Saudi Financial Sector Surpasses $267 Billion in Assets, Accelerating Vision 2030 Goals

RIYADH, July 15— Saudi Arabia’s financial ecosystem reached a historic milestone in 2024, with locally managed assets hitting SR1 trillion ($267 billion), according to the Financial Sector Development Program’s (FSDP) latest annual report. The landmark achievement underscores the Kingdom’s rapid progress in reshaping its economy in line with Vision 2030.

The report highlights remarkable growth across fintech, capital markets, insurance, and SME financing, reflecting a transformation toward a more diversified and innovation-driven economy.

The fintech sector emerged as a standout performer in 2024:

• 261 fintech firms are now operating in the Kingdom, surpassing projections.

• Over 11,000 direct jobs were created in the sector.

• Electronic payments accounted for 79% of all retail transactions, moving Saudi Arabia closer to a cashless economy.

• The launch of FinTech2024, the first international fintech conference, positioned the Kingdom as a regional hub for financial technology.

The Saudi Central Bank’s licensing of D360 Bank and expanded digital services in insurance and banking further demonstrate the digital shift.

Capital markets also witnessed substantial expansion:

• 44 new listings brought the total number of publicly traded companies to 353.

• Foreign investor holdings rose by 501% since 2017, reaching SR420 billion.

• The launch of the TASI 50 index, single-stock options, and Saudi ETF listings in Tokyo, Shanghai, and Shenzhen signaled increasing global integration.

The Green Finance Framework introduced by the Capital Market Authority (CMA) encouraged sustainable investment, while the first international dollar bond issuance under the Global Bond Program drew $30 billion in investor interest

The insurance industry posted robust gains:

• Gross written premiums rose to SR76.1 billion, a 16.3% increase from 2023.

• Net profits climbed to SR3.6 billion.

• A regulatory sandbox was launched to support insurtech innovation, and Saudization of insurance sales roles was mandated.

• New technologies such as automated claims, motor insurance, and driver behavior tracking (TELEMATICS) were introduced.

Support for small and medium enterprises (SMEs) remained central:

• SR2.8 billion ($750 million) in venture capital was attracted by Saudi startups.

• Bank credit to SMEs rose from 8.4% to 9.4% of total credit.

• The SME Bank disbursed over SR1.5 billion to 1,029 businesses, and the Kafalah program guaranteed SR107.2 billion in financing.

These measures help advance Vision 2030’s goal of SMEs contributing 35% of GDP.

The FSDP introduced major reforms to strengthen transparency and investor protection:

• New frameworks for real estate refinance companies, debt crowdfunding, and omnibus accounts.

• Relaxed conditions for debt offerings, boosting capital market access.

On the educational front:

• The Financial Academy has trained more than 59,000 participants.

• The “Malee” financial literacy program for children aged 8–12 launched.

• The Gulf Smart Investor Award promoted personal finance awareness for the third consecutive year.

Saudi Finance Minister Mohammed Al-Jadaan, who chairs the FSDP Committee, noted that the program reflects the Kingdom’s growing global stature and economic strength under the leadership of King Salman and Crown Prince Mohammed bin Salman.

Looking ahead to 2025, the FSDP aims to:

• Enhance financial inclusion

• Expand capital market participation

• Deepen global integration

• Foster regulatory innovation

With SR1 trillion in assets already achieved, Saudi Arabia is well on its way to realizing the ambitious economic transformation set out in Vision 2030