Saudi Arabia’s fintech sector is driven mainly by young first-generation entrepreneurs who are competing with the largest financial institutions in a competitive market. From 2017 until 2019, the value of fintech transactions grew more than 18 percent each year, where it reached USD 20billion in 2019. The Kingdom’s fintech market is expected to reach transaction values of more than USD 33billion by 2026. The market is expected to grow annually by 15% (CAGR 2021-2026).
The Covid-19 pandemic and the corresponding health measures have changed customer behaviour immensely. As people sought to make less physical contact, the demand for contactless paying services grew strongly in 2020. Saudi Arabia is the largest market in the GCC with a young population where 70 per cent are under 30 years old, as well as the largest population. Despite the relative infancy to other neighbouring countries like the UAE and Bahrain, Saudi entrepreneurship is noted with its organic growth. In addition, the country is home to Riyadh, its capital and largest city that aspires to be one of the top 10 largest economies – announced this year by Crown Prince Mohammed bin Salman (MBS) – as well as Jeddah, the country’s historic commercial hub.
Saudi Arabia’s fintech sector has potential given its large market and efforts with Saudi Vision 2030, where fintech and wider digital transformation is receiving the relevant tools and support to implement it. 2030 has a financial service and fintech implementation that has promoted and allowed for the sector to develop.
Key Market Trends
Increase in Technology Usage And Adoption Across Domains
By 2030, Saudi Arabia’s vision is to become the place where the best of data and AI is made a reality. Under the strategy, Saudi Arabia will implement a multi-phase, multi-faceted plan that includes skills, policy, and regulation, investment, research, and innovation, as well as ecosystem development. Under the strategy, Saudi Arabia will implement a multi-phase, multi-faceted plan that includes skills, policy, and regulation, investment, research, and innovation, as well as ecosystem development. AI can contribute an estimated USD 135billion to its GDP, which corresponds to 12.4 percent of the national GDP.
Increasing Smartphone Usage For Digital Payments
Payments accounted for two-thirds of the market and almost 98 percent of the userbase. This was followed by personal finance which represented more than 30 percent of the fintech transaction values. With smartphone payment transactions, in Saudi Arabia, this increased by 352 percent to 19.7 million in April 2020 compared to just 4.4m the previous year.
Companies across the world have huge investments in this segment of the market. In SAUDI ARABIA the FinTech market has many companies fragmented over minor shares. Rasanah Technologies LLC (Financial Information Aggregation), SURE (Digital Payments), Foodies (Digital Payments), Sulfah (Consumable Micro-lending), Raqamyah Platform (Debt- CrowdFunding Platform), Maalem Financing Company (Debt- CrowdFunding Platform), Skyland (Digital Payments), Saudi Fintech Company (Alinma Pay) (Digital Payments) amongst the FinTech Companies.
Adoption of FinTech platform and up-gradation to new Technology leads to increasing competition amongst the company. Innovation and technological advancement taking a pace as the COVID-19 and urbanization strike general people to the adoption of the new ease in payment and contactless payment gateways.
- The market estimate (ME) sheet in Excel format
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1.2 Scope of the Study
4.2 A Brief on Internet And Smartphone penetration in Saud Arabia
4.3 Insights on Regulations And Industry Policies Impacting Fintech Market in Saudi Arabia
4.4 Revenue And Funding Statistics Related to Fintech Landscape
4.5 Market Drivers
4.6 Market Restraints
4.7 Consumer Needs And Behaviour Analysis - From Fintech Perspective
4.8 Porter's Five Forces Analysis
4.9 Impact of COVID-19 on the Market
5.1.1 Money Transfer and Payments
5.1.2 Savings and Investments
5.1.3 Digital Lending & Lending Marketplaces
5.1.4 Online Insurance & Insurance Marketplaces
6.2 Company Profiles
6.2.1 Rasanah Technologies LLC
6.2.5 Raqamyah Platform
6.2.6 Maalem Financing Company
6.2.8 Saudi Fintech Company*
A selection of companies mentioned in this report includes:
- Rasanah Technologies LLC
- Raqamyah Platform
- Maalem Financing Company
- Saudi Fintech Company