WORKING PAPER

Financial Inclusion Measurement in the Arab WorldJanuary 2017

This paper is jointly published by CGAP (Nadine Chehade, Antoine Navarro) and the Arab Monetary Fund (Yisr Barnieh, Habib Attia) in collaboration with the Arab Monetary Fund’s Financial Inclusion Task Force. The authors thank all those who provided comments during the writing and editing of the document.

Contact the authors for a copy of an Excel spreadsheet containing country-level information used in this paper: cgap@worldbank.org or financialmarkets@amfad.org.ae.

iii

EXECUTIVE SUMMARY

Following the request of the central banks of the region, the Arab Monetary Fund’s (AMF) Financial Inclusion Task Force (FITF) was established in 2012 to identify ways to improve financial inclusion in the Arab world. Financial inclusion refers to a state where individuals, including low-income people, and companies, including the smallest ones, have access to and make use of a full range of formal quality fi-nancial services (payments, transfers, savings, credit, and insurance) offered in a re-sponsible and sustainable way by a variety of providers operating in a suitable legal and regulatory environment.

The financial inclusion cause has been embraced globally by central banks and international standard-setting bodies for its impact on any country’s economy: supporting economic growth through the development of the financial sector, improv-ing the financial sector’s stability, or decreasing Anti-Money Laundering/Combating the Financing of Terrorism risks through higher formalization of the economy, are a few of the many tangible virtues of high financial inclusion rates. Organizations such as the G20, the United Nations, and the World Bank have thus committed to advance financial inclusion globally.

In the race toward full financial inclusion, the Arab world lags behind other regions. Nearly 70 percent of adults (168 million) report no account ownership. This figure goes up to 80 percent in the developing countries of the region, constituting the largest area of exclusion from formal financial services. Similarly, access to for-mal credit is less than half the global average.

Low levels of financial inclusion in the region are the result of unserved demand, in the absence of a suitable formal offer. This is notably evidenced by the massive use of informal credit by at least 92 million borrowers. Women, low-income people, and youth are the most excluded.

Detailed and accurate data are necessary to identify priorities and measure progress. While the general diagnosis is undeniable, better understanding financial inclusion patterns in each country will require market studies that analyze the de-mand for financial services. In the meantime, FITF has taken a preliminary step to improve the quality of data collected from financial services providers.

Data will reflect progress only when actual change happens in the Arab markets. Here, public policies aiming at fostering financial inclusion and appropri-ate legal frameworks play a key role, and central banks are well-positioned to drive such policies.

Central banks usually have both the mandate and the skill set that allow them to champion and coordinate the process toward effective national financial in-clusion strategies, though they are not always in charge of all aspects related to financial inclusion.

It is in this context that the AMF and its task force will be working closely with CGAP, the Alliance for Financial Inclusion, and GIZ, among others, to advance measurement of financial inclusion in the Arab world, thereby allowing member countries to accu-rately measure their progress to financial inclusion when they wish.

v

TABLE OF CONTENTS

1. FINANCIAL INCLUSION IS ON THE GLOBAL DEVELOPMENT AGENDA ..................................................................... 1

2. FINANCIAL INCLUSION IN THE ARAB WORLD LAGS BEHIND OTHER REGIONS .................................................................... 2

a. Account Ownership................................................................................................................ 2b. Borrowings from Formal Financial Institutions ........................................................ 4c. Insurance .................................................................................................................................... 5

3. DIFFERENT DATASETS ALLOW FOR A BETTER UNDERSTANDING OF FINANCIAL INCLUSION .................................... 6

a. Demand-Side Data .................................................................................................................. 6b. Supply-Side Data ..................................................................................................................... 8c. Comparing Different Sources and Understanding Data Gaps .............................. 8

4. LOW FINANCIAL INCLUSION IN THE ARAB WORLD RESULTS FROM UNATTENDED DEMAND .......................................... 12

5. GOING FORWARD: ANALYZING POLICY AND REGULATORY FRAMEWORKS ............................................................. 14

6. ANNEXES ............................................................................................ 16

a. G20 Basic Set of Financial Inclusion Indicators .......................................................16b. Alliance for Financial Inclusion Core Set of Indicators .........................................17c. G20 Full Set of Financial Inclusion Indicators ..........................................................18

FIGURES, TABLES, BOX

Figure 1.  Account at a formal financial institution (age 15+) by region ................................................................................................................................. 2

Figure 2.  Account at a formal financial institution (age 15+) in the Arab world ................................................................................................................. 3

Figure 3.  Deposit accounts with commercial banks per 1,000 adults, by region ...................................................................................................... 4

Figure 4. Loan at a formal financial institution (age 15+) by region ................................ 4Figure 5. Loan at a formal financial institution (age 15+) in the Arab world ............... 5Figure 6.  Formal account ownership, demand vs. supply-side data,

in the Arab world ...............................................................................................................10

vi

Financial Inclusion Measurement in the Arab World

Figure 7.  Formal credit penetration, demand vs. supply-side data, in the Arab world ...............................................................................................................11

Figure 8. Savings vs. formal account ownership (age 15+), by region ..........................13Figure 9. Loans vs. formal loans (age 15+), by region ..........................................................13

Table 1. Demand-side data landscape ........................................................................................... 7Table 2. Supply-side data landscape ............................................................................................... 9Table 3. Microfinance regulations in the Arab world (GCC excluded) ...........................14

Box 1. Focus on the low-income and micro- and small enterprises ...............................12

The following color code is applied to country groups in all graphs:■ Regional peer groups

■ Income-level peer groups

■ Arab countries

vii

ACRONYMS

AMF Arab Monetary Fund

AML/CFT Anti-Money Laundering/Combating the Financing of Terrorism

FAS Financial Access Survey, database collected from financial service providers

Findex Global Financial Inclusion database, collected from individuals through survey

FITF Financial Inclusion Task Force

GCC Gulf Cooperation Council

IMF International Monetary Fund

MSME Micro, Small, and Medium Enterprise

OECD Organization for Economic Co-operation and Development

UAE United Arab Emirates

1

Financial Inclusion Measurement in the Arab World

1. FINANCIAL INCLUSION IS ON THE GLOBAL DEVELOPMENT AGENDA

Financial inclusion refers to a state where individuals, including low-income people, and companies, including the smallest ones, have access to and make use of a full range of formal quality financial services (payments, transfers, savings, credit, and insurance) offered in a responsible and sustainable way by a variety of providers operating in a suitable legal and regulatory environment.

Globally, central banks have embraced financial inclusion because several of its elements fall within the scope of their mandates. Indeed, financial inclusion leads to economic growth through the development of the financial system (e.g., in-creasing the number and total value of formal financial transactions) and to finan-cial stability through a greater diversification of risks (e.g., large deposit bases and portfolios of small loans, both proven to be less vulnerable to shocks). In addition, financial exclusion has been demonstrated to actually increase anti-money launder-ing/combating the financing of terrorism (AML/CFT) risks, on top of having negative consequences on economic and social stability.

It is, therefore, not a coincidence that financial inclusion has caught the atten-tion of some of the most prominent institutions and standard-setting bodies (SSB) globally. In 2010, the G20 recognized financial inclusion as one of the main pillars of the global development agenda, setting up the Global Partnership for Financial Inclusion (GPFI), which released the G20 set of financial inclusion indica-tors (see Annexes A and C). That same year, the Basel Committee released its “Guide-lines for the application of core principles for effective banking supervision to micro-finance activities,” followed in 2015 by the “Range of practice in the regulation and supervision of institutions relevant to financial inclusion.” Even the Financial Action Task Force (FATF) has put in place measures to expand definitions of low-risk and lower-risk transactions, updating its “Guidance on AML/CFT and financial inclusion” in 2013. Finally, the evolving financial inclusion landscape, captured in GPFI’s 2016 white paper, has led SSBs to broaden their scope of action. As such, the 2016 update of the G20 financial inclusion indicators now includes a range of indicators on digital services, mobile phones, and agent banking.1

Improving financial inclusion in the Arab world requires a better understand-ing of the current level of access to financial services. In light of this, over the past year, the AMF FITF, with the support of CGAP,2 decided to collect and analyze the globally established G20 set of financial inclusion indicators3 for Arab countries. These indicators are essential for member countries to formulate a preliminary financial inclusion diagnostic, with the final goal of developing relevant policies to enhance financial inclusion.

1 This paper does not explore data related to digital financial services given the limited number of data points available.2 Housed at the World Bank, CGAP is a global consortium of more than 30 international donors and investors aiming to advance financial inclusion.3 There is a basic and a full set of indicators. Data are collected across 24 categories comprising 2–3 indicators each and cov-ering three dimensions: access, usage, and quality. There is some but not full overlap with the Alliance for Financial Inclusion (AFI) core set of indicators (see annexes).

2

Financial Inclusion Measurement in the Arab World

4 Findex samples in GCC countries include nationals, Arab expatriates, and non-Arabs who were able to answer the survey in Arabic or English.

2. FINANCIAL INCLUSION IN THE ARAB WORLD LAGS BEHIND OTHER REGIONS

All available data suggest that there is a great potential to deepen financial inclusion in the Arab world. Existing datasets on financial inclusion, whether re-garding demand or supply, all point toward the same analysis in terms of the relative position of countries and regions compared to one another.

a. Account Ownership

Launched in 2011, the World Bank’s Global Findex survey has become widely accepted as a benchmarking tool that can be applied across countries and regions, with account ownership being the primary indicator of financial inclusion (see Section 4.c for more details on the Global Findex).

■ According to these figures, the outreach of formal financial services in the Arab world stands at only 21 percent when excluding the Gulf Cooperation Council (GCC) countries, the lowest worldwide (see Figure 1).

■ At 74 percent account ownership, GCC countries4 are above the global average of 61 percent account ownership, although they are still below the 94 percent Orga-nization for Economic Co-operation and Development (OECD) average.

■ Given the relatively small population of GCC countries, account ownership in the entire Arab world remains low at 29 percent.

Source: Findex 2011 and 2014 data, except for bars in purple, computed based on the Findex data.

Note: Findex reports an average of 14% for “Middle East developing countries,” including Egypt, Iraq, Jordan, Lebanon, Palestine, and Yemen. Other figures for the Arab world are calculated as averages weighted by the population aged 151. GCC countries include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates. The Arab world includes all AMF member countries, namely GCC countries and Algeria, Comoros, Djibouti, Egypt, Iraq, Jordan, Lebanon, Libya, Mauritania, Morocco, Palestine, Somalia, Sudan, Syria, Tunisia, and Yemen.

AverageGCC

EAP World Middleincome

ECA LAC ArabWorld

SSA Lowincome

ArabWorld

excl. GCC

94%

74%69%

61%57%

51% 51%

29% 29%22% 21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

OECD

2014

2011

FIGURE 1. Account at a Formal Financial Institution (age 151), By Region

3

Financial Inclusion Measurement in the Arab World

Non-GCC countries can be grouped in two categories (see Figure 2).

■ Countries, such as Algeria, Lebanon, or Morocco, that have active financial mar-kets yet are slightly below the global average.

■ Other countries that are much lower.

While the Global Findex might have some shortcomings,5 these differences among regions, subregions, and pools of countries are also reflected in the aggregated data from financial service providers that are reported to the International Mon-etary Fund’s Financial Access Survey (IMF FAS) (see Figure 3, Figure 6, and Section 4.b for more details on the IMF FAS).

5 The first Findex surveys were conducted in 2011, coinciding with times of unrest in several Arab countries. Data are not avail-able for the exact same set of countries in 2011 and 2014, with a maximum of 20 countries covered, and only 14 presenting two sets of data.

JordanTunisia

Average Arab WorldMoroccoLebanon

AlgeriaMiddle Income

QatarSaudi Arabia

KuwaitAverage GCC

OmanBahrain

UAEOECD

Syria

Comoros

SudanMauritania

Palestine

Low Income

Arab world excl. GCC

YemenSomalia

IraqDjibouti

Egypt

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2011 2014

Source: Findex 2011 and 2014 data, except for Morocco (estimated by applying to the 2011 Findex data the growth rate reported by Bank Al Maghrib on the number of accounts as collected from financial service providers).

Note: Only 2011 data are presented for countries where no data for 2014 are available (Comoros, Djibouti, Morocco, Oman, Qatar, Syria).

FIGURE 2. Account at a Formal Financial Institution (age 151) in the Arab World

4

Financial Inclusion Measurement in the Arab World

b. Borrowings from Formal Financial Institutions

Similar to account ownership, the Arab world lags behind other regions in terms of access to credit from formal financial institutions (see Figure 4). Although 44 percent of adults reported having a loan according to the Global Findex survey, only 6 percent of them are borrowing from a formal financial institution. Credit out-reach in the region, when excluding GCC countries, is less than half of most other developing regions globally.

3,000

3,500

1,000

1,500

2,000

2,500

Highincome

ECA South Asia LAC Lower middleincome

EAP ArabWorld

Upper middleincome

SSA Low income-

500

4,000

Source: IMF FAS 2014 data for 111 countries and 2013 data for 13 countries.

Note: “Deposit accounts” used instead of “number of depositors” because more data points are available. Regional and income group averages computed based on IMF FAS averages weighted by the population over 15 years old.

FIGURE 3. Deposit Accounts with Commercial Banks, per 1,000 Adults, by Region

Source: Findex 2011 and 2014 data.

Note: Findex reports an average of 5.6% for “Middle East developing countries.”

20%

18%

16%

12%

14%

0%

2%

4%

6%

8%

10%

OECD AverageGCC

ECA LAC EAP World Middleincome

Lowincome

SSA ArabWorld

ArabWorld

excl. GCC

18%

13%12%

11% 11% 11%9% 9%

6% 6%5%

2014

2011

FIGURE 4. Loans at a Formal Financial Institution (age 151), by Region

5

Financial Inclusion Measurement in the Arab World

GCC countries, as well as Lebanon and Jordan, have a deeper outreach of formal credit when compared to other countries (see Figure 5).

c. Insurance

Global information on insurance outreach is currently limited because the topic is not covered by the Findex survey, and data are usually not reported in the IMF FAS. The latter is likely due to the limited involvement of central banks in the topic, since insurance services in most countries fall under the supervision of ministries of finance, ministries of economy, or nonbank financial regulators.

Despite the lack of systematic data on the subject, punctual studies have evidenced a limited penetration of insurance services, especially to low-income populations.6

6 According to World Bank (2010), only three countries have a ratio of nonlife insurance premiums exceeding 1.5 percent of GDP, significantly smaller than OECD countries.

2011 2014

MauritaniaTunisia

Low IncomeMiddle Income

OmanSaudi Arabia

QatarSyria

Average GCCJordanKuwait

UAELebanon

OECDBahrain

Egypt

Arab world excl. GCC

PalestineMorocco

Comoros

Average Arab World

Djibouti

YemenSomaliaAlgeria

IraqSudan

0% 5% 10% 15% 20% 25%

Source: Findex, 2011 and 2014 data.

Note: Only 2011 data are presented for countries where no data for 2014 are available (Comoros, Djibouti, Morocco, Oman, Qatar, Syria). Only 2014 data are presented for countries where Findex reports a decrease between 2011 and 2014 (Bahrain, Iraq, Kuwait).

FIGURE 5. Loan at a Formal Financial Institution (age 151) in the Arab World

6

Financial Inclusion Measurement in the Arab World

3. DIFFERENT DATASETS ALLOW FOR A BETTER UNDERSTANDING OF FINANCIAL INCLUSION

Our current knowledge of financial inclusion is based on two distinct categories of datasets, namely supply-side data (reported by financial service providers) and demand-side data (collected through market studies). The following subsections describe the collection process of both datasets, highlight possible areas for improvement to increase their reliability, and introduce other tools that can be used to gather additional information at the country level.

a. Demand-Side Data

Demand-side data are reported by end users of financial services, and are col-lected through a population survey, usually nationally representative. For the first time in 2011, this type of information has been gathered globally in a systematic and consistent way, leading to the release of the Global Findex database. Funded by a 10-year grant from the Bill & Melinda Gates Foundation, with data collected by the World Bank in partnership with Gallup World Poll, Findex covers over 140 countries. It was updated in 2014, and its next set is expected in 2017.

In addition to information on people’s reported access to financial services, Findex has provided unique information on users’ financial behavior that cannot be cap-tured by institutional data from providers, such as the purpose of financial services being used, the usage of informal services, and the perceived barriers to accessing financial services. Because of its poll-based methodology, Findex data are extrapolat-ed from a surveyed sample, but present the advantage of being uniformly collected across countries. According to the Findex Note on Financial Inclusion in the Middle East (Demirguc-Kunt et al. 2015), account ownership is the lowest, most notably for women, low-income people, and youth.

While the Findex dataset is excellent for cross-country comparisons, it does not pro-vide the kind of in-depth data at the country level that would be needed to develop appropriate public policies aimed at enhancing financial inclusion (e.g., it does not provide information per region within a country). However, the analysis of Findex data is expected to shed light on each country’s relative access to financial services. Additional insight may be obtained through a variety of other national demand-side research tools that provide a better understanding of the qualitative aspects of finan-cial inclusion (see Table 1 for an overview of these tools).

A combination of one-off in-depth studies and regular monitoring of key demand-side indicators will help stakeholders understand demand. One-off in-depth studies can be conducted less frequently because they are complex, require specific expertise, and can be relatively costly. Regular monitoring of key demand-side indicators can be collected more frequently as part of national households’ surveys. FITF has found that developing common survey tools are key for its member countries to track the progress of financial inclusion and to measure the effects of financial inclusion policies through the evolution of clients’ access to and use of financial services. As such, FITF will be involved in designing tools to provide both regional comparability and customization to each country’s financial inclusion goals. It plans to build on the work initiated in Morocco, Palestine, and Qatar, among others.

7

Financial Inclusion Measurement in the Arab World

TAB

LE 1

. D

eman

d-S

ide

Dat

a La

ndsc

ape

Des

crip

tio

nQ

uant

itat

ive

or

qua

litat

ive

Freq

uenc

ySc

op

eSa

mp

le s

ize

Co

untr

ies

cove

red

Sub

nati

ona

l d

ata

Glo

bal

Fin

dex

Glo

bal

tre

nds

and

cr

oss

-co

untr

y co

mp

aris

on

Qua

litat

ive

3 ye

ars

(201

1,

2014

, 201

7)In

div

idua

l1,

0001

148

No

Wo

rld

Ban

k E

nter

-p

rise

sur

vey/

IFC

E

nter

pri

se fi

nanc

e g

ap d

atab

ase

Qua

lity

of

the

bus

i-ne

ss a

nd in

vest

-m

ent

clim

ate

acro

ss

coun

trie

s

Qua

ntit

ativ

e 1

Q

ualit

ativ

eEv

ery

3–4

year

s si

nce

1998

Firm

Vari

es

1,00

013

5N

o

Fina

ncia

l Inc

lusi

on

Insi

ght

s Su

rvey

s (F

II)In

div

idua

l per

cep

-ti

on

and

beh

avio

r re

gar

din

g d

igit

al

finan

cial

ser

vice

s

Qua

ntit

ativ

e 1

Q

ualit

ativ

e1

year

(ove

r 2–

3 ye

ars)

Ind

ivid

ual

5,00

0–60

,000

10a

Yes

Fins

cop

e/Fi

nAcc

ess

Ind

ivid

uals

’ fina

ncia

l m

anag

emen

t; p

er-

cep

tio

ns r

egar

din

g

finan

cial

ser

vice

s

Qua

ntit

ativ

e 1

Q

ualit

ativ

e4

year

sIn

div

idua

l, so

me

hous

eho

ld

conc

lusi

ons

1,00

0–21

,000

17

Yes

Fina

ncia

l Inc

lusi

on

Trac

ker

Surv

ey

(FIT

S)

Tren

ds

in h

ous

e-ho

lds’

fina

ncia

l b

ehav

ior;

tre

nds

in

po

vert

y le

vels

of

mo

bile

mo

ney

user

s

Qua

ntit

ativ

e 1

Q

ualit

ativ

e1

year

1

qua

rter

lyH

ous

eho

ld

(pan

el)

3,00

0–5,

000

3b

Reg

iona

l

Livi

ng S

tand

ard

s M

easu

rem

ent

Stud

yH

ous

eho

ld w

elfa

re

and

beh

avio

rQ

uant

itat

ive

(lim

ited

qua

l.)Va

ried

(1

985–

2012

)H

ous

eho

ld

(pan

el)

800–

36,0

00 3

8Ye

s

a. B

ang

lad

esh,

Gha

na, I

ndia

, Ind

one

sia,

Ken

ya, N

iger

ia, P

akis

tan,

Rw

and

a, T

anza

nia,

Ug

and

a.

b. U

gan

da,

Pak

ista

n, T

anza

nia.

So

urce

: Bro

ens

Nie

lsen

201

4.

8

Financial Inclusion Measurement in the Arab World

b. Supply-Side Data

Supply-side data are reported by financial service providers and are collected by national authorities (central banks, relevant ministries), by industry bodies (bank-ing association, insurance association), or through surveys sent to financial service providers.

A main global source of supply-side data is the IMF FAS. Initiated in 2009 with first results released in 2010, FAS aims to collect and disseminate internationally com-parable data from financial service providers. It comprises over 150 indicators for 189 countries and focuses on access (or availability) and actual use of financial services, measured relative to population size to allow for cross-country comparison.

Despite comprehensive quality checks by the FAS team, the reliability of the FAS indicators largely depends on the availability and comprehensiveness of each country’s data and each reporting entity’s ability to detect and report significant deviations between their own indicators and FAS definitions.

FITF has identified three ways to improve the quality of FAS data for the Arab world.

■ Improve response rate. Only 19 percent of the data points collected by the IMF FAS are reported by Arab countries, on average. Some FITF members (e.g., Egypt, Palestine, United Arab Emirates) are working with the IMF FAS team to improve the quality of the information collected or reported.

■ Improve the process. Designate a dedicated and active financial inclusion data contact point in the reporting countries that would be in charge of liaising with other institutions, if needed. Central banks are not always in charge of collecting all data pertaining to financial inclusion, but they could liaise with other enti-ties (e.g., insurance supervisor or association, microfinance professional associ-ations, postal networks).

■ Improve content. Data can be improved by analyzing the reasons behind the major differences between supply- and demand-side data (e.g., counting an in-dividual with several accounts as a single account holder, identifying dormant accounts, collecting missing information from financial service providers).

There are other supply-side datasets such as the GSMA Mobile Money Adoption Survey (for mobile money accounts), the World Bank’s Global Payment Survey, the Microfinance Information Exchange (MIX) Market map, and FSPMAPS.com (see Table 2 for more details).

c. Comparing Different Sources and Understanding Data Gaps

In comparing demand- and supply-side data in more detail for similar indicators, FITF has identified important gaps in some countries, even regarding basic indica-tors such as number of account holders or number of borrowers (see Figure 6 and Figure 7). Taking a closer look at the most significant gaps would help in analyzing financial inclusion patterns, as the two indicators complement each other.

9

Financial Inclusion Measurement in the Arab World

TAB

LE 2

. Su

pp

ly-S

ide

Dat

a La

ndsc

ape

Info

rmat

ion

sour

ceFr

eque

ncy

Ana

lyti

cal t

oo

lsG

eosp

atia

l, su

bna

tio

nal

Exa

mp

les

of

“acc

ess”

ind

icat

ors

IMF

FAS

Cen

tral

Ban

ks in

189

co

untr

ies

Ann

ually

sin

ce

2004

No

No

■ B

anks

per

1,0

00 K

m2

■ A

TMs

per

100

,000

ad

ults

GSM

A M

ob

ile M

one

y (M

M) A

do

pti

on

Surv

eyM

M p

rovi

der

s, t

elco

sA

nnua

llyB

ench

mar

king

No

■ N

o. o

f re

gis

tere

d M

M u

sers

■ N

o. o

f ac

tive

MM

ag

ents

■ V

alue

and

vo

lum

e o

f tr

ansa

ctio

ns

Wo

rld

Ban

k G

lob

al

Pay

men

t Su

rvey

Cen

tral

ban

ks20

08, 2

010,

20

12, n

ext

rep

ort

ex

pec

ted

in 2

017

Ben

chm

arki

ngN

o■ V

olu

me

of

tran

sact

ions

■ N

o. o

f co

untr

ies

wit

h co

nsum

er

pro

tect

ion

leg

isla

tio

n

MIX

FIN

clus

ionL

abM

icro

finan

ce in

stit

utio

ns;

incr

easi

ngly

oth

er

finan

cial

ser

vice

s p

rovi

der

s an

d r

egul

ato

rs

Qua

rter

ly;

dep

end

s o

n co

untr

y an

d

pro

vid

ers

Ben

chm

arki

ngYe

s■ N

o. o

f fin

anci

al in

stit

utio

ns b

y ty

pe

or

reg

ion

■ L

oca

tio

ns p

er 1

00,0

00 a

dul

ts■ L

oca

tio

ns p

er 1

,000

Km

2

fsp

map

s.co

mTh

ird-p

arty

pro

vid

ers;

g

eore

fere

ncin

g p

rovi

der

s in

-co

untr

y; s

pat

ial

dev

elo

pm

ent

host

dat

a

1 ro

und

; su

stai

nab

ility

pla

ns

und

er d

iscu

ssio

n

Yes

Yes

■ P

roxi

mit

y to

fina

ncia

l acc

ess

po

ints

, e.g

., nu

mb

er o

f (p

oo

r)

peo

ple

livi

ng w

ithi

n 5

Km

of

a fin

anci

al a

cces

s p

oin

t (u

rban

/ru

ral d

ivid

e)

Sour

ce: B

roen

s N

iels

en 2

014.

10

Financial Inclusion Measurement in the Arab World

Such an analysis would not be easy because demand- and supply-side indicators are different in nature. However, several of the indicators can be compared with a reasonable level of confidence, keeping in mind that needed adjustments cannot always be applied because of missing information. Information may be missing for a variety of reasons, including the following:

■ Difficulties in reporting supply-side data, e.g., in removing duplicates to report a unique number of depositors/borrowers.

■ Unavailable information for supply-side data, e.g., gender-disaggregated data.

■ Unwillingness to report account ownership in demand-side data.

■ Surveys being carried out on adults age 151 on the demand side, where the minimum age for account ownership could be as high as 21 in some countries.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

YemenSomalia

IraqDjibouti

EgyptSudan

MauritaniaArab world excl. GCC

ComorosLow income

SyriaPalestine

JordanTunisia Arab World

MoroccoLebanon

Algeria Middle income

Qatar Saudi ArabiaKuwait

Average GCCOman

BahrainUAE

OECD

FAS: Depositors with commercialbanks per 1,000 adults, expressedin %

Findex: Account at a financialinstitution (% age 15+)

Source: Findex and FAS 2014, where possible. Findex 2011 data are used for Comoros, Djibouti, Morocco, Oman, Qatar, and Syria. FAS 2013 data are used for Syria and Yemen. There are no recent FAS data for Bahrain, Iraq, Jordan, Libya, Morocco, Oman, Somalia, Sudan, and UAE for the two indicators, and no recent data for Algeria. Other regions’ averages for FAS are not included due to the limited number of data points.

FIGURE 6. Formal Account Ownership, Demand vs. Supply-Side Data in the Arab World

11

Financial Inclusion Measurement in the Arab World

MauritaniaTunisia

Low IncomeMiddle Income

OmanSaudi Arabia

QatarSyria

Average GCCJordanKuwait

UAELebanon

OECDBahrain

Egypt

Average excl. GCC

PalestineMorocco

Comoros

Arab World

Djibouti

YemenSomaliaAlgeria

IraqSudan

0% 5% 10% 15% 20% 25% 30% 35%

FAS: Borrowers from commercialbanks per 1,000 adults, expressedin %

Findex: Borrowed from afinancial institution (% age 15+)

Source: Findex and FAS 2014, where possible. Findex 2011 data are used for Comoros, Djibouti, Morocco, Oman, Qatar, and Syria. FAS 2013 data are used for Syria and Yemen. There are no recent FAS data for Bahrain, Iraq, Jordan, Libya, Morocco, Oman, Somalia, Sudan, and UAE for the two indicators. Other regions’ averages for FAS are not included due to the limited number of datapoints.

FIGURE 7. Formal Credit Penetration, Demand vs. Supply-Side Data in the Arab World

12

Financial Inclusion Measurement in the Arab World

4. LOW FINANCIAL INCLUSION IN THE ARAB WORLD RESULTS FROM UNATTENDED DEMAND

The weakness of financial inclusion indicators in the Arab world is not because of a lower demand for financial services. On the contrary, the region shows equal or higher financial activity, but lower outreach of formal financial services, be it for account ownership or for credit (see Box 1).

Indeed, on the account ownership front, the Arab world, in general, and non-GCC countries, in particular, is the only region, after Sub-Saharan Africa (SSA), where the number of people who declare that they have saved money significantly exceeds the number of people having an account at formal institutions (see Figure 8). This sug-gests that saving takes place outside of formal channels. In addition, barely one-third of formal account holders are intensive users,7 suggesting that supply might not be adapted to users’ needs. Another possible reason could be poor infrastructure.

On the credit front, the region shows a more active borrowing behavior compared to most others, with 44 percent of adults borrowing money over a year compared to a 42 percent global average and 40 percent average of OECD economies (see Figure 9).

7 “Intensive users” is defined by Findex as account holders at a formal financial institution who report that money is withdrawn from their account three or more times in a typical month.

BOX 1. Focus on Low-Income People and Micro- and Small Enterprises

This report reflects broad evidence that poor families live active financial lives, sav-ing, borrowing, and lending to others, and transferring money, but only a few use formal financial services. Indeed, while demand is present, supply remains limited and/or not adapted.

In the Arab world more specifically:

■ In some countries, postal networks are the main provider of savings and pay-ments services, notably because of their extensive geographic outreach, but they have no lending activities.

■ Microfinance institutions (MFIs), banks, nonbank financial institutions, and nongovernmental institutions (NGOs) are the main providers of credit to low-income households and micro- and small enterprises. In some countries, MFIs fall under the scope of Central Bank regulation and their data may be reported to FAS, although supply-side data for this segment is limited.a

■ Direct involvement of commercial banks remains scarce, as is the case glob-ally. In some countries though, state banks are significant providers of financial services for low-income households and micro- and small enterprises.

a. At the time this report was written, only Comoros, Djibouti, Palestine, Syria, and Yemen reported some infor-mation on depositors and/or borrowers with MFIs to FAS.

13

Financial Inclusion Measurement in the Arab World

However, where 11 percent of adults (or 25 percent of borrowers) borrowed from a formal financial institution globally, only 6 percent did so in the Arab countries, leaving 85 percent of the credit supply to informal players. In effect, 30 percent of adults bor-rowed from families or friends who represent nearly 70 percent of the credit supply. This is one of the biggest gaps in the world (8.5 times more adults borrow informally), second only to SSA.

1.0x

0.8x

2.1x

0.9x0.7x 0.8x 0.7x

1.3x

1.7x

100%90%80%

60%70%

0%10%20%30%40%50%

2.0x

1.5x

0.5x

1.0x

Saved any money in the past year Account at a formal financial institution Demand / supply Index

EAP OECDeconomies

SSA World AverageGCC

LAC ECA ArabWorld

Arab Worldexcl. GCC

0.0x

2.5x

Source: Findex 2014.

Note: Using these two indicators as a comparison of supply and demand vastly approximates—and probably under-estimates—demand, because there are more uses for accounts than saving (e.g., receiving wages and payments, supporting payment tools, such as cards).

FIGURE 8. Savings vs. Formal Account Ownership (age 151), by Region

8.7x

3.9x

7.0x

4.0x

8.5x

3.8x

2.2x

3.2x 2.9x

60%

0%

10%

20%

30%

40%

50%

10.0x

8.0x

6.0x

0.0x

2.0x

4.0x

9.0x

7.0x

1.0x

3.0x

5.0x

Demand / supply Index

SSA AverageGCC

ArabWorld

World Arab Worldexcl. GCC

EAP OECD ECA LAC

Borrowed any money in the past year Loan at a formal financial institution

Source: Findex 2014.

FIGURE 9. Loans vs. Formal Loans (age 151), by Region

14

Financial Inclusion Measurement in the Arab World

5. GOING FORWARD: ANALYZING POLICY AND REGULATORY FRAMEWORKS

Gathering and analyzing quality financial inclusion data is only the first step toward addressing the structural bottlenecks in financial access. Today, over 60 countries worldwide have launched reforms aimed at improving financial inclusion, in-cluding large countries such as Brazil and Mexico.

In the Arab world, progress has been made over the past few years with some notable regulatory improvements in place (see Table 3). However, change focused on microcredit and, more specifically, on microcredit to individual entrepreneurs, which is now reaching more than 3 to 4 million people in the region.8 Nonetheless, this figure is far from rivaling the estimated 92 million who report borrowing through informal channels,9 and access to formal savings

8 CGAP, based on data reported to MIX and CGAP research; 2.3 million total borrowers in the region as reported to MIX as of December 2015.9 Global Findex 2014 (borrowed any money in the past year minus borrowed from a financial institution). The 2011 figure is used for Comoros, Djibouti, Morocco, Oman, Qatar, and Syria in the absence of data for 2014. The result may be biased because borrowers from formal financial institutions may also borrow at the same time from informal sources.

TABLE 3. Microfinance Regulations in the Arab World (GCC Excluded)

Year Country Law Savings Credit Insurancea Regulator

1999 Morocco Law n°18.97, updated in 2004, 2007, and latest in 2013 with law n°41.12

✗ ✓ ✓ Bank Al Maghrib (BAM)

2007 Syria Microfinance Decree n°15

✓ ✓ ✓b Credit and Monetary Council (CMC)

2009 Yemen Microfinance Banks Law n°15

✓ ✓ ✓ Central Bank of Yemen (CBY)

2011 Sudan Microfinance Insti-tutions Instructions

✓ ✓ ✓ Central Bank of Sudan (CBoS)

2011 Tunisia DL-117 ✗ ✓ ✓ Microfinance Control Authority (AMC)

2011 Palestine Specialized Credit Institutions Regulation n°132

✗ ✓ ✗ Palestinian Monetary Authority (PMA)

2014 Egypt Microfinance Law n°141

✗ ✓ ✓ Egyptian Financial Supervisory Authority (EFSA)

2015 Jordan Microfinance Companies Regulation n°5

✗ ✓ ✓ Central Bank of Jordan (CBJ)

a. MFIs are permitted to offer insurance as agents and/or on behalf of licensed insurance companies.b. Only insurance connected with credit (e.g., credit life insurance).

15

Financial Inclusion Measurement in the Arab World

is still missing for 68 percent or 168 million adults in the Arab world (Global Findex 2014).10 Much more needs to be done to provide full access to formal financial services.

Improvements in financial inclusion indicators will come only from significant changes in the actual outreach of formal financial services, which in turn require changes in the financial sector architecture. Recently, selected countries have made legal changes authorizing mobile wallets deployment, which is a promising way for-ward. Morocco, the country that has made the most progress toward financial inclu-sion, has proactively changed its policies to embrace financial inclusion, notably by (i) granting a banking license to the postal network in 2009, leading to the creation of Al Barid Bank where over 500,000 new accounts were created during the first years of operation, (ii) making it compulsory for commercial banks to offer low-income banking products, and (iii) allowing the establishment of payment institutions.11

Priorities and solutions will no doubt vary across countries.12 However, enhanc-ing financial inclusion cannot go without also analyzing the legal and regulatory framework, as financial regulators and supervisors have a critical say in expanding financial inclusion opportunities while overseeing market conduct. This is why FITF is planning an exercise to take stock of existing laws, regulations, and mandates re-lated to financial inclusion across its member countries. By doing so, it expects to identify regulatory or institutional bottlenecks that can be corrected to significantly improve access to finance.

REFERENCES

Broens Nielsen, Karina. 2014. “10 Useful Data Sources for Measuring Financial Inclusion.” Blog post. Washington, D.C.: CGAP, 10 January.

Demirguc-Kunt, Asli, Leora Klapper, Dorothe Singer, and Peter Van Oudheusden. 2015. “The Global Findex Database 2014: Measuring Financial Inclusion around the World.” Policy Re-search Working Paper 7255. Washington, D.C.: World Bank.

Demirguc-Kunt, Asli, Leora Klapper, Dorothe Singer, Peter van Oudheusden, Saniya Ansar, and Jake Hess. 2015. “The Global Findex Database 2014: Financial Inclusion in the Middle East.” Findex Notes, #2014-6. Washington, D.C.: World Bank, November.

World Bank. 2010. “The Insurance Sector in the Middle East and North Africa: Challenges and Development Agenda.” Washington, D.C.: World Bank.

10 The 2011 figure is used for Comoros, Djibouti, Morocco, Oman, Qatar, and Syria in the absence of data for 2014.11 Such products are not necessarily offered for free.12 Demirguc-Kunt et al. (2015) notably recommends digitizing wage payments, 80 percent of which are made in cash, as one option to improve financial inclusion in the region. To increase account use, it also recommends finding alternatives to bill and school fees payments.

Contact the authors for a copy of an Excel spreadsheet containing country-level information used in this paper: cgap@worldbank.org or financialmarkets@amfad.org.ae.

16

Financial Inclusion Measurement in the Arab World

6. ANNEXES

a. G20 Basic Set of Financial Inclusion Indicators

Categories Indicators Sources Dimension

1 Formally banked adults

% of adults with an account at a formal financial institution

Global Findex Usage

Number of depositors per 1,000 adults OR number of deposit accounts per 1,000 adults (%)

IMF FAS

2 Adults with credit by regulated institutions

% of adults with at least one loan outstanding from a regulated financial institution

Global Findex Usage

Number of borrowers per 1,000 adults OR number of outstanding loans per 1,000 adults (%)

IMF FAS

3 Formally banked enterprises

% of SMEs with an account at a formal financial institution

WBG Enterprise Survey

Usage

Number of SMEs with deposit accounts/number of deposit accounts OR number of SME deposi-tors/number of depositors

IMF FAS

4 Enterprises with outstanding loan or line of cred-it by regulated institutions

% of SMEs with outstanding loan or line of credit

Number of SMEs with outstanding loans/number of outstanding loans OR number of outstanding loans to SMEs/number of outstanding loans

WBG Enterprise Survey

IMF FAS

Usage

5 Points of service Number of branches per 100,000 adults

IMF FAS Access

17

Financial Inclusion Measurement in the Arab World

b. Alliance for Financial Inclusion (AFI) Core Set of Indicators

AFI # Indicator Type Dimension G20 equivalent or proxy

1.1 Number of access points per 10,000 adults at a national level, segmented by type and administrative unit

Supply Access Proxy: Number of branches/automatic teller machines/point of sale per 100,000 adults (indicators n°11 to 13 in Annex 6.c)

1.2 Percentage of administrative units with at least one access point

Supply Access n/a

1.3 Percentage of total population living in administrative units with at least one access point

Supply Access n/a

2.1 Percentage of adults with at least one type of regulated deposit account

Demand Usage Formally banked adults (indicator n°1 in Annex 6.c)

2.2 Percentage of adults with at least one type of regulated credit account

Demand Usage Adults with credit at a regulated institution (indicator n°2 in Annex 6.c)

Note: AFI does not indicate a specific source for the indicators, although some may be part of existing national or international datasets. AFI, however, provides methodological advice on the way to collect these indicators, in particular mentioning that usage indicators may be collected through the supply side in countries where supply-side data are linked to a robust national identity system.

18

Financial Inclusion Measurement in the Arab World

c.

G20

Ful

l Set

of

Fina

ncia

l Inc

lusi

on

Ind

icat

ors

Indi

cato

rs o

f the

G20

Bas

ic S

et a

re h

ighl

ight

ed in

bol

d.

2011

2014

G20

#

Cat

ego

ryIn

dic

ato

rSo

urce

and

co

vera

ge

Dim

ensi

onA

spec

tTy

pe

Ave

rag

eA

vera

ge

excl

. GC

CA

vera

ge

GC

CA

vera

ge

Ave

rag

e ex

cl. G

CC

Ave

rag

e G

CC

1Fo

rmal

ly

ban

ked

ad

ults

% o

f ad

ults

wit

h an

ac

coun

t at

a f

orm

al

finan

cial

inst

itut

ion

WB

Glo

bal

Fi

ndex

(cur

rent

, 14

8 co

untr

ies)

Usa

ge

Ind

ivid

uals

Dem

and

24%

18%

55%

29%

21%

74%

Num

ber

of

dep

osi

tors

p

er 1

,000

ad

ults

OR

nu

mb

er o

f d

epo

sit

acco

unts

per

1,0

00

adul

ts (%

)

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Sup

ply

53%

44%

93%

60%

50%

104%

Num

ber o

f dep

osito

rs p

er

1,00

0 ad

ults

OR

num

ber

of d

epos

it ac

coun

ts p

er

1,00

0 ad

ults

(%)

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Sup

ply

40%

35%

73%

43%

37%

80%

2

Ad

ults

wit

h cr

edit

at

reg

ulat

ed

inst

itut

ions

% o

f ad

ults

wit

h at

leas

t o

ne lo

an o

utst

and

ing

fr

om

a r

egul

ated

fina

n-ci

al in

stit

utio

n

WB

Glo

bal

Fi

ndex

(cur

rent

, 14

8 co

untr

ies)

Usa

ge

Ind

ivid

uals

Dem

and

5%4%

7%6%

5%13

%

Num

ber

of

bo

rro

wer

s p

er 1

,000

ad

ults

OR

nu

mb

er o

f o

utst

and

ing

lo

ans

per

1,0

00

adul

ts (%

)

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Sup

ply

12%

10%

24%

15%

12%

30%

Num

ber

of b

orro

wer

s p

er

1,00

0 ad

ults

OR

num

ber

of

out

stan

din

g lo

ans

per

1,

000

adul

ts (%

)

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Sup

ply

9%8%

18%

10%

9%19

%

3A

dul

ts w

ith

insu

ranc

e

Num

ber

of

insu

ranc

e p

olic

y ho

lder

s p

er

1,00

0 ad

ults

, seg

reg

at-

ed b

y lif

e an

d n

onl

ife

insu

ranc

e

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Usa

ge

Ind

ivid

uals

Sup

ply

n/a

n/a

n/a

n/a

n/a

n/a

CG

AP

Sug

ges

ted

pro

xy:

Insu

ranc

e co

rpo

rati

ons

: o

f w

hich

: Life

insu

ranc

e p

olic

ies

3%4%

3%5%

5%n/

a

CG

AP

Sug

ges

ted

pro

xy:

Insu

ranc

e co

rpo

rati

ons

: o

f w

hich

: No

nlife

insu

r-an

ce p

olic

ies

26%

20%

29%

29%

21%

33%

CG

AP

Sug

ges

ted

pro

xy:

Life

insu

ranc

e p

rem

ium

vo

lum

e as

% o

f GD

P

Wo

rld

Ban

k (c

itin

g S

igm

a R

epo

rts,

Sw

iss

Re)

Usa

ge

n/a

0.2%

0.3%

0.1%

0.2%

0.3%

0.1%

4C

ashl

ess

tran

sact

ions

Num

ber

of r

etai

l cas

hles

s tr

ansa

ctio

ns p

er c

apita

C

ashl

ess

tran

sact

ions

are

de

fined

as

the

num

ber o

f pa

ymen

ts b

y ch

eck,

cre

d-it

tran

sfer

s, d

irect

deb

its,

and

paym

ent w

ith c

redi

t an

d de

bit c

ards

.

WB

Glo

bal

Pay

-m

ents

Sys

tem

s Su

rvey

(200

9 d

ata)

Usa

ge

Ind

ivid

uals

Sup

ply

12.3

12.3

12.1

n/a

n/a

n/a

5M

obile

tr

ansa

ctio

nal

use

% o

f ad

ults

who

use

th

eir

mo

bile

dev

ice

to

mak

e a

pay

men

t

WB

Glo

bal

Fi

ndex

(cur

rent

, 14

8 co

untr

ies)

Usa

ge

Ind

ivid

uals

Dem

and

n/a

n/a

n/a

13%

12%

18%

CG

AP

sug

ges

ted

pro

xy:

Mo

bile

pho

ne u

sed

to

p

ay b

ills

(% a

ge

151

)

WB

Glo

bal

Fi

ndex

(cur

rent

, 14

8 co

untr

ies)

Usa

ge

Ind

ivid

uals

Dem

and

5%4%

14%

n/a

n/a

n/a

(Con

tinue

d)

19

Financial Inclusion Measurement in the Arab World

2011

2014

G20

#

Cat

ego

ryIn

dic

ato

rSo

urce

and

co

vera

ge

Dim

ensi

onA

spec

tTy

pe

Ave

rag

eA

vera

ge

excl

. GC

CA

vera

ge

GC

CA

vera

ge

Ave

rag

e ex

cl. G

CC

Ave

rag

e G

CC

1Fo

rmal

ly

ban

ked

ad

ults

% o

f ad

ults

wit

h an

ac

coun

t at

a f

orm

al

finan

cial

inst

itut

ion

WB

Glo

bal

Fi

ndex

(cur

rent

, 14

8 co

untr

ies)

Usa

ge

Ind

ivid

uals

Dem

and

24%

18%

55%

29%

21%

74%

Num

ber

of

dep

osi

tors

p

er 1

,000

ad

ults

OR

nu

mb

er o

f d

epo

sit

acco

unts

per

1,0

00

adul

ts (%

)

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Sup

ply

53%

44%

93%

60%

50%

104%

Num

ber o

f dep

osito

rs p

er

1,00

0 ad

ults

OR

num

ber

of d

epos

it ac

coun

ts p

er

1,00

0 ad

ults

(%)

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Sup

ply

40%

35%

73%

43%

37%

80%

2

Ad

ults

wit

h cr

edit

at

reg

ulat

ed

inst

itut

ions

% o

f ad

ults

wit

h at

leas

t o

ne lo

an o

utst

and

ing

fr

om

a r

egul

ated

fina

n-ci

al in

stit

utio

n

WB

Glo

bal

Fi

ndex

(cur

rent

, 14

8 co

untr

ies)

Usa

ge

Ind

ivid

uals

Dem

and

5%4%

7%6%

5%13

%

Num

ber

of

bo

rro

wer

s p

er 1

,000

ad

ults

OR

nu

mb

er o

f o

utst

and

ing

lo

ans

per

1,0

00

adul

ts (%

)

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Sup

ply

12%

10%

24%

15%

12%

30%

Num

ber

of b

orro

wer

s p

er

1,00

0 ad

ults

OR

num

ber

of

out

stan

din

g lo

ans

per

1,

000

adul

ts (%

)

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Sup

ply

9%8%

18%

10%

9%19

%

3A

dul

ts w

ith

insu

ranc

e

Num

ber

of

insu

ranc

e p

olic

y ho

lder

s p

er

1,00

0 ad

ults

, seg

reg

at-

ed b

y lif

e an

d n

onl

ife

insu

ranc

e

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Usa

ge

Ind

ivid

uals

Sup

ply

n/a

n/a

n/a

n/a

n/a

n/a

CG

AP

Sug

ges

ted

pro

xy:

Insu

ranc

e co

rpo

rati

ons

: o

f w

hich

: Life

insu

ranc

e p

olic

ies

3%4%

3%5%

5%n/

a

CG

AP

Sug

ges

ted

pro

xy:

Insu

ranc

e co

rpo

rati

ons

: o

f w

hich

: No

nlife

insu

r-an

ce p

olic

ies

26%

20%

29%

29%

21%

33%

CG

AP

Sug

ges

ted

pro

xy:

Life

insu

ranc

e p

rem

ium

vo

lum

e as

% o

f GD

P

Wo

rld

Ban

k (c

itin

g S

igm

a R

epo

rts,

Sw

iss

Re)

Usa

ge

n/a

0.2%

0.3%

0.1%

0.2%

0.3%

0.1%

4C

ashl

ess

tran

sact

ions

Num

ber

of r

etai

l cas

hles

s tr

ansa

ctio

ns p

er c

apita

C

ashl

ess

tran

sact

ions

are

de

fined

as

the

num

ber o

f pa

ymen

ts b

y ch

eck,

cre

d-it

tran

sfer

s, d

irect

deb

its,

and

paym

ent w

ith c

redi

t an

d de

bit c

ards

.

WB

Glo

bal

Pay

-m

ents

Sys

tem

s Su

rvey

(200

9 d

ata)

Usa

ge

Ind

ivid

uals

Sup

ply

12.3

12.3

12.1

n/a

n/a

n/a

5M

obile

tr

ansa

ctio

nal

use

% o

f ad

ults

who

use

th

eir

mo

bile

dev

ice

to

mak

e a

pay

men

t

WB

Glo

bal

Fi

ndex

(cur

rent

, 14

8 co

untr

ies)

Usa

ge

Ind

ivid

uals

Dem

and

n/a

n/a

n/a

13%

12%

18%

CG

AP

sug

ges

ted

pro

xy:

Mo

bile

pho

ne u

sed

to

p

ay b

ills

(% a

ge

151

)

WB

Glo

bal

Fi

ndex

(cur

rent

, 14

8 co

untr

ies)

Usa

ge

Ind

ivid

uals

Dem

and

5%4%

14%

n/a

n/a

n/a

(Con

tinue

d)

20

Financial Inclusion Measurement in the Arab World

2011

2014

G20

#

Cat

ego

ryIn

dic

ato

rSo

urce

and

co

vera

ge

Dim

ensi

onA

spec

tTy

pe

Ave

rag

eA

vera

ge

excl

. GC

CA

vera

ge

GC

CA

vera

ge

Ave

rag

e ex

cl. G

CC

Ave

rag

e G

CC

6

Hig

h fr

eque

ncy

of

acco

unt

use

% o

f ad

ults

wit

h hi

gh

freq

uenc

y us

e o

f fo

rmal

ac

coun

t H

igh

freq

uen-

cy is

defi

ned

as

havi

ng

take

n m

one

y o

ut o

f a

per

sona

l acc

oun

t(s)

3

or

mo

re t

imes

in a

ty

pic

al m

ont

h. T

his

incl

udes

cas

h w

ith-

dra

wal

s, e

lect

roni

c p

aym

ents

or

pur

chas

es,

chec

ks, o

r an

y o

ther

ty

pe

of

pay

men

t d

ebit

, ei

ther

by

acco

unt

ow

n-er

or

thir

d p

arti

es.

WB

Glo

bal

Fi

ndex

(cur

rent

, 14

8 co

untr

ies)

Usa

ge

Ind

ivid

uals

Dem

and

29%

23%

66%

13%

7%37

%

7Sa

ving

p

rop

ensi

ty

Save

d a

t a

finan

cial

inst

i-tu

tio

n in

the

pas

t ye

ar.

Inst

itutio

ns in

clud

e b

anks

, cre

dit

unio

ns,

coop

erat

ives

, and

MFI

s.

WB

Glo

bal

Fi

ndex

(cur

rent

, 14

8 co

untr

ies)

Usa

ge

Ind

ivid

uals

Dem

and

7%5%

20%

9%6%

21%

8R

emitt

ance

s%

of

adul

ts r

ecei

ving

d

om

esti

c an

d in

tern

a-ti

ona

l rem

itta

nces

Gal

lup

Wo

rld

P

oll

Usa

ge

Ind

ivid

uals

Dem

and

7%7%

5%7%

7%5%

9Fo

rmal

ly

ban

ked

en

terp

rise

s

% o

f SM

Es

wit

h an

ac

coun

t at

a f

orm

al

finan

cial

inst

itut

ion

WB

Ent

erp

rise

Su

rvey

s ( c

urre

nt,

119

coun

-tr

ies)

. Lat

est

avai

lab

le d

ata

(200

7–20

13).

Usa

ge

Ent

erp

rise

s

Dem

and

73%

73%

n/a

n/a

n/a

n/a

Num

ber

of

SME

s w

ith

dep

osi

t ac

coun

ts/n

um-

ber

of

dep

osi

t ac

coun

ts

OR

num

ber

of

SME

d

epo

sito

rs/n

umb

er o

f d

epo

sito

rs

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Sup

ply

0.01

%0.

01%

n/a

0.01

%0.

01%

n/a

10

Ent

erp

rise

s w

ith

out

-st

and

ing

lo

an o

r lin

e o

f cr

edit

at

reg

ulat

ed

inst

itut

ions

% o

f SM

Es

wit

h o

ut-

stan

din

g lo

an o

r lin

e o

f cr

edit

WB

Ent

erp

rise

Su

rvey

s (c

ur-

rent

, 119

co

un-

trie

s). L

ates

t av

aila

ble

dat

a (2

007–

2013

).

Usa

ge

Ent

erp

rise

s

Dem

and

n/a

n/a

n/a

n/a

n/a

n/a

CG

AP

Sug

ges

ted

pro

xy:

Per

cent

age

of

firm

s w

ith

a b

ank

loan

/lin

e o

f cr

edit

WB

Ent

erp

rise

Su

rvey

s (c

ur-

rent

, 119

co

un-

trie

s). L

ates

t av

aila

ble

dat

a (2

007–

2013

).

Dem

and

22%

22%

n/a

n/a

n/a

n/a

Num

ber

of

SMEs

wit

h ou

tsta

ndin

g lo

ans/

num

-b

er o

f ou

tsta

ndin

g lo

ans

OR

num

ber

of

outs

tand

-in

g lo

ans

to S

MEs

/num

-b

er o

f ou

tsta

ndin

g lo

ans

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Sup

ply

0.0%

0.0%

n/a

0.3%

0.3%

n/a

(Con

tinue

d)

21

Financial Inclusion Measurement in the Arab World

2011

2014

G20

#

Cat

ego

ryIn

dic

ato

rSo

urce

and

co

vera

ge

Dim

ensi

onA

spec

tTy

pe

Ave

rag

eA

vera

ge

excl

. GC

CA

vera

ge

GC

CA

vera

ge

Ave

rag

e ex

cl. G

CC

Ave

rag

e G

CC

6

Hig

h fr

eque

ncy

of

acco

unt

use

% o

f ad

ults

wit

h hi

gh

freq

uenc

y us

e o

f fo

rmal

ac

coun

t H

igh

freq

uen-

cy is

defi

ned

as

havi

ng

take

n m

one

y o

ut o

f a

per

sona

l acc

oun

t(s)

3

or

mo

re t

imes

in a

ty

pic

al m

ont

h. T

his

incl

udes

cas

h w

ith-

dra

wal

s, e

lect

roni

c p

aym

ents

or

pur

chas

es,

chec

ks, o

r an

y o

ther

ty

pe

of

pay

men

t d

ebit

, ei

ther

by

acco

unt

ow

n-er

or

thir

d p

arti

es.

WB

Glo

bal

Fi

ndex

(cur

rent

, 14

8 co

untr

ies)

Usa

ge

Ind

ivid

uals

Dem

and

29%

23%

66%

13%

7%37

%

7Sa

ving

p

rop

ensi

ty

Save

d a

t a

finan

cial

inst

i-tu

tio

n in

the

pas

t ye

ar.

Inst

itutio

ns in

clud

e b

anks

, cre

dit

unio

ns,

coop

erat

ives

, and

MFI

s.

WB

Glo

bal

Fi

ndex

(cur

rent

, 14

8 co

untr

ies)

Usa

ge

Ind

ivid

uals

Dem

and

7%5%

20%

9%6%

21%

8R

emitt

ance

s%

of

adul

ts r

ecei

ving

d

om

esti

c an

d in

tern

a-ti

ona

l rem

itta

nces

Gal

lup

Wo

rld

P

oll

Usa

ge

Ind

ivid

uals

Dem

and

7%7%

5%7%

7%5%

9Fo

rmal

ly

ban

ked

en

terp

rise

s

% o

f SM

Es

wit

h an

ac

coun

t at

a f

orm

al

finan

cial

inst

itut

ion

WB

Ent

erp

rise

Su

rvey

s ( c

urre

nt,

119

coun

-tr

ies)

. Lat

est

avai

lab

le d

ata

(200

7–20

13).

Usa

ge

Ent

erp

rise

s

Dem

and

73%

73%

n/a

n/a

n/a

n/a

Num

ber

of

SME

s w

ith

dep

osi

t ac

coun

ts/n

um-

ber

of

dep

osi

t ac

coun

ts

OR

num

ber

of

SME

d

epo

sito

rs/n

umb

er o

f d

epo

sito

rs

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Sup

ply

0.01

%0.

01%

n/a

0.01

%0.

01%

n/a

10

Ent

erp

rise

s w

ith

out

-st

and

ing

lo

an o

r lin

e o

f cr

edit

at

reg

ulat

ed

inst

itut

ions

% o

f SM

Es

wit

h o

ut-

stan

din

g lo

an o

r lin

e o

f cr

edit

WB

Ent

erp

rise

Su

rvey

s (c

ur-

rent

, 119

co

un-

trie

s). L

ates

t av

aila

ble

dat

a (2

007–

2013

).

Usa

ge

Ent

erp

rise

s

Dem

and

n/a

n/a

n/a

n/a

n/a

n/a

CG

AP

Sug

ges

ted

pro

xy:

Per

cent

age

of

firm

s w

ith

a b

ank

loan

/lin

e o

f cr

edit

WB

Ent

erp

rise

Su

rvey

s (c

ur-

rent

, 119

co

un-

trie

s). L

ates

t av

aila

ble

dat

a (2

007–

2013

).

Dem

and

22%

22%

n/a

n/a

n/a

n/a

Num

ber

of

SMEs

wit

h ou

tsta

ndin

g lo

ans/

num

-b

er o

f ou

tsta

ndin

g lo

ans

OR

num

ber

of

outs

tand

-in

g lo

ans

to S

MEs

/num

-b

er o

f ou

tsta

ndin

g lo

ans

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Sup

ply

0.0%

0.0%

n/a

0.3%

0.3%

n/a

(Con

tinue

d)

22

Financial Inclusion Measurement in the Arab World

2011

2014

G20

#

Cat

ego

ryIn

dic

ato

rSo

urce

and

co

vera

ge

Dim

ensi

onA

spec

tTy

pe

Ave

rag

eA

vera

ge

excl

. GC

CA

vera

ge

GC

CA

vera

ge

Ave

rag

e ex

cl. G

CC

Ave

rag

e G

CC

11

Po

ints

of

serv

ice

(PO

S)

Num

ber

of

bra

nche

s p

er 1

00,0

00 a

dul

ts

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Acc

ess

Phy

sica

l P

OS

Sup

ply

14.9

15.5

10.8

15.3

16.0

10.9

12

Num

ber

of

ATM

s p

er

100,

000

adul

ts O

R n

um-

ber

of

ATM

s p

er 1

,000

km

²

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Sup

ply

16.5

9.9

58.1

21.4

13.1

66.7

13N

umb

er o

f P

OS

ter-

min

als

per

100

,000

in

hab

itan

ts

WB

Glo

bal

Pay

-m

ents

Sys

tem

s Su

rvey

(200

9 d

ata)

Sup

ply

157

8349

9n/

an/

an/

a

14E

-mo

ney

acco

unts

Num

ber

of

e-m

one

y ac

coun

ts f

or

mo

bile

p

aym

ents

WB

Glo

bal

P

aym

ents

Sy

stem

s Su

rvey

(2

009

dat

a)

Acc

ess

Mo

bile

P

OS

Sup

ply

n/a

n/a

n/a

n/a

n/a

n/a

15In

tero

per

-ab

ility

of

PO

S

Com

bin

ed in

dex

of:

Inte

rop

erab

ility

of A

TMs.

Ta

kes

the

valu

e 1

if M

OST

or A

LL A

TM n

et-

wor

ks a

re in

terc

onne

cted

an

d 0

if th

ey a

re N

OT

inte

rcon

nect

ed.

WB

Glo

bal

P

aym

ents

Sy

stem

s Su

rvey

(2

009

dat

a)

Acc

ess

Inte

rop

er-

abili

ty o

f P

OS

Sup

ply

1.3

1.4

1.1

n/a

n/a

n/a

Inte

rop

erab

ility

of P

OS

term

inal

s. T

akes

the 

valu

e 1

if M

OST

or A

LL P

OS

term

inal

s ar

e in

terc

on-

nect

ed a

nd 0

if th

ey a

re

NO

T in

terc

onne

cted

.

Sup

ply

1.3

1.4

1.3

n/a

n/a

n/a

16Fi

nanc

ial

kno

wle

dg

e

Fina

ncia

l kno

wle

dge

scor

e: A

rithm

etic

sco

re

that

sum

s up

cor

rect

re

spon

ses

to q

uest

ions

ab

out b

asic

fina

ncia

l con

-ce

pts,

suc

h as

(a) i

nflat

ion,

(b

) int

eres

t rat

e, (c

) com

-po

und

inte

rest

, (d)

mon

ey

illus

ion,

(e) r

isk

dive

rsifi

ca-

tion,

(f )

mai

n pu

rpos

e of

in

sura

nce.

WB

Fin

anci

al C

a-p

abili

ty S

urve

ys

& O

ECD

Nat

ion-

al F

inan

cial

Lite

r-ac

y an

d In

clus

ion

Surv

eys

(cur

rent

, 34

cou

ntrie

s co

mb

ined

, es

timat

ed 7

0 co

untr

ies

in 2

ye

ars)

Qua

lity

Fina

ncia

l Li

tera

cy &

C

apab

ility

n/a

6464

n/a

n/a

n/a

n/a

17Fi

nanc

ial

Beh

avio

ur

Sour

ce o

f em

erg

ency

fu

ndin

g R

espo

nse:

If y

ou

had

an e

mer

genc

y th

at

requ

ired

[$10

or 1

/25

of G

DPP

C] u

rgen

tly,

whe

re w

ould

you

get

the

mon

ey?

(a) b

orro

w fr

om

frie

nds/

rela

tive;

(b) w

ork

mor

e; (c

) sel

l ass

ets;

(d)

use

only

sav

ings

; (e)

loan

fr

om s

avin

gs c

lub;

(f )

loan

fr

om b

ank;

(g) w

ould

not

be

abl

e to

find

it.

WB

Glo

bal

Fi

ndex

(fo

rth-

com

ing

, 148

co

untr

ies)

Qua

lity

Fina

ncia

l Li

tera

cy &

C

apab

ility

Dem

and

n/a

n/a

n/a

n/a

n/a

n/a

CG

AP

sugg

este

d pr

oxy:

Sa

ved

for e

mer

genc

ies

in

the

past

yea

r (%

age

151

)18

%16

%29

%n/

an/

an/

a

CG

AP

sug

ges

ted

pro

xy:

Out

stan

din

g lo

an f

or

heal

th o

r em

erg

enci

es

(% a

ge

151

)

16%

17%

10%

0%0%

0%

CG

AP

sug

ges

ted

pro

xy:

Co

min

g u

p w

ith

emer

-g

ency

fun

din

g: n

ot

at a

ll p

oss

ible

(% a

ge

151

)

n/a

n/a

n/a

33.0

%33

.7%

29.5

%

(Con

tinue

d)

23

Financial Inclusion Measurement in the Arab World

2011

2014

G20

#

Cat

ego

ryIn

dic

ato

rSo

urce

and

co

vera

ge

Dim

ensi

onA

spec

tTy

pe

Ave

rag

eA

vera

ge

excl

. GC

CA

vera

ge

GC

CA

vera

ge

Ave

rag

e ex

cl. G

CC

Ave

rag

e G

CC

11

Po

ints

of

serv

ice

(PO

S)

Num

ber

of

bra

nche

s p

er 1

00,0

00 a

dul

ts

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Acc

ess

Phy

sica

l P

OS

Sup

ply

14.9

15.5

10.8

15.3

16.0

10.9

12

Num

ber

of

ATM

s p

er

100,

000

adul

ts O

R n

um-

ber

of

ATM

s p

er 1

,000

km

²

IMF

FAS

(cur

rent

, 187

co

untr

ies)

Sup

ply

16.5

9.9

58.1

21.4

13.1

66.7

13N

umb

er o

f P

OS

ter-

min

als

per

100

,000

in

hab

itan

ts

WB

Glo

bal

Pay

-m

ents

Sys

tem

s Su

rvey

(200

9 d

ata)

Sup

ply

157

8349

9n/

an/

an/

a

14E

-mo

ney

acco

unts

Num

ber

of

e-m

one

y ac

coun

ts f

or

mo

bile

p

aym

ents

WB

Glo

bal

P

aym

ents

Sy

stem

s Su

rvey

(2

009

dat

a)

Acc

ess

Mo

bile

P

OS

Sup

ply

n/a

n/a

n/a

n/a

n/a

n/a

15In

tero

per

-ab

ility

of

PO

S

Com

bin

ed in

dex

of:

Inte

rop

erab

ility

of A

TMs.

Ta

kes

the

valu

e 1

if M

OST

or A

LL A

TM n

et-

wor

ks a

re in

terc

onne

cted

an

d 0

if th

ey a

re N

OT

inte

rcon

nect

ed.

WB

Glo

bal

P

aym

ents

Sy

stem

s Su

rvey

(2

009

dat

a)

Acc

ess

Inte

rop

er-

abili

ty o

f P

OS

Sup

ply

1.3

1.4

1.1

n/a

n/a

n/a

Inte

rop

erab

ility

of P

OS

term

inal

s. T

akes

the 

valu

e 1

if M

OST

or A

LL P

OS

term

inal

s ar

e in

terc

on-

nect

ed a

nd 0

if th

ey a

re

NO

T in

terc

onne

cted

.

Sup

ply

1.3

1.4

1.3

n/a

n/a

n/a

16Fi

nanc

ial

kno

wle

dg

e

Fina

ncia

l kno

wle

dge

scor

e: A

rithm

etic

sco

re

that

sum

s up

cor

rect

re

spon

ses

to q

uest

ions

ab

out b

asic

fina

ncia

l con

-ce

pts,

suc

h as

(a) i

nflat

ion,

(b

) int

eres

t rat

e, (c

) com

-po

und

inte

rest

, (d)

mon

ey

illus

ion,

(e) r

isk

dive

rsifi

ca-

tion,

(f )

mai

n pu

rpos

e of

in

sura

nce.

WB

Fin

anci

al C

a-p

abili

ty S

urve

ys

& O

ECD

Nat

ion-

al F

inan

cial

Lite

r-ac

y an

d In

clus

ion

Surv

eys

(cur

rent

, 34

cou

ntrie

s co

mb

ined

, es

timat

ed 7

0 co

untr

ies

in 2

ye

ars)

Qua

lity

Fina

ncia

l Li

tera

cy &

C

apab

ility

n/a

6464

n/a

n/a

n/a

n/a

17Fi

nanc

ial

Beh

avio

ur

Sour

ce o

f em

erg

ency

fu

ndin

g R

espo

nse:

If y

ou

had

an e

mer

genc

y th

at

requ

ired

[$10

or 1

/25

of G

DPP

C] u

rgen

tly,

whe

re w

ould

you

get

the

mon

ey?

(a) b

orro

w fr

om

frie

nds/

rela

tive;

(b) w

ork

mor

e; (c

) sel

l ass

ets;

(d)

use

only

sav

ings

; (e)

loan

fr

om s

avin

gs c

lub;

(f )

loan

fr

om b

ank;

(g) w

ould

not

be

abl

e to

find

it.

WB

Glo

bal

Fi

ndex

(fo

rth-

com

ing

, 148

co

untr

ies)

Qua

lity

Fina

ncia

l Li

tera

cy &

C

apab

ility

Dem

and

n/a

n/a

n/a

n/a

n/a

n/a

CG

AP

sugg

este

d pr

oxy:

Sa

ved

for e

mer

genc

ies

in

the

past

yea

r (%

age

151

)18

%16

%29

%n/

an/

an/

a

CG

AP

sug

ges

ted

pro

xy:

Out

stan

din

g lo

an f

or

heal

th o

r em

erg

enci

es

(% a

ge

151

)

16%

17%

10%

0%0%

0%

CG

AP

sug

ges

ted

pro

xy:

Co

min

g u

p w

ith

emer

-g

ency

fun

din

g: n

ot

at a

ll p

oss

ible

(% a

ge

151

)

n/a

n/a

n/a

33.0

%33

.7%

29.5

%

(Con

tinue

d)

24

Financial Inclusion Measurement in the Arab World

2011

2014

G20

#

Cat

ego

ryIn

dic

ato

rSo

urce

and

co

vera

ge

Dim

ensi

onA

spec

tTy

pe

Ave

rag

eA

vera

ge

excl

. GC

CA

vera

ge

GC

CA

vera

ge

Ave

rag

e ex

cl. G

CC

Ave

rag

e G

CC

18D

iscl

osu

re

Req

uire

-m

ents

Dis

clo

sure

ind

ex c

om

-b

inin

g e

xist

ence

of

a va

riet

y o

f d

iscl

osu

re

req

uire

men

ts:

(1) P

lain

lang

uag

e re

-q

uire

men

t (e

.g.,

und

er-

stan

dab

le, p

rohi

biti

on

of h

idd

en c

laus

es),

(2) L

ocal

lang

uag

e re

qui

rem

ent,

(3) P

re-

scrib

ed s

tand

ard

ized

d

iscl

osur

e fo

rmat

, (4

) Rec

ours

e rig

hts

and

pro

cess

es (5

) Tot

al

rate

to

be

pai

d fo

r a

cred

it (b

asic

cos

ts p

lus

com

mis

sion

rat

es, f

ees,

in

sura

nce,

tax

es).

WB

Glo

bal

Fi

nanc

ial

Co

nsum

er P

ro-

tect

ion

Surv

ey

(cur

rent

, 102

co

untr

ies)

201

3 d

ata

Qua

lity

Mar

ket

Co

nduc

t &

C

ons

umer

P

rote

ctio

n

n/a

n/a

n/a

n/a

n/a

n/a

n/a

CG

AP

sug

ges

ted

pro

xy:

Co

unt

of

6 p

rici

ng d

is-

clo

sure

req

uire

men

ts3.

73.

93.

23.

73.

93.

2

19D

isp

ute

Res

olu

tio

n

Ind

ex re

flect

ing

the

exis

-te

nce

of fo

rmal

inte

rnal

an

d e

xter

nal d

isp

ute

reso

lutio

n m

echa

nism

s:

(a) I

nter

nal d

ispu

te re

solu

-tio

n m

echa

nism

indi

cato

r:

law

or r

egul

atio

n se

ttin

g

stan

dard

s fo

r com

plai

nts

reso

lutio

n an

d ha

ndlin

g

by fi

nanc

ial i

nstit

utio

ns

(incl

udin

g tim

elin

ess,

ac-

cess

ibili

ty, r

equi

rem

ents

to

impl

emen

t com

plai

nts

hand

ling

proc

edur

es)

(b) E

xter

nal d

ispu

te re

so-

lutio

n m

echa

nism

indi

ca-

tor:

Syst

em in

pla

ce th

at

allo

ws

a cu

stom

er to

see

k af

ford

able

and

effi

cien

t re

cour

se w

ith a

third

par

-ty

(sup

ervi

sory

age

ncy,

a

finan

cial

om

buds

man

or

equi

vale

nt in

stitu

tion)

WB

Glo

bal

Fi

nanc

ial

Co

nsum

er

Pro

tect

ion

Surv

ey (c

urre

nt,

102

coun

trie

s)

2013

dat

a

Qua

lity

Mar

ket

Co

nduc

t &

C

ons

umer

P

rote

ctio

n

n/a

n/a

n/a

n/a

n/a

n/a

n/a

CG

AP

sug

ges

ted

pro

xy:

Cou

nt o

f int

erna

l mec

h-an

ism

s 1

cou

nt o

f ext

er-

nal m

echa

nism

s

n/a

n/a

n/a

n/a

n/a

n/a

(Con

tinue

d)

25

Financial Inclusion Measurement in the Arab World

2011

2014

G20

#

Cat

ego

ryIn

dic

ato

rSo

urce

and

co

vera

ge

Dim

ensi

onA

spec

tTy

pe

Ave

rag

eA

vera

ge

excl

. GC

CA

vera

ge

GC

CA

vera

ge

Ave

rag

e ex

cl. G

CC

Ave

rag

e G

CC

18D

iscl

osu

re

Req

uire

-m

ents

Dis

clo

sure

ind

ex c

om

-b

inin

g e

xist

ence

of

a va

riet

y o

f d

iscl

osu

re

req

uire

men

ts:

(1) P

lain

lang

uag

e re

-q

uire

men

t (e

.g.,

und

er-

stan

dab

le, p

rohi

biti

on

of h

idd

en c

laus

es),

(2) L

ocal

lang

uag

e re

qui

rem

ent,

(3) P

re-

scrib

ed s

tand

ard

ized

d

iscl

osur

e fo

rmat

, (4

) Rec

ours

e rig

hts

and

pro

cess

es (5

) Tot

al

rate

to

be

pai

d fo

r a

cred

it (b

asic

cos

ts p

lus

com

mis

sion

rat

es, f

ees,

in

sura

nce,

tax

es).

WB

Glo

bal

Fi

nanc

ial

Co

nsum

er P

ro-

tect

ion

Surv

ey

(cur

rent

, 102

co

untr

ies)

201

3 d

ata

Qua

lity

Mar

ket

Co

nduc

t &

C

ons

umer

P

rote

ctio

n

n/a

n/a

n/a

n/a

n/a

n/a

n/a

CG

AP

sug

ges

ted

pro

xy:

Co

unt

of

6 p

rici

ng d

is-

clo

sure

req

uire

men

ts3.

73.

93.

23.

73.

93.

2

19D

isp

ute

Res

olu

tio

n

Ind

ex re

flect

ing

the

exis

-te

nce

of fo

rmal

inte

rnal

an

d e

xter

nal d

isp

ute

reso

lutio

n m

echa

nism

s:

(a) I

nter

nal d

ispu

te re

solu

-tio

n m

echa

nism

indi

cato

r:

law

or r

egul

atio

n se

ttin

g

stan

dard

s fo

r com

plai

nts

reso

lutio

n an

d ha

ndlin

g

by fi

nanc

ial i

nstit

utio

ns

(incl

udin

g tim

elin

ess,

ac-

cess

ibili

ty, r

equi

rem

ents

to

impl

emen

t com

plai

nts

hand

ling

proc

edur

es)

(b) E

xter

nal d

ispu

te re

so-

lutio

n m

echa

nism

indi

ca-

tor:

Syst

em in

pla

ce th

at

allo

ws

a cu

stom

er to

see

k af

ford

able

and

effi

cien

t re

cour

se w

ith a

third

par

-ty

(sup

ervi

sory

age

ncy,

a

finan

cial

om

buds

man

or

equi

vale

nt in

stitu

tion)

WB

Glo

bal

Fi

nanc

ial

Co

nsum

er

Pro

tect

ion

Surv

ey (c

urre

nt,

102

coun

trie

s)

2013

dat

a

Qua

lity

Mar

ket

Co

nduc

t &

C

ons

umer

P

rote

ctio

n

n/a

n/a

n/a

n/a

n/a

n/a

n/a

CG

AP

sug

ges

ted

pro

xy:

Cou

nt o

f int

erna

l mec

h-an

ism

s 1

cou

nt o

f ext

er-

nal m

echa

nism

s

n/a

n/a

n/a

n/a

n/a

n/a

(Con

tinue

d)

26

Financial Inclusion Measurement in the Arab World

2011

2014

G20

#

Cat

ego

ryIn

dic

ato

rSo

urce

and

co

vera

ge

Dim

ensi

onA

spec

tTy

pe

Ave

rag

eA

vera

ge

excl

. GC

CA

vera

ge

GC

CA

vera

ge

Ave

rag

e ex

cl. G

CC

Ave

rag

e G

CC

20

Co

st o

f U

sag

e

Ave

rag

e co

st o

f o

pen

ing

a

bas

ic c

urre

nt a

cco

unt

WB

Glo

bal

P

aym

ents

Sy

stem

s Su

rvey

(2

009

dat

a)

Qua

lity

Bar

rier

s to

us

eSu

pp

ly

n/a

n/a

n/a

n/a

n/a

n/a

21

Ave

rag

e co

st o

f m

ain-

tain

ing

a b

asic

ban

k cu

rren

t ac

coun

t (a

nnua

l fe

es)

n/a

n/a

n/a

n/a

n/a

n/a

22A

vera

ge

cost

of

cred

it

tran

sfer

sn/

an/

an/

an/

an/

an/

a

23C

red

it

Bar

rier

s

% o

f SM

Es

req

uire

d

to p

rovi

de

colla

tera

l o

n th

eir

last

ban

k lo

an

(refl

ects

the

tig

htne

ss o

f cr

edit

co

ndit

ions

)

WB

Ent

erp

rise

Su

rvey

s an

d

OE

CD

SM

E

Sco

reb

oar

d

(Lat

est

avai

lab

le

dat

a ( 2

007–

2013

).

Qua

lity

Bar

rier

s to

us

eD

eman

d

n/a

n/a

n/a

n/a

n/a

n/a

CG

AP

sug

ges

ted

pro

xy:

Pro

po

rtio

n o

f lo

ans

re-

qui

ring

co

llate

ral (

%)

81%

81%

n/a

n/a

n/a

n/a

24

Get

ting

cre

dit

: Dis

tanc

e to

fro

ntie

r M

easu

res

the

exte

nt o

f in

form

atio

nal b

arrie

rs in

cr

edit

mar

kets

WB

G D

oin

g

Bus

ines

s (c

urre

nt, 1

85

coun

trie

s)

Qua

lity

Bar

rier

s to

us

en/

a34

2946

3833

52