The Kingdom of Saudi Arabia, historically best known for its vast oil wealth, is aggressively pursuing new plans to establish itself as a leading global financial hub.
As Saudi Arabia looks to diversify its economy, it is heavily investing in financial services. But how has it decided to achieve this goal? To find out, we’ve put together a fintech overview of the country, sharing a variety of key facts and statistics.
Financial Hubs
Riyadh (Ranked 84th globally) and also the capital city Jeddah (historical commercial hub).
Key Economic Development Strategy
Economic, financial services and fintech overview
Saudi Arabia is undergoing significant economic development driven by its national strategy, Saudi Vision 2030. Central to this transformation is the creation of multiple giga-projects, including the King Abdullah Financial District, a new mixed-use financial centre in Riyadh.
Alongside physical infrastructure development, Saudi Arabia is prioritising the digital transformation of its financial services sector through initiatives like the Financial Sector Development Programme (FSDP).
The FSDP launched the Fintech Strategy Implementation Plan in 2022 to accelerate the growth of Saudi Arabia’s fintech sector and establish Riyadh as a global fintech hub. The ambitious plan aims to triple the number of fintech companies to 230 by 2025, increase digital transactions to 70 per cent within three years, and contribute $1.2billion to the GDP while creating 6,000 new jobs by 2025. By 2030, Saudi Arabia aims to have 525 fintech companies, generating nearly 18,000 jobs.
A key milestone in Saudi Arabia’s fintech journey is its push for open banking, with the launch of a new open banking framework by the Saudi Arabian Monetary Authority (SAMA) – now known as Saudi Central Bank in 2022. The country also leads in venture capital funding in the Middle East and North Africa (MENA) region, securing the top spot for the first time in 2022.
Saudi Arabia boasts one of the highest rates of mobile adoption in the region, with a strong embrace of digital technologies. Contactless payments, particularly through Near-Field Communication (NFC), are widely adopted, with a rate exceeding 94 per cent.
Fintech companies in Saudi Arabia, such as Tamara, Geidea, Lean Technologies, and Foodics, are at the forefront of innovation, offering solutions ranging from buy now, pay later (BNPL) services to point-of-sale (POS) systems and open banking infrastructure.
Key organisations
- Saudi Central Bank (SAMA) – Kingdom’s main central bank
- Capital Market Authority – Country’s capital market authority
- Fintech Saudi – The main body promoting the local fintech industry
- King Abdullah Financial District (KAFD) – An under-construction financial district in Riyadh
- Saudi Investment Promotion Authority (SIPA) – Established to attract national and foreign investment as part of the National Investment Strategy
- Financial Academy – Body responsible for upskilling professionals in the wider financial services sector
- Council of Cooperative Health Insurance – To be an international leader in prevention and improving value in health care services for the health insurance beneficiaries
Breakdown of sector
Timeline of key fintech highlights
2012
Finance Companies Control Law passed – any business engaging in FS needs SAMA licence
2018
Fintech catalyst Fintech Saudi launched by SAMA and the CMA
The CMA issues financial technology experimental permit instructions
SAMA launches regulatory sandbox initiative
2020
SAMA launches its Payment Service Provider Regulations
Key statistics
