Fintech is driving a new era of inclusion and innovation in the MENA region’s financial sector, with Islamic finance emerging as a central beneficiary. Long constrained by limited infrastructure and digital adoption, Shariah-compliant finance (anchored in principles of risk-sharing, asset-backed transactions and the avoidance of interest) is now being revitalized through technology. Mobile-first fintechs are expanding access to the 60% of the region’s population that is unbanked or underbanked, offering digital wallets, robo-advisors, peer-to-peer lending and blockchain-enabled smart contracts. These tools not only broaden financial participation but also align with Islamic values of transparency, fairness and accountability. Governments across the region are accelerating this shift by establishing regulatory sandboxes and fintech incubators as well as supporting the rise of Shariah-compliant digital banks. Meanwhile, blockchain promises to transform sukuk issuance by lowering costs and boosting liquidity. With a strong collaboration between Islamic banks, startups and educational institutions, the region stands at the threshold of making Islamic fintech a global leader in ethical, technology-driven financial services.
