Saudi Arabia Fintech Market

Saudi Arabia Fintech Market Size and Share:

The Saudi Arabia fintech market size was valued at USD 1.9 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 4.5 Billion by 2033, exhibiting a CAGR of 10.27% from 2025-2033. The market is witnessing significant growth due to the government's Vision 2030 initiatives and increasing cross-border payment solutions. Additionally, the rise of digital payments and cashless transactions, the expansion of open banking frameworks, and the increased focus on Islamic fintech are expanding the market.

Saudi Arabia’s fintech market is significantly driven by the government’s Vision 2030 initiative, which emphasizes economic diversification and digital transformation. The Financial Sector Development Program (FSDP), a key component of Vision 2030, focuses on fostering a dynamic and innovative financial ecosystem. The Saudi Central Bank (SAMA) and the Capital Market Authority (CMA) actively support fintech through regulatory frameworks, such as the Fintech Saudi initiative, which provides a sandbox environment for startups to test and deploy innovative solutions. For instance, in September 2024, Riyad Bank announced a $213 million (SAR800 million) venture capital fund during 24 Fintech in Riyadh to launch fintech companies and innovative financial solutions, positioning Saudi Arabia as a fintech hub. These efforts have created a fertile ground for fintech innovation, encouraging both domestic and international companies to invest in and contribute to the market.

The growing demand for efficient cross-border payment systems is a critical driver in Saudi Arabia’s fintech market. With the country’s position as a regional trade hub and a major destination for foreign workers, there is a rising need for seamless, cost-effective international money transfer solutions. Moreover, fintech companies are leveraging blockchain technology and digital payment platforms to provide faster, more secure transactions, addressing the challenges of traditional remittance channels. For instance, in 2024, Saudi Arabia reported a 14% rise in expatriate remittances to SR11.35 billion in April, with Saudi transfers increasing 30% to SR4.94 billion, supporting the Kingdom's business-friendly initiatives. These innovations are transforming the remittance market and strengthening Saudi Arabia’s role in global financial networks, further driving growth in the fintech sector.

Saudi Arabia Fintech Market Trends:

Rise of Digital Payments and Cashless Transactions

The transition toward a cashless economy is one of the most prominent trends shaping Saudi Arabia’s fintech landscape. With robust support from Vision 2030 initiatives, digital payment platforms, e-wallets, and contactless payment systems have witnessed substantial growth. For instance, in 2024, PayTabs Group projected crossing SAR200 billion in payment processing volumes by 2025, driven by its payment orchestration platform, private labeling solutions, and super app expansion across the MENA region. The Saudi Central Bank (SAMA) has been instrumental in promoting digital payments, targeting 70% non-cash transactions by 2030. The launch of Mada, Saudi Arabia’s national payment network, has further streamlined digital payment adoption across sectors. Additionally, fintech solutions like mobile point-of-sale (mPOS) systems are gaining traction, enabling businesses to cater to the growing demand for seamless and secure cashless payment options.

Expansion of Open Banking Frameworks

Open banking is emerging as a transformative trend in Saudi Arabia’s fintech market. SAMA’s introduction of the Open Banking Framework in 2022 marked a significant step in enabling financial data sharing between banks and fintech firms. For instance, in November 2024, Jeel and Audax Financial Technology partnered to modernize Saudi banking, enabling digital transformation with BaaS, digital banks, and open banking, aligning with Saudi Arabia's $1.1 trillion projected 2024 GDP growth. This regulatory shift is fostering innovation by empowering fintech companies to develop personalized financial products and services. As a result, consumers and businesses are benefiting from enhanced banking experiences, including real-time financial insights, improved budgeting tools, and access to diverse investment opportunities.

Increased Focus on Islamic Fintech

Saudi Arabia’s fintech ecosystem is witnessing a surge in Islamic fintech solutions, catering to the region’s demand for Sharia-compliant financial services. Platforms offering halal investment opportunities, peer-to-peer lending, and takaful (Islamic insurance) are gaining popularity.  For instance, in October 2024, Gulf Islamic Investments (GII) secured $100 million in growth capital from leading shareholders and new investors to expand private equity opportunities in Saudi Arabia. This trend aligns with the nation’s cultural and religious principles, providing consumers with ethical alternatives to conventional financial services. Supported by regulatory frameworks and increasing investor interest, Islamic fintech is poised to play a pivotal role in driving the market’s growth and attracting international attention to Saudi Arabia’s fintech sector.

Saudi Arabia Fintech Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Saudi Arabia fintech market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on service proposition.

Analysis by Service Proposition:

• Money Transfer and Payments
• Savings and Investments
• Digital Lending and Lending Marketplaces
• Online Insurance and Insurance Marketplaces
• Others
   

Money transfer and payments represent a crucial segment of the fintech market in Saudi Arabia since they fulfill the increasing requirements for smooth, secure, and cheap transactions. Financial access, support for cashless initiatives, and the creation of innovation in the new financial ecosystem of the Kingdom are also fostered through these services as digital wallets, mobile payments, and cross-border transfer solutions develop.

Money savings and investments are transforming the fintech market in Saudi Arabia by offering digital tools for efficient financial planning and wealth management. Innovative platforms offer automated savings, Shariah-compliant investment options, and personalized portfolio management to enable individuals to achieve their financial goals while promoting greater participation in the growing financial ecosystem of the Kingdom.

This segment of digital lending and lending marketplaces is revolutionizing the fintech market in Saudi Arabia with accessible, fast, and cost-effective financing solutions. The advanced algorithms and data analytics used in these platforms give tailored loans to customers and businesses, hence making less dependence on traditional lenders for financial inclusion and economic growth across the Kingdom.

The online insurance and insurance marketplaces segment is enriching the fintech market of Saudi Arabia by providing streamlined, transparent, and accessible insurance solutions. These platforms simplify policy comparisons, enable digital purchases, and provide personalized coverage options, increasing customer convenience, promoting financial security, and driving growth in the Kingdom's evolving financial services ecosystem.

Regional Analysis:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region
   

Northern and central regions play a critical role in the fintech market in Saudi Arabia due to key financial hubs like Riyadh, and it drives innovation with government-backed initiatives, strategic investments, and growth in fintech adoption and thereby facilitates an encouraging ecosystem for start-ups, advanced infrastructure, and access to a techie and digitally active population.

The western region, supported by cities such as Jeddah and Mecca, is a significant contributor to the fintech market of Saudi Arabia, owing to its commercial activities and large consumer base. It would support the growth of fintech since it would drive demand for digital payments, SME financial services, and innovative solutions suited to the dynamic economic landscape.

The eastern region, known for its industrial hubs and oil-based economy, supports Saudi Arabia’s fintech market by driving demand for corporate financial solutions and advanced payment systems. With a strong expatriate population, it fosters growth in cross-border remittances and digital banking, bolstering financial inclusion and innovation in the Kingdom.

The southern region supports Saudi Arabia’s fintech market by addressing the financial needs of its growing population and agricultural-based economy. Digital banking, remittance platforms, and mobile payment solutions are pivotal in enhancing financial accessibility and inclusion, driving fintech adoption in underserved areas and contributing to the region’s economic development.

Competitive Landscape:

Saudi Arabia's fintech market features a dynamic mix of local startups, established financial institutions, and global technology firms. Leading players dominate sectors like BNPL, digital payments, and open banking. For instance, in November 2024, Lean Technologies, a Riyadh-based fintech, raised $67.5M Series B funding to enhance financial innovation in MENA by providing secure access to financial infrastructure for personalized, transparent, and inclusive services. Additionally, traditional banks are expanding their digital offerings through innovation and partnerships. Global firms, including Visa and Mastercard, are significantly enhancing their presence in this region. Furthermore, government initiatives, such as SAMA’s regulatory sandbox and Fintech Saudi, foster a competitive environment, encouraging innovation and driving market growth.

The report provides a comprehensive analysis of the competitive landscape in the Saudi Arabia fintech market with detailed profiles of all major companies.

Latest News and Developments:

• In December 2024, the Saudi Central Bank (SAMA) launched Samsung Pay via the national payment system "mada," promoting financial inclusion and expanding fintech adoption. This initiative supports Saudi Arabia's shift toward a cashless society by advancing digital payment solutions that meet international standards and strengthen the Kingdom's payment infrastructure.
• In June 2024, Barq and Thunes partnered to offer barq users real-time global money transfers to over 130 countries, enabling seamless fund collection from various methods without intermediaries, enhancing affordability and efficiency.

Saudi Arabia Fintech Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia fintech market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia fintech market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia fintech industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.