Saudi Arabia's Fintech Sector Grows To 224 Companies With Ambitious Target Of 525 By 2030

Saudi Arabia's Vice Minister of Finance, Abdulmuhsen Alkhalaf, announced that the number of fintech companies in the Kingdom reached 224 by the end of Q2 this year. This figure surpasses the target of 168 companies for the same period. The aim is to increase this number to 525 by 2030, reflecting efforts by relevant authorities.

Alkhalaf highlighted the role of technology in transforming financial transactions through artificial intelligence and other tools like big data and blockchain. These advancements have improved financial planning and performance monitoring, enhancing predictive capabilities for both positive and negative developments.

He emphasized how modern technologies have enhanced decision-making by making information more accessible. This has improved credibility, transparency, and governance within the financial sector. "The world today is witnessing remarkable and rapid technological development," he stated, noting its impact on government operations.

The Ministry of Finance has been pivotal in integrating technology into various sectors since the launch of Saudi Vision 2030. Over two years ago, an executive plan for a fintech strategy was initiated as part of the Financial Sector Development Program to facilitate business operations and attract investments.

Alkhalaf explained that previously, technological initiatives were scattered across different units within the ministry. This led to inefficiencies in financial planning processes. Since 2017, efforts have been made to consolidate these initiatives into a unified system, now represented by the National Center for Government Resource Systems.

The ministry has developed several systems like the I’timad platform to streamline business processes and improve decision-making. An interactive dashboard is being built to include all data related to fiscal policies and macroeconomic indicators for accurate policy recommendations.

I’timad Platform: A Success Story

The I’timad platform emerged from a need to automate payment orders during a meeting in 2017. Initially starting with one service, it expanded over time. Today, it offers numerous services related to public finance for both public and private sectors.

The platform has automated procurement cycles and payments, enhancing governance and transparency. Previously taking over 100 days, payment cycles now average 14 days with about 6,000 to 7,000 orders processed daily. Payments are settled within 45 days of order receipt.

Challenges and Emerging Technologies

Alkhalaf addressed challenges such as global competition for technical talent, infrastructure issues, cybersecurity threats, and resistance to change. He noted that emerging technologies can positively impact social and economic aspects like financial inclusion and transparency among governments.

These technologies improve financial data quality and planning while combating money laundering. They also help estimate public policy impacts accurately by analyzing big data for balanced economic decisions.

The ministry continues striving to leverage technology effectively in its operations. By building an interactive dashboard with comprehensive fiscal data, it aims to enhance policy formulation processes further.

With inputs from SPA