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Venture Capital Investments on the Rise in Saudi FinTech

Saudi officials inaugurating the Financial Technology Center (Asharq Al-Awsat)
Saudi officials inaugurating the Financial Technology Center (Asharq Al-Awsat)
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Venture Capital Investments on the Rise in Saudi FinTech

Saudi officials inaugurating the Financial Technology Center (Asharq Al-Awsat)
Saudi officials inaugurating the Financial Technology Center (Asharq Al-Awsat)

The governor of Saudi Central Bank (Sama), Fahad al-Mubarak, announced that growth in financial technology companies (FinTech) contributed to the provision of crowdfunding and deferred payment activity, amounting to $533 million.

Mubarak noted that the participation of FinTech companies in payments increased the total number of operations in national payment systems to 5 percent by the end of January 2022, compared to 2.5 percent last year.

Speaking at the Financial Technology Center opening in Saudi Arabia, Mubarak indicated that the number of financial technology companies increased from ten in 2018 to 80 companies, with seven in the insurance sector.

According to the governor, the financial technology sector witnessed a remarkable increase in the volume of venture capital investments, with a cumulative value of about SR2.02 billion, through more than 45 investment deals.

Mubarak said in his opening speech that utilizing new technologies and accelerating the growth of financial technology undoubtedly contributed to building and developing new business models and practices.

“We firmly believe in the importance of integration between all parties and the need for concerted efforts to develop this sector under an ambitious national strategy within the Financial Sector Development Program,” said Mubarak.

Meanwhile, CMA Chairman Mohammad al-Kuwaiz explained that the real impact of financial technology on the financial services sector and the entire economy has become tangible.

Kuwaiz explained that Saudi Arabia seeks to become the hub of FinTech, hoping the Financial Technology Center will develop applicable business models for the financial sector and all its beneficiaries.

Fintech Saudi Arabia has officially opened the first of its kind center in the Kingdom, located in King Abdullah Financial District in Riyadh.

The project comes as part of the efforts of the Saudi Central Bank in cooperation with the Capital Markets Authority to stimulate growth in the financial technology sector in the Kingdom.

The Center includes two main sections, with co-working spaces, private offices, meeting rooms, event spaces, and an innovation area that meets all the needs of entrepreneurs and emerging financial technology companies.

The Center will provide entrepreneurs and people with innovative and pioneering ideas to communicate and collaborate to contribute to the development of the financial technology system in Saudi Arabia.

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UN Launches Cairo Declaration to Address Hunger in Arab Region

Palestinian children wait for food at a distribution center in Deir al-Balah, Gaza Strip, Tuesday, Dec. 17, 2024. (AP Photo/Abdel Kareem Hana)
Palestinian children wait for food at a distribution center in Deir al-Balah, Gaza Strip, Tuesday, Dec. 17, 2024. (AP Photo/Abdel Kareem Hana)
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UN Launches Cairo Declaration to Address Hunger in Arab Region

Palestinian children wait for food at a distribution center in Deir al-Balah, Gaza Strip, Tuesday, Dec. 17, 2024. (AP Photo/Abdel Kareem Hana)
Palestinian children wait for food at a distribution center in Deir al-Balah, Gaza Strip, Tuesday, Dec. 17, 2024. (AP Photo/Abdel Kareem Hana)

Rising conflicts, inflation, and climate change have worsened the food crisis in the Arab region, reaching record levels in 2023, according to six UN agencies.

The crisis now affects over 14% of the population, with early signs showing an even greater escalation this year.

To address this, the six UN agencies issued the “Cairo Declaration on Financing Agrifood Systems Transformation in the Near East and North Africa Region” on Wednesday.

The six UN agencies reaffirmed their commitment to working closely with development banks, the private sector, and national governments to boost financial resources for transforming food and agricultural systems in the Arab region, aiming to improve food security and nutrition.

These agencies—FAO, IFAD, UNICEF, WFP, WHO, and ESCWA—also proposed creating cooperative funding platforms, led by governments and developed with partners, to help meet the second Sustainable Development Goal of ending hunger.

The “Cairo Declaration” was issued alongside a joint report titled the 2024 NENA Regional Overview of Food Security and Nutrition. The report warned that the Arab region is still far from reaching its food security and nutrition targets for 2030.

In 2023, 66.1 million people—14% of the Arab population—were affected by hunger. The report showed that around 186.5 million people (39.4% of the population) faced food insecurity, with 72.7 million suffering from severe food insecurity.

Conflicts remain the main cause of food insecurity and malnutrition in the region, compounded by economic challenges, income inequality, and extreme weather events.

Food prices have worsened the crisis, with malnutrition rates in conflict-affected countries jumping to 26.4% in 2023—four times higher than the 6.6% in stable countries. Ongoing conflicts and droughts are expected to further degrade food security and nutrition.

FAO’s Assistant Director-General and NENA Regional Representative Abdulhakim Elwaer emphasized the need for improved public resource use and additional funding to positively impact food systems in Arab countries.

The agencies stress that the report’s findings will drive efforts to create more efficient, inclusive, and sustainable food systems in the region, benefiting both people and the planet.

Over a third of the Arab population struggles to afford healthy food, with 151.3 million people unable to cover basic nutritional needs. This issue is especially severe in conflict zones, where 41.2% of people can't afford a healthy diet.