SAMA Licenses Two Fintech Firms, Boosting Saudi Arabia’s Digital Economy
Saudi Arabia’s fintech sector continues growing with the Saudi Central Bank (SAMA) licensing two innovative financial service providers. Tal Finance has secured a license to offer debt-based crowdfunding solutions, becoming the Kingdom’s 12th provider of such services. This development increases the total number of finance companies licensed by SAMA to 62, showcasing alternative financing’s rising importance.
In another milestone, SAMA licensed Hiberbay Ink Al-Saoudia for IT Systems to deliver e-wallet services, enhancing digital payment accessibility. With this move, the number of licensed payment service providers in Saudi Arabia has grown to 27.
Supporting Vision 2030 and the Digital Economy
These advancements align with Vision 2030 objectives to expand financial inclusion and raise cashless transactions to 70% by 2025. The Financial Development Sector strategy targets having 525 fintech companies operating in Saudi Arabia by 2030.
SAMA emphasized its focus on innovation, efficiency, and the financial sector’s transformation as a Vision 2030 cornerstone. Its initiatives aim to stimulate economic growth, maintain financial stability, and position Saudi Arabia as a global fintech leader.
Fintech Growth Drives Foreign Investments
The Kingdom’s fintech sector is expected to attract foreign investment, contributing 20% of total foreign inflows through technological innovation. Saudi Arabia’s tech-savvy population increasingly adopts consumer fintech products, such as buy now, pay later (BNPL) services.
Arjun Singh, global head of fintech at Arthur D. Little Middle East, noted Saudi Arabia’s evolving consumer finance market driven by diverse financial products. He predicted the BNPL market would double from $1.4 billion in 2024 to $2.8 billion by 2029, growing annually by over 10%.
SAMA’s recent licensing activities highlight its dedication to fostering innovation while maintaining financial efficiency and stability. These developments solidify Saudi Arabia’s status as a fintech hub, driving economic progress and digital transformation.
