عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Individual E-Payments Capture 70% of Transactions

The number of “Mada” card transactions online has risen to its highest levels since the service was introduced (SPA)
The number of “Mada” card transactions online has risen to its highest levels since the service was introduced (SPA)
TT
TT

Saudi Individual E-Payments Capture 70% of Transactions

The number of “Mada” card transactions online has risen to its highest levels since the service was introduced (SPA)
The number of “Mada” card transactions online has risen to its highest levels since the service was introduced (SPA)

Saudi Arabia has seen a big rise in e-payments by individuals, making up 70% of total individual transactions in 2023, up from 62% in 2022—a 13% increase.

According to the Saudi Central Bank, also known as SAMA, almost all transactions, 96%, were made using Near Field Communication (NFC) technology.

The government, through its Financial Sector Development Program, part of Saudi Arabia’s Vision 2030, is focused on building a strong economy by empowering institutions, advancing the financial market, and backing fintech startups.

This program is crucial for the stability and growth of the Kingdom’s banking system, investing in technologies to improve banking experiences and access to financial services.

Experts speaking to Asharq Al-Awsat say the rise in individual e-payments is a big step in Saudi Arabia’s digital transformation journey, showing its commitment to improving the financial sector and financial inclusion.

Dr. Salem Bajajah from King Abdulaziz University credits technological progress and the government’s focus on information security, especially in banking.

He also mentioned that the Ministry of Commerce’s requirement for stores to have point-of-sale devices has helped boost e-payments.

Mohammed Al-Faraj, from Arbah Capital, highlighted that Saudi Arabia has seen a significant increase, with 70% of retail payments now made electronically by individuals.

This change marks an important moment in the Kingdom’s digital transformation efforts and its goal of improving the financial sector and financial inclusion.

Al-Faraj credited this rise to efforts by SAMA and other government bodies to promote digital payments, as well as awareness campaigns about the benefits and security of electronic transactions.

A statement by SAMA highlighted that Saudi Arabia has seen significant progress in adopting e-payments in recent years, thanks to collaborative efforts between the central bank and the financial sector.

SAMA emphasized its commitment to providing diverse payment options and improving the quality of digital payment solutions to facilitate financial transactions, enhance efficiency, and reduce costs.

Most Viewed

 
 
Business

Riyadh to Host Global Logistics, Supply Chain Forums in November

A view of Riyadh, Saudi Arabia. (SPA)
A view of Riyadh, Saudi Arabia. (SPA)
TT
TT

Riyadh to Host Global Logistics, Supply Chain Forums in November

A view of Riyadh, Saudi Arabia. (SPA)
A view of Riyadh, Saudi Arabia. (SPA)

Under the patronage of Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, Saudi Arabia will host the second editions of the Global Logistics Forum (GLF) and the UNCTAD Global Supply Chain Forum (GSCF) in Riyadh from November 29 to December 1, reported the Saudi Press Agency on Tuesday.

The GLF, organized by the Saudi Ministry of Transport and Logistic Services, and the GSCF, hosted in partnership with the United Nations and the Saudi Ports Authority, form a pivotal international platform bringing together global leaders, decision-makers, and experts in transport, supply chains, and international trade.

Aligning with Saudi Vision 2030, the GLF aims to solidify the Kingdom's position as a global logistics hub connecting continents while driving innovation, global connectivity, and sustainable supply chains.

The Ministry of Transport and Logistic Services stressed that the co-located forums will serve as a premier launchpad for strategic initiatives and international partnerships, inviting global specialists to participate.

The inaugural 2024 GLF in Riyadh drew over 13,000 attendees, 140 speakers, and 80 exhibitors from more than 30 countries, resulting in 67 agreements valued at over SAR16 billion ($4.3 billion).

Business

Saudi Arabia Tightens Auto Dealer Obligations to Protect Consumers, Improve Ownership Experience

People are seen at the Riyadh Motor Show. (Riyadh Season)
People are seen at the Riyadh Motor Show. (Riyadh Season)
TT
TT

Saudi Arabia Tightens Auto Dealer Obligations to Protect Consumers, Improve Ownership Experience

People are seen at the Riyadh Motor Show. (Riyadh Season)
People are seen at the Riyadh Motor Show. (Riyadh Season)

Saudi Arabia’s auto market is moving toward greater discipline and competition as the Ministry of Commerce steps up oversight of dealers, seeking to strengthen consumer protection and improve compliance with after-sales service requirements.

The ministry announced it had suspended an auto dealership, barred it from importing vehicles and fined it SAR 8.12 million ($2.1 million) after recording 175 violations. These included failure to provide spare parts and replacement vehicles to customers during maintenance, as well as other breaches involving consumer rights, the Commercial Agencies Law and its implementing regulations.

The ministry investigated the violations, contacted affected consumers and followed up to ensure they received their rights and due compensation, including replacement vehicles.

It also summoned the manufacturer, oversaw corrective measures and recall campaigns, and began transferring the brand to another dealer after verifying its readiness and ability to provide the necessary services.

Mohammed Al-Farraj, chief asset management officer at Arbah Capital, told Asharq Al-Awsat that Saudi Arabia’s large auto market and sustained demand make it one of the region’s most attractive, supported by population and economic growth, expansion of the non-oil economy and mega-projects, and growth in tourism and logistics.

The availability and variety of financing options play a key role in supporting demand, particularly because cars are a necessity for a large segment of the population rather than a luxury, Al-Farraj noted.

Market performance is influenced by vehicle prices, financing costs, income levels and supply, as well as competition among brands and the quality of after-sales services.

Al-Farraj described the ministry’s tougher oversight as a positive step toward protecting consumers and improving market discipline, stressing that a dealer’s obligations do not end with a sale but extend to warranties, maintenance, spare parts and replacement vehicles when needed.

Stronger after-sales compliance should bolster market confidence and gradually shift competition toward quality and reliability rather than price alone.

Al-Farraj expects intensifying competition to push dealers to focus more on the value offered throughout vehicle ownership, including total cost of ownership and customer service.

Business

Mega-Projects, Investment Flows Draw Bank of Jordan to Saudi Arabia

A group photo of Bank of Jordan officials following the inauguration ceremony for the bank’s first branch in Riyadh. (Asharq Al-Awsat)
A group photo of Bank of Jordan officials following the inauguration ceremony for the bank’s first branch in Riyadh. (Asharq Al-Awsat)
TT
TT

Mega-Projects, Investment Flows Draw Bank of Jordan to Saudi Arabia

A group photo of Bank of Jordan officials following the inauguration ceremony for the bank’s first branch in Riyadh. (Asharq Al-Awsat)
A group photo of Bank of Jordan officials following the inauguration ceremony for the bank’s first branch in Riyadh. (Asharq Al-Awsat)

Saudi Arabia’s appeal extends beyond rising foreign investment and expanding mega-projects to the banking sector, where institutions see the economic transformation driven by Vision 2030 as an opportunity to establish a long-term presence in one of the region’s fastest-growing markets.

Bank of Jordan Group’s entry into the Kingdom reflects growing interest among regional financial institutions in tapping the country’s expanding investment cycle.

The group opened its first branch in Riyadh on Monday, launching its financial and banking operations in Saudi Arabia. The move underscores the Kingdom’s ability to attract not only capital, but also financial institutions seeking to finance the next phase of investment.

Mega-projects, private sector expansion and growing foreign and domestic investment are creating significant opportunities for banks to provide financing solutions and services to companies and investors. At the same time, Saudi Arabia is seeking to deepen the financial sector’s role as a driver of growth and economic diversification.

Saleh Hammad, general manager of Bank of Jordan Group, told Asharq Al-Awsat that the bank’s strategy is based on a clear view of the economic transformations reshaping Saudi Arabia and the wider region.

The group has pursued carefully considered regional expansion, focusing on markets with sustainable economic fundamentals and strategic importance, with Saudi Arabia at the forefront.

Hammad said the Kingdom is undergoing an unprecedented economic transformation under Vision 2030, fueled by investment growth, private-sector expansion and the development of its financial and banking environment.

Establishing a presence in one of the region’s leading financial and economic hubs strengthens Bank of Jordan’s position as a regional institution capable of supporting trade, development and investment opportunities, he noted.

Hammad also highlighted Saudi Arabia’s strong banking system and evolving regulatory environment, supported by the Saudi Central Bank, as key advantages that enhance the group’s position while creating added value for clients and investors.