Saudi & UAE: Strong Authentication as Advantage

TLDR

Saudi Arabia and the UAE are tightening rules on digital banking security, requiring stronger forms of customer authentication. Moving to device-bound passkeys and device binding solutions such as Ideem’s Zero-Trust Secure Module (ZSM) not only satisfies these regulations, it also creates an opportunity for banks to build trust and outpace competitors. By aligning security upgrades with strategic goals, financial institutions can turn a compliance cost into a growth advantage.

Regulatory changes in Saudi Arabia and the UAE

Across the Middle East and North Africa (MENA) region, financial regulators are raising the bar for digital banking security.

• In Saudi Arabia, the Saudi Central Bank (SAMA) continues to update its Cybersecurity Framework and Open Banking Framework, pushing banks to adopt stronger authentication and to protect customer credentials across mobile and web channels.
• In the UAE, the Central Bank’s Retail Payment Services and Card Schemes Regulation and ongoing updates to its Consumer Protection Regulation require layered security and multi-factor authentication for payment and banking apps.

These policies are designed to limit fraud and protect consumers in markets where digital banking adoption is accelerating.

Moving beyond compliance with device-bound passkeys

Passkeys are cryptographic credentials that replace passwords with public-private key pairs. When combined with device binding—where the passkey is tied to a specific trusted device—they deliver the highest level of protection.

Ideem’s Zero-Trust Secure Module (ZSM) is an example of a device binding solution that pairs passkeys with secure hardware or software enclaves. This approach prevents phishing, SIM-swap attacks, and credential theft, ensuring that only a verified device can complete authentication.

By adopting device-bound passkeys, banks meet the letter of Saudi and UAE regulations and go further, setting a security standard that exceeds expectations.

Competitive upside: customer satisfaction and brand trust

Consumers value security when it comes with convenience. Device-bound passkeys allow seamless login flows without the friction of one-time passwords or SMS codes. Faster, more secure sign-ins translate into:

• higher customer satisfaction
• improved retention
• stronger brand reputation as a trusted financial institution
  

Banks that are early adopters of these technologies send a clear signal to customers that they are serious about protecting accounts while keeping the experience effortless.

Hypothetical case studies

• Riyadh National Bank invests in device-bound passkeys to meet SAMA’s latest requirements. Within six months, account takeover incidents drop by 80 percent. Marketing campaigns highlight “bank-grade passkeys,” leading to a 15 percent rise in new mobile banking users.
• Dubai Digital Bank deploys ZSM-powered device binding ahead of a new UAE consumer protection rule. Their zero-friction login becomes a key differentiator, winning high-value corporate clients from slower-moving competitors.

These examples show how compliance spending can transform into a market advantage.

Checklist: aligning authentication upgrades with regulation and strategy

1. Map current authentication methods against SAMA and UAE Central Bank requirements
2. Identify high-risk user journeys such as mobile onboarding or large transfers
3. Choose a device-bound passkey solution or secure device binding technology like ZSM
4. Pilot with a defined user group and measure sign-in success rates
5. Integrate messaging into customer communications to highlight stronger security and convenience
6. Monitor evolving regulatory guidance and iterate on the security roadmap

From technical requirement to growth opportunity

Regulatory pressure in Saudi Arabia and the UAE makes stronger authentication unavoidable. But by adopting device-bound passkeys and advanced device binding, banks can move beyond simple compliance. The payoff is more than risk reduction: it is an opportunity to enhance customer trust, elevate the brand, and capture market share in the rapidly growing digital banking landscape.

Sources

https://www.sama.gov.sa/en-US/RulesInstructions/Cybersecurity_Framework.pdf
https://www.sama.gov.sa/en-US/RulesInstructions/Open_Banking_Framework.pdf
https://www.centralbank.ae/en/consumer-protection
https://www.centralbank.ae/en/laws-regulations/retail-payment-services-and-card-schemes-regulation

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