An analysis of financial inclusion in Saudi Arabia and the United Arab Emirates and the role of Fintech

Purpose This study examines the factors that influence financial inclusion (FI) and its growth. While identifying the formal finance barriers, it also reviews the potential role of Fintech in removing these barriers. Design/methodology/approach This study utilizes the World Bank’s Global Findex (2021) survey, incorporating individual characteristics and key financial inclusion (FI) measures. Dummy variables are generated from the data, and probit estimation is employed to analyze data for Saudi Arabia Kingdom of Saudi Arabia (KSA) and United Arab Emirates (UAE). Findings Results indicate that individual traits, like gender, age, education and income, significantly influence FI, as proxied by account ownership, savings and borrowing. Low-income and female respondents are more likely to be excluded, while wealthier and educated individuals exhibit higher FI. KSA records higher gender gaps but stronger old-age savings, whereas the UAE shows greater accessibility and lower barriers. Voluntary barriers (insufficient funds, use of family accounts) predominate over involuntary ones. Overall, the findings confirm the persistence of socio-economic disparities, highlighting the role of targeted policies and Fintech in fostering inclusive financial development. Research limitations/implications Comparative studies across multiple countries are recommended to evaluate the progress of access to formal financial services. Practical implications The results provide valuable insights for policymaking institutions to develop effective strategies for FI, targeting low-income groups, including women’s empowerment, financial literacy programs and targeted outreach. Additionally, leveraging technology and Fintech solutions can help overcome inclusion barriers by reducing cost and documentation obstacles for supporting economic diversification in Saudi Arabia and the UAE. Originality/value This is assumed to be the only study to evaluate FI in Saudi Arabia and the UAE, and it reviews progress and the use of Fintech to enhance it.

Authors

Institutions

Publication Details

Journal
International Journal of Social Economics
Published
2026-02-16
DOI
https://doi.org/10.1108/ijse-04-2024-0334
Primary Topic
Microfinance and Financial Inclusion
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

An analysis of financial inclusion in Saudi Arabia and the United Arab Emirates and the role of Fintech

Habib Hussain Khan, Shoaib Khan
International Journal of Social Economics
Microfinance and Financial Inclusion
article

An analysis of financial inclusion in Saudi Arabia and the United Arab Emirates and the role of Fintech

Habib Hussain Khan, Shoaib Khan
article en

Abstract

Purpose This study examines the factors that influence financial inclusion (FI) and its growth. While identifying the formal finance barriers, it also reviews the potential role of Fintech in removing these barriers. Design/methodology/approach This study utilizes the World Bank’s Global Findex (2021) survey, incorporating individual characteristics and key financial inclusion (FI) measures. Dummy variables are generated from the data, and probit estimation is employed to analyze data for Saudi Arabia Kingdom of Saudi Arabia (KSA) and United Arab Emirates (UAE). Findings Results indicate that individual traits, like gender, age, education and income, significantly influence FI, as proxied by account ownership, savings and borrowing. Low-income and female respondents are more likely to be excluded, while wealthier and educated individuals exhibit higher FI. KSA records higher gender gaps but stronger old-age savings, whereas the UAE shows greater accessibility and lower barriers. Voluntary barriers (insufficient funds, use of family accounts) predominate over involuntary ones. Overall, the findings confirm the persistence of socio-economic disparities, highlighting the role of targeted policies and Fintech in fostering inclusive financial development. Research limitations/implications Comparative studies across multiple countries are recommended to evaluate the progress of access to formal financial services. Practical implications The results provide valuable insights for policymaking institutions to develop effective strategies for FI, targeting low-income groups, including women’s empowerment, financial literacy programs and targeted outreach. Additionally, leveraging technology and Fintech solutions can help overcome inclusion barriers by reducing cost and documentation obstacles for supporting economic diversification in Saudi Arabia and the UAE. Originality/value This is assumed to be the only study to evaluate FI in Saudi Arabia and the UAE, and it reviews progress and the use of Fintech to enhance it.

International Journal of Social Economics
Department of Finance (AU)
Reduced inequalities
Openalex Percentile: Top 59%
Microfinance and Financial Inclusion
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.