Saudi Arabia, under its Vision 2030 and Financial Sector Development Program (FSDP) — with the FinTech strategy approved in May 2022 as its fourth pillar, aims to become a cashless society with a target of 70% by 2030. It also aims to make the Kingdom a global FinTech hub that attracts entrepreneurs from around the world as well as within the country.
FinTech Saudi was established in 2018 as an ecosystem builder and catalyst under the supervision of the country’s financial regulators, SAMA (Saudi Arabian Monetary Authority) and CMA (Capital Market Authority), to lay the foundation and further accelerate the sector’s success journey. This initiative has led to an increase in the number of FinTech startups to 207 in 2023, up from only 10 in 2018—an increase of 20.7 times in five years.
With the collaboration of government ministries and agencies such as the Ministry of Finance, Ministry of Communication, Ministry of Investment, SAMA, CMA, and the General Authority for Small and Medium Enterprises (Monsha’at), many initiatives have been possible to support the FinTech sector and help Saudi FinTech succeed in its mission. Examples include the FinTech Hub by Monsha’at, which connects FinTech startups with service providers, and a new program called Makken by FinTech Saudi, supported by the Saudi Central Bank and the Capital Market Authority. The program aims to empower entrepreneurs and startups in the FinTech industry by providing subsidized support for technology, cloud, and cybersecurity. Another initiative by FinTech Saudi is the FinTech Accelerator, which helps startups speed up the development of their services in a dedicated three-month program.
Another government initiative is the National Technology Development Program (NTDP) which states in its vision that it will facilitate Saudi Arabia’s transformation into a leading global technology hub by 2030. It has launched 14 initiatives, starting from MVPLAP, which gives grants to startups to develop their Minimum Viable Product (MVP), to a relocation initiative that helps international startups relocate to Saudi Arabia with many grants entailed to the initiative.
The surge in investment within Saudi Arabia’s FinTech sector is a clear indicator of its growing potential and the confidence investors have in its growth trajectory. In 2023, the sector witnessed a remarkable increase in funding, with the total deal value reaching $791 million, marking a significant increase of approximately 231% from $239 million in 2022. This significant uptick in investment is not just a testament to the sector’s attractiveness but also to the strategic importance placed on FinTech by the Saudi government and private investors alike.
