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FinTech Invades Phones ... from Quick Payment to Investing Money

The pavilion of Tamara Company, which provides “Buy Now, Pay Later” service in Saudi Arabia and the Gulf, at the Leap24 exhibition in Riyadh. (X platform)
The pavilion of Tamara Company, which provides “Buy Now, Pay Later” service in Saudi Arabia and the Gulf, at the Leap24 exhibition in Riyadh. (X platform)
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FinTech Invades Phones ... from Quick Payment to Investing Money

The pavilion of Tamara Company, which provides “Buy Now, Pay Later” service in Saudi Arabia and the Gulf, at the Leap24 exhibition in Riyadh. (X platform)
The pavilion of Tamara Company, which provides “Buy Now, Pay Later” service in Saudi Arabia and the Gulf, at the Leap24 exhibition in Riyadh. (X platform)

It’s hard to find a device owned by someone from Generation Z that doesn’t feature financial technology (FinTech) applications. These apps aim to speed up various transactions, such as buying products via “Buy Now, Pay Later” (BNPL) services, borrowing money, investing, transferring funds, paying bills, and even sending gifts or requesting money from friends. Over time, these apps have become an integral part of their daily lives.

Gen Z typically refers to individuals born between the mid-1990s and the early 2010s. As a generation that has grown up in the digital age, they have never known a world without the internet and modern technology. This makes them the most engaged demographic when it comes to using FinTech services, a sector that has seen rapid growth and innovation in recent years.

Trends in FinTech

An initiative launched by the Saudi Central Bank, in collaboration with the Capital Market Authority, aims to advance the FinTech sector. Known as “FinTech Saudi,” the initiative has identified nine key areas of focus for FinTech companies. These include banking infrastructure, fundraising, payments and currency exchange, business solutions and information services, insurance, personal finance and treasury management, capital market services, regulation, and risk management.

Digital loans

Borrowing is no longer limited to major purchases like homes or cars. FinTech companies now offer fast, simplified financing solutions. The younger generation can quickly access loans for a range of purchases, including luxury dinners, clothes, airline tickets, and consumer goods.

In 2023, the global peer-to-peer lending market was valued at $5.94 billion and is expected to grow to $30.54 billion by 2032, according to SNS Insider. However, while traditional banks’ interest rates are regulated by central policies, FinTech companies often charge much higher rates - up to 38% - as observed by Asharq Al-Awsat, in a review of several fast-financing companies.

Buy Now, Pay Later

One of the fastest-growing trends in FinTech is BNPL services, especially in the e-commerce sector. These services allow consumers to make immediate purchases and pay in installments, often without interest or with minimal interest, enhancing their shopping experience and increasing purchasing power.

Data from Fortune Business Insights indicates that the global BNPL market was valued at $30.38 billion in 2023 and is expected to reach $167.58 billion by 2032, with an impressive compound annual growth rate (CAGR) of 20.7%.

Digital banks

FinTech companies specializing in digital banking offer all traditional banking services but without physical branches, allowing for faster and more cost-effective services for customers, as noted in the Financial Technology Report by FinTech Saudi.

Fundraising

FinTech platforms provide opportunities for investors to invest smaller amounts in private companies in exchange for equity. These platforms also enable private companies to raise funds from a wide range of investors.

Insurance

FinTech companies are competing with the insurance industry by offering digital solutions that often come at lower costs compared to traditional providers. According to FinTech Saudi, these companies can improve service efficiency by automating payment processes and consolidating information from various insurance providers into one platform, enabling consumers to choose the best offers.

Easier investment

FinTech innovations in financial markets improve efficiency by enabling faster trade executions and streamlining listing processes. Additionally, FinTech solutions make it easier for individuals to purchase securities. For example, mobile apps now allow users to buy stocks, and virtual trading platforms simulate the stock market for beginners.

Risk management

FinTech companies help financial institutions manage various risks, such as fraud detection and credit risk management. By leveraging machine learning, they can identify potential fraud. Additionally, FinTech tools enhance regulatory oversight, allowing regulators to better monitor the companies they supervise.

Business solutions

FinTech companies also provide business solutions by optimizing operational processes, reducing costs, enhancing cyber-security, and improving data management. This makes it easier for businesses to operate more efficiently.

Payments

FinTech apps enable users to store their money in digital wallets on their mobile devices. These wallets can be used to save, manage expenses, pay bills, and exchange currencies without needing to visit a bank.

FinTech conference

The first edition of the 24 FinTech international conference, focusing on the FinTech sector, will take place in Riyadh on Sept. 3-5.

The event will feature participation from the Financial Sector Development Program as part of Saudi Vision 2030, the Saudi Central Bank (SAMA), the Capital Market Authority, and the Insurance Authority. It is co-organized by FinTech Saudi and Tahaluf.

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Saudi Ministers Highlight Resilience, Adaptability of the Kingdom’s Economy at Budget Forum

Finance Minister Mohamed Al-Jadaan speaks in the first dialogue session of the 2025 Budget Forum. (Asharq Al-Awsat)
Finance Minister Mohamed Al-Jadaan speaks in the first dialogue session of the 2025 Budget Forum. (Asharq Al-Awsat)
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Saudi Ministers Highlight Resilience, Adaptability of the Kingdom’s Economy at Budget Forum

Finance Minister Mohamed Al-Jadaan speaks in the first dialogue session of the 2025 Budget Forum. (Asharq Al-Awsat)
Finance Minister Mohamed Al-Jadaan speaks in the first dialogue session of the 2025 Budget Forum. (Asharq Al-Awsat)

Saudi ministers reaffirmed the continued success of Vision 2030 and the economy’s ability to overcome challenges while achieving diversification.

Speaking at the 2025 Budget Forum, organized by the Ministry of Finance, they underscored the importance of fiscal policies in driving sustainable economic growth and emphasized the integration of various sectors to enhance Saudi Arabia’s global standing.

The forum followed the Cabinet’s approval of the 2025 budget, which projects revenues of SAR 1.184 trillion ($315.7 billion), expenditures of SAR 1.285 trillion ($342.6 billion), and a deficit of SAR 101 billion ($26.9 billion).

Sustainable Spending and Economic Diversification

Finance Minister Mohammed Al-Jadaan highlighted that sustainable spending has enabled Saudi Arabia to provide high-quality services. He emphasized that fiscal policies focus on sectors with a direct impact on economic development and diversification.

Al-Jadaan noted that ensuring fiscal sustainability is crucial to reducing reliance on oil revenues.

“Structural reforms under Vision 2030 have transformed the economy,” he said, adding that non-oil revenues have reached SAR 472 billion due to the significant progress in diversification efforts.

He further explained: “Previously, Saudi Arabia’s growth depended heavily on oil revenues. Today, through diversified economic resources and sustainable fiscal policies, our economy is more resilient.”

He also stressed the role of government borrowing in balancing revenues and expenditures, benefiting both public and private sectors.

Progress Toward Economic Diversification

Minister of Economy and Planning Faisal Al-Ibrahim highlighted that one of Vision 2030’s key objectives is to unlock the potential of citizens while reducing reliance on oil. He noted that in its eighth year, the vision continues to advance steadily and with strong momentum, addressing previous challenges such as dependence on government spending and oil revenues.

“Non-oil activities have grown by 6% over the last three years,” Al-Ibrahim said, “now contributing 52% of real GDP.” He added that non-oil sector growth is projected to reach 3.9% by year-end and 4.8% in 2024.

Al-Ibrahim stressed the importance of sustainable, high-quality growth driven by private sector dynamism and productivity. He also highlighted Saudi Arabia’s increasing global competitiveness in sectors like healthcare, citing breakthroughs such as robotic heart surgeries.

Additionally, he noted the Kingdom’s demographic advantage, stating: “We have a young population, and now is the time to invest in their capabilities, as envisioned under Vision 2030.”

Employment and Reducing Unemployment

Minister of Human Resources and Social Development Ahmed Al-Rajhi announced a new unemployment target of 5% for Saudis by 2030. This follows the Kingdom’s early achievement of its previous unemployment target of 7%, reached seven years ahead of schedule.

Industrial Growth and Export Expansion

For his part, Minister of Industry and Mineral Resources Bandar Al-Khorayef reported significant progress in the industrial sector, with 1,100 new industrial licenses expected in 2024 and 900 factories entering production.

Non-oil exports grew by 15% in 2024, rising from SAR 458 billion ($121.9 billion) to SAR 528 billion ($140.5 billion). Al-Khorayef highlighted that the Saudi Industrial Development Fund financed projects worth SAR 12 billion ($3.2 billion) this year, contributing to total investments exceeding SAR 60 billion ($16 billion).

“The industrial sector is now a central part of government agendas,” he said, adding that export growth was driven by new product development.

Digital Transformation and a Cashless Economy

Minister of Communications and Information Technology Abdullah Al-Swaha outlined Saudi Arabia’s strategy to become a technology exporter, which is a key part of its digital economy goals. He highlighted that over 70% of transactions in the Kingdom are now cashless, supported by the emergence of more than 200 fintech companies.

Al-Swaha emphasized that the next phase will focus on exporting technology and establishing Saudi Arabia as a global leader in the tech sector.

Transportation Growth

Minister of Transport and Logistics Services Saleh Al-Jasser reported that the sector created 122,000 jobs in Q3 2024, with women comprising 29% of the workforce.

He also noted that the transport sector aims to achieve 60% local content in its spending by 2030. The current figure stands at 50%, up from 39% in the baseline year.

Education, Tourism, and Sports

Minister of Education Yousef Al-Benyan highlighted the establishment of the National Center for Curriculum Development as a major achievement in 2023. He also noted that education spending in the 2025 budget exceeds SAR 200 billion.

Minister of Tourism Ahmed Al-Khatib reported that the tourism sector now contributes 5% to GDP, up from previous years, with a goal of reaching 10% by 2030. He added that Saudi Arabia surpassed its Vision 2030 target of 100 million visitors, reaching 109 million tourists in 2023.

In the sports sector, Prince Abdulaziz bin Turki Al-Faisal, Minister of Sports, revealed that 25 local and international companies have shown interest in investing in privatized sports clubs, with projected revenues of SAR 500 million ($133 million).