Saudi fintech market attractive to startups: official

There are currently 13 financial services technology (fintech) startups operating in Saudi Arabia, while a number of others are awaiting regulatory approvals ahead of their debut, Mishari Al-Assailan, a representative of Fintech Saudi, told Argaam.

The Kingdom’s promising market size and massive purchasing power is attractive to international firms in the fintech sector, he said.

Below is the full interview conducted with Al-Assailan:

Q: Would you give us an idea about Fintech Saudi’s business and responsibilities?

A: Fintech Saudi is an initiative launched by the Saudi Arabian Monetary Authority (SAMA) to promote and develop the fintech industry in the Kingdom. Fintech Saudi aims to transform Saudi Arabia into a fintech innovation hub, and create an ecosystem driven by national and international stakeholders, in line with Vision 2030.

Q: What are Fintech Saudi’s objectives?

1) Fostering a culture of fintech innovation across all public and private organizations.

2) Raising awareness around financial services technology in the Kingdom.

3) Supporting pioneering fintech projects and small and medium enterprises (SMEs), as well as developing specialized products and services to aid this sector across the Kingdom.

Q: What are the government’s key initiatives to support the objectives of the fintech sector?

1) An initiative by SAMA and the Capital Market Authority (CMA) to set-up a fintech lab to test new innovations.

2) The Saudi Arabian General Investment Authority’s (SAGIA) participation in London Fintech Week. Fintech Saudi invited several banks to the event, including Alinma, Riyad Bank and Al Rajhi Bank, in order to attract foreign investments, after the Crown Prince’s US and UK visits.

3) The Artificial Intelligence in Fintech workshop held by Microsoft to enrich the Saudi financial sector by showcasing leading experiences. 

4) The appointment of a fintech director at the Small and Medium Enterprises General Authority (Monsha’at), the sector’s first ever administrative government position.

5) Fintech Saudi, along with eight partners, provided summer internships for over 40 college students in Riyadh and Dammam universities. There were 1,300 students who applied for the program.

Q: What are your estimates on the future number of fintech firms?

A: According to Fintech Saudi statistics, there are 13 operational fintech startups, while other companies plan to start operations soon pending regulatory approval. The Saudi market size is promising for more companies to enter given its massive purchasing power, which is attractive to foreign companies.

Q: What are the sectors that would benefit the most from fintech applications?

A: The sectors currently benefiting most from fintech applications are telecommunications and commerce. The most important outcome of fintech adoption so far is achieving financial inclusion and enabling all society segments to use financial services that were expensive or unsuitable for use.

The technology in the Saudi market is advanced enough to secure financial services and transactions against any technical failures that could risk sectors like the housing and real estate. Startups in the sector are also growing as a result of Fintech Saudi’s efforts and initiatives, in collaboration with SAGIA and other local and international entities.

Q: How does Fintech Saudi plan to support SMEs?

A: Fintech Saudi is supporting the development of fintech SMEs through educating them on the benefits of fintech products and services and providing them with access to regulators, government agencies, customers, and investors, depending on their requirements. Fintech Saudi also supports the development of national talet, and helps provide SMEs with access to free services.