Saudi Arabia: Fintech Industry Growing at Rapid Rate

Saudi Arabia: Fintech Industry Growing at Rapid Rate

The advent of the smartphone has led to an explosion in financial technology (fintech) startups. Post the 2008 financial crisis, we entered a new era of fintech revolution, with the rise of blockchain and cryptocurrencies. This new wave of technology has also led to alternative forms of payments, funding, or lending. In recent years, fintech has become part of any financial market ecosystem, with emerging markets and developing countries the flag bearers of this new transformation, including Saudi Arabia.

In the Kingdom, the central bank (SAMA), in partnership with the Capital Market Authority (CMA), launched Fintech Saudi to support the development of the fintech industry with the objective to become the regional hub of choice for entrepreneurs and investors.

In the last Fintech Saudi annual report, there are some interesting statistics worth noting. Firstly, the fintech industry is growing at a rapid rate “” over 18 percent each year over the past 3 years. Secondly, payments account for two-thirds of the market and almost 98 percent of the user base. Thirdly, personal finance accounts for 30 percent of fintech transaction values. The report also indicates that transaction values of these payments are expected to reach $33 billion by 2023.

To date, as part