The Banking Executive Magazine - January 2023 Issue

Financial Inclusion in the Arab World have been made over the past decade to promote it, and consider what more can be done in the future to improve the situation. The status of financial inclusion in Arab countries varies widely, but generally, it is lower than in other re- gions of the world. According to the World Bank, the average adult bank account penetration rate in the Arab world is around 40%, compared to an average of 60% globally. This is largely due to factors such as low levels of financial literacy, a lack of access to banking services in rural and remote areas, and an underde- veloped financial infrastructure. Over the past 10 years, there have been efforts by both governments and financial institutions in the Arab world to promote financial inclusion. Governments have implemented policies and regulations aimed at in- creasing access to financial services, including creating or expanding mi- crofinance programs and promoting digital financial services. Some gov- ernments have also established fi- nancial inclusion targets or national financial inclusion strategies. Financial institutions have also been working to promote financial inclu- sion. Some banks have created spe- cialized products and services for low-income and underbanked pop- ulations, and many have expanded their branch networks and digital of- ferings to reach a wider range of cus- tomers. There are several initiatives have been launched over the past decade from government and financial insti- tutions. A good example is the UAE Vision 2021, which seeks to provide all residents with access to basic fi- nancial services, by providing them with training and education on finan- cial literacy, encouraging the partic- ipation of more players in the microfinance sector, as well as devel- oping a supportive legislative and regulatory environment for fintech companies. However, there is still much more that can be done in the future by both the private and public sectors to promote financial inclusion in the Arab world. One key area is to im- prove financial literacy and educa- tion. This can be achieved through education programs and initiatives ISSUE 169 JANUARY 2023 the BANKING EXECUTIVE 45