Saudi Arabia Approves Financial Technology Strategy

Saudi Arabia continues its digital transformation in the financial sector. (Asharq Al-Awsat)
Saudi Arabia continues its digital transformation in the financial sector. (Asharq Al-Awsat)
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Saudi Arabia Approves Financial Technology Strategy

Saudi Arabia continues its digital transformation in the financial sector. (Asharq Al-Awsat)
Saudi Arabia continues its digital transformation in the financial sector. (Asharq Al-Awsat)

The Saudi Cabinet approved on Tuesday the Kingdom’s financial technology strategy, a move that experts say 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.

Specialists explained that the strategy will organize the sector and put it on the right track for active participation in financial technology.

They also considered the strategy a great leap to prepare the infrastructure in the Kingdom to be ready to receive foreign investments working in this field and to reach the country's goals during the next stage.

Saudi Arabia's Minister of Communications and Information Technology Abdullah Alswaha said that with the support of the Kingdom's government, the new strategy will be a fundamental pillar to accelerate the growth of the digital economy in the country.

Saudi Central Bank (SAMA) Governor Fahad Almubarak emphasized that the financial sector is going through rapid changes, especially in the FinTech industry, which necessitates swift and collaborative action to keep pace with such changes, noting that the implementation of this strategy requires cooperation and joint efforts from all relevant stakeholders.

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.

Mohammed Al Suwayed, CEO of Razeen Capital, highlighted the specialized role played by government agencies, especially the Ministry of Communications and Information Technology, the Capital Market Authority and the Central Bank of Saudi Arabia, in developing the financial technology sector.

Al Suwayed told Asharq Al-Awsat that government agencies are ensuring that FinTech activity in the Kingdom is based on international standards and a safe institutional ecosystem.

Saudi Arabia's adoption of an independent strategy in financial technology explicitly indicates that the Kingdom is organizing this sector and placing it on the path of active participation in the financial sector in its broadest sense, he added.

The new strategy is in line with the supreme directive for Saudi Arabia to be among the leading countries in the field of FinTech, with Riyadh becoming a global tech hub.

It is included as a new pillar within the Saudi Vision 2030's Financial Sector Development Program (FSDP), which is aimed at developing the national economy, diversifying sources of income and enabling financial institutions to support private sector growth by giving new companies the opportunity to provide financial services.



Saudi Arabia Reports SAR540 Billion in Services Trade with 7% Annual Growth

Saudi Minister of Commerce Dr. Majid Al-Kassabi and other officials are seen at the panel discussion at Davos. (SPA)
Saudi Minister of Commerce Dr. Majid Al-Kassabi and other officials are seen at the panel discussion at Davos. (SPA)
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Saudi Arabia Reports SAR540 Billion in Services Trade with 7% Annual Growth

Saudi Minister of Commerce Dr. Majid Al-Kassabi and other officials are seen at the panel discussion at Davos. (SPA)
Saudi Minister of Commerce Dr. Majid Al-Kassabi and other officials are seen at the panel discussion at Davos. (SPA)

Saudi Minister of Commerce Dr. Majid Al-Kassabi announced on Wednesday that the Kingdom’s trade in services reached SAR540 billion in 2023, reflecting an annual growth rate of 7%.

Speaking at a panel discussion on Trade in Service at the World Economic Forum in Davos, he underscored the global significance of the services sector, which makes up approximately 65% of the world’s gross domestic product (GDP), 60% of foreign investments, and serves as the largest provider of jobs worldwide, particularly benefiting women.

He emphasized the need for global collaboration to reduce regulatory and procedural obstacles in the services sector, adding that simplifying these systems would boost competitiveness and alleviate burdens on small and medium enterprises (SMEs), thereby raising their economic contribution.

Al-Kassabi outlined Saudi Arabia’s significant investments in digital infrastructure, including SAR93.7 billion already spent and an additional SAR75 billion allocated for future projects.

The investments, he said, aim to support digital transformation, boost businesses, and attract foreign investments.

The Kingdom has partnered with international organizations to establish legislative frameworks that protect investments and advance human resource development and has created a Center for Distinguished Residence to attract skilled talents, he went on to say.

The World Economic Forum emphasized the critical importance of collaboration between the public and private sectors for the future of trade in services. It highlighted its partnership with the National Competitiveness Center on the Facilitating and Developing Trade in Services initiative, which focuses on key sectors such as information and communications technology (ICT), finance, transportation and logistics services, and mining. The sectors are vital as they underpin all economic activities.