Beirut, 15 May 2025--Nearly 60% of adults in the Arab region remain excluded from formal financial systems, according to a new report by the United Nations Economic and Social Commission for Western Asia (ESCWA). The Annual SDG Review 2025 paints a sobering picture of persistent financial exclusion that is undermining the region's ability to meet the Sustainable Development Goals (SDGs) by the 2030 deadline.
The report, which focuses on financial inclusion as a cross-cutting enabler of sustainable development, reveals those inequalities continue to lock millions out of economic opportunity.
"The Arab region cannot afford to treat financial services as a luxury," said Economic Affairs Officer at ESCWA Mario Jales, the lead author of the report. "Without inclusive finance, we cannot hope to lift people out of poverty, support small businesses, or achieve equitable growth."
Women remain among the most excluded, with only 29% having access to bank accounts or mobile money-making the Arab region the worst-performing globally on women's financial inclusion. The gender gap stands at a staggering 13 percentage points. Persons with disabilities fare no better: just 21% have access to financial services, often due to discriminatory practices, inaccessible infrastructure, or lack of supportive regulation.
The data also show sharp rural-urban divides. In many countries, rural populations are up to twice as likely to be unbanked compared to urban residents. Youth, informal workers, and refugees face additional barriers, compounding cycles of vulnerability.
Mobile finance has seen rapid growth, with mobile money accounts doubling between 2020 and 2023. Yet, the report warns of a "digital divide within the divide": poor connectivity, limited smartphone access, and weak digital literacy prevent the most marginalized from benefiting. In conflict-affected countries, mobile services are often disrupted or unavailable.
Access to credit also remains a major challenge. Fewer than one in five adults in the region have borrowed from a formal financial institution. For micro-, small-, and medium-sized enterprises (MSMEs), this financing gap restricts innovation and job creation.
ESCWA calls for urgent reforms. These include strengthening consumer protection, promoting financial literacy, integrating gender and disability perspectives into financial regulation, and improving digital infrastructure. It also advocates for interoperable digital ID systems to facilitate safe and inclusive access to services.
The report places financial inclusion within the broader SDG context. With only 18% of global targets on track-and stagnation or regression in several Arab countries-ESCWA emphasizes that inclusive finance is essential for progress on poverty, education, gender equality, and decent work.
Despite the bleak statistics, the report identifies success stories. Countries like Egypt, Morocco, and Jordan have made strides in expanding digital finance and reaching underserved populations through regulatory innovation and targeted programs.
"The path forward exists," the report concludes, "but it requires political will, targeted investment, and a whole-of-society approach."
