Saudi Gazette report
RIYADH — Finance Minister Mohammed Al-Jadaan revealed that the value of venture investment in fintech companies in Saudi Arabia reached SR7.1 billion ($1.9 billion) by the end of the second quarter of 2024.
Addressing the first edition of the International Conference on Financial Technology, '24 Fintech, at the Riyadh Front Exhibition and Conference Center on Tuesday, he said that the Kingdom has adopted an integrated strategy aimed at enabling and accelerating the government's digital transformation efficiently and effectively. "Saudi Arabia has targeted, since the launch of Vision 2030, accelerating the pace of transformation to advance the digital economy, as well as to ensure the sustainability of its growth and keep pace with the rapid development in the world of technology," he said.
Al-Jadaan said the number of fintech companies in the Kingdom reached 224 by the end of the second quarter of this year. "This exceeds the target of the Financial Sector Development Program for the same quarter, estimated at 168 companies," he said while pointing out that the goal is to reach 525 companies by 2030. Al-Jadaan stressed that Saudi Arabia has attached great importance to enhancing the digital economy and has laid strong foundations for it so as to contribute to improving the quality of services, empowering the public, private and non-profit sectors, and consolidating the Kingdom's global position.
He added that the first edition of the "FinTech 24" conference brings together an elite group of minds and experts from around the world, and provides an opportunity and platform for financial sector leaders to discuss the future of financial technology, its challenges and opportunities, and review the financial and economic developments that contribute to the digital transformation process locally and globally.
The minister said that the financial technology sector is witnessing a major transformation around the world in light of the rapid technological development and continuous progress of artificial intelligence technologies. "The Financial Sector Development Program, one of the programs of Vision 2030, launched the executive plan for the financial technology strategy more than two years ago, and it is one of the pillars of the program aimed at making the Kingdom a global center for financial technology. Through this strategy, the country seeks to facilitate the practice of business and raise the percentage of the private and non-profit sector’s contribution to the Saudi economy and attract foreign direct investment, in addition to local investments that it aspires to increase, in addition to developing the digital economy," he said.
Al-Jadaan pointed out that the Kingdom has a comprehensive and advanced infrastructure for payments, as the share of electronic payments in the retail sector reached 70 percent of the total payment operations in the Kingdom during 2023, compared to 62 percent in 2022, and thus achieving the target of the Financial Sector Development Program for 2025. He also stressed the endeavor to increase its share to reach 80 percent by 2030. He stated that Saudi Arabia has a competitive and strong banking sector, capable of facing the challenges of the macro economy and investing heavily in the financial technology sector.
The Minister of Finance continued that all these efforts made in the Kingdom to keep pace with the developments of the financial technology sector are bearing fruit in the growth of the national economy, as global financial organizations are witnessing the unprecedented economic transformation witnessed by the country, especially with regard to financial and regulatory reforms, enabling local and foreign investment, and the great progress in digital infrastructure. "These efforts have been reflected in Saudi Arabia's progress and leadership in several international indicators, as it ranked first globally in the cybersecurity index, second globally in the technology development and application index and the digital transformation index for companies, and the Kingdom achieved 16th place globally in the global competitiveness index," he said while citing the World Competitiveness Yearbook 2024 report.
Al-Jadaan said that with the growth of this vital sector, whose global revenues are expected to exceed $1.5 trillion in 2030, the importance of sustainable growth is increasing in it, by enhancing the culture of innovation, improving the regulatory and legislative environment, developing the digital infrastructure, attracting distinguished competencies, developing their skills, and attracting investments.
The minister said that despite the developments witnessed by the financial technology sector globally, there are many challenges that require building effective partnerships and exchanging expertise and knowledge. He pinned hope that this conference would be an opportunity for everyone to intensify efforts and enhance cooperation by discussing ideas and dialogue towards a more innovative, advanced and stable financial system, in which sustainable growth is achieved for the Kingdom’s economy and the global economy.
