The Kingdom of Saudi Arabia has developed a policy guideline and document targeted at increasing the growth of the country’s financial technology sector by 2025.
The document launched under the country’s Financial Sector Development Program (FSDP) is tagged “FinTech Strategy Implementation Plan.”
According to the government, the document seeks to guide the country as it works towards joining the league of countries leading the global FinTech space.
The country’s Minister of Finance and Chairman of the FSDP Committee, Mohammed Al-Jadaan noted that the goal if achieved would boost economic development and opportunities in the country.
On a larger scale, Al-Jadaan noted that the strategy would support the achievement of the country’s 2030 Vision.
Part of the strategies outlined included enhancing the ease of doing business, increasing the private sector’s contribution to the economy, and improving the digital economy.
This is in addition to supporting innovation and entrepreneurship, as well as attracting foreign direct investment into the country.
The 2021 World Digital Competitiveness Index ranked Saudi Arabia at the 36th position out of 63 countries.
Another 2021 report by the G20 countries places it second in the Digital Competitiveness Report while the country came 41st out of 132 countries in the Global Talent Competitiveness Index 2021.
According to Al-Jadaan, the plan is to increase the number of FinTech companies operating in the Kingdom from 82 to 230 by 2025.
This is In addition to increasing the share of non-cash transactions (digital transactions) to 70% by 2025.
Other Strategies Employed By KSA
Earlier this month, the Saudi Government entered into partnership talks with Cyprus, as part of efforts to enhance cooperation in the aspect of technology, research, and innovation fields.
The meeting, attended by Saudi’s Minister of Communications and Information Technology Eng. Abdullah bin Amer Al-Swaha, Cypriot Deputy Minister for Research, Innovation and Digital Policy Kyriacos Kokkinos, and Cyprus Ambassador to the Kingdom of Saudi Arabia, Stavros Avgoustides also raised issues of partnership in enhancing the digital economies of both countries.
Earlier this year also, the National Cybersecurity Authority (NCA) of Saudi Arabia announced that registration will become mandatory by August for all firms dealing with Cybersecurity solutions and services in the country.
By so doing, the country intends to be able to attract and stimulate local and international investments in the sector.
Recall that Saudi Arabian operators were among the first in the world to deploy 5G network, with almost all the country covered by it.
Experts believe that the country has done fairly well in the aspect of its digital economy.
In late 2021, the Government commenced the issuance of licenses to private digital Government device providers, as part of efforts to expand its digital economic growth.
Since then, the country has not looked back and has continued to prioritize the role of both public and private enterprises in the quest to digitalize its economy.