6 Trends To Watch As Fintech Shapes SMB Finances In The GCC

The pace of technological innovation continues to accelerate. For small- and medium-sized businesses (SMBs) in the region, the fintech landscape is evolving rapidly, presenting transformative opportunities that business owners must both understand and adapt to stay competitive in an increasingly digital-first economy.  

For SMB owners, 2025 isn’t set to just be a year of change— it will also be a year of opportunity. The fintech sector in the Middle East has never been more dynamic. Businesses are no longer just adapting to change – they are actively driving it.  

At my company, Pemo, we see this shift every day as SMBs leverage new tools to transform how they operate, making processes more efficient, cost-effective, and customer-focused. The trends shaping 2025 aren't just buzzwords – they are actionable opportunities for businesses ready to embrace innovation.  

Here are the key trends that SMBs need to be aware of to thrive in the year ahead: 

1. Open Banking And Open Finance

Open banking is transforming the way businesses access financial services. By securely sharing financial data between banks and third-party apps, SMBs can unlock tailored solutions that better suit their needs. These can include better loan options, smarter budgeting tools, and integrated payment systems.  

In Saudi Arabia, the phased implementation of open banking is already underway, with widespread adoption expected this year. Meanwhile, the UAE’s Open Finance Framework is enabling businesses to tap into advanced, API-driven financial services. For SMBs, this means access to smarter tools that improve both operations and customer engagement. 

2. Embedded Finance For Seamless Payments 

Embedded finance is making it easier than ever to offer financial services within existing platforms. Think of buy-now-pay-later (BNPL) options, or instant loans embedded directly into e-commerce sites or apps.  

For SMBs, this trend opens new revenue streams, improves customer loyalty, and simplifies the payment process for end users. With customers increasingly expecting flexible payment solutions, embedded finance is an area no consumer-facing business can afford to overlook. 

3. Artificial Intelligence (AI)-Powered Financial Management

AI will increasingly be mastered into a powerful tool for streamlining business finances. AI tools can make real-time decisions, analyze cash flow, forecast trends, and even automate time-consuming tasks like invoice generation or expense tracking.  

By adopting AI-driven platforms, SMBs can not only save time and resources but also gain valuable insights into their financial health, helping them make data-driven decisions while reducing costs and human error. For lean startups especially, AI will be a vital member of the team if programmed and used correctly. 

4. Cross-Border Payments

The Middle East is a hub for international trade, making cross-border payment solutions a critical trend. Advances in this area are drastically cutting transaction fees, speeding up settlements, and supporting multiple currencies. Blockchain-based platforms like RippleNet and Stellar are leading the way by reducing costs and cutting out intermediaries, allowing near-instant settlements that are secure and transparent. These innovations make international trade more efficient, especially for businesses looking to expand their reach. 

The region is also benefiting from initiatives like the Arab Monetary Fund’s Buna platform, which supports multi-currency payments across Arab countries, enabling instant and standardized transactions. Similarly, collaborations such as those between Mashreq Bank in Dubai and DBS Bank are bringing same-day, near-instant cross-border payments to businesses, further enhancing efficiency and reducing costs. For SMBs trading internationally, these innovations simplify global commerce and open up new markets. Whether exporting goods to Europe, sourcing materials from Asia, or paying staff internationally, businesses can now move money efficiently and securely. 

5. Green Fintech 

Fintech here in the Middle East is stepping up with innovative green solutions. Digital platforms now allow SMBs to track their carbon footprint and implement eco-friendly practices. For instance, the Saudi Green Initiative encourages businesses to adopt tools that align with environmental goals, such as energy-efficient payment systems or platforms that offset carbon emissions. SMBs that leverage these technologies not only reduce their environmental impact but also resonate with eco-conscious consumers – a growing demographic in the region. 

Green fintech tools also help SMBs comply with government regulations on sustainability, a crucial factor as countries in the region increasingly adopt stricter environmental guidelines. By embracing these solutions, businesses can contribute to a greener future while building stronger connections with environmentally conscious customers, who increasingly value a brand's environmental, social, and governance (ESG) commitments as much as its products. 

6. Cybersecurity 

With the rapid growth of digital payments and online banking, prioritizing cybersecurity has become more critical than ever. As cyber threats continue to rise, protecting sensitive data is essential for maintaining customer trust and safeguarding business finances. Local initiatives are making advanced cybersecurity tools more accessible to businesses in the region.  

In Saudi Arabia, the National Cybersecurity Authority (NCA) has launched initiatives to raise awareness and provide resources for small businesses to fortify their defenses. Programs like the Saudi Cybersecurity Talent Initiative also support the development of skilled professionals who can help businesses implement cutting-edge solutions. In the UAE, the Dubai Cyber Security Strategy promotes enhanced protection against cyber threats, offering businesses a roadmap for implementing measures like multi-factor authentication, real-time fraud detection, and advanced encryption. 

These government-led initiatives mean that SMBs in the Middle East can now access robust cybersecurity measures that were previously only available to larger enterprises. By investing in these tools, businesses can protect their operations and customer data, ensuring they operate confidently in an increasingly digital landscape. 

ABOUT THE AUTHOR 

Pemo co-founder Ayham Gorani.

Ayham Gorani is the co-founder of Pemo, the all-in-one spend management solution for businesses. Based in Dubai, Gorani has been instrumental in developing Pemo’s product software offering over the past three years. He has a strong tech background, and he has driven Pemo’s product offering with the company making over 300 updates to its software solutions to ensure it is continually building, while also offering the best most efficient, and effective solutions for its customers.