Saudi Arabia Emerges as a Global FinTech Hub
Saudi Arabia is making significant strides in its goal to become a global FinTech hub, in line with Vision 2030’s Financial Sector Development Program (FSDP).
KPMG Report Unveils the Future of FinTech in Saudi Arabia
KPMG’s latest report, “Unlocking the future: An overview of the FinTech opportunity in Saudi Arabia,” was unveiled during FinTech 24, a flagship event hosted by the Financial Sector Development Program, the Saudi Central Bank (SAMA), the Capital Market Authority (CMA), and the Insurance Authority (IA). The event, organized by FinTech Saudi, delves into the Kingdom’s rapidly expanding FinTech landscape, highlighting growth drivers, emerging trends, and strategic opportunities for investors and businesses.
Surge in FinTech Investment Despite Global Challenges
Despite global challenges in the first half of 2024, Saudi Arabia saw a surge in FinTech investment. Between September 2020 and December 2023, Saudi FinTechs attracted over $1.14 billion, with $791 million invested in 2023 alone – marking a significant 231 percent increase from the previous year.
The Financial Transformation in Saudi Arabia
Antony Ruddenklau, Global Head of Financial Services Innovation and Fintech at KPMG International, stated, “Saudi Arabia’s strategic vision is fueling a FinTech revolution. The growth in digital payments and Buy Now Pay Later (BNPL) products marks the beginning of a financial transformation that will reshape the Kingdom’s economy.”
Regulatory Support Drives FinTech Growth
The Kingdom’s commitment to FinTech, supported by the FSDP and FinTech Strategy Implementation Plan, has led to a surge in investments, startups, and digital payments adoption. Regulatory bodies like the Saudi Central Bank (SAMA) and the Capital Markets Authority (CMA) have played a crucial role in creating a conducive ecosystem for FinTechs to thrive.
Expanding FinTech Landscape in Saudi Arabia
Key growth drivers in the Saudi FinTech sector include the transition towards a cashless society, robust payment infrastructure, and developments in areas such as cybersecurity, RegTech, SME lending, trade finance, ClimateTech, open banking, and digital banking.
Opportunities for Investors and Businesses
With trends like alternative financing options, open banking, and digital payments on the rise, Saudi Arabia presents promising opportunities for investors, founders, and established organizations. The Kingdom’s focus on innovation and collaboration with FinTechs is set to drive further growth and success in the sector.
