The emerging economies of the Arab world and the resource wealth that has taken millions out of poverty have opened up new avenues for the global markets, particularly in commodities trading. In fact, anyone with a brokerage account can freely trade oil and gas futures, or exchange-traded funds tracking regional and global energy sectors.
The rise of online trading has led to greater prosperity throughout the Arab world, while retaining religious customs and offering financial services, such as Islamic accounts, tailored towards majority Musilm populations.
The increasing prevalence of digital trading has ensured that millions of individuals and institutions in the Arab world now have access to the international financial markets, which makes for more liquid and active investment environments.
Online brokerage firms and Islamic accounts
As we have mentioned, the advent of online trading platforms and brokerage firms has significantly influenced the Arab world by increasing financial inclusion, modernizing investment practices, and integrating regional markets more deeply into the global financial system.
As digital platforms and mobile technology have become widespread, individuals across the Middle East and North Africa (MENA) can now access global markets—forex, stocks, commodities, and cryptocurrencies—without relying on traditional financial intermediaries.
One of the key enablers of this growth has been the rise of swap-free (Islamic) accounts.
In conventional forex trading, positions held overnight typically incur rollover fees, also known as swaps, which may involve paying or earning interest - something prohibited in Islamic finance. Swap-free accounts comply with Sharia Law by removing these interest charges, making forex trading accessible to observant Muslim traders.
Many brokers now cater specifically to Arab markets by offering Islamic accounts, Arabic-language platforms, and regionally tailored customer support.
Growing access to online trading in the Arab world
The increased accessibility to online trading software has led to a surge in retail trading activity, particularly among young, tech-savvy populations in countries like the UAE, Saudi Arabia, Egypt, and Morocco. Governments in the region are also pushing toward economic diversification, encouraging fintech and online trading platforms as part of broader digital transformation strategies.
However, the rapid rise of online trading also brings some challenges. Low financial literacy still remains a challenge, which can bar some complete beginners from fully participating in online trading and taking advantage of the benefits that come with increased accessibility.
Furthermore, the regulatory environment in these countries needs to keep up with the international best practices and the likes of Saudi Arabia and the UAE have begun to tighten licensing requirements and increase investor protections to balance growth with stability.
As more and more traders in the Arab world enter the markets, profitable trading on international markets helps boost economic growth, as traders spend most of their profits in their home countries.
What instruments do traders in the Arab world use?
According to Sharia Law, highly risky and speculative trading is considered to be haram, which greatly affects the overall approach and strategies used by observant Muslim traders in the Arab world. The overall attitude is geared more towards stable, long-term investments, or swing trading, as opposed to day trading using leverage, which is also prohibited by religious laws and customs.
Highly speculative trades that resemble gambling are strictly prohibited by Sharia Law. However, this does not mean that all leveraged instruments are off the table. In fact, forex and CFDs are readily available at every reputable brokerage firm serving countries in the Middle East.
On the other hand, the regulatory scrutiny towards such instruments has grown in recent years and countries like Saudi Arabia, the UAE, and Egypt have introduced new regulations:
- The SCA in the UAE and the CMA in Saudi Arabia have imposed maximum leverage restrictions on retail accounts (1:30 or 1:50) while allowing higher leverage on professional and institutional trading accounts
- Broker licensing and regulatory filing laws have also become stricter to ensure more transparency from financial services firms and brokerages to align with international best practices and regulations
For this reason, many brokers do not offer extremely high leverage to clients based in Arab countries in order to avoid violating Sharia Law and the regulations upheld by the relevant bodies.
Stock and forex trading is more popular across the Arab world, as they allow them to trade without much risk of violating Sharia law. Furthermore, the likes of the Saudi Exchange, or Tadawul, list major regional corporations, such as the Saudi Aramco, which is the largest oil producer in the Middle East and the world.
The role of digitalization in economic growth
The Arab world has been experiencing rapid economic growth over the past decades, with hydrocarbon resources, modernization, and improved governance being main economic drivers.
However, as developing economies modernize and move up the value chain, the financial sector takes over as the driver of economic growth, which is where the importance of online trading becomes more prevalent.
As consumers became wealthier and started building up savings over the years, the propsect of investing on the stock and forex markets became increasingle attractive, which spurred the speed of digitalization of finanical services, which also includes trading and investing - boosting accessibility in the process.
Furthermore, the wealthiest countries in the Arab world, such as Saudi Arabia and the UAE, are increasingly using their oil and gas revenues to diversify their economies and invest overseas, while also developing local infrastructure and various sectors.
Investment-led growth across the Arab world also means that an increasing number of consumers wish to receive a piece of the growth by investing in the companies and instruments being created and traded on the financial markets.
The transition to a service-based economy is likely to further stimulate trading and investing in the Arab world, as developing economies transition into the developed category. Easier access to financial securities and online trading accounts also mean that the use of stock and forex brokerages becomes ubiquitous over time. However, it is also worth noting that unbanked and underserved communities still present some challenges in terms of inclusion and stable growth.
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