https://arab.news/cgxr4
- World Bank executive lauds Kingdom’s efforts in reshaping its financial landscape
- Jean Pesme highlighted Saudi Arabia’s strategic efforts to enhance its global fintech position
RIYADH: Saudi Arabia’s fintech assets under management are projected to approach $64 billion in 2024, indicating substantial growth, according to a World Bank executive.
Jean Pesme, global director of finance at the World Bank, shared these projections during a panel discussion at the 24 Fintech Conference in Riyadh on Thursday.
He observed that the fintech sector in the Middle East and North Africa is undergoing a significant transformation, moving away from a traditionally bank-centric financial model.
Pesme said welcoming these new market players is crucial, “so more deals are coming” as a result. He said the bank’s projections indicate that fintech investments in the region “could grow to $1.5 billion in 2024.”
He added: “The Saudi fintech market is expected to experience significant growth in 2024, potentially reaching close to $64 billion in assets under management.”
This represents a major shift and is highly beneficial as it transforms the financial system as a whole, the World Bank executive said.
This growth is not only reshaping the financial landscape but also enhancing financial inclusion and improving access to services. Innovations in blockchain, artificial intelligence, and machine learning are driving down costs and providing substantial benefits to both economies and consumers.
“I mean the first element, when you walk around this conference, you see how vibrant Fintech is in Saudi Arabia. it has really increased a lot, and a lot of innovation has happened,” Pesme said.
He highlighted Saudi Arabia’s strategic efforts to enhance its global fintech position. The Kingdom has developed a robust regulatory framework, with entities like the Saudi Central Bank and the Capital Market Authority implementing sandboxes to facilitate innovation. These sandboxes enable new technologies to be tested in controlled environments, akin to practices in leading fintech hubs like the UK and Singapore.
“The (Saudi) government’s dedicated support through strategic initiatives such as the Financial Sector Development Plan and support for fintech startups has been significant. Saudi Arabia’s efforts can be compared to those in jurisdictions like China,” Pesme noted.
Pesme also emphasized the importance of talent development and education, stressing that providing entrepreneurs with the necessary knowledge and tools is essential. “There is substantial support for entrepreneurship, including education and ongoing training,” he said.
He underscored the role of public-private partnerships in advancing the fintech ecosystem, drawing comparisons to successful models in the US and the UK. “Saudi Arabia is very systematic and deliberate in its approach, making it comparable to other advanced jurisdictions,” he added.
Additionally, Pesme discussed how fintech initiatives could be tailored to promote greater inclusion and address disparities. “Focusing on the needs of women, both as customers and entrepreneurs, is essential. This is a priority for the World Bank, and we are seeing significant progress,” Pesme said.
He continued: “It is crucial to be targeted in efforts to include women in financial services and entrepreneurship. Strategies such as increasing access to capital, providing targeted funding, and offering mentoring, networking, and skill development are vital. Education and training are also key components of this support.”
Pesme concluded that adapting policy and regulatory frameworks to support these initiatives reflects a comprehensive approach to advancing women’s roles in the financial and entrepreneurial sectors.