Saudi Arabia has witnessed a significant increase in investments in the fintech sector, according to Ziad Al Yousef, deputy governor for development and technology at Saudi Central Bank. This comes after implementing the Financial Sector Development Strategy, a key pillar of Saudi Vision 2030. He revealed that before implementing the strategy, there were only 60 fintech companies. Now, at the end of October, 205 companies are operating in this sector.
Fintech sector in Saudi Arabia
Al Yousef explained during the virtual opening session of the sixth FinTech Saudi that the strategy aims to raise the capabilities of the initiative. In doing so, it helps support the strategy’s ambitions in providing new services based on market needs. The strategy also aims to enhance global access to fintech ecosystems in other countries.
Additionally, the growth of Saudi’s fintech sector has led to the expansion of Saudi’s job market. Al-Yousef revealed that the number of new job opportunities created has reached about 5,000 jobs. This growth is attributed to the presence of a clear strategy, initiatives, and performance indicators. These factors help to raise Saudi Arabia’s position in the fintech sector in addition to other fields.
The role of Saudi youth
Saudi youth play a pivotal role in the country’s growth and the success of its strategies. According to Yazeed AlDemaigi, Capital Market Authority’s undersecretary for Strategic and International Affairs, the growth that has occurred in the past three years of development in the Saudi fintech market is due to the empowerment that the sector has obtained.
Moreover, this development is due to Saudi’s young people, who constitute the largest demographic in the kingdom. Their increasing adoption of fintech products and solutions has contributed to the growth of the sector.
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FinTech Saudi
AlDemaigi also stressed the role of Fintech Saudi in this growth. It is one of the programs that support entrepreneurs and those interested in the field. This initiative provides support and awareness programs on legislative matters and is a bridge of communication with legislators.
AlDemaigi also pointed out that Saudi Arabia will focus on the Financial Sector Development Strategy and the initiatives assigned to FinTech Saudi. It aims to empower Saudi entrepreneurs and move the kingdom to the forefront of the sector globally by attracting companies specialized in this field.
Regarding fintech companies in financial markets, AlDemaigi said that the number has increased and now totals 41 companies. He added: “We have more than seven models, including crowdfunding, robo-advisor, and artificial intelligence.”
Moreover, AlDemaigi revealed that the volume of crowdfunding exceeded SAR3 billion or $799.7 million. Most of this funding will be used to support startups and medium-sized companies. As for the robo-advisor, the volume of managed assets exceeded SAR1 billion. Moreover, most of the participants in this initiative are young people who have adopted a culture of saving.
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