A new crop of fintech companies is leading the light toward economic growth in Saudi Arabia.
From facilitating cashless payments to offering financial data analytics to providing loans, these firms are coming out with simpler and customized alternatives to traditional banking.
According to a Fintech Saudi report, fintech transaction values between 2017 and 2019 increased by over 18 percent year-on-year, reaching over $20 billion in 2019.
The Kingdom witnessed a massive jump in venture capital investments in the fintech sector, hitting 16 deals in the first eight months of 2021, totaling $157.2 million. In 2021, it witnessed a 37-percent rise in new fintech launches over the previous year.
Factoring this instant rise in fintech companies, the Saudi Central Bank and the Capital Markets Authority launched the first-of-its-kind Financial Technology Center last month in Riyadh.
Located in Riyadh’s King Abdullah Financial District, the center aims to provide these fintech startups with investment opportunities.
Last month, Saudi-based digital broker for personal loans Arib raised $2.3 million in a seed round investment led by venture capital firm Merak Capital.
The fintech will use its acquired funds to meet the requirements set by the Saudi Central Bank to finalize its licensing process and introduce new services to its portfolio.
There’s no doubt that the prospects of fintech companies based in the Kingdom are far brighter now.