Saudi Gazette report

JEDDAH — Saudi Central Bank (SAMA) Governor Ayman Al-Sayari said that SAMA targets to increase the number of financial technology (FinTech) companies to 525. He said this while reviewing the most prominent objectives of the SAMA’s FinTech strategy for the coming years.

Addressing the Arab Banking Conference in Riyadh on Monday, Al-Sayari emphasized that the FinTech strategy aims to achieve the desired economic impact, as it targets increasing FinTech companies to 525. “The FinTech strategy will contribute to creating 18,000 specialized jobs, as well as contributing to the gross domestic product (GDP) by an amount exceeding SR13 billion by 2030. The Saudi financial sector has been supportive of economic growth in Saudi Arabia, as financial institutions have worked to expand the scope of their services to include all private and individual borrowers from the sector.”

He indicated that the number of FinTech companies exceeded 200 companies by the end of last month. He pointed out that the Saudi economy recorded a growth of 8.7 percent in 2022, exceeding the global average of 3.5 percent.

The SAMA governor said that the capital adequacy ratio (CAR) in the Saudi financial sector reached 20.1 percent by the end of the second quarter of 2023. He noted that the Saudi Arabian banking system enjoys solid performance indicators, as the liquidity coverage ratio (LCR) reached 188.3 percent by the end of the second quarter while the net stable funding ratio (NSFR) stood at 115 percent.

He pointed out that the private sector continues to support the Kingdom's economic growth, noting that non-oil activities grew by 5.4 and 5.5 percent in the first and second quarters of this year respectively.

Al-Sayari stated that Saudi banks expanded their lending activity to meet the continuing demand for bank credit while risk results remained moderate. This reflects the strength of the local economy, and in this context, credit increased 10.2 percent in the second quarter on an annual basis. He pointed out that as global challenges continue, SAMA continues to monitor local and global developments to maintain the stability and strength of the financial system.

Al-Sayari said that SAMA paid great attention to the banking system due to its central role in the economy, as all precautionary ratios for the banking system exceeded the ratios specified in Basel requirements. “This reflects a banking system with strong performance indicators,” he added.