The Banking Executive Issue - October 2025 Issue

Onchain Finance In Arab Countries FUTURE OF ONCHAIN FINANCE The future of onchain finance glob- ally and in Arab countries is poised for transformative growth, driven by technological innovation, shifting regulatory landscapes, and rising de- mand for decentralized financial al- ternatives. Globally, onchain finance is evolving from speculative crypto trading into a foundational layer for programmable money, tokenized as- sets, and real-time financial infra- structure, with young generation (Gen Z) and Millennials leading adoptionmul. In the Arab world, par- ticularly the Gulf Cooperation Coun- cil (GCC) countries, governments are embracing blockchain to diversify economies and reduce reliance on traditional monetary systems. The Middle East and North Africa (MENA) region has already captured over $338 billion in onchain value, with institutional activity dominating the space. As regulatory clarity im- proves and digital identity frame- works mature, Arab nations are expected to become hubs for Sharia- compliant DeFi, cross-border pay- ments, and tokenized trade finance, positioning the region as a key player in the global onchain economy. On- chain finance is unlikely to fully overtake traditional finance, but it is rapidly reshaping its foundations by introducing programmable infra- structure, tokenized assets, and real- time settlement. The future points toward convergence rather than re- placement. ROAD AHEAD FOR ARAB BANKS TO EMBRACE ONCHAIN FINANCE Arab banks should proactively em- brace onchain finance by integrating blockchain infrastructure into their core operations, starting with tok- enized payments, digital identity verification, and smart contract- based lending. By collaborating with regional fintech hubs and regulatory sandboxes, Arab banks can pilot Sharia-compliant DeFi products, streamline cross-border transactions, and enhance transparency in asset management. Investing in blockchain talent and public educa- tion will be key to building trust and usability. As Gulf nations push to- ward digital economies, early adop- tion of onchain finance will position Arab banks as leaders in innovation, resilience, and financial inclusion across the MENA region. the BANKING EXECUTIVE 84 ISSUE 202 OCTOBER 2025