Saudi Arabia’s fintech industry is experiencing exponential growth, pulling ahead in the global race alongside Silicon Valley and Singapore. The sector has expanded from just ten local firms in 2018 to over 200 today, employing more than 5,000 nationals. The Kingdom hosted the 24 Fintech conference in Riyadh, fostering connections between global leaders. An $800m VC mega-fund by 1957 Ventures is set to boost local start-ups. The surge in venture capital investment solidifies Saudi Arabia as the top destination for fintech funding in the Middle East.
Saudi Arabia is aggressively positioning its fintech sector on the global stage, as the nation seeks to rival established leaders like Silicon Valley and Singapore. With digital transformation at the heart of its strategy, the fintech industry is now one of the fastest-growing sectors within the Saudi economy. The growth is remarkable given that in 2018, just ten local fintech firms existed, employing 70 people, compared to today’s over 200 companies, providing jobs to over 5,000 Saudis.
Two notable unicorns, Tamara and stc pay, have emerged from the local fintech scene, exemplifying the innovation and economic contribution driving this sector. The Saudi Central Bank (SAMA) lays out an ambitious goal to expand to 525 fintech firms by 2030, contributing SAR 13.3 billion to the economy and creating 18,000 jobs.
Saudi Arabia recently hosted the 24 Fintech conference in Riyadh, a premier summit bringing together leaders from finance, technology, and policy to showcase and absorb global fintech insights. The event, organized with entities such as the Saudi Central Bank and Fintech Saudi, illustrates the Kingdom’s commitment to advancing its fintech ecosystem.
Annabelle Mander of Tahaluf underscored the strategic importance of fintech to Saudi Arabia’s growth, highlighting its role in attracting international expertise from key markets, such as the UK and USA. Such exchanges are vital in fortifying the Saudi fintech ecosystem.
During the conference, 1957 Ventures announced an SAR 800 million VC mega-fund backed by Riyad Bank, aiming to fuel Saudi start-ups. Emad Kashgari, CEO of the venture, identified talent acquisition as a critical challenge, yet expressed optimism about Saudi Arabia’s potential as a fintech hub in the MENA region.
Kashgari’s vision is echoed by Yazeed Al-Shamsi, CEO of Ejari, a fintech-proptech start-up that won the 24 Fintech Award. With substantial government backing, including a $50,000 grant that catalysed further investment, Ejari reflects the robust support for Saudi start-ups.
The Kingdom’s fintech narrative is further bolstered by a Magnitt report documenting a 360% increase in fintech funding in the first half of 2024 compared to the previous year, with Saudi Arabia leading the MENA region in venture capital investment.
Saudi Arabia has firmly positioned itself as the leading fintech hub in the Middle East, driving economic growth and innovation.
