News Update

$400 million has been invested in Saudi fintech businesses in the last year resulting in a 79% increase in Saudi fintech startups

• ByStartupStory     |    November 9, 2022

According to the Fintech Saudi Annual Report 2021/2022, the number of active fintech businesses in Saudi Arabia increased by 79%, and investment in Saudi fintech companies for the year topped SAR 1.50 billion ($400 million), as reported by Zawya.

“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,” he added.

The report says that there has been development in practically all fintech categories, particularly infrastructural activity, as the Kingdom prepares for open banking. Aside from the ratification of the Fintech Strategy, a number of regulatory advancements have occurred, including the establishment of a third digital bank, changes to the Saudi Central Bank Regulatory Sandbox, and the publishing of the regulatory framework for equity crowdfunding license.

With the launch of its co-working space, the Hub, which has become the home of fintech activity in the Kingdom, and the successful completion of the first accelerator program to support fintech companies with regulatory applications, the organization has also continued to play a pivotal role in supporting the financial technology industry.

With the opening of three new digital banks, new laws announced by the Saudi Central Bank and Capital Market Authority, and the execution of the Fintech Strategy, the research predicted that 2022-2023 will be another Upmajor phase for the fintech industry.

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