Saudi Arabia continues to make remarkable progress in developing its financial sector and fintech ecosystem as part of its ambitious strategies to achieve Vision 2030 and diversify its economy away from oil. The number of fintech companies has risen to 261, achieving 140% of the announced target, while debt instruments grew by 123% by the end of 2024 compared to 2017, according to the Annual Financial Sector Development Program Report.
The report also showed that the share of electronic payments reached 79% of total individual transactions last year, reflecting the rapid digital transformation in the Saudi financial sector. The Ministry of Investment launched a comprehensive program aimed at attracting foreign financial institutions, including seven initiatives covering banks, asset management, insurance, capital markets, and fintech, with the goal of boosting foreign investment, attracting global expertise, and enhancing financial services.
In this context, Saudi Finance Minister Mohammed Al-Jadaan confirmed that momentum in the financial market continues through the development of regulatory frameworks and the provision of a supportive environment for companies. Last year, 44 new companies were approved for listing, bringing the total number of listed companies to 353. Additionally, the general framework for green finance was published, and the first exchange traded fund (ETF) tracking Saudi stocks in China was launched, alongside two other funds focused on Saudi stocks in the Shanghai and Shenzhen exchanges.
During the FinTech 24 conference held in Riyadh, Al-Jadaan announced that the share of electronic payments in the retail sector exceeded the 2025 target, reaching 70% in 2024 compared to 62% in 2022, with a plan to reach 80% by 2030.
Meanwhile, Investment Minister Khalid Al-Falih explained that the program contributed to a qualitative transformation of the Saudi financial market by enhancing liquidity, empowering SMEs, and encouraging innovation in financial technology, thereby supporting economic growth and stability.
The banking sector also recorded an increase in the credit share extended to the private sector as a percentage of GDP, rising from 61% in 2023 to 69% in 2024, with total credit of SAR 2.75 trillion and an annual growth rate of 13%, according to Minister of Economy and Planning Faisal Al-Ibrahim. Loans to SMEs also increased notably from 8.4% to 9.4% in Q4 2024.
In terms of asset management, locally managed assets reached nearly SAR 1 trillion, while the sukuk and debt instruments market achieved record growth by the end of 2024. Foreign investor ownership in the Saudi stock market rose to more than SAR 420 billion, reflecting a 501% increase since 2017.
Saudi Central Bank Governor Ayman Al-Sayari noted that banking sector assets exceeded the 2024 target, fully complying with Basel banking supervision standards, highlighting strong liquidity and capitalization levels. Credit extended to the private sector reached SAR 2.78 trillion, surpassing the target of SAR 2.05 trillion.
Additionally, the Public Investment Fund (PIF) entered into strategic partnerships with top asset managers to create an advanced multi-asset investment platform in Riyadh, invested in the Saudi bond fund to diversify the investor base, and launched an exchange-traded equity fund to enhance market liquidity and competitiveness.
Key Indicators from the 2024 Financial Sector Development Program Report:
Banking sector assets exceeded SAR 4.49 trillion
Bank assets reached 131% of the target of SAR 3.43 trillion
Market capitalization of the stock market excluding Aramco rose to 86.7% of GDP
Private sector credit accounts for 69% of GDP
