The Financial Sector Development Program (FSDP) launched the FinTech Strategy Implementation Plan which aimed to position the Kingdom of Saudi Arabia among the leading countries in the field of FinTech, with Riyadh becoming a global FinTech hub. The strategy also aims at building economic empowerment for individuals and communities.
Chairman of FSDP Committee and Minister of Finance, Mohammed Al-Jadaan pointed out that the strategy will contribute to realizing the strategic objectives of Saudi Vision 2030.
Number of FinTech companies in Saudi Arabia to increase from 82 to 230
The strategy seeks to increase the number of FinTech companies operating in the Kingdom of Saudi Arabia (KSA) from 82 to 230 by 2025.
In addition to realizing the 22 indirect objectives, this can be achieved by enhancing the ease of doing business, attracting foreign direct investment, increasing the private sector’s contribution to the economy, developing the digital economy, increasing SME contribution to the economy, nurturing and supporting innovation and entrepreneurship culture, and developing the e-governance.
The Minister of Finance explained that by attracting key players in FinTech, the strategy contributes to enhancing innovation in the financial sector. In addition, it aims to increase the market share of digital transactions to 70 percent by 2025.
Al-Jadaan stated that innovation offered by the FinTech sector in the Kingdom through developing technology-based financial services and solutions will contribute to empowering many sectors including retail, real estate, hospitality, transportation, healthcare and investments.
Innovation in these sectors would contribute to increasing assets under management to reach a growth rate of 50 percent, and aims to utilize artificial intelligence in the financial services sector.
He added that out of the 63 countries that participated in the 2021 World Digital Competitiveness Index, the Kingdom ranked 36th, the second among G20 countries in the Digital Competitiveness Report 2021, and out of 132 countries ranked 41st in the Global Talent Competitiveness Index 2021.
One of the Kingdom’s Vision 2030 Realization Programs, The FinTech Strategy is a new pillar in FSDP. The objective of the FSDP is to create a diversified and effective financial services sector to support the development of the national economy, diversify its sources of income, and stimulate savings, finance, and investment.
The Kingdom’s vision for 2030 Realization Programs ensures the formation of an advanced capital market and this ambition can be achieved by enabling financial institutions to support the growth of the private sector.