Over the last 12 months, the financial technology (“fintech”) industry in Saudi Arabia has continued to grow at a rapid pace. The recently published Fintech Saudi Annual Report 2021/2022, highlights that the number of fintech companies active in Saudi Arabia rose dramatically by 79% and investment into Saudi fintech companies for the year exceeded SAR 1.50 bn (USD 400m).
During 2021 / 2022 we have seen the development of a maturing fintech industry in the Kingdom,” said Nezar Alhaidar, Director of Fintech Saudi. “This year has been a significant year for the development of the Fintech industry in the Kingdom with the launch of the Fintech Strategy, which will drive Saudi Arabia to become a global fintech hub. We are pleased that we are on the way to achieving this target with 147 fintechs now active in the Kingdom.”
The report emphasized that over the last year there has been a growth in almost all fintech areas and in particular infrastructure activities as the Kingdom prepares for Open Banking.. In addition to the approval of the Fintech Strategy, there have also been a number of regulatory developments including the approval of a third digital bank, enhancements to the Saudi Central Bank Regulatory Sandbox and the release of the regulatory framework for equity crowdfunding license.
Fintech Saudi has also continued to play a pivotal role in supporting the fintech industry with the launch of its co-working space, the Hub, that has become the home of fintech activity in the Kingdom and successful completion of the first accelerator program to support fintech companies with regulatory applications.
Moreover, the report anticipated the year 2022/2023 to be another significant period for the fintech industry. with the launch of 3 new digital banks, new regulations released by SAMA and CMA and the implementation of the Fintech Strategy.
The Fintech Saudi Annual Report consists of a number of sections including the Fintech Strategy, Innovation in the Capital Market, Digital Banking, and the View from Fintech’s in Saudi.
