\n\tRIYADH: Saudi Arabia\u2019s financial ecosystem reached a record SR1 trillion ($267 billion) in locally managed assets in 2024, marking a significant milestone in its transformation under Vision 2030.<\/p>\n
\n\tThis achievement, highlighted in the Financial Sector Development Program\u2019s annual report, underscores the Kingdom\u2019s accelerating shift toward a diversified, innovation-driven economy.<\/p>\n
\n\tThe Kingdom\u2019s financial sector recorded exceptional growth in 2024, with fintech firms reaching 261, venture capital investment in the sector exceeding SR7.6 billion, and gross written premiums in insurance climbing to SR76.1 billion.<\/p>\n
\n\tSaudi Finance Minister Mohammed Al-Jadaan, also chairman of the Financial Sector Development Program Committee, emphasized that the program continues to deliver on its promise of sustainable success.<\/p>\n
\n\tHe said the FSDP is building an economic future that solidifies Saudi Arabia\u2019s regional and international standing while reflecting the rapid development across all sectors in this prosperous era.<\/p>\n
\n\tThe FSDP has implemented a wide range of reforms and initiatives to build a robust, diversified, and inclusive financial system. The program has helped to strengthen the Kingdom\u2019s regional and global economic standing while enabling innovation, job creation, and investment growth.<\/p>\n
\n\tFintech emerged as a key success story in 2024, with the number of operating companies surpassing initial targets and contributing to the creation of over 11,000 direct jobs. The Saudi Central Bank licensed D360 Bank to begin operations, and electronic payments accounted for 79 percent of total retail transactions \u2014 underscoring the shift toward a cashless economy. The year also saw the launch of FinTech2024, the Kingdom\u2019s first international fintech conference.<\/p>\n
\n\tCapital markets continued their upward trajectory. With 44 new listings, the number of publicly traded companies reached 353. Locally managed assets grew 169 percent compared to 2017, reaching SR1 trillion, while foreign investor holdings jumped by 501 percent over the same period to SR420 billion.<\/p>\n
\n\tNotable developments included the introduction of the TASI 50 index, single-stock options, Real Estate Investment Certificates, and the listing of Saudi ETFs in Tokyo, Shanghai, and Shenzhen. The Capital Market Authority also launched the Kingdom\u2019s Green Finance Framework to encourage sustainable investment.<\/p>\n
\n\tIn the debt capital market, the CMA unveiled a strategic roadmap and issued the first license for an alternative trading system. The Kingdom successfully conducted its first international dollar bond issuance under the Government\u2019s Global Bond Program, attracting approximately $30 billion in orders.<\/p>\n
\n\tMeanwhile, the government introduced \u201cSah,\u201d a savings product aimed at fostering a culture of personal saving. Credit rating agencies Moody\u2019s, Fitch, and S&P issued upward revisions to Saudi Arabia\u2019s sovereign credit ratings in response to the country\u2019s fiscal discipline and financial reforms.<\/p>\n
\n\tThe insurance sector also posted strong performance. Gross written premiums rose 16.3 percent from 2023 to reach SR76.1 billion, while net profits increased by 12.5 percent to SR3.6 billion. The Insurance Authority mandated the Saudization of all insurance product sales roles and launched a Regulatory Sandbox to support startup innovation. The number of licensed InsurTech firms rose by 56 percent. New digital services included automated motor insurance, simplified claims processes, and TELEMATICS\u2014a unified platform for tracking driver behavior.<\/p>\n
\n\tThe finance minister noted that the progress reflected in the report underscores the Kingdom\u2019s broader development efforts under the leadership of King Salman and Crown Prince Mohammed bin Salman.<\/p>\n
\n\tSupport for small and medium enterprises remained a cornerstone of financial sector development. Saudi startups attracted SR2.8 billion ($750 million) in venture capital, maintaining the Kingdom\u2019s lead in the MENA region. The share of bank credit to SMEs increased from 8.4 percent in late 2023 to 9.4 percent by the end of 2024.<\/p>\n
\n\tThe SME Bank disbursed over SR1.5 billion in financing to 1,029 enterprises, while the Kafalah program facilitated SR107.2 billion in financing guarantees\u2014advancing the Vision 2030 target for SMEs to contribute 35 percent of GDP.<\/p>\n
\n\tOn the regulatory front, the FSDP advanced significant legislative reforms to enhance transparency, competitiveness, and investor protection. Updates included new principles for finance and real estate refinance companies, revisions to debt crowdfunding rules, and regulatory changes to real estate financing. The CMA also approved omnibus accounts and relaxed conditions for debt offerings, further liberalizing capital markets.<\/p>\n
\n\tFinancial literacy and capability development remained a key focus. The Financial Academy trained more than 59,000 participants through its programs since inception. The third edition of the Gulf Smart Investor Award continued to raise awareness of personal finance, while the \u201cMalee\u201d program began measuring and promoting financial literacy among children aged 8 to 12.<\/p>\n
\n\tLooking ahead, the Financial Sector Development Program aims to build on this momentum in 2025 by aligning with global standards, expanding financing options, increasing financial inclusion, and deepening capital market participation. As outlined in its annual report, the FSDP remains committed to fostering innovation, enhancing regulatory efficiency, and driving sustainable growth to realize the full ambitions of Saudi Vision 2030.<\/p>\n","protected":false},"excerpt":{"rendered":"
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