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Saudi Fintech Industry Grows Threefold in 2020

The establishment of Fintech companies expedites in Saudi Arabia (Reuters)
The establishment of Fintech companies expedites in Saudi Arabia (Reuters)
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Saudi Fintech Industry Grows Threefold in 2020

The establishment of Fintech companies expedites in Saudi Arabia (Reuters)
The establishment of Fintech companies expedites in Saudi Arabia (Reuters)

Fintech Saudi has revealed in its annual report 2019/20 that it is seeing the emergence of a growing fintech industry in the Kingdom.

The number of operating fintechs has increased three-fold in a year, from 20 in 2019 to 60 this year, with over 100 fintech startups at the idea or pre-commercial stage, the report noted.

The Fintech Saudi Annual Report 2019/20 provides an overview of the development of the fintech industry in Saudi Arabia over the past year and highlights a number of key developments that have taken place to support the growth of the fintech industry.

There has been an increase in fundraising deals completed in Saudi fintech for the year to date with the total investment amount already surpassing 2019 levels, it added.

“This is building up to a fintech market in Saudi Arabia that, according to Statista, is expected to reach transaction values of over $33 billion by 2023.

On the significance of this report, Director of Fintech saudi Mulaik al-Nejoud said the period extending from 2019 till 2020 has been pivotal for the fintech industry in the Kingdom.

“Despite the challenges of COVID-19, we have seen progress in regulations, infrastructure and an increasing number of investment rounds in fintech companies.”

This has built a solid foundation to support the emergence of a growing fintech industry in Saudi Arabia that will contribute in a meaningful way to its Vision 2030, she stated.

The developments include the launch of Apple Pay, the establishment of Saudi Payments, and the continued issuance of regulatory testing licenses and regulations by the Saudi Arabia Monetary Authority (SAMA) and the Capital Markets Authority (CMA) to support fintech activities.

There have also been major initiatives, including the National Commercial Bank (NCB) / Monsha’at fintech accelerator program and the launch of Riyad Bank’s fintech fund.

The report consists of a number of sections including an overview of the fintech industry by KPMG, the view from Fintech and MAGNiTT, and interviews with the SAMA Regulatory Sandbox and the CMA FinTech Lab.

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Dollar Drifts as World Braces for Trump's Reciprocal Tariffs

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
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Dollar Drifts as World Braces for Trump's Reciprocal Tariffs

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo

The dollar wobbled on Tuesday after a bruising quarter as weary investors braced for reciprocal tariffs from US President Donald Trump this week, a move that is likely to exacerbate the global trade war that has evoked US recession worries.

Investors' focus has been firmly on the new round of reciprocal levies that the White House is due to announce on Wednesday, with details scarce. Trump said late on Sunday that essentially all countries will be slapped with duties this week.

That has left currency markets subdued as traders stayed on the sidelines awaiting clarity on Trump's trade policies. Trump has already imposed tariffs on aluminium, steel and autos, along with increased tariffs on all goods from China.

"The second quarter may bring with it as much uncertainty and volatility for investors as the first quarter of the year," said Anthony Saglimbene, chief market strategist at Ameriprise Financial, Rueters reported.

"To date, there has been very little clarity on what and who these tariffs will target out of the gate. Market volatility could escalate depending on what and who is targeted."

The euro was 0.11% lower at $1.0805 after gaining 4.5% in the first quarter of the year, its strongest quarterly performance since October-December in 2022, thanks mainly to Germany's fiscal overhaul, although some investors are sceptical of the bull run lasting longer.

The Japanese yen was a shade stronger at 149.815 per dollar on Tuesday. The yen rose nearly 5% against the dollar in the January-March period on growing bets that the Bank of Japan would hike interest rates again.

Data on Tuesday showed business sentiment among big Japanese manufacturers worsened in the three months to March, a sign escalating trade tensions were already taking a toll on the export-reliant economy and complicating the BOJ's next move.

Beyond tariffs, a string of economic reports, including jobs and payrolls data, could shed much-needed light on how the US economy is holding up under a second Trump presidency.

Federal Reserve Chair Jerome Powell and other central bank officials' speeches this week also could offer clues on the path for US interest rates.

The Reserve Bank of Australia on Tuesday held interest rates steady at 4.1% and said it was still cautious about the outlook, though it dropped an explicit reference to being cautious about cutting rates again.

The Aussie was mostly steady, up 0.1% at $0.6256 in a muted response to the policy decision. The currency had touched a four-week low of $0.6219 on Monday, though it eked out a 1% gain in the first quarter.

"The RBA's statement suggests they're inching towards their next cut, but in no rush to signal one ahead of the election or the quarterly inflation figures," said Matt Simpson, senior market analyst at City Index. Australia will hold a general election on May 3.

The RBA delivered its first rate cut in over four years in February but has since adopted a cautious tone on further easing, with Governor Michele Bullock and other top policymakers downplaying the likelihood of multiple cuts.

The dollar index, which measures the US currency against six rivals, was flat at 104.23. Sterling last fetched $1.2916, while the New Zealand dollar was at $0.56755.