| 5 March 2024, Tuesday |

Saudi Financial Sector Sees Remarkable Development

Saudi Finance Minister Mohammed Al-Jadaan said that work was underway to develop the financial sector in order to keep pace with the major transformations and enable the Kingdom to become one of the world’s largest financial hubs by 2030.

Al-Jadaan, who heads the Financial Sector Development Program Committee in the Kingdom’s Vision 2030 plan, noted that the sector has proven its flexibility, durability and stability, as it pushed towards innovation in the services and increased the share of non-cash transactions to 57 percent of total payments in 2021, exceeding the target of 55 percent.

According to the minister, the financial industry registered another remarkable development by licensing two local digital banks, in addition to launching an open banking policy, which in turn will enhance confidence in banks, financial technology companies, and other financial authorities.

Meanwhile, a government document revealed on Friday the launching of systems for product oversight and governance, at a time when the Saudi Central Bank seeks to launch a financial technology strategy (Fintech) that will enhance the development of the innovation system in financial services.

The document indicated that lending will have a fundamental role through the launch of the Small and Medium Enterprises Bank, which aims to contribute to bridging the financing gap and valuing direct and indirect financing programs.

Among the plans underway is the expansion of the indirect lending initiative, which provides cash liquidity to finance companies and enhance their role in financing small enterprises.

  • Asharq Al-Awsat