The financial technology (fintech) landscape in Saudi Arabia has witnessed a remarkable influx of capital, surpassing $23 million in funding since March, which indicates a significant increase from the previous year’s 51% investment share.
In 2023 alone, the fintech sector in the Kingdom saw an impressive $704 million in investments, with the number of fintech firms skyrocketing from a mere 10 to approximately 207. The nation’s goal is to further expand this number to 525 by the close of this decade.
An analysis provided by the Islamic Corporation for the Development of the Private Sector highlights that Saudi Arabia, with its young and tech-savvy population of over 35 million—65% of whom are under the age of 35—and a GDP per capita surpassing $23,000, alongside a 93% internet penetration rate, has created an ideal environment for the fintech sector to thrive, accounting for 51% of the Kingdom’s total bold investments in 2023.
The year 2024 commenced with significant funding achievements: the ‘Moyasar’ financial firm successfully closed its inaugural investment round, raising $21 million, while ‘Rakeez Financial’ collected $2 million in capital.
On a global scale, the fintech industry is experiencing exponential growth. Digital banking users are expected to rise from 1.9 billion in 2020 to an estimated 2.5 billion by 2024, according to research by technology firm Juniper. This growth spurt is largely propelled by the widespread adoption of mobile phones, the convenience of banking applications, and the popularity of digital payment methods such as ‘Apple Pay’ and ‘PayPal.’