RIYADH: Saudi Arabia has launched a new financial technology program called Makken to support and develop the sector in the Kingdom.
Saudi Central Bank Governor Ayman Al-Sayari officially launched the initiative on Dec. 17 alongside the Capital Market Authority Chairman Mohammed El-Kuwaiz.
This program is an extension of the ongoing efforts by the bank, also known as SAMA, and the CMA to support and develop the fintech ecosystem and falls under the umbrella of the Financial Sector Development Program.
Makken aims to empower 150 emerging fintech companies over three years, directly contributing to enhancing the growth journey of this promising sector and elevating it.
During the launch ceremony, Al-Sayari highlighted the Kingdom’s notable progress across various sectors, with fintech as one of the fastest-growing areas.
He emphasized the continuous efforts and dedication to stimulate digitization and innovation in the financial sector.
Al-Sayari said: “We are witnessing rapid growth in the activities of fintech companies, reaching 207 companies by the end of November 2023, compared to 147 companies at the end of 2022, representing a remarkable 40 percent growth.”
He added: “Since the beginning of the year 2023, around 3,000 direct jobs have been created in the fintech sector, bringing the total number of jobs in the sector to more than 5,000 by the end of the third quarter of this year.”
Al-Sayari also mentioned key developments, including the launch of SAMA’s Open Banking Lab in early 2023 and the current work on releasing the second version of the regulatory framework for open banking payment services.
The SAMA governor said that 16 documents, including instructions and regulations, have been issued and updated by the Saudi Central Bank and the Capital Market Authority to support fintech and digital transformation in the financial sector of the Kingdom.
The number of transactions through point-of-sale services in the Kingdom in the first 11 months saw a 23 percent increase to 8.1 billion compared to 6.6 billion in the year-ago period.
The value of the transactions between January and November rose 5 percent to SR560 billion ($135.68 billion) from SR509 billion in the corresponding period last year.
Al-Sayari concluded by expressing optimism about the continued advancement of the fintech sector in Saudi Arabia.
