The financial technology sector in Saudi Arabia is booming. The country has seen a substantial jump in fintech-related activities during the last 12 months. The sector attracted a total of SAR 1.3 billion ($347 million) during the mentioned period, which is the highest level on record.
A jump of approximately 37% was reported in the total number of active financial technology companies in Saudi Arabia. In the last 12 months, several fintech-related regulatory and infrastructure developments have been introduced to increase the adoption of innovative financial products in the region.
“As we emerge from the challenges of COVID-19, the digitalization experienced during the pandemic is here to stay. Individuals and companies that were encouraged to adopt digital services are now adopting more digital services. In our National Fintech Adoption Survey conducted earlier this year, 74% of individuals had experience in using at least one fintech solution,” Fintech Saudi mentioned in the report.
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“Over the last year we have witnessed a 37% increase in the number of operating fintech companies in Saudi Arabia and a record level of over SAR 1.3bn in venture capital investment into Saudi Arabian fintech companies,” the report added.
According to Fintech Saudi, most of the financial technology companies operating in the country are headquartered in Riyadh. The number of active fintech companies has increased from 60 to 82 within the last 12 months. Regarding the Saudi financial technology sector, the top skills in demand were Data Science and Analytics, Machine Learning, Business Development, Project Management, Product Development, Compliance, AML, UX and UI Designing, Business Intelligence, Software Engineering and Cybersecurity.
“Technology has reduced the barriers to entry and has led to a growth in entrepreneurship in financial services. Fintech start-ups use technology to develop innovative solutions that can compete with the largest financial services companies in the Kingdom. Attracting more entrepreneurs into the financial services industry is essential for driving innovation,” the report highlighted.