Back to all finance news

Embedded finance races toward $588bn future as GCC bets on seamless customer experiences

As embedded finance rapidly moves financial services into everyday digital platforms,  TP’s Bassel Wagdy tells us why customer experience, not just technology, will determine who wins in the GCC’s next fintech growth wave

Neesha Salian
Neesha Salian

15 May, 2026

Embedded finance races toward $588bn future as GCC bets on seamless customer experiences
Image: Supplied

TT

16

Article Summary
Embedded finance is reshaping financial services, integrating them seamlessly into digital experiences. The MENA market is projected to reach $37.7bn by 2029. Success hinges on customer experience, driven by technology like open banking. Scaling presents operational challenges, requiring unified operations for seamless service.

The global embedded finance market is projected to reach $588.49bn by 2030, underscoring the rapid transformation of financial services worldwide.

As embedded finance continues to reshape how financial products are delivered and experienced, Gulf Business spoke to Bassel Wagdy, CFO, GCC Region at TP (formerly Telepeformance), a global digital business services company specialising in customer experience management, in an exclusive interview on the growing role of customer experience in driving adoption and trust across the GCC.

How is embedded finance reshaping the financial services landscape today?

Embedded finance is reshaping financial services by moving them beyond traditional institutions and standalone channels. Whether it is shopping through an e-commerce portal, booking a trip, or engaging with a digital service, customers are increasingly encountering financial products as part of the overall journey rather than as a separate step. Think of how Careem or Noon now offer wallet and payment features natively within their apps, users never need to leave the platform to complete a financial transaction.

The rapid rise of BNPL schemes further illustrates this shift and its success has been driven by simple, transparent instalments, interest-free options, and instant approval at checkout, all embedded seamlessly into the purchase experience.

As e-commerce continues to grow across platforms like Noon and Amazon MENA, BNPL providers are also evolving beyond four-installment models to offer more flexible payment plans, reinforcing embedded finance as a core part of the digital economy. This evolution is fundamentally reshaping how value is delivered and experienced.

Beyond technology, what is driving the success of embedded finance?

Beyond technology, the success of embedded finance is ultimately driven by customer experience. The success of embedded finance rests not only on innovation but on how seamlessly these services are experienced by users. For example, Wio Bank in the UAE has embedded banking directly into accounting platforms like Zoho Books Fiskl, and Wafeq, allowing SMEs to automate reconciliation and manage cash flow in real time without switching systems, turning what was once a fragmented process into a seamless experience. That kind of integration is not a feature, it is foundational to how an entire segment of the economy operates day to day.

Experience now determines whether an embedded financial offering becomes a core enabler of trust and loyalty, or fades into the background as a disregarded feature. Across the GCC region, where high digital adoption meets evolving consumer expectations, this reality is coming into sharp focus.

How significant is the embedded finance opportunity in the GCC and globally?

The embedded finance opportunity is both significant and rapidly expanding, particularly in the GCC. According to Research and Markets, the MENA embedded finance market is expected to grow from $11.2bn in 2024 to $37.7bn by 2029. This growth is already materialising in the region. For instance, Tabby’s expansion into a full-service financial app in the UAE reflects how embedded finance players are scaling from single-use cases into multi-product platforms, capturing a larger share of the customer relationship. Look at what just happened with Tabby.

The Central Bank granted them a stored value facilities licence, which means they can now hold customer funds and offer spending accounts, cards, and money management on top of BNPL. That is not a small step. It tells you the regulator is comfortable letting fintechs evolve into full financial platforms, as long as the consumer protection piece is in place.

These figures reflect a fundamental reconfiguration of how people engage with money, and they reinforce the role of customer experience as the central lever in scaling these models effectively.

What has enabled the rapid evolution of embedded finance in recent years?

While embedded finance is not a new concept, its recent evolution has been driven by technological advancements. Financial services integrated into broader experiences have existed for decades in the form of co-branded credit cards, consumer financing plans, and bundled insurance offers.

What is new is the ability to embed these offerings into everyday digital journeys with ease, speed, and precision. This capability is made possible by advances in open banking, real-time APIs, and cloud-native platforms.

Today, a small retailer or startup can offer payment solutions, lending options, or micro-insurance within their digital interface with the same sophistication that was once exclusive to large financial institutions.

What operational challenges come with scaling embedded finance?

Scaling embedded finance introduces a new set of operational challenges for operational leaders. The biggest of these is ensuring consistency and simplicity across every customer touchpoint. In fragmented operating models, where front-end engagement is disconnected from back-end fulfilment, it becomes increasingly difficult to meet the expectations of users who demand real-time responsiveness, personalised interactions, and reliable service.

As a result, financial institutions and fintech platforms are increasingly moving toward unified operating models that integrate front and back-office capabilities into a single intelligent framework.

Why are unified operations critical to delivering a seamless customer experience?

Unified operations are critical because customer experience depends on seamless coordination across all touchpoints. It is a strategic response to the elevated expectations of digitally native consumers.

When a user signs up for a financing product, for instance, their experience is shaped not just by the user interface, but by what happens behind the scenes. Identity verification, document processing, compliance checks, and onboarding support all contribute to how the service is perceived.

When these functions are coordinated through a shared system that eliminates duplication and latency, the result is a smooth, confidence-building journey that reinforces trust.

What are the implications for financial leadership, particularly in the GCC context?

For financial leaders in the GCC, embedded finance has both operational and strategic implications. Customers do not distinguish between the platform and the financial provider, they expect fast, seamless, and contextual resolution. Delivering this requires tightly integrated service models that combine automation, AI-driven support, and human expertise. Fragmentation not only slows resolution but risks customer satisfaction and brand equity.

At the same time, financial operations must evolve. Processes such as collections, reconciliation, compliance, and risk management need to be fully aligned with customer journeys. When managed in silos, they create inefficiencies, duplication, and potential regulatory gaps. When integrated, they improve agility, resilience, and control.

For CFOs, this shift is significant. Embedded finance opens new revenue streams but also increases pressure on cost structures and risk frameworks. The focus moves from standalone products to seamlessly integrating financial capabilities into digital ecosystems, balancing growth with cost discipline, risk oversight, and end-to-end financial visibility. In my experience, this is exactly where things tend to break. Embedded partnerships look attractive on the surface — new customers, new revenue, low marginal cost. But once you go a layer deeper, the picture is more complex: acquisition cost through the host platform, revenue share economics, fraud and credit losses, the real cost-to-serve once automation and assisted channels are blended together — all of it has to sit on the CFO’s desk. Otherwise you end up celebrating revenue growth while margin quietly walks out the door.

What gives the GCC a competitive edge in embedded finance, and what will define success?

The GCC has a strong competitive edge in embedded finance, driven by its digital infrastructure and regulatory environment. With advanced digital infrastructure, a forward-looking regulatory environment, and a population eager to embrace innovation, the region is well-positioned to become a global reference point for embedded financial ecosystems. Yet, the true differentiator will not be the number of integrations or partnerships. It will be the consistency, clarity, and intelligence with which those integrations are experienced by end users. Embedded finance is not just a story about convenience or access. It is a story about trust. And trust is built not through features, but through experience. For institutions that aim to lead in this evolving landscape, the mandate is clear.

Customer experience is not a final layer to be added. It must be the foundation on which every operational decision is made, and every financial service is delivered.

Sony MEA installs 391 kWp solar project at Dubai HQ, advances sustainability strategy

Sony MEA, which has been based in Jafza for more than three decades, said the project reinforces its long-term commitment to the UAE as a regional hub for operations across the Middle East and Africa

Gulf Business
Gulf Business

14 May, 2026

Sony MEA installs 391 kWp solar project at Dubai HQ, advances sustainability strategy
Image: Supplied

TT

16

Sony Middle East and Africa (MEA) said it has commissioned a 391.2 kilowatt-peak (kWp) solar power project at its regional headquarters in Jebel Ali Free Zone (Jafza), Dubai, as part of efforts to cut emissions and advance its sustainability strategy.

The Japanese electronics group’s regional arm said the installation is expected to offset around 40 per cent of the facility’s electricity consumption and reduce carbon emissions by about 235 metric tons annually.

The project will operate over an estimated 25-year lifecycle and forms part of Sony’s global environmental roadmap, “Road to Zero,” which targets a zero environmental footprint by 2050, alongside its intermediate Green Management 2030 goals.

The company said the initiative also aligns with the UAE’s broader clean energy and sustainability objectives, including the national energy transition strategy.

Sony MEA, which has been based in Jafza for more than three decades, said the project reinforces its long-term commitment to the UAE as a regional hub for operations across the Middle East and Africa.

“As Sony MEA continues to build on its long-standing presence in the UAE, this project represents a meaningful milestone in advancing our sustainability agenda,” MD Jobin Joejoe said.

“By integrating renewable energy into our operations, we are reducing our environmental impact while reinforcing our commitment to the region’s long-term growth and development.”

DP World GCC Parks & Zones COO Abdulla Al Hashmi said the project reflected the role of Jafza in enabling long-term sustainable investment.

“Sony has been with Jafza for more than three decades, and we are proud to see such a long-standing partner continue to invest in sustainable, long-term growth,” he said.

Sony MEA is a wholly owned subsidiary of Sony Group Corporation and serves more than 40 countries across the region, covering consumer electronics, professional products and PlayStation business lines.

Air Arabia posts Q1 profit drop on regional disruption, revenue edges higher

Revenue for the period rose 1 per cent year-on-year to Dhs1.8bn, supported by sustained demand across its network despite operational constraints in parts of the quarter

Neesha Salian
Neesha Salian

14 May, 2026

Air Arabia posts Q1 profit drop on regional disruption, revenue edges higher
Image: Air Arabia

TT

16

Article Summary
Air Arabia's first-quarter net profit decreased by 22% due to airspace restrictions impacting operations, although revenue rose 1% driven by steady passenger demand. Passenger numbers fell by 5%, but seat load factor improved, indicating robust demand. Despite geopolitical uncertainty, the airline remains confident and will pursue fleet expansion, focusing on cost discipline and operational efficiency.

Air Arabia reported a 22 per cent decline in first-quarter net profit on Wednesday, as regional airspace restrictions linked to ongoing conflict disrupted operations and reduced capacity, partially offsetting steady passenger demand.

The Sharjah-based low-cost carrier said net profit fell to Dhs278m ($75.7m) in the three months to March 31, 2026, compared with Dhs355m a year earlier.

Revenue for the period rose 1 per cent year-on-year to Dhs1.8bn, supported by sustained demand across its network despite operational constraints in parts of the quarter.

Passenger traffic declined 5 per cent to 4.7 million travellers across Air Arabia’s operating hubs in the UAE, Morocco, Egypt and Pakistan, reflecting reduced capacity following airspace closures and temporary operational restrictions.

However, the airline’s seat load factor improved to 86 per cent, up from 84 per cent a year earlier, indicating stronger aircraft utilisation and resilient demand where services were maintained.

“Despite a challenging first quarter of the year, marked by airspace restrictions and operational disruptions as a result of the conflict in the region, Air Arabia demonstrated strong resilience and agility,” chairman Sheikh Abdullah bin Mohammad Al Thani said in a statement.

He said the carrier had managed to optimise capacity and maintain operational continuity, adding that demand remained strong across its network.

Air Arabia operates a fleet of 90 Airbus A320 and A321 aircraft, both owned and leased, with additional deliveries expected under its existing order book.

Air Arabia to pursue fleet expansion during the year

The airline said it continued to pursue fleet expansion during the year, while maintaining a focus on cost discipline and operational efficiency.

In February, Air Arabia was included in Forbes Middle East’s Top 100 Most Valuable Companies list, underscoring its financial strength in the regional aviation sector.

The company also said it had obtained a limited assurance statement on its 2025 ESG report under the ISAE 3000 international standard, reinforcing its focus on governance and sustainability reporting.

Looking ahead, the airline warned that ongoing geopolitical uncertainty continues to affect the wider aviation industry through fuel price volatility, inflationary pressures and supply chain constraints.

“Despite these challenges, we remain confident in the strength of the local and regional economies we serve,” Sheikh Abdullah said, adding that the carrier would continue to navigate market volatility with “discipline and agility.”

Read: Air Arabia CEO Adel Al Ali on the strategy behind the airline’s rise

Fujairah issues clarification after smoke seen in petroleum area

The clarification comes at a time of heightened regional tensions and follows earlier incidents reported involving fires and alleged drone strikes near Fujairah port

Rajiv Pillai
Rajiv Pillai

14 May, 2026

Fujairah issues clarification after smoke seen in petroleum area

TT

16

Article Summary
A fire in Fujairah's petroleum industrial zone, due to routine pipeline maintenance, was quickly contained by civil defence. No casualties were reported. The Fujairah Media Office urged the public to avoid rumour-mongering, particularly given regional tensions and past incidents at the key energy hub. The extent of the maintenance and operational impact remains undisclosed.

Smoke seen in Fujairah’s petroleum industrial zone was caused by a routine maintenance-related fire on pipelines, according to an official statement issued by the Fujairah Media Office.

In a post shared on X, the media office said civil defense teams responded swiftly to the incident and successfully contained the fire, with no casualties reported. Authorities also urged the public to rely only on official sources for information and refrain from spreading rumours following speculation triggered by visible smoke in the area.

View post on X

The clarification comes at a time of heightened regional tensions and follows earlier incidents reported involving fires and alleged drone strikes near Fujairah port, prompting some social media users to question whether the latest incident was accidental.

Fujairah remains one of the UAE’s key energy and bunkering hubs, strategically located outside the Strait of Hormuz and home to major oil storage and export infrastructure. Any incident linked to the emirate’s petroleum facilities tends to draw close attention from regional energy markets and shipping stakeholders.

Authorities did not provide further details on the scale of the maintenance activity or operational impact on the petroleum industrial zone.

Iran allowing transit of Chinese vessels in Strait of Hormuz, Fars news reports

US President Donald Trump, who is on a state visit to China, agreed with the Chinese leader Xi Jinping that the Strait of Hormuz must be open for the free flow of energy

Reuters
Reuters

14 May, 2026

Iran allowing transit of Chinese vessels in Strait of Hormuz, Fars news reports

TT

16

Iran has begun allowing some Chinese vessels to transit through the Strait of Hormuz following an understanding over Iranian management protocols for the waterway, the semi-official Fars news agency said on Thursday, citing an informed source.

The Fars report came as US President Donald Trump, who is on a state visit to China, agreed with the Chinese leader Xi Jinping that the Strait of Hormuz must be open for the free flow of energy.

The source told Fars news the move followed requests by China’s foreign minister and ambassador to Iran, with Tehran agreeing to facilitate the passage of a number of Chinese ships in line with the two countries’ strategic partnership.

Read more-Iran warns US Navy to stay clear of Hormuz as Trump seeks to help stranded ships

Following the start of US and Israeli strikes on February 28, Iran severely restricted transit in the Strait of Hormuz.

A US blockade on Iranian ports which started a few days after a ceasefire agreed upon in early April has prolonged the crisis in the waterway, through which one-fifth of global oil and natural gas transit.

It was not immediately clear how far the move altered the situation on the ground, given Iran had already indicated during the war that neutral vessels, notably those linked to China, could transit the Strait as long as they coordinated with Iranian armed forces.

A Chinese supertanker carrying 2 million barrels of Iraqi crude sailed through the Strait of Hormuz on Wednesday, ship tracking data showed, after being stranded in the Gulf for more than two months due to the US-Iran conflict.

UAE Corporate Tax penalty waiver benefits 68,600 businesses

Where penalties have already been paid, the corresponding amount will automatically be credited to the taxpayer’s account on the EmaraTax platform and can either be used to settle future tax liabilities or refunded through a refund application

Rajiv Pillai
Rajiv Pillai

14 May, 2026

UAE Corporate Tax penalty waiver benefits 68,600 businesses
Image: Getty Images

TT

16

Article Summary
The UAE's Federal Tax Authority reports over 68,600 businesses benefited from the Corporate Tax late registration penalty waiver. The initiative, approved in April 2025, waives penalties for delayed registration applications. Taxable persons must submit their first tax return within seven months instead of nine.

The Federal Tax Authority has announced that more than 68,600 Taxable Persons benefited from the UAE’s Corporate Tax Late Registration Penalty Waiver initiative during 2025 and the elapsed period of 2026.

The authority said the number of beneficiaries is expected to exceed 91,000 as more businesses take advantage of the Cabinet-approved initiative, which came into effect in April 2025.

The waiver applies to administrative penalties imposed on Corporate Taxable Persons and certain categories of Exempt Persons required to register with the FTA, due to delays in submitting Corporate Tax registration applications within the legally specified deadlines.

According to the FTA, the initiative covers penalties applicable from 1 June 2023, subject to meeting specific conditions.

To qualify for the waiver, Taxable Persons or eligible Exempt Persons must submit their Tax Return or annual declaration within seven months from the end of their first Tax Period or Financial Year, instead of the standard nine-month period.

The FTA clarified that the initiative applies only to the first Tax Period of the Taxable Person or eligible Exempt Person.

Abdulaziz Al Mulla urged unregistered Corporate Taxable Persons to benefit from the initiative, highlighting the UAE’s focus on maintaining a flexible and business-friendly tax environment.

He said: “The FTA is intensifying its efforts to support and assist Taxable Persons, providing continuous facilitations that enable them to fulfil their tax obligations, thereby enhancing the UAE’s competitiveness in the field of doing business.”

“The Authority is also committed to enhancing proactive and continuous awareness of all applicable and newly introduced tax legislation, decisions, and procedures, as well as procedural facilitations to ensure smooth and seamless tax compliance,” he added.

Al Mulla noted that FTA data indicates more than 22,000 additional Taxable Persons could still benefit from the initiative in the coming period.

The FTA said businesses meeting the conditions will have their penalties waived automatically without the need to submit reconsideration or waiver requests.

Where penalties have already been paid, the corresponding amount will automatically be credited to the taxpayer’s account on the EmaraTax platform and can either be used to settle future tax liabilities or refunded through a refund application.

The authority added that the waiver applies to several categories, including businesses that have already registered and incurred penalties, whether paid or unpaid, as well as entities that have not yet registered or submitted Tax Returns.

The FTA urged all concerned parties to review the detailed public clarification available on its website regarding eligibility requirements, refund procedures and examples illustrating how the initiative applies across different scenarios.

More news in finance