SAUDI Arabia’s financial sector recorded exceptional growth in 2024, with fintech firms reaching 261, venture capital investment in the sector exceeding 7.6 billion riyals ($2.03bn), and gross written premiums in insurance climbing to 76.1bn riyals, reports Arab News.
Locally managed assets in the capital market surged to 1 trillion riyals ($267bn), while foreign ownership rose to over 420bn riyals. These milestones, outlined in the Financial Sector Development Programme’s 2024 annual report, reflect the kingdom’s accelerating progress towards the economic diversification goals of Vision 2030.
Saudi Finance Minister Mohammed Al Jadaan, also chairman of the Financial Sector Development Programme Committee, emphasised that the programme continues to deliver on its promise of sustainable success.
He said the FSDP is building an economic future that solidifies Saudi Arabia’s regional and international standing while reflecting the rapid development across all sectors in this prosperous era.
The FSDP has implemented a wide range of reforms and initiatives to build a robust, diversified, and inclusive financial system. The programme has helped to strengthen the kingdom’s regional and global economic standing while enabling innovation, job creation, and investment growth.
Fintech emerged as a key success story in 2024, with the number of operating companies surpassing initial targets and contributing to the creation of over 11,000 direct jobs. The Saudi Central Bank licensed D360 Bank to begin operations, and electronic payments accounted for 79 per cent of total retail transactions - underscoring the shift towards a cashless economy. The year also saw the launch of FinTech2024, the kingdom’s first international fintech conference.
Capital markets continued their upward trajectory. With 44 new listings, the number of publicly traded companies reached 353. Locally managed assets grew 169pc compared to 2017, reaching 1trn riyals, while foreign investor holdings jumped by 501pc over the same period to 420bn riyals.
Notable developments included the introduction of the TASI 50 index, single-stock options, Real Estate Investment Certificates, and the listing of Saudi ETFs in Tokyo, Shanghai, and Shenzhen. The Capital Market Authority also launched the Kingdom’s Green Finance Framework to encourage sustainable investment.
In the debt capital market, the CMA unveiled a strategic roadmap and issued the first license for an alternative trading system. The kingdom successfully conducted its first international dollar bond issuance under the Government’s Global Bond Programme, attracting approximately $30bn in orders.
Meanwhile, the government introduced ‘Sah,’ a savings product aimed at fostering a culture of personal saving. Credit rating agencies Moody’s, Fitch, and S&P issued upward revisions to Saudi Arabia’s sovereign credit ratings in response to the country’s fiscal discipline and financial reforms.
The insurance sector also posted strong performance. Gross written premiums rose 16.3pc from 2023 to reach 76.1bn riyals, while net profits increased by 12.5pc to 3.6bn riyals. The Insurance Authority mandated the Saudisation of all insurance product sales roles and launched a Regulatory Sandbox to support startup innovation. The number of licensed InsurTech firms rose by 56pc. New digital services included automated motor insurance, simplified claims processes, and TELEMATICS - a unified platform for tracking driver behaviour.
The finance minister noted that the progress reflected in the report underscores the Kingdom’s broader development efforts under the leadership of King Salman and Crown Prince Mohammed bin Salman.
Support for small and medium enterprises remained a cornerstone of financial sector development. Saudi startups attracted 2.8bn riyals ($750m) in venture capital, maintaining the kingdom’s lead in the Mena region. The share of bank credit to SMEs increased from 8.4pc in late 2023 to 9.4pc by the end of 2024.
The SME Bank disbursed over 1.5bn riyals in financing to 1,029 enterprises, while the Kafalah programme facilitated 107.2bn riyals in financing guarantees – advancing the Vision 2030 target for SMEs to contribute 35pc of GDP.
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