THE ARAB MONETARY FUND LAUNCHES A REGIONAL INDEX FOR MODERN FINANCIAL TECHNOLOGIES TO MEASURE THE DEVELOPMENT OF THE FINANCIAL TECHNOLOGY INDUSTRY IN THE ARAB COUNTRIES

by **claud39** Wed Apr 28, 2021 7:11 pm

THE ARAB MONETARY FUND LAUNCHES A REGIONAL INDEX FOR MODERN FINANCIAL TECHNOLOGIES TO MEASURE THE DEVELOPMENT OF THE FINANCIAL TECHNOLOGY INDUSTRY IN THE ARAB COUNTRIES
2021-04-27

The general index scores 43 percent for 2020

The United Arab Emirates tops the Arab countries in the general index, with an average of 75 percent

The index reflects the interest and efforts of the Arab authorities in the past year towards improving opportunities for the growth and employment of financial technologies and the improvement of the digital financial services environment.

The index shows the need for more efforts to facilitate access to financing for modern financial technology service providers, entrepreneurs and emerging companies, and to follow up on the development of incentive legislation.

Today, on the occasion of the Arab Day for Financial Inclusion, April 27, 2021, the Arab Monetary Fund launched the Index of Modern Financial Technologies in the Arab Countries ( FinxAr ). The index sheds light on the development of the modern financial technology and digital financial services industry in the Arab countries during the period (2018-2020). The launch of the index comes within the framework of the Arab Monetary Fund's efforts to support Arab countries' tendency to upgrade the industry of modern financial technologies and support digital financial transformation, in a way that serves to enhance inclusiveness, financial stability and opportunities to achieve sustainable development.

The annual index aims to identify the efforts of Arab countries in supporting the development of the modern financial technology industry. It also contributes to setting a vision for the modern financial technology industry in the Arab countries and how to support the incubating environment, by shedding light on the challenges facing the development of the modern financial technology industry in the Arab countries, in order to help formulate national policies to strengthen the industry in Arab countries in the future, and benefit from Opportunities and capabilities available to Arab countries.

The General Index for Arab Modern Financial Technologies ( FinxAr ) consists of six main indicators that represent the dimensions of the environment in support of modern financial technologies, including: policies and legislation, the demand side, availability of financing, financial infrastructure, talent development to support innovations, and finally cooperation and partnerships. The indicator is considered the first of its kind in terms of the dimensions it deals with and the fields of countries' interventions and measuring their efforts to enhance the environment incubating for modern financial technologies.

The results indicated by the index reflect the interest and efforts made by the authorities in the Arab countries in the past three years towards improving opportunities for the growth and employment of financial technologies, as the environment for digital financial services and the implementation of national programs and activities for digital transformation during the year 2020 is evident compared to 2018 and 2019.

There is no doubt that the improvement is related to the acceleration of interest by Arab countries in supporting financial operations remotely in the wake of the Corona pandemic during the year 2020. It is also related to the tendency of many Arab countries to develop national strategies for modern financial technologies and digital transformation that outlines a roadmap to build strong pillars for activities Modern financial technologies and digital financial services, thus digital financial inclusion. The index highlights a number of challenges that require more efforts, especially in terms of facilitating access to financing for modern financial technology service providers, entrepreneurs and emerging companies, and following up the development of incentive legislation.

The general index scored 43%, the indicators of talent development, cooperation and partnerships came in the forefront with 50% and 49%, respectively, followed by the policy and legislation indicators and the demand side by 44% each, while the results highlighted the need to pay attention to the two axes of financial infrastructure and financing. The two indicators scored 39 percent and 18 percent, respectively.

The results showed that the United Arab Emirates ranked first in the Arab countries in the general index with a rate of 75 %, thanks to the multiple efforts to enhance the fields of modern financial technology activities, and the various initiatives, in activating the latest financial technologies and providing the requirements that would improve The degree of digital financial transformation, in addition to excellence in providing digital financial services, enhancing financial awareness and education, and providing financing to support innovation, cooperation and partnerships, whether at the state level or relevant parties.

The Kingdom of Saudi Arabia came in second place with 65 per cent, benefiting from its acquisition of the second place at the level of the main indicators for the development of the demand side and the availability of financing, due to the various initiatives sponsored by the authorities in helping technology centers to support digital financial products and solutions in Saudi Arabia and to enhance financial education and programs Various awareness-raising and facilitating access for small and medium enterprises to finance. It also ranked third in the Arab countries in the main indicators of policies, legislation, financial infrastructure and talent development.

As for the third place at the level of the general index, the Kingdom of Bahrain went to the level of 64%, which reflects the progress of the Kingdom of Bahrain in terms of legislative, regulatory and financial infrastructure, through its acquisition of the first place in the indicators of policies, legislation and initiatives, and the financial infrastructure, Thanks to the adoption of comprehensive policies to build an environment supportive of the modern financial technology industry at the national level, and the creation of a comprehensive legislative and regulatory infrastructure for the various activities of modern financial technology.

The fourth place in the general index went to the Republic of Tunisia with a rate of 55% as a result of its progress in the main indicators related to policies, legislation, and financial infrastructure, reflecting the efforts of the multiple authorities in these aspects.

The Arab Republic of Egypt ranks fifth in the general index with a rate of 52 percent, due to Egypt's acquisition of the first place in the talent development index, as a reflection of the various initiatives at the state and university level. Also, thanks to the efforts made to enhance the demand side, in terms of financial education and increasing the digital solutions and services provided, Egypt came third in this axis.

In this context, His Excellency the Director General, Chairman of the Board of Directors of the Arab Monetary Fund, Dr. Abd al-Rahman bin Abdullah Al-Hamidi, expressed his happiness at launching the index, which is based on the results of a questionnaire sent to all central banks and Arab monetary institutions, for what it represents as an effective tool in identifying areas that need more Attention, efforts, and appropriate policies that are required to benefit from the experiences of other Arab countries in this regard.

To view the report, please follow the link

https://www.amf.org.ae/ar/report/index-financial-technologies-arab-countries

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