Research and development (R&D) in financial technology would help position the UAE as a trusted bridge for international trade and partnerships. The country seeks to create an R&D environment that incentivizes innovation, attracts top talent and by extension contributes significantly to the UAE’s economic productivity and global competitiveness.
12 min read
Key takeaways
- Ambitious initiatives and regulatory changes in the Middle East are driving expansion and innovation, directly elevating treasurers in the region and around the globe
- J.P. Morgan has identified three key trends that are helping ignite this growth
- Treasurers can leverage these trends to help their businesses thrive and scale
Corporate treasury in the Middle East is entering a transformative era, driven by economic reforms and strategic initiatives such as Saudi Vision 2030 and We the UAE 2031.1,2 As a result, treasurers are embracing advanced technologies and crafting a dynamic and resilient treasury landscape, while remaining vigilant in handling compliance issues, cybersecurity and market risks. Here are three top trends helping to propel Middle East treasury into the future—and setting the bar for treasurers around the world.
Trend #1: A rising powerhouse for regional treasury hubs
The Middle East is emerging as a pivotal base for treasury operations through the establishment of regional treasury hubs, which connect key corridors such as Europe, Asia and Africa—with the most active corridors including Asia into the Middle East and Africa, and the U.S. into the Middle East. This is as a result of the area’s strategic geographic location, coupled with its strong focus on connectivity and innovation.
Treasury hubs are transforming the region into a game-changer for treasurers at multinational and local corporations, as well as non-bank financial institutions (NBFIs). With the help of these hubs, they can enable the consolidation of financial operations within the region, significantly improving their financial efficiency. Moreover, a local presence means treasurers are effectively navigating local regulatory environments, ensuring compliance and strategic alignment with regional market dynamics.
Regional treasury hubs empower treasurers to manage liquidity more effectively cross-country, cross-region and around the world. This enhanced liquidity management capability is crucial for optimizing cash flow, reducing financial risk and maximizing investment opportunities. For example, Saudi Arabia is focusing on becoming a leading financial center, leveraging its geographic advantage to attract global investments and foster economic growth.3 Similarly, the UAE is committed to becoming the most seamlessly connected nation globally for treasury and cash management, setting new standards for innovation in the financial sector.4
Regional treasury hubs, like those established in the Middle East, empower treasurers to manage liquidity more effectively cross-country, cross-region and around the world.
Accelerated economic growth and investment opportunities in Abu Dhabi
Steady foreign direct investment (FDI) in the UAE serves as compelling evidence of the country’s fast economic growth. In 2024 the UAE saw a 48% year-over-year increase in FDI, and they’re looking to maintain this momentum.5 Substantial private foreign investment is essential to reach the UAE’s goals, with business services, software and IT, and financial services leading the sectors attracting FDI.6
In addition, the Abu Dhabi Global Market (ADGM), one of the largest financial districts globally, is collaborating with international financial institutions to help enhance treasury services and foster a dynamic financial ecosystem. ADGM is known for its robust regulatory framework supporting financial innovation, and this combination of collaboration, regulation and innovation is attracting global investors.
In fact, the number of new operating licenses in ADGM increased by 67% in Q1 2025, indicating continued strong growth momentum and reinforcing the region's appeal to global investors.7 For example, ADGM had an extraordinary 245% increase in assets under management in 2024, compared with a 35% surge in 2023.8 J.P. Morgan has recognized ADGM's strategic importance by upgrading its banking license in this thriving market.
35%
increase in assets under management from 2022 to 2023
245%
increase in assets under management from 2023 to 2024
Trend #2: Strategic initiatives driving treasury innovation
Today, treasurers around the world are tasked with maintaining compliance, managing risk and gaining insights into real-time treasury operations. The Middle East’s strategic plans focus on meeting these needs, creating opportunities for new technology solutions that improve treasury operations.
A vision for treasury innovation
The UAE's ambitious We the UAE 2031 initiative is set to revolutionize the country's financial infrastructure. This vision places a heavy emphasis on:
Saudi Vision 2030 is another strategic initiative driving treasury innovation in the region. The vision promotes:
Technological and financial developments
Recent technological advancements are also playing a crucial role in driving treasury innovation in the Middle East. For example, Abu Dhabi is launching its own stablecoin, marking a significant step in the region's financial technology landscape.9 Qatar National Bank and Saudi National Bank have recently begun to leverage Kinexys by J.P. Morgan, a blockchain payments system.10 Moreover, the collaboration between J.P. Morgan and SAP aims to transform financial operations through Enterprise Resource Planning (ERP) connectivity driven by cloud and AI capabilities, supporting real-time operations more effectively.
Ambitious strategic visions and the fast-paced evolution of relevant payments technology means treasurers will need to adapt their cash management strategies to align with the region's evolving landscape, with an emphasis on data-driven forecasting that helps treasury teams to predict and preempt economic change. Innovation and technological advancement aim to streamline operations and provide real-time insights into financial data, enabling seamless west-to-east cash flows. Global partnerships and economic integration will also further facilitate cross-border financial transactions and collaborations, enhancing the role of treasurers in driving economic growth through more efficient and strategic financial management.
Trend #3: Industry and tech diversification
Economic diversification is opening up new investment opportunities in the Middle East, significantly impacting financial strategies and risk management for treasurers. This has made the swift adaptation to dynamic changes across industries and technologies critical.
Industry diversification
Diversifying the energy sector to include a larger focus on natural resources is a prime objective in the Middle East. In fact, at the COP28 conference held in 2023 in Dubai, the need for governments to focus on renewable energy sources was strongly emphasized.11 Then there’s the UAE Net Zero by 2050 strategic initiative, driving towards achieving net-zero emissions and making the Emirates the first Middle East and North Africa nation to do so.12 Today, Abu Dhabi, which holds 90% of the UAE's oil reserves, is accelerating efforts to diversify its economy, leveraging its vast sovereign funds that manage nearly $2 trillion in capital.13 Similarly, Saudi Arabia's non-oil business sector expanded at its strongest pace in over a decade, driven by a surge in new orders and robust business activity.14
Diversification efforts expand well beyond the energy sector. Industries experiencing rapid diversification include:
Technology diversification
While the region is experiencing strong industry diversification, it’s also surging in technology diversification, with increased investments in national digital strategies, smart cities and AI technologies. These efforts are supported by data centers and digital infrastructure to help bolster the growing sector. In fact, the Middle East is set to build some of the world’s largest data centers, with capacity in the region projected to triple from 1GW in 2025 to 3.3GW over the next five years.15
This includes prioritizing AI development. The Arabic AI project, recently launched in Abu Dhabi, reinforces the importance of making powerful AI tools useful, usable and universal.16 Saudi Arabia is also making significant strides with a $5 billion AI project, while Salesforce plans to invest $500 million in Saudi Arabian-based AI initiatives.17, 18 These investments are expected to drive economic diversification while enhancing efficiency and productivity across various sectors, including healthcare, finance and manufacturing.
Overall, treasurers are navigating new supply chains, currencies and risks, all driven by diversification. These changes may require adjustments in financial strategies to help support research and development initiatives. Moreover, treasurers must assess the risks associated with data privacy, cybersecurity and regulatory compliance. In short, as the industry mix evolves and geopolitical factors continue to change rapidly, treasury resiliency must be a top priority.
Looking to the future
Today, the Middle East is offering treasurers a unique opportunity to enhance financial efficiency, navigate regulatory complexities and access emerging markets, resulting in the upgrading of ERP systems, investment in new treasury management systems and the continued exploration of fintech investments. And as they take these leaps, they position the region to play a central role in shaping the future of global finance.
Learn more about how J.P. Morgan Payments can help you grow your business in EMEA.
References
3.
Vision 2030, Financial Sector Development Program
5.
The National, UAE foreign direct investment hit $45bn in 2024 on economic diversification boost, June 19, 2025
6.
EY, How the GCC is leveraging foreign direct investment to boost regional confidence, Nov. 26, 2024
7.
Reuters News, Abu Dhabi expects more rapid growth for its financial centre, June 10, 2025
8.
ADGM, ADGM’s 2024 Performance With 245% Growth in AUMs Highlights Global Influence, Feb. 27, 2025
9.
Reuters News, Abu Dhabi doubles down on crypto as wealth fund, FAB, IHC join forces for new stablecoin, April 28, 2025
10.
Fintech Global, Kinexys by J.P. Morgan set to power MENA’s digital future, May 1, 2025
11.
United Nations Climate Change, COP 28: What Was Achieved and What Happens Next?
12.
UAE, UAE Net Zero 2050
13.
Reuters News, Abu Dhabi expects more rapid growth for its financial centre, June 10, 2025
14.
Reuters News, Saudi Arabia’s non-oil private sector grow at decade-high pace in Jan, PMI shows, Feb. 3, 2025
15.
Reuters News, Saudi Neom, DataVolt sign agreement for $5 billion AI project, Feb. 10, 2025
16.
PwC, Unlocking the data centre opportunity in the Middle East, April 10, 2025
17.
Reuters News, Saudi Neom, DataVolt sign agreement for $5 billion AI project, Feb. 10, 2025
18.
Reuters News, Salesforce plans $500 million in AI-related investments in Saudi Arabia, Feb. 10, 2025
Disclaimer
© 2025 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC. Deposits held in non-U.S. branches are not FDIC insured. Non-deposit products are not FDIC insured. The statements herein are confidential and proprietary and not intended to be legally binding. Not all products and services are available in all geographical areas.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of J.P.Morgan, its affiliates, or its employees. The information set forth herein has been obtained or derived from sources believed to be reliable. Neither the author nor J.P.Morgan makes any representations or warranties as to the information’s accuracy or completeness. The information contained herein has been provided solely for informational purposes and does not constitute an offer, solicitation, advice or recommendation, to make any investment decisions or purchase any financial instruments, and may not be construed as such.
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