RIYADH: Saudi Arabia is in the midst of a fintech boom with the number of companies operating in the sector more than doubling already this year compared to the end of 2022, according to the Kingdom’s central bank chief.
Ayman Al-Sayari, governor of the Saudi Central Bank, also known as SAMA, revealed that as of August 2023, over 200 of these firms are now present in the economy – up from 89 in 2022.
The bank’s annual fintech report showed that in 2021 the number of fintech companies operating in Saudi Arabia was just 51 – meaning there has been an increase of around 300 percent in less than two years.
The growth comes as SAMA has taken strategic initiatives to support the fintech ecosystem in the Kingdom, and speaking during the Arab Banking Conference being held in Riyadh, Al-Sayari highlighted a collaboration between the bank and the Capital Market Authority to launch a program aimed at bolstering startups in the sector.
This initiative will provide comprehensive packages designed to accelerate the growth of these companies, he added.
SAMA’s annual fintech report for 2022 further underscored the sector’s growth, noting that the Kingdom ended the year with 30 licensed firms specializing in finance, insurance, and payments.
The report also highlighted a total revenue of SR2.8 billion ($746.4 million) generated by fintechs in 2022, an increase from SR2 billion in 2021. Total assets held by fintechs also grew to SR6.8 billion in 2022 from SR6.5 billion the year before.
Saudi Arabia’s fintech expansion aligns with its strategy to position itself as a regional financial hub by 2030.
The Kingdom also aims to increase the share of non-cash transactions among individuals to 70 percent by 2025 as well as raise the sector’s contribution to the gross domestic product to SR4.5 billion.
Highlighting Saudi Arabia’s robust economic performance, Al-Sayari revealed that the Kingdom achieved an impressive 8.7 percent growth in its GDP in 2022. He stressed this growth rate surpasses that of all G20 countries and even exceeds the expectations of international organizations.
