The region’s rapid tech upgrades are sparking a flurry of partnerships and investments, with biometrics and soft tokens taking center stage.
As the Middle East doubles down on its digital future, a quiet but consequential shift is unfolding across its government halls and boardrooms: digital ID is no longer a luxury—it’s a mandate.
From Riyadh to Abu Dhabi, Gulf states are ramping up efforts to replace outdated authentication systems with biometric-backed identity credentials and soft token tech. The UAE’s recent directive for financial institutions to scrap weak login methods is just one example. And it’s turning heads.
Gulf Governments Turn Up the Heat on Identity Security
The announcement from the UAE’s regulators didn’t come with much fanfare—but its implications are hard to miss. Financial institutions across the Emirates have been ordered to dump traditional password-based systems and move swiftly to multi-factor authentication using biometrics and software-based tokens.
That’s not a suggestion. It’s a requirement.
The deadline? “Sooner than comfortable,” according to one senior compliance officer at a Dubai-based digital bank, speaking anonymously due to ongoing transition efforts. “We’re talking months, not years.”
The move, part of a wider regional digital transformation push, is forcing banks and service providers to look outward—seeking tech vendors, integration partners, and certified tools that are compliant, secure, and regionally supported.
UAE’s banking and fintech regulators say this is about more than fraud prevention. It’s about digital trust.
Intercede Taps Into the Gulf Market
Enter Intercede, a UK-based identity management company that’s no stranger to high-security environments. This week, it inked a strategic partnership with Gulf IT, a regional tech integrator with roots stretching across Saudi Arabia, the UAE, Qatar, and Bahrain.
The goal? Roll out Intercede’s flagship digital identity platform—MyID CMS—across the Gulf region. The product handles the full lifecycle of digital credentials, including issuing, managing, and revoking them for enterprise users and institutions.
For Intercede, the deal is part of a wider international expansion.
“This partnership represents a significant step in our international expansion strategy,” said Siobhan Morey-Millington, Intercede’s sales director. “We’re thrilled to pair our tech with Gulf IT’s market know-how.”
One sentence says a lot.
More Than Just a Tech Tie-Up
This isn’t just a sales deal. It’s a multipronged operation.
Gulf IT’s local footprint will handle frontline deployment and regional support, but Intercede is investing too. The company plans to run dedicated certification programs for Gulf IT’s tech teams—an unusual move that signals a long-term regional commitment.
And there’s more on the table:
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Joint marketing campaigns to raise awareness across financial and government sectors.
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Co-hosted training sessions and technical onboarding for end-users.
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Regional summits and roadshows to showcase secure ID use cases, particularly in banking and public services.
Gulf IT’s CEO, in a statement, called the partnership “a natural evolution” of rising cybersecurity needs across the GCC. “Our clients are demanding more secure, scalable identity tools. This collaboration checks all those boxes.”
Biometrics and ID: A Market on Fire
Digital identity isn’t new in the Gulf—but it’s never looked quite like this.
According to a recent Gartner report, digital ID spending across the GCC is projected to grow 19.2% annually through 2028, outpacing global averages. Biometrics—especially facial recognition—are leading the pack, thanks to their seamless integration with mobile and online services.
Take a glance at the numbers:
| Country | Digital ID Market Value (2025 est.) | CAGR (2025–2028) |
|---|---|---|
| UAE | $1.8 billion | 21.4% |
| Saudi Arabia | $2.3 billion | 18.9% |
| Qatar | $620 million | 17.7% |
| Bahrain | $370 million | 16.2% |
As GCC governments digitize everything from visas to healthcare, the trust fabric of their systems—the ID layer—can’t afford to lag.
What’s Driving the Urgency?
It’s not all regulation. Some of the urgency is coming from the ground up.
Citizens in places like Saudi Arabia and the UAE are more digitally active than ever before. Smartphone penetration is over 98% in both countries, and digital public service apps—from court filings to driver’s license renewals—are fast becoming the norm.
That shift creates pressure.
“People expect convenience. They don’t want to remember 12 passwords or wait in line for a stamped paper form anymore,” said a Riyadh-based civil tech consultant. “If government services are going mobile, identity needs to follow.”
There’s also a strategic angle. With global cyberattacks on the rise, Gulf states are keen to guard against digital vulnerabilities—particularly in national infrastructure, energy, and finance.
One paragraph with just one sentence: There’s simply too much at stake.
Regional Competition Breeds Cooperation
Interestingly, digital transformation is also becoming a competitive tool in diplomacy. As Saudi Arabia and the UAE compete to become the Middle East’s digital hubs, tech partnerships like Intercede–Gulf IT are increasingly seen as strategic assets.
Yet there’s also growing alignment. Both nations are founding members of the Digital Cooperation Organization (DCO), and regional identity frameworks are being explored for interoperability across borders.
This raises the possibility of citizens using the same digital ID credentials across multiple Gulf states—something officials have hinted at, though no formal agreement has been signed.
Still, signs are pointing that way. Bahrain’s eGov Authority and Saudi Arabia’s Digital Government Authority have held closed-door discussions in recent months, according to two people familiar with the matter.
