Saudi Arabia’s Financial Sector Development Program (FSDP) reported strong momentum in 2024 across fintech, capital markets, insurance and SME financing, as outlined in its annual report aligned with Vision 2030 objectives.
The number of licensed fintech companies in the Kingdom reached 261 by the end of 2024, surpassing the target set for 2025. Electronic payments accounted for 79% of total retail transactions, up from 70% in 2023. The Saudi Central Bank also approved D360 Bank to commence operations and launched initiatives, including the second release of its Open Banking Framework and a Digital ID service for financial institutions.
The Saudi capital market saw 44 new listings during the year, bringing the total number of listed companies to 353. Public Investment Fund-backed initiatives included the launch of a Saudi equities ETF on the Tokyo Stock Exchange and a multi-asset platform in partnership with BlackRock. The Tadawul introduced the TASI 50 Index and single stock options, while two ETFs targeting Chinese investors were listed on the Shanghai and Shenzhen exchanges. The number of investment funds operating in Saudi Arabia rose to 1,549, with assets under management surpassing SAR 1 trillion.
On the debt side, the Capital Market Authority announced a strategic roadmap for the sukuk and bond markets. The first license for an alternative trading system was granted, and the Kingdom issued its first international bond under the government’s global programme. The “Sah” retail savings product was also launched to promote individual savings.
Foreign investor ownership of Saudi equities reached SAR 420 billion by the end of 2024, reflecting a 501% increase since 2017. Meanwhile, the share of credit to the private sector rose to 69% of GDP, up from 61% in 2023, with credit to SMEs reaching 9.4% of total private lending.
The insurance sector’s gross written premiums grew to SAR 76.1 billion, while the number of licensed InsurTech firms rose by 56%. The Insurance Authority launched a regulatory sandbox, a digital claims platform, and several new insurance products covering motor, real estate, and coastal tourism.
