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Saudi Arabia introduces a fintech initiative aimed at enhancing financial innovation.

Riyadh: Saudi Arabia has introduced a fresh financial technology initiative named Makken, aimed at nurturing and advancing the fintech sector within the Kingdom.

The official launch took place on December 17, led by Saudi Central Bank Governor Ayman Al-Sayari and Mohammed El-Kuwaiz, Chairman of the Capital Market Authority. Makken stands as an extension of the ongoing collaborative efforts between the Saudi Central Bank (SAMA) and the CMA to foster and evolve the fintech ecosystem, falling under the broader Financial Sector Development Program.

Over the course of three years, Makken intends to empower 150 emerging fintech enterprises, directly contributing to the sector’s growth trajectory and elevation.

During the inauguration event, Al-Sayari underscored Saudi Arabia’s significant strides across various sectors, with fintech emerging as one of the fastest-growing domains. He reiterated the ongoing commitment to fuel digitization and innovation within the financial landscape.

Al-Sayari noted, “We are witnessing a rapid surge in fintech activities, with the number of fintech companies reaching 207 by the end of November 2023, compared to 147 at the close of 2022, marking a notable 40 percent increase.”

He further revealed that in 2023 alone, approximately 3,000 direct employment opportunities were created in the fintech sector, bringing the total job count to over 5,000 by the end of the third quarter.

Al-Sayari also highlighted key milestones, including the launch of SAMA’s Open Banking Lab early in 2023 and ongoing efforts to introduce the second version of the regulatory framework for open banking payment services.

To bolster fintech and digital transformation, the Saudi Central Bank and the Capital Market Authority have issued and updated 16 documents, comprising instructions and regulations.

Moreover, transactions through point-of-sale services in the Kingdom witnessed a 23 percent upsurge in the first 11 months, totaling 8.1 billion compared to 6.6 billion in the corresponding period last year. The transaction value from January to November surged by 5 percent to SR560 billion ($135.68 billion) from SR509 billion in the previous year.

Al-Sayari concluded with optimism regarding the continued advancement of the fintech sector in Saudi Arabia.

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