The number of fintech companies operating in Saudi Arabia has grown by more than a third over the past year with investments exceeding SR1.3 billion ($347 million).
Over the last 12 months, the fintech industry in Saudi Arabia has continued to grow at a rapid pace, according to the Fintech Saudi Annual Report 2020/2021.
The number of Saudi fintech companies has risen by 37 percent as the industry continues to mature in the Gulf kingdom.
Nejoud Almulaik, director of Fintech Saudi, said: “As we emerge from the challenges of Covid-19, it is clear that the digitalisation experienced during the pandemic is here to stay.”
Almulaik added that “regulation clarity” is helping to attract more investment in the sector.
The report showed that over the last year, new fintech companies have emerged in a variety of areas including payments, capital markets, insurance and business tools for SMEs.
There has also been a number of regulatory and infrastructure developments including the release of new fintech activity regulations, the launch of SARIE -the Instant Payment System- and the Council of Ministers approval to licence two local digital banks – STC Bank and Saudi Digital Bank.
Fintech Saudi said it has continued to support the development of the fintech industry through a number of initiatives including the Fintech Accelerator, Fintech Career Fair and the first National Fintech Adoption Survey.
The report anticipated that the next 12 months are likely to be another “significant period for the fintech industry”.
It added that the continued support from venture investors, new regulations, national fintech initiatives and the launch of open banking are expected to support the development of a new generation of fintech solutions in Saudi Arabia.
Fintech Saudi is an initiative launched by the Saudi Central Bank (SAMA) in partnership with the Capital Markets Authority (CMA) to support the development of the Fintech Industry in Saudi Arabia.
Fintech Saudi’s ambition is to transform Saudi Arabia into an innovative fintech hub with a thriving and responsible fintech ecosystem.
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