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.