Saudi Arabia Aids Fintech Growth with New Licenses

Saudi Arabia continues to cement its position as a burgeoning fintech hub with the Saudi Central Bank (SAMA) issuing two new licenses to innovative service providers. These latest developments align with the Kingdom’s ambitious Vision 2030 agenda, aimed at enhancing financial inclusion, driving economic diversification, and transitioning towards a digital-first economy.

SAMA has granted Tal Finance a license to offer debt-based crowdfunding solutions, making it the twelfth company authorised to provide such services within the country. This brings the total number of licensed finance companies in Saudi Arabia to 62. Debt-based crowdfunding solutions are increasingly viewed as a crucial mechanism for supporting small and medium-sized enterprises (SMEs), a sector that is central to Saudi Arabia’s economic transformation.

Additionally, Hiberbay Ink Al-Saoudia for IT Systems has been licensed to deliver e-wallet services, increasing the number of payment service providers in the Kingdom to 27. The introduction of more digital payment options reflects SAMA’s commitment to fostering a cashless economy, with a goal of achieving 70% cashless transactions by 2025.

These licences come as part of Saudi Arabia’s broader Financial Development Sector strategy, which aims to host 525 active fintech companies by 2030. This expansion is expected to not only boost domestic financial services but also attract significant foreign investment. Projections suggest that fintech will account for 20% of total foreign inflows as the sector continues to flourish.

The Kingdom’s growing fintech ecosystem is fuelled by its tech-savvy population, which has shown a keen appetite for innovative solutions such as buy now, pay later (BNPL) services. The BNPL market in Saudi Arabia, valued at $1.4 billion in 2024, is expected to double to $2.8 billion by 2029, achieving an annual growth rate of over 10%. Such trends highlight the rapid evolution of consumer finance in the region.

These licensing milestones underline SAMA’s commitment to innovation while maintaining financial stability. By enabling the proliferation of alternative financing options and digital payment platforms, the Kingdom aims to position itself as a global fintech leader, accelerating its economic diversification goals under Vision 2030.

As the fintech sector continues to expand, Saudi Arabia is set to play a pivotal role in shaping the region’s digital financial landscape, driving significant economic and technological advancements in the process.