Saudi Arabia Gears Up to Become Middle East’s Fintech Hub

Within a few months, Riyadh became the second most attractive city in the region for fintech companies (AP)
Within a few months, Riyadh became the second most attractive city in the region for fintech companies (AP)
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Saudi Arabia Gears Up to Become Middle East’s Fintech Hub

Within a few months, Riyadh became the second most attractive city in the region for fintech companies (AP)
Within a few months, Riyadh became the second most attractive city in the region for fintech companies (AP)

Amid a fast-paced financial world, Saudi Arabia is emerging as a very bright spot for the future of the financial technology sector in the Middle East.

What makes the Kingdom a prominent home for financial technology in the region are several record achievements, foremost of which is the development of infrastructure to be ready for innovative products, and the issuance of legislation aimed at enabling companies and new technologies.

In May, the Saudi Cabinet approved the Kingdom’s financial technology strategy, a move that experts said would enable and activate modern means in the financial sector and attract local and foreign companies to work in an equipped infrastructure in the Kingdom.

The strategy comes as a new pillar within the Kingdom Vision 2030’s Financial Sector Development Program (FSDP).

Kingdom Vision 2030 seeks to develop the national economy, diversify sources of income, enable financial institutions to support the growth of the private sector, and open the way for new companies to provide financial services in Saudi Arabia.

Capital Market Authority (CMA) Chairman Mohammed Elkuwaiz clarified that the strategy supports all financial technology activities through transformation engines combined with initiatives that support service providers and develop the sector’s infrastructure.

The strategy comprises six key transformational drivers, which are: highlighting the Saudi identity globally, strengthening the regulatory framework, supporting the sector, developing human resources, advancing technical infrastructure, and enhancing cooperation at the local and global levels.

These transformational drivers include 11 initiatives, which will help strengthen Saudi Arabia's position globally in the field of fintech and support the kingdom's GDP by creating additional job and investment opportunities by 2030.

Fintech strategy was designed within the FSDP through collaborative efforts among the following entities: SAMA, CMA, Ministry of Finance, Ministry of Communications and Information Technology, Ministry of Investment, the Small and Medium Enterprises General Authority (Monsha'at), and Fintech Saudi.

The shared vision of those entities is to achieve global competitiveness and make Saudi Arabia a fintech hub where technology-based innovation in financial services is the foundation for enhancing the economic empowerment of individuals and society.



Israeli-Iranian Escalation Rattles Arab Markets, Egypt Hit Hardest

A trader at the Egyptian stock exchange in Cairo (Reuters)
A trader at the Egyptian stock exchange in Cairo (Reuters)
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Israeli-Iranian Escalation Rattles Arab Markets, Egypt Hit Hardest

A trader at the Egyptian stock exchange in Cairo (Reuters)
A trader at the Egyptian stock exchange in Cairo (Reuters)

The escalating conflict between Israel and Iran cast a heavy shadow over Arab financial markets on Sunday, triggering sharp selloffs, particularly in the Gulf. Investors fled risk amid fears of a prolonged confrontation, though some analysts pointed to potential recoveries in select regional markets should oil prices continue to rise.

Oil surged on Friday as Israel launched strikes against Iranian targets, with prices jumping as much as 13%. Global financial institutions now expect further increases if hostilities persist. JPMorgan forecasts oil could hit $130 per barrel, while Rystad Energy projects prices may soar to $150.

Israel’s strikes reportedly targeted nuclear facilities and ballistic missile factories inside Iran. Tehran retaliated with attacks on Israeli territory and canceled nuclear talks slated for Sunday, negotiations that the US described as the only viable path to halting Israel’s bombing campaign.

Gulf stock markets reacted immediately. The Saudi market, the region’s largest, fell 1%, hitting a 12-month low, with bank stocks leading the decline. Al Rajhi Bank dropped 1.5%, dragging the main index lower. The market had initially plunged by nearly 3.8% before trimming losses after Aramco shares rose 2%.

Qatar’s benchmark index tumbled 3.2%, its steepest one-day drop since April, with every listed company ending in the red. Qatar National Bank, the Gulf’s largest lender, declined 4.2%, while Qatar Gas Transport Company lost 3.3%.

Kuwait’s stock exchange posted its worst daily performance since April, with the premier market index sliding 3.9%, its sharpest drop since April 6.

Markets in the UAE, which operate on Fridays, were among the first to react to the conflict. Abu Dhabi’s index fell 1.34%, while Dubai’s dropped 1.87% during Friday trading. Oman’s Muscat Stock Exchange declined 0.87%, and Bahrain’s bourse slid 0.81%.

Egypt, already grappling with economic challenges, saw its main index plummet 7% at the start of Sunday’s session before paring losses to close down 4.6%. The sharp decline was driven by a wave of regional selling as investors assessed the broader implications of a potential war in the Middle East.