Saudi Arabia’s fintech sector has seen unprecedented growth in the last few years, exceeding all expectations in terms of number of companies, job creation, investment, and contribution to the GDP. This growth is proof of fintech’s growing impact on the Saudi economy.
Emils Kerimovs, EKTICO CEO and fintech entrepreneur, believes this boom is driven by several factors, strong government support, young and tech savvy population and growing demand for innovative financial solutions. “Saudi Arabia is becoming a global fintech hub” says Kerimovs. “Government’s Vision 2030 and the measures taken to create a fintech ecosystem has created a perfect environment for innovation and growth.”
Kerimovs stresses the importance of regulatory developments in this growth. “New regulations for sectors like BNPL, insurtech and payment services provides a clear framework for companies to operate in, encourages investment and confidence in the market” he explains.
He also highlights the role of talent development in sustaining this momentum. “Fintech Career Fair is crucial in attracting and nurturing local talent” says Kerimovs. “By providing young Saudis with the skills and opportunities to succeed in the fintech sector, the Kingdom is building a foundation for future growth.”
Looking forward Kerimovs is positive about fintech in Saudi Arabia. “With government support and private sector investment Saudi Arabia will be a global fintech leader” he predicts. “Fintech will continue to contribute to the national economy, create jobs, and drive diversification.”
Key Highlights 2023:
- Fintech Companies: 216 active fintech companies in Saudi Arabia by the end of 2023, 140% growth from 2021, exceeding expectations by a big margin.
- Job Creation: 6,726 direct jobs created in 2023, 4 times growth from 2021, fintech’s growing contribution to employment in the Kingdom.
- Investment: SAR 6.9 billion (US$1.8 billion) invested in Saudi Arabia’s fintech sector in 2023, 830% above initial targets.
- GDP Contribution: SAR 3 billion (US$1 billion) contribution to Saudi Arabia’s GDP in 2023, exceeding targets and growing contribution to the national economy.
Growth Drivers:
- Regulatory: New regulations for emerging sectors like BNPL, insurtech and payment services provides a clear framework for innovation and growth.
- Talent: Fintech Career Fair with over 8,000 job seekers focused on fintech talent and job creation.
- Infrastructure: Makken, Open Banking Lab and Cyber Anti-Fraud Program provided support to fintech companies in areas of cybersecurity, cloud computing, open banking and fraud prevention.
- International: Partnerships with international organizations and industry leaders for knowledge sharing and collaboration to strengthen the Saudi fintech ecosystem.
Vision 2030 and Fintech 2030:
Fintech growth in Saudi Arabia is aligned with Vision 2030, the Kingdom’s plan to diversify the economy and promote non-oil sectors. Fintech 2030, launched in 2022, has clear objectives for the sector growth: more companies, more jobs, more investment and more contribution to GDP.
Saudi Fintech Landscape:
Saudi has a diverse fintech ecosystem with companies offering various products and services. Payments is the largest vertical currently, followed by business tools, alternative investments, and finance. Other emerging verticals are investment management, insurtech, open banking, and digital banking.
Saudi fintech is regulated by SAMA, CMA, and IA to ensure a secure environment for innovation and growth.
Conclusion:
The growth of fintech in Saudi Arabia is proof of the Kingdom’s commitment to innovation and diversification. With government, private sector, and international partner’s support, fintech will play an even bigger role in Saudi’s future and fintech entrepreneurs like Emils Kerimovs are leading the way.
Blog Received On Mail
