SAMA's Head Revealed That Over 200 Companies Are Currently Fostering Innovation in the Boom of Saudi's Fintech Sector

Saudi Arabia is currently experiencing a surge in its fintech sector, with the number of companies in the industry more than doubling since the end of 2022, according to the head of the Saudi Central Bank, Ayman Al-Sayari.

As of August 2023, there are now over 200 of these companies actively participating in the economy, a significant increase from the 89 that existed in 2022.

The annual fintech report from the bank illustrates that in 2021, the number of fintech companies operating in Saudi Arabia stood at a mere 51, indicating a remarkable growth of approximately 300 percent in less than two years.

The increase in growth is a result of SAMA's strategic efforts to promote the fintech industry in the Kingdom. While addressing the Arab Banking Conference in Riyadh, Al-Sayari pointed out a partnership between the bank and the Capital Market Authority. This collaboration aims to introduce a program geared towards strengthening startups in the sector.

He also mentioned that this initiative would offer comprehensive packages tailored to expedite the development of these companies.

SAMA's annual fintech report for 2022 reaffirmed the sector's expansion, highlighting that by the end of the year, the Kingdom had granted licenses to 30 firms specializing in finance, insurance, and payments.

The report also pointed out that in 2022, fintech companies generated a total revenue of SR2.8 billion ($746.4 million), which marks an increase from the SR2 billion recorded in 2021. Additionally, the total assets held by fintechs saw growth, reaching SR6.8 billion in 2022, compared to SR6.5 billion in the previous year.

Saudi Arabia's fintech growth aligns with its goal of establishing itself as a prominent regional financial center by 2030.

The Kingdom's objectives also include elevating the percentage of non-cash transactions among individuals to 70% by 2025 and boosting the sector's contribution to the gross domestic product to SR4.5 billion.

Emphasizing Saudi Arabia's strong economic performance, Al-Sayari disclosed that the Kingdom accomplished a remarkable 8.7% growth in its GDP in 2022. He underscored that this growth rate surpasses that of all G20 nations and even exceeds the projections of international organizations.

Source: Arab News