactively identify critical skill gaps, access specialized talent, and develop internal capabilities. By systematically identifying critical capability gaps, such as the shortage of cybersecurity experts, banks can proactively assess their internal readiness to defend against sophisticated digital threats. This dual approach ensures that banks are not only securing the right expertise but also future-proofing their operations against emerging risks in the sector. In a sector built on trust and timing, securing the right talent today is the greatest investment for tomorrow. References: Deloitte Middle East. (n.d.). Vision 2030 and the KSA banking industry. https://www.deloitte.com/middle-east/en/our-thinking/mepov-magazine/next-generation-business/vision-2030-and-the-ksa-banking-industry.html Muzoriwa, K. (2024, January 6). Bucking the trend: 2024 GCC banking outlook. Gulf Business. https://gulfbusiness.com/gcc-banks-key-themes-to-watch-for-in-2024/ PwC Middle East. (2024). Middle East digital trust insights 2024: The KSA perspective. https://www.pwc.com/m1/en/publications/middle-east-digital-trust-insights-2024/the-ksa-perspective.html Saleh, J. (2024, September 3). How UAE is driving the future of banking [Opinion piece]. MEA Finance. https://mea-finance.com/how-uae-is-driving-the-future-of-banking/