Saudi Arabia Fintech Market Size | 2019-2032

Saudi Arabia Fintech Market Growth and Performance

• Projected revenue for the Saudi Arabia fintech market in 2032 will be US$ 4.69 Trillion, with a forecasted Compound Annual Growth Rate (CAGR) of 58.0% from 2024 to 2032.
• The Saudi Arabia fintech industry achieved US$ 92.13 Billion in 2023.
• In terms of type classification, the primary segment expected to lead is fintech digital payment market, with an estimated market worth of US$ 4.22 Trillion by 2032.

Saudi Arabia Fintech Market Outlook

Saudi Arabia fintech sector is experiencing unprecedented growth, driven by robust governmental support, progressive regulatory reforms, and a tech-savvy population. The Kingdom's strategic vision to transition to a cashless economy, coupled with advancements in AI-driven financial services and open banking, positions it as a burgeoning hub for fintech innovation. Further advancing the fintech landscape, SAMA issued the Open Banking Framework in November 2022, focusing initially on Account Information Services (AIS). By September 2024, the framework expanded to include Payment Initiation Services (PIS), standardizing the provision of these services and clarifying stakeholder responsibilities. This progression underscores SAMA's commitment to fostering a secure and efficient open banking environment.

Strategic Initiatives and Regulatory Advancements

Central to this transformation is the Saudi Arabia Fintech Strategy, ratified in May 2022 under the Financial Sector Development Program (FSDP) as part of Saudi Vision 2030. This comprehensive strategy encompasses six transformational drivers and eleven initiatives designed to foster collaboration, stimulate innovation, and attract investment within the fintech ecosystem. The overarching goals are to enhance global competitiveness, promote financial inclusion, and modernize the Kingdom's financial infrastructure.

In alignment with these objectives, the Saudi Central Bank (SAMA) has been proactive in updating its regulatory frameworks. Notably, in August 2022, SAMA revised its Regulatory Sandbox Framework, transitioning to an "Always Open" approach. This modification allows continuous submission of applications from fintech entities, thereby accelerating the introduction of innovative financial products and services to the Saudi market.

Saudi Arabia Fintech Market Growth and Consumer Trends

The impact of these strategic and regulatory efforts is evident in the rapid expansion of the Saudi Arabia fintech market. The number of fintech companies operating in Saudi Arabia surged from fewer than 15 in 2018 to over 250 by the end of November 2024, marking a remarkable growth from the previous years. This proliferation has also catalyzed employment, with the sector generating approximately 3,000 direct jobs in 2023 alone, bringing the total workforce to over 5,000 by the third quarter.

Consumer behavior is a significant driver of Saudi Arabia fintech industry growth. The adoption of digital payments, e-wallets, and Buy Now Pay Later (BNPL) services has escalated, reflecting a societal shift towards digital banking solutions. Notably, non-cash payments constituted 62% of all transactions by 2021, a substantial increase from 18% in 2016, indicating the success of initiatives aimed at reducing cash dependency.

Investment and Future Outlook

Saudi Arabia fintech market is attracting substantial investments from both domestic and international venture capital firms eager to support innovative startups. The launch of the "Makken" program in December 2023 exemplifies this commitment, aiming to empower 150 emerging fintech companies over three years. This initiative is poised to further enhance the growth trajectory of the sector, solidifying the Kingdom's position as a global fintech leader.

Looking ahead, the convergence of government initiatives, regulatory support, and technological advancements in AI, blockchain, and open banking is set to propel Saudi Arabia's fintech industry into a new era. The emergence of neobanks and digital banking services is reshaping the financial landscape, offering consumers innovative solutions and fostering a more inclusive financial system. As the Kingdom continues to implement its strategic vision, it stands on the cusp of becoming a pivotal player in the global fintech arena.

Saudi Arabia Fintech Market Scope