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

Saudi Arabia has rolled out a new initiative in the realm of financial technology named Makken, aimed at fostering and advancing the sector within the Kingdom. The official launch of this program took place on December 17, with Ayman Al-Sayari, the Governor of the Saudi Central Bank, and Mohammed El-Kuwaiz, the Chairman of the Capital Market Authority, leading the event.

Makken represents an extension of the ongoing endeavors by the Saudi Central Bank, commonly known as SAMA, and the Capital Market Authority (CMA) to bolster and cultivate the fintech landscape. It operates under the broader scope of the Financial Sector Development Program. Over the course of three years, Makken seeks to empower 150 emerging fintech enterprises, thereby directly contributing to the sector’s growth trajectory and advancement.

During the inauguration ceremony, Governor Al-Sayari underscored the Kingdom’s significant strides across various domains, with fintech emerging as one of the most rapidly evolving sectors. He emphasized the relentless dedication to fostering digitization and innovation within the financial realm.

Al-Sayari highlighted, “We are witnessing rapid growth in the activities of fintech companies, reaching 207 companies by the end of November 2023, compared to 147 companies at the end of 2022, representing a remarkable 40 percent growth.” Additionally, he noted that since the beginning of 2023, approximately 3,000 direct jobs have been generated in the fintech sector, bringing the total employment figure to over 5,000 by the end of the third quarter of the year.

The Governor also pointed out significant milestones, such as the establishment of SAMA’s Open Banking Lab in early 2023 and ongoing efforts towards releasing the second version of the regulatory framework for open banking payment services. He mentioned that the Saudi Central Bank and the Capital Market Authority have collectively issued and updated 16 documents, comprising instructions and regulations, to bolster fintech and drive digital transformation within the Kingdom’s financial sector.

In terms of transactions, the Kingdom observed a 23 percent surge in point-of-sale services transactions during the first 11 months, totaling 8.1 billion compared to 6.6 billion in the corresponding period of the previous year. Moreover, the value of transactions from January to November witnessed a 5 percent increase, reaching SR560 billion ($135.68 billion) compared to SR509 billion in the same period last year.

Al-Sayari concluded on an optimistic note, expressing confidence in the ongoing progress and future prospects of the fintech sector in Saudi Arabia.