Report Overview

Saudi Arabia Fintech Market – Industry Trends & Forecast Report, 2029

Saudi Arabia fintech market size is projected to grow at a CAGR of 15.28% during the forecast period between 2023 and 2029. Saudi Arabia fintech market is experiencing a rapid growth due to the government's initiatives under the Vision 2030 aimed at diversifying the economy and reducing dependence on oil, leading to increasing investments in the fintech sector. Also, a young and tech-savvy population with high mobile and internet penetration rates is driving demand for innovative financial solutions. The country's regulatory framework has also been revamped to support fintech growth, making it easier for startups to operate and attract investment. Partnerships between traditional financial institutions and fintech companies are providing customers with more convenient and accessible financial services. These factors are expected to continue driving the growth of the Saudi Arabia fintech market during the forecast period.

Saudi Arabia Fintech Market - Overview

Fintech (short for financial technology) refers to the use of technology to improve and automate financial services. It encompasses a broad range of applications, including mobile banking, digital payments, online lending, blockchain, and cryptocurrency. Fintech companies seek to disrupt traditional financial institutions and improve the efficiency, speed, and accessibility of financial services for consumers and businesses. By leveraging data analytics, artificial intelligence, and other innovative technologies, fintech is transforming the way people save, borrow, invest, and manage their money. Fintech has become a rapidly growing industry and is expected to continue to play an increasingly key role in the global economy.

Growth Drivers

Digital Transformation and Regulatory Support

Saudi Arabia fintech market is set for explosive growth during the forecast period, due to several key factors. The country's ongoing digital transformation is creating a favorable environment for fintech startups to flourish. This is evidenced by the rising number of digital payment and banking solutions, which are quickly gaining popularity among consumers. Also, the Saudi Arabian Monetary Authority (SAMA) has been actively supporting the development of the fintech sector, including the introduction of a regulatory sandbox to encourage innovation. The government's Vision 2030 plan, which aims to diversify the economy away from oil, is also driving investments and interest in fintech as a key growth area.

Restraints

Regulatory Challenges

Saudi Arabia's fintech market has been gaining momentum in recent years, driven by a growing digital economy and a young, tech-savvy population. However, the market is still in its preliminary stages, and regulatory challenges such as a lack of clear guidelines and a conservative banking sector have slowed its growth. Despite these challenges, the government has taken steps to support the development of the fintech sector, such as launching a regulatory sandbox and providing funding for startups. With increasing investor interest and government support, the Saudi Arabia fintech market is poised for significant growth during the forecast period.

Impact of COVID-19 on the Saudi Arabia Fintech Market

The COVID-19 pandemic affected the Saudi Arabia fintech market. The lockdowns and social distancing measures implemented to curb the spread of the virus led to an increase in the use of digital financial services. This trend was particularly evident in online payments, mobile banking, and e-commerce. Many traditional financial institutions also accelerated their digital transformation efforts to adapt to the new normal. Despite the challenges posed by the pandemic, the Saudi Arabia fintech market continued to grow and attract investments. Overall, the pandemic catalyzed the adoption of digital financial services in the country.

Saudi Arabia Fintech Market

Segmental Coverage

Saudi Arabia Fintech Market - By Technology

On the basis of technology, Saudi Arabia fintech market is divided into Application Programming Interface [API], Artificial Intelligence [AI], Blockchain, Robotic Process Automation, and Data Analytics segments. The blockchain segment is the largest contributor to the Saudi Arabia fintech market. This is due to the increasing use of cryptocurrencies or digital currencies for payment reasons that are built on distributed ledger architecture.

Saudi Arabia Fintech Market – By Application

By application, Saudi Arabia fintech market is divided into Payment & Fund Transfer, Loans, Insurance & Personal Finance, and Wealth Management segments. The wealth management segment dominates the Saudi Arabia fintech market, due to growing financial planning demand, increased security, fully digitalized client onboarding, and real-time coordination between the financial adviser and the customer.

Saudi Arabia Fintech Market – By End User

On the basis of service type, Saudi Arabia fintech market is divided into Banking, Insurance, and Securities. The banking segment holds the highest market share in the Saudi Arabia fintech market. As mobile is connected to the internet, global beneficiaries have also increased. Every bank has its mobile app that allows customers to conduct online transactions and send money to users all over the world.

Competitive Landscape

Major players in Saudi Arabia fintech market include STC Pay, HyperPay, Tamara, PayTabs, Geidea, Hala, Raqamyah, Halalah, OneCard, SADAD Payment, CashU, E-Dirham G2, Tap Payments, Benaa Capital, and Nana. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In January 2022 - The Saudi Arabian Monetary Authority (SAMA) issued licenses to 15 new fintech companies to operate in the kingdom, bringing the total number of licensed fintech companies in Saudi Arabia to 45.

• In August 2021 - The National Commercial Bank (NCB), Saudi Arabia's largest bank, launched a new digital bank called “AlAhliOnline” which offers a range of banking services through a mobile app, including account opening, loans, and bill payments.

Scope of the Report

By Technology

• Application Programming Interface [API]

• Artificial Intelligence [AI]

• Blockchain

• Robotic Process Automation

• Data Analytics

• Others

By Application

• Payment & Fund Transfer

• Loans

• Insurance & Personal Finance

• Wealth Management

• Others

By End Users

• Banking

• Insurance

• Securities

• Others