A new Global Findex Note titled “Digital Connectivity and Financial Inclusion in Arab Countries” examines how digital access can help expand financial inclusion and strengthen economic resilience across low- and middle-income Arab economies in Africa and Asia. Drawing on the latest evidence from the Global Findex 2025, the report reviews progress in account ownership, digital connectivity, financial vulnerabilities and opportunities for more inclusive financial systems.
The note highlights that Arab countries have made strong progress in digital connectivity, with 90 percent of adults owning a phone. This rate is higher than the average for low- and middle-income countries globally, where phone ownership stands at 84 percent. In countries such as Iraq, Jordan and Lebanon, high smartphone ownership has contributed to increased internet use and wider access to digital services.
People across the region are already using digital tools for social media, online news, learning materials and government services. Nearly 60 percent of adults in low- and middle-income Arab countries use social media, showing that digital engagement is widespread. Lebanon and the West Bank report some of the highest shares of adults using the internet for learning, training or education.
Despite strong digital connectivity, financial inclusion remains comparatively low. Only 40 percent of adults in low- and middle-income Arab countries have a bank or fintech account, including mobile money accounts. Although account ownership has increased by 16 percentage points since 2014, the pace of growth remains slower than in other low- and middle-income economies, where fintech innovation has helped account ownership reach an average of 75 percent.
The report also points to major gaps in equity. Women in Arab countries are, on average, 17 percentage points less likely than men to own a financial account. Adults in the lowest 40 percent of households by income are 13 percentage points less likely to have an account than those in the wealthiest 60 percent, while rural adults are 8 percentage points less likely than urban adults to be financially included.
The findings suggest that digital connectivity alone is not enough to achieve financial inclusion. Although many adults in Arab countries already have phones and internet access, more action is needed to convert this connectivity into account ownership, digital payments, savings, credit access and broader financial resilience.
The report indicates that Arab countries have a strong opportunity to use existing digital access as a foundation for expanding inclusive financial services. By addressing gender, income and rural access gaps, governments and financial service providers can help more people benefit from digital finance and build stronger economic security.
