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Saudi Central Bank to Asharq Al-Awsat: Payment Digitization Anchors Kingdom's Global Financial Hub Status

Abdulelah Aldeheem, Assistant Governor for Executive Affairs at the Saudi Central Bank. (Turky Al-Agili)
Abdulelah Aldeheem, Assistant Governor for Executive Affairs at the Saudi Central Bank. (Turky Al-Agili)
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Saudi Central Bank to Asharq Al-Awsat: Payment Digitization Anchors Kingdom's Global Financial Hub Status

Abdulelah Aldeheem, Assistant Governor for Executive Affairs at the Saudi Central Bank. (Turky Al-Agili)
Abdulelah Aldeheem, Assistant Governor for Executive Affairs at the Saudi Central Bank. (Turky Al-Agili)

The Saudi Central Bank is spearheading a comprehensive regulatory and technical initiative to transform the Kingdom’s digital payments landscape, shifting from traditional banking to establishing a global financial hub, opening the sector to regulated foreign investment, and licensing more international electronic payment applications.

The effort forms part of a broader initiative to enhance the competitiveness of the national economy and solidify Saudi Arabia’s position as a regional and global financial hub.

The push includes updating regulatory frameworks, enabling payments companies, e-wallet providers, and foreign-owned exchange houses, as well as expanding the acceptance of international wallets and applications at points of sale and across e-commerce platforms.

The measures are intended to broaden payment options for individuals, visitors, and investors, raise efficiency in the financial sector, and enhance the appeal of the Saudi market to global capital.

Within this framework, Abdulelah Aldeheem, Assistant Governor for Executive Affairs at the Saudi Central Bank, told Asharq Al-Awsat that the central bank’s new strategy aims to create a society that is less dependent on cash while ensuring the highest levels of cybersecurity and consumer protection.

Aldeheem said the central bank continuously analyzes global developments in payments and adapts them to local market needs. Through ongoing cooperation with peer central banks and international organizations, it monitors and evaluates innovations, exploring modern technologies to keep pace with the rapid changes in this vital and sensitive sector, while safeguarding financial stability.

He stated that the central bank is committed to adopting and integrating the latest technologies to deliver advanced and secure financial services that meet user expectations, thereby reinforcing Saudi Arabia’s standing as a leading financial center in the region.

This work aligns with the bank’s strategy to enhance the payments ecosystem by providing secure and reliable core payment services that ensure interoperability and ease of access.

Broad regulatory powers over payments

Aldeheem stated that the Saudi Central Bank is the authority responsible for supervising and overseeing the payments sector, exercising all powers necessary to ensure financial stability, encourage innovation, and protect customers, in accordance with the Payments and Payment Services Law and its executive regulations.

These powers include issuing rules, regulations, and instructions governing payment systems and services, licensing and renewing payment system operators, setting capital, governance, and risk management requirements, classifying systemically important payment systems, overseeing payments infrastructure to ensure efficiency and continuity, obliging providers to safeguard and segregate customer funds and data, and conducting inspections and supervision.

Consumer protection at the core

On consumer protection, Aldeheem said that the central bank prioritizes protecting customers in the financial sector in line with international best practices. Regulatory frameworks require payment service providers to comply with provisions related to framework agreements, including the nature of the service, execution timelines, fees, currencies, and complaint handling.

Rules also cover the safeguarding of protected funds, including holding them in separate accounts at licensed banks. Providers are required to offer effective channels for receiving and resolving complaints fairly and transparently, comply with cybersecurity requirements, and adhere to final settlement rules and default management frameworks to protect customer rights.

The central bank licenses two types of payment activities, electronic wallets and payment services. Aldeheem said 28 companies are currently licensed, including 13 e-wallet providers and 15 payment service companies.

Future of ATMs

Despite the rapid growth of electronic payments, Aldeheem said the central bank closely monitors developments related to automated teller machines.

It has established a regulatory and supervisory framework for ATM networks and set clear rules for banks to ensure effective monitoring, thereby encouraging geographic coverage in line with financial inclusion targets, he told Asharq Al-Awsat.

Foreign ownership

Foreign investors can enter the exchange sector by either opening a branch of a foreign company or establishing a local firm. Aldeheem said foreign investors are permitted to own exchange companies in Saudi Arabia with full ownership.

Licenses enable exchange firms to buy and sell foreign currencies, as well as handle imports and exports. He noted that a Saudi company with foreign capital, Global Exchange AS Currency Services Ltd, was licensed in September as part of the sector's regulated opening to foreign investment.

Regulation of buy now, pay later services

Regarding buy-now, pay-later services, Aldeheem stated that the activity is classified as a financing service licensed by the Saudi Central Bank. It provides financing for goods and services without deferred payment costs and, in some cases, covers education or medical expenses, extending beyond traditional consumer finance.

The central bank issued rules governing BNPL companies to protect users, particularly individuals, ensure financing aligns with borrowers’ credit profiles, and safeguard the stability of the sector. The rules were reviewed and updated in November 2024.

Seven companies have been licensed to operate BNPL services, while six others are completing licensing requirements. New financing during the first nine months of 2025 reached about 28 billion riyals ($7.5 billion).

Users aged 25 to 45 accounted for around 67 percent of total financing. Wholesale and retail trade accounted for approximately 70 percent, followed by health services at 9 percent.

Growth in Mada point-of-sale transactions

Aldeheem said transactions processed through the national payments system, Mada, for point-of-sale devices rose 16 percent in 2024 from the previous year, reaching 10.4 billion transactions worth more than 668 billion riyals ($178.1 billion).

The growth coincided with a sharp expansion in POS devices, which exceeded 2.3 million units by the end of October 2025, the highest level on record, reflecting the depth of the shift toward electronic payments in the Saudi market.

Cash and electronic payments

While electronic transactions now account for 79 percent of operations, Aldeheem said the central bank does not aim to eliminate cash entirely. Its objective is to build a society that is less reliant on cash, while maintaining the national currency's acceptance as legal tender.

He stressed that ensuring the availability of all payment options, including cash, supports financial inclusion and serves residents and visitors alike.

Global payment applications

Regarding services such as Apple Pay, Samsung Pay, and Google Pay, Aldeheem explained that the central bank supports new entrants that meet regulatory requirements. Several new electronic payment applications are expected to launch in the near term, supported by interoperable infrastructure that allows seamless use at POS terminals and e-commerce platforms.

Saudi Arabia was among the first countries globally to adopt NFC-based mobile payments, he revealed, adding that the central bank continues to improve user experience while maintaining high security standards.

To facilitate payments for tourists and visitors, the central bank has invested in payments infrastructure for decades, linking global networks including Visa, Mastercard, American Express, UnionPay, Discover, and JCB through the Mada system.

Aldeheem said acceptance of international networks is being expanded in line with growth in tourist numbers. He cited a recent agreement between the Saudi Central Bank and Ant International, which will enable the acceptance of Alipay+ payments via Mada in 2026.

The bank has also worked to reduce the cost of accepting international card payments by reviewing fee structures with payment service providers, banks, and global card networks, supporting competitiveness in sectors such as hospitality and retail.

Unified digital services platform

Aldeheem said the central bank is enhancing its digital channels in line with national digital transformation goals. A unified electronic services portal has been launched, providing over 25 services to individuals, businesses, and government entities.

These include digital government banking services, regulatory sandbox applications, approvals for senior management appointments, ATM licensing, and consumer complaints services.

Digital check clearing and cybersecurity

Among the digital transformation initiatives is electronic check clearing, which processes check data electronically through a central clearing house, enabling settlement within one business day.

On cybersecurity, Aldeheem said requirements are embedded across all digital initiatives, with continuous testing to ensure readiness against evolving threats. National expertise within the central bank plays a key role in monitoring systems and strengthening defenses.

Currency in circulation and counterfeit protection

Addressing the rise in currency in circulation to nearly 250 billion riyals ($66 billion), Aldeheem cited economic growth, higher consumption, increased tourism, and year-round Umrah as key factors contributing to this increase. Cash in circulation accounts for approximately 6 percent of GDP and reflects confidence in the local economy.

Regarding counterfeiting, he stated that the sixth currency issue, printed under Custodian of the Holy Mosques King Salman bin Abdulaziz Al Saud, incorporates advanced security features.

The central bank has conducted awareness campaigns and training sessions for banks, customs officials, security agencies, and private sector workers to maintain trust in the national currency as a reliable means of payment and savings.

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Business

Oil Prices Surge While Asian Share Prices Rise Moderately

FILE - Workers walk in an area at a degassing station in Zubair oil field, whose operations have being reduced due to the Mideast war triggered by the US and Israeli attacks on Iran, near Basra, Iraq, March 28, 2026. (AP Photo/Leo Correa, File)
FILE - Workers walk in an area at a degassing station in Zubair oil field, whose operations have being reduced due to the Mideast war triggered by the US and Israeli attacks on Iran, near Basra, Iraq, March 28, 2026. (AP Photo/Leo Correa, File)
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Oil Prices Surge While Asian Share Prices Rise Moderately

FILE - Workers walk in an area at a degassing station in Zubair oil field, whose operations have being reduced due to the Mideast war triggered by the US and Israeli attacks on Iran, near Basra, Iraq, March 28, 2026. (AP Photo/Leo Correa, File)
FILE - Workers walk in an area at a degassing station in Zubair oil field, whose operations have being reduced due to the Mideast war triggered by the US and Israeli attacks on Iran, near Basra, Iraq, March 28, 2026. (AP Photo/Leo Correa, File)

Oil prices continued to surge on worries of a prolonged Iran war but the Asian markets that were open Friday rose moderately in cautious trading, while others were closed for the Good Friday holidays.

Benchmark US crude rose 11.4% to $111.54 a barrel. The price of Brent crude, the international standard, jumped 7.8% to $109.03 per barrel, The Associated Press said.

“A more extended conflict raises the threat to physical infrastructure, extends disruptions through the Strait of Hormuz, and will entail a longer post-war recovery period, with price impacts spilling over later into the year,” according to a report from BMI, a unit of Fitch Solutions.

The US only relies on the Arabian Gulf for a fraction of the oil it imports, but oil is a commodity and prices are set in a global market.

The situation is very different in Asia. Japan, for example, relies on access to the Strait of Hormuz for much of the nation’s oil import needs and would need to rely on alternative routes. But some analysts say Japan and other nations are counting on an agreement with Iran to allow transports.

Japan’s benchmark Nikkei 225 gained 0.9% in Friday morning trading to 52,938.62. South Korea’s Kospi jumped 2.1% to 5,344.41. The Shanghai Composite sank 0.5% to 3,899.57. Trading was closed in Hong Kong, Singapore, Australia, New Zealand, the Philippines, Indonesia and India.

Wall Street, where trading is closed Friday, finished its first winning week since the start of the Iran war, although trading started out with a decline driven by a surge in oil prices.

That came after US President Donald Trump late Wednesday vowed the US will continue to attack Iran and failed to offer a clear timetable for ending the conflict in the Middle East.

The S&P 500 rose 7.37 points, or 0.1%, to 6,582.69. Several days of solid gains this week helped the benchmark index notch a 3.4% gain for the week. The Dow Jones Industrial Average fell 61.07 points, or 0.1%, to 46,504.67. The Nasdaq composite rose 38.23 points, or 0.2%, to 21,879.18. Both indexes also notched weekly gains.

Treasury yields remained relatively steady in the bond market. The yield on the 10-year Treasury fell to to 4.30% from 4.32%.

In currency trading, the US dollar edged up to 159.66 Japanese yen from 159.53 yen. The euro cost $1.1535, inching down from $1.1537.

Business

Saudi Arabia Boosts Firms’ Readiness for Supply Chain Challenges

Container ship at King Abdullah Port (SPA)
Container ship at King Abdullah Port (SPA)
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Saudi Arabia Boosts Firms’ Readiness for Supply Chain Challenges

Container ship at King Abdullah Port (SPA)
Container ship at King Abdullah Port (SPA)

Amid mounting geopolitical tensions threatening global supply chains, particularly disruptions in the Strait of Hormuz, Saudi Arabia is stepping up efforts to shield its economy by strengthening private sector readiness to withstand external shocks.

Asharq Al-Awsat has learned that the Federation of Saudi Chambers is moving to boost companies’ preparedness, unify procedures, and keep business flowing smoothly amid rising logistical risks.

The push underscores authorities’ focus on safeguarding the domestic market by helping businesses adapt quickly and strengthen operational resilience, supporting economic stability and sustained growth.

Future decisions

As part of efforts to bolster supply chain resilience, the Federation of Saudi Chambers is mapping challenges facing companies and national institutions, aiming to present the sector’s voice directly, build a clear picture of on-the-ground obstacles, and help shape future decisions.

It is tracking operational and logistical hurdles and turning them into inputs for relevant authorities to improve regulations and support market-based decision-making.

Improving the regulatory environment

The federation has asked companies to pinpoint challenges across ports, airports, logistics hubs, and warehouses, as well as those tied to regulators.

It urged firms to specify issues such as clearance or transit delays, procedural disruptions, added costs, lack of information, conflicting instructions, and regulatory requirements, along with their impact, whether financial or operational, including delivery delays, lost clients, suspended contracts, damaged cargo, and supply chain breakdowns.

The findings are expected to feed into regulatory improvements and more informed policymaking.

Alternative routes

Saudi Arabia has rolled out proactive logistics measures to reduce reliance on the Strait of Hormuz, including new corridors linking Gulf ports through alternative land and sea routes, Red Sea options, and additional shipping services to expand port capacity.

The Transport General Authority said licensed operators will be allowed to carry goods for third parties until Sept. 25, aiming to boost fleet efficiency and flexibility.

The authority said the step will help companies make better use of capacity, support supply chain continuity, and improve cargo movement within the kingdom and to neighboring countries.

On Thursday, it also approved regulatory updates extending deadlines for land freight firms to adjust their status, aiming to raise efficiency and compliance.

The extension covers heavy and light transport activities until Aug. 27, 2026, giving companies more time to meet regulatory requirements.

It also includes cases involving the reclassification of vehicle registration from private to public use in heavy freight, in a move to better regulate the sector and improve fleet utilization.

Business

War Hits Lebanon Dollar Lifeline, Remittances Fall Sharply

Lebanon’s central bank (National News Agency)
Lebanon’s central bank (National News Agency)
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War Hits Lebanon Dollar Lifeline, Remittances Fall Sharply

Lebanon’s central bank (National News Agency)
Lebanon’s central bank (National News Agency)

A Lebanese mother described the sharp decline in one of her last sources of income, once a pillar of her financial stability, as remittances from her son abroad dwindled in the wake of the war.

“My son used to send me $600 a month. I lived on it, covered my medication and basic needs. After the war, the transfer does not exceed $200,” she told Asharq Al-Awsat.

Her account reflects a broader trend among Lebanese households, in which remittances from relatives abroad have dropped by 10% to 15% during the war. The conflict has left its mark on multiple countries, including Lebanon, driving inflation and creating obstacles to money transfers.

The financial situation was also discussed in a meeting between Lebanese President Joseph Aoun and central bank governor Karim Saeed, where current monetary and financial conditions, exchange rate stability, and precautionary measures to maintain liquidity were reviewed.

Rapid contraction and rising pressure

The issue has reached the government. Economy Minister Amer Bisat presented updated wartime estimates to the cabinet on Thursday, highlighting economic contraction and declining incomes driven by large-scale displacement, along with a notable rise in unemployment.

He cited sectoral and field studies showing deteriorating indicators, estimating the contraction at 7%-10%, coupled with slower inflows of funds into the country.

Bisat said the situation remains “relatively under control,” noting that the ministry continues to pursue cases of monopoly and fraud through dozens of reports, judicial referrals, and the seizure of non-compliant goods.

He warned that a prolonged war would heighten economic risks, describing inflation as a real challenge, while the balance of payments remains within acceptable limits.

Impact on daily life

The Lebanese mother told Asharq Al-Awsat: “I used to organize my life around the $600 my son sent me every month. I would pay for medication first, then cover household needs. Now I have to ration spending. I can no longer pay the electricity bill regularly.”

She added: “I buy smaller quantities of everything and postpone whatever I can. Sometimes I ask the pharmacy for medicine on credit. I never imagined I would reach this point.”

In the Bekaa Valley, Abu Mohammad described a similar experience: “My son used to send $400 a month, now it barely reaches $200.”

“I relied on that amount to cover rent and basic expenses. Now everything has changed. We live day to day on installments. We buy only the bare minimum and delay everything, rent, bills, even some essentials,” he said.

“Sometimes we sit together as a family to decide what we can pay this month and what to postpone. This did not exist before. Now it is part of our daily life.”

A shrinking economic backbone

Economist Walid Abou Suleiman said remittances have formed the “backbone of Lebanon’s economy since the 2019 crisis,” noting that the country relies heavily on them to secure foreign currency, as Lebanon imports about 85% of its consumer needs.

He told Asharq Al-Awsat that annual remittances are estimated at around $6 billion, including roughly $3 billion from Gulf countries, but have begun to decline, with at least a 5% drop recorded in the first month of the crisis.

“The impact of crises does not appear immediately; it builds gradually in the following months, meaning the decline is likely to worsen,” he said.

Hundreds of millions in losses

Abou Suleiman expects remittances to fall by 10% to 15%, equivalent to annual losses of between $450 million and $500 million, or about $40 million per month.

This decline is compounded by job losses among Lebanese expatriates in the Gulf, increasing domestic pressure as some return to Lebanon.

He added that the war has also affected other sources of foreign currency, particularly tourism. “Seasons that used to inject dollars into the market, such as Easter, have been absent this year,” he said, adding that rising global oil prices are worsening the crisis, as Lebanon is among the countries most affected by energy costs.

“The treasury is bearing additional burdens estimated at around 18% due to these increases,” he said.

Abou Suleiman warned that global inflation directly impacts Lebanon. “We do not only import goods, but we also import inflation with them, given the absence of local production and self-sufficiency,” he said, cautioning that the economic outlook will deteriorate further if the war continues.

Ongoing decline and uncertain outlook

Economist Professor Jassem Ajaka said remittances to Lebanon have recorded a notable decline, estimating a drop of around 5% last week, possibly rising to between 5% and 10% as conditions continue to evolve, with no precise figure due to constantly changing data.

He said the decline is logical, as Lebanese workers in the Gulf and Europe have also been affected by slowing economic conditions there.

“The crisis is no longer confined to one country or region; it is global, though its impact varies from place to place,” he said.

Ajaka stressed that remittances remain a key pillar, alongside tourism, which is largely driven by expatriates. “The tourism sector is almost entirely halted. The season can be considered lost, and even the upcoming summer season is not guaranteed. Recovery will not be quick, even if the war ends,” he said.

Tourism revenues were estimated at between $4 billion and $4.5 billion annually, making them a major source of foreign currency.

Exports are also expected to decline by around 10% due to damage to the agricultural sector in the south and Bekaa, as well as higher industrial production costs driven by rising oil prices.

Dollar inflows shrink, risks expand

Ajaka said remittances now represent the last line of resilience for many Lebanese families, but this pillar is weakening with the current decline.

He warned that the most serious consequence is a shortage of dollars in the market, raising questions about Lebanon’s ability to finance imports of fuel, food, and medicine.

A temporary solution could involve the central bank financing imports from its foreign currency reserves, he said, but this would amount to crisis management, with repercussions worsening the longer it continues.

He added that pressures are not limited to economic factors, but also include measures that restrict dollar inflows, further reducing liquidity in the market.