Angry US reaction to Knesset vote to annex occupied West Bank.
The Israeli parliament has voted to annex the occupied West Bank – a move unlikely to become law but described as an “insult” by United States Vice President JD Vance.
President Donald Trump insists annexation won’t happen, but Israeli settler violence is escalating.
So are US-Israeli relations in upheaval?
Presenter: Adrian Finighan
Guests:
Alon Pinkas – Former Israeli ambassador and Consul General in New York
Mark Pfeifle – Republican strategist and president of Off the Record Strategies
Gideon Levy – Columnist at Haaretz newspaper and author of “The Punishment of Gaza”
WASHINGTON — FBI Director Kash Patel touted his leadership of the nation’s premier federal law enforcement agency at a congressional hearing likely to be dominated by questions about the investigation into Charlie Kirk’s killing and the recent firings of senior FBI officials who have accused Patel of illegal political retribution.
The appearance Tuesday before the Senate Judiciary Committee represents the first oversight hearing of Patel’s young but tumultuous tenure and provides a high-stakes platform for him to try to reassure skeptical Democrats that he is the right person for the job at a time of internal upheaval and mounting concerns about political violence inside the United States.
Patel rattled off a series of what he said were accomplishments of his first months on the job, including his efforts to fight violent crime and protect children. Nodding to criticism from Democrats, he closed his remarks by saying: “If you want to criticize my 16 years of service, please bring it on.”
Patel returned to the committee for the first time since his confirmation hearing in January, when he asserted that he would not pursue retribution as director. He’ll face questions Tuesday about whether he did exactly that when the FBI last month fired five agents and senior officials in a purge that current and former officials say weakened morale and contributed to unease inside the nation’s premier federal law enforcement agency.
Three of those officials sued last week in a federal complaint that says Patel knew the firings were likely illegal but carried them out anyway to protect his job. One of the officials helped oversee investigations into the Jan. 6 2021, riot at the U.S. Capitol, and another clashed with Justice Department leadership while serving as acting director in the early days of President Donald Trump’s administration. The FBI has declined to comment on the lawsuit.
Republican lawmakers, who make up the majority in the committee, are expected to show solidarity for Patel, a close ally of Trump, and are likely to praise the director for his focus on violent crime and illegal immigration.
Sen. Chuck Grassley of Iowa, the committee’s Republican chairman, signaled his support for Patel at the outset of the hearing, praising the director for having “begun the important work of returning the FBI to its law enforcement mission.”
“It’s well understood that your predecessor left you an FBI infected with politics,” Grassley stated.
The panel’s top Democrat, Sen. Dick Durbin of Illinois, described Patel as “arguably the most partisan FBI director ever.”
“Director Patel has already inflicted untold damage on the FBI, putting our national security and public safety at risk,” Durbin said.
Republicans are also likely to try to elicit from Patel fresh details about the investigation into Kirk’s assassination at a Utah college campus last week, which authorities have said was carried out by a 22-year-old man who had grown more political in recent years and had ascribed to a “leftist ideology.”
Patel drew scrutiny when, hours after Kirk’s killing, he posted on social media that “the subject” was in custody even though the shooting suspect remained on the loose and was not arrested until he turned himself in late the following night.
Patel has not explained that post but has pointed to his decision to authorize the release of photographs of the suspect, Tyler Robinson, while he was on the run as a key development that helped facilitate an arrest. A Fox News Channel journalist reported Saturday that Trump had told her that Patel and the FBI have “done a great job.”
Robinson is due to make his first court appearance in Utah. It’s unclear whether he has an attorney, and his family has declined to comment.
Another line of questioning for Patel may involve Democratic concerns that he is politicizing the FBI through politically charged investigations, including into longstanding Trump grievances. Agents and prosecutors, for instance, have been seeking interviews and information as they reexamine aspects of the years-old FBI investigation into potential coordination between Russia and Trump’s 2016 presidential campaign.
Patel has repeatedly said his predecessors at the FBI and Justice Department who investigated and prosecuted Trump were the ones who weaponized the institutions.
Gulf fintechs are challenging banks’ and brokerages’ long-standing dominance, as the GCC forcefully pursues a digital future.
Across the Gulf Cooperation Council (GCC) states, a new generation of fintech start-ups are challenging the dominance of incumbent banks and brokerage firms. With the United Arab Emirates emerging as a hub, the region is experiencing a widespread digitalization of financial services, driven by mobile-first platforms, specific regulations, and growing consumer demand for transparency, specialization, efficiency, and speed.
“The GCC fintech ecosystem is undergoing a structural shift, shaped by macroeconomic diversification, digital policy agendas, and a wave of consumer-first innovation,” says Said Murad, a senior partner at UAE-based venture capital firm Global Ventures. “Trends attracting investor attention include the rise of open banking, increased adoption of embedded financial services, and mainstreaming of alternative lending and wealth solutions.”
Dubai International Financial Centre (DIFC) in the lead, the UAE now hosts more than 1304 AI, FinTech and innovation companies. Meanwhile, Abu Dhabi Global Market (ADGM) has become a testbed for open banking and digital asset regulation. Together, they are positioning the emirates as a major global fintech ecosystem.
From buy-now-pay-later (BNPL) services and payment platforms to Islamic digital banks and brokerage apps, Gulf fintechs are gaining traction with both users and investors. Start-ups like Tabby and Tamara have made their mark in consumer credit while wealthtech platforms like Sarwa have made investing more accessible to a broader demographic.
“Digital payments dominate the GCC fintech landscape, projected to hold a 90% market share and volumes of $7 trillion by 2032,” says Ivo Detelinov, general partner at Salica Oryx Fund. “Open banking is gaining traction, with Bahrain pioneering regulations and Saudi Arabia having implemented its Open Banking Policy in 2022. Islamic fintech is also on the rise, with assets in Islamic banking projected to reach $4 trillion by 2026, primarily driven by GCC nations.”
Challenging The Old Guard
Fintech development is increasingly pressuring incumbent Gulf banks and brokers to adapt. Many traditional institutions still rely on legacy infrastructure, manual processes, and rigid compliance frameworks, slowing their ability to innovate and respond to changing consumer expectations.
“Without bold investment in modernization, established players risk being outpaced by digital-native challengers offering faster, more agile, and lower-cost services,” warns Sara Grinstead, managing director at Alvarez & Marsal.
The brokerage sector has also been slow to adapt. While some firms have introduced digital onboarding or trimmed commissions, many still lack the user-friendly design, transparency, and product diversity that a younger, more globalized investor base expects.
A key advantage of fintechs is structural, argues Samy Mohamed, CEO of Tabadulat, a new ADGM-based, digital Shariah-compliant brokerage.
“Incumbent brokers are often tied to legacy systems and limited by domestic markets, making them slow and expensive,” he says. “As a global, digitally native platform, we have a significant cost advantage that we pass directly to our customers.”
Independence is Tabadulat’s most powerful advantage, he adds. “We aren’t beholden to outdated models. This allows us to innovate new Shariah-compliant financial structures that were previously unattainable to retail investors.”
Challenger Banks Gain Ground
The UAE is becoming a hotspot not just for fintech growth but also in driving institutional innovation.
Emirates NBD, First Abu Dhabi Bank (FAB), and Abu Dhabi Islamic Bank (ADIB) have actively invested in next-generation platforms and API ecosystems. New ventures like Wio Bank, launched with backing from ADQ, Alpha Dhabi, e& (Etisalat) and FAB, signal a strategic shift toward purpose-built digital banking infrastructure while fintechs are filling specific market gaps.
Ruya, a fully digital Islamic community bank, typifies this emerging model. Ruya offers UAE Pass integration, which enables full digital onboarding in under five minutes, and mobile-first banking, with no hidden fees or minimum balance and access to digital assets.
Christoph Koster, CEO, ruya
CEO Christoph Koster, says: “We’re the world’s first Islamic bank to offer direct access to cryptocurrencies like Bitcoin and Ethereum in collaboration with our fintech partner Fuze [a cloud communications and collaboration software platform] and are working on introducing digital gold, stocks, and ETFs as well as other asset classes, all available within the ruya app.”
Koster sees fintechs like ruya as collaborators rather than adversaries of traditional banks.
“Fintechs bring agility and niche focus; ruya brings regulatory credibility, customer trust, and ethical oversight. Together, we can innovate faster, with trust,” he says.
Faced with mounting competition, traditional institutions are adapting, albeit unevenly. Some have launched digital subsidiaries while others have taken equity stakes in fintechs or entered strategic partnerships.
Emirates NBD, for example, has partnered with BNPL provider Tabby’as the issuing bank for its card. Mashreq, another Dubai-based lender, has embraced a banking-as-a-service (BaaS) model, offering core infrastructure to emerging fintechs. FAB and ADIB continue to scale their in-house digital capabilities and innovation labs.
In Saudi Arabia, some lenders have launched their own BaaS models while others collaborate with fintech firms. In April 2025, Al Rajhi Bank announced a strategic partnership with Muhide, a Saudi fintech platform, to digitally authenticate and govern SMEs’ finance transactions.
“Banks in the GCC have primarily focused on digital transformation, making heavy investments in mobile channels, technology delivery hubs, and the transformation of branches,” notes Sheinal Jayantilal, partner and leader of McKinsey’s Retail Banking and Fintech Practice in EEMEA. “Some banks have even rationalized their branch networks to lower servicing costs, which has been a significant step in staying relevant and meeting customer demands.”
But the pace of change varies significantly. Compliance-heavy operations, siloed decision-making, and cultural resistance often hold back legacy players
“Fintech competition is now a tangible reality for banks in the GCC. What was once theoretical is now a boardroom concern,” says Mustafa Domanic, a partner in Oliver Wyman’s Dubai office. “Banks shouldn’t fear the migration of customers; it’s already happening. The winners will be those who participate in the transformation, not resist it.”
Regulatory Catalyst
Much of the momentum in fintech across the GCC is being fuelled by forward-thinking regulators. The UAE’s ADGM and DIFC have launched regulatory sandboxes, fast-track licensing schemes, and frameworks for digital assets and open banking.
The UAE stands out as a progressive regulatory environment in the GCC, says Mohamed Fairooz, Middle East lead at Standard Chartered’s SC Ventures. “We see the regulator here proactively embracing fintech, digital assets and innovation sandboxes.”
Saudi Arabia, too, is catching up. Under Vision 2030, the kingdom aims to host 525 fintechs by the end of the decade. The Saudi Central Bank and the Capital Market Authority have introduced sandboxes and digital finance strategies to attract innovation.
Other jurisdictions, like Bahrain, are introducing emerging technologies in a bid to attract tech firms and investors.
“Bahrain has emerged as a regulatory test-bed thanks to the Central Bank of Bahrain’s early embrace of sandboxes and open banking,” notes Grinstead. “It has attracted digital banking and compliance technology innovators, although market size presents scalability limits without cross-border expansion.”
Indeed, cross-border scalability remains a pain point. Fragmented regulation, duplicative licensing, and differing compliance requirements across jurisdictions hinder regional expansion.
Staying Competitive
As Gulf fintechs mature, some will acquire full banking licences while incumbent banks and brokers will increasingly seek to embed fintech capabilities to stay competitive.
McKinsey forecasts that MENA will be the fastest-growing region globally, with 35% annual growth in fintech net revenue until 2028, compared with a global average of 15%. A large proportion of this growth will be driven by the GCC’s banking sector.
Sectors like embedded finance, AI-driven personal finance, and wealthtech are driving the next wave of growth. M&A will also accelerate as banks acquire fintechs to fast-track innovation, according to a report by Lucidity Insights.
For traditional banks and brokers, survival will require more than digitizing legacy systems; it will demand a rethinking of the entire value chain. Pricing models, onboarding, product offerings, and ethical frameworks will all need reinvention.
“To remain competitive,” Domanic argues, “banks must closely monitor developments in the fintech sector and understand how emerging business models may impact their core operations.”
