JEDDAH: Saudi Arabia has achieved a serious milestone in its monetary transformation, reaching a 79 % cashless transaction price in 2024 — surpassing its 2025 goal forward of schedule, in accordance with an official.
In an unique interview with Arab Information, Khaled Al-Dhaher, vice governor for supervision and expertise on the Saudi Central Financial institution, also referred to as SAMA, mentioned: “By the tip of the second quarter of 2025, the variety of fintech firms working within the Kingdom reached greater than 280.”
Explaining the sector’s progress, the senior official mentioned the nation has seen a exceptional transformation, evolving from a standard, bank-centric mannequin to one of the dynamic monetary ecosystems within the area.
Saudi Arabia’s fintech sector is rising quickly, pushed by regulatory reforms, digital innovation, and funding in monetary infrastructure. By means of initiatives supporting startups, digital funds, and open banking, the Kingdom is constructing a future-ready ecosystem that advances inclusion, effectivity, and Imaginative and prescient 2030 targets.
Strategic management
Al-Dhaher highlighted how SAMA has leveraged its core mandate of financial and monetary stability to place Saudi Arabia as a world fintech hub, constructing its technique on 4 pillars: resilience, excellence, affect, and growth.
“This implies enhancing structured and adaptive laws by means of managed sandboxes, clear licensing pathways, and supervisory expectations that foster accountable innovation,” he mentioned.
He added that with top-class infrastructure, Saudi Arabia is nicely positioned to roll out fintech options to its digitally enabled inhabitants whereas deepening worldwide engagement with regulators, monetary establishments, and world platforms.
SAMA has carried out a number of measures to foster fintech progress, beginning with the institution of Fintech Saudi in 2018 by SAMA and the Capital Market Authority, performing as a springboard to assist frequent infrastructure for the sector.
“As a continuation of those efforts, SAMA and the CMA introduced the Fintech Enablement Program, ‘Makken’ in 2023 to empower entrepreneurs and startups within the fintech trade by offering assist with superior expertise, cloud, and cybersecurity capabilities,” he added.
SAMA’s precedence is to make sure fintech innovation is purposeful and well-regulated. (AFP)
He emphasised that SAMA’s technique aligns carefully with the Fintech Technique, a part of the Monetary Sector Improvement Applications beneath Imaginative and prescient 2030. The technique, permitted by the Council of Ministers in 2022, units ambitions to remodel the Kingdom into a number one world fintech hub by enhancing innovation, deepening monetary inclusion, and making certain monetary providers are accessible, environment friendly, and aggressive.
“By means of this strategy, and in alignment with the Fintech Technique, SAMA ensures that fintech progress is each well-regulated and impactful, positioning Saudi Arabia as a reputable and resilient hub throughout the world fintech panorama,” he mentioned.
Monetary Inclusion
Al-Dhaher famous that nationwide cost techniques and regulatory frameworks have facilitated cell wallets, real-time funds, and streamlined digital onboarding.
“On the financing facet, SAMA has established frameworks for microfinancing and debt crowdfunding, making certain that progressive options are deployed safely whereas extending providers to people and SMEs that have been beforehand underserved,” he mentioned.
He added that for shoppers, improvements reminiscent of open banking and micro-savings instruments are making monetary providers extra accessible, customized, and inclusive.
International integration
Al-Dhaher additionally highlighted the position of worldwide fintech entrants, emphasizing that their participation enhances the competitiveness of the home market and aligns Saudi Arabia’s cost infrastructure with the very best worldwide requirements.
He pointed to current developments as proof, together with the launch of Google Pay at Money20/20 Center East, enabled by means of the nationwide cost system, MADA, and the settlement with Ant Worldwide to allow Alipay+ funds by 2026.
He mentioned these initiatives mirror how world platforms are partnering with nationwide infrastructure to higher serve each residents and worldwide guests, contributing to a strong, future-ready monetary ecosystem.
“SAMA continues to encourage world participation with clear guidelines and laws, making certain technical interoperability with nationwide techniques, and implementing sturdy consumer-protection frameworks,” he mentioned.
Innovation frameworks
Al-Dhaher defined that SAMA’s strategy is rooted in structured adaptiveness noting {that a} core instance is their Regulatory Sandbox, which permits fintechs to check new enterprise fashions in a protected and managed setting, whereas offering SAMA with real-time insights.
Thus far, he added, over 70 fintechs have been admitted, with greater than 25 efficiently graduating into totally licensed suppliers.
“A number of key laws, together with EMIs, crowdfunding, and digital funds, have been formed straight by means of sandbox engagements,” he mentioned.
Past the sandbox, the official mentioned, SAMA has developed frameworks just like the Open Banking initiative, balancing innovation with strict governance, privateness, and safety requirements. “This mix of phased approvals, outcome-based supervision, and powerful safeguards permits us to foster innovation whereas making certain stability and client belief.”
Operational resilience
The SAMA official emphasised that sustaining resilience and competitiveness amid world technological disruption is a key precedence.
He careworn that monetary establishments and third-party suppliers are required to adjust to laws on operational resilience, cyber-risk administration, and enterprise continuity, making certain constant governance, safety, and accountability.
“By imposing these necessities and sustaining shut supervisory oversight, SAMA ensures that the home fintech ecosystem is well-prepared to handle technological disruption and world market volatility, whereas remaining aggressive and positioned for regional and worldwide progress,” he mentioned.
With the rise of AI, huge information, and digital finance, SAMA is leveraging rising applied sciences to drive innovation whereas defending privateness, safety, and client belief.
Accountable fintech innovation
Al-Dhaher defined that the central financial institution follows nationwide best-practice tips for AI adoption, inserting reliability, safety, and privateness on the core of its initiatives.
He added that SAMA additionally maintains “shut dialogue with trade stakeholders, utilizing surveys, on-site interviews, and partnerships to assemble well timed insights. This collaboration helps to foster a tradition of prudent innovation.”
Discussing fintech’s broader impression, Al-Dhaher mentioned options can broaden monetary entry, assist underserved segments reminiscent of SMEs, and increase effectivity and competitiveness throughout the financial system.
“These outcomes are straight aligned with Imaginative and prescient 2030, the place sustainable progress, diversification, and monetary inclusion are central aims,” he mentioned.
He emphasised that SAMA’s precedence shifting ahead is to make sure fintech innovation is purposeful and well-regulated, advancing expertise whereas assembly real market wants, defending shoppers, and reinforcing monetary stability.
“We’re centered on enabling an setting the place fintech can thrive, expertise and funding are nurtured, and innovation addresses actual market wants whereas making certain monetary stability and client safety,” he mentioned.
