Dublin, January 28, 2024 (GLOBE NEWSWIRE) — The “Saudi Arabia Fintech Market Size and Share Analysis – Growth Trends and Forecasts (2023 – 2028)” the report has been added to ResearchAndMarkets.com’s offer.
Saudi Arabia fintech market size is expected to grow from $39.04 million in 2023 to $69.23 million by 2028, growing at a CAGR of 12.14% during the forecast period (2023 -2028).
The Covid-19 pandemic and the corresponding health measures have enormously changed customer behavior. As people sought to have less physical contact, demand for contactless payment services increased sharply in 2020. Saudi Arabia is the largest market in the GCC, with a young population of which 70% are under 30 years old. and constitutes the largest population. Despite its relative youth compared to neighboring countries like the United Arab Emirates and Bahrain, Saudi entrepreneurship stands out for its organic growth. Additionally, the country is home to Riyadh, the capital and largest city that aspires to be among the top 10 largest economies. This is what Crown Prince Mohammed bin Salman (MBS) and Jeddah, the country’s historic commercial hub, are announcing this year.
The Saudi fintech sector is mainly led by young, first-generation entrepreneurs, competing with larger financial institutions in a competitive market. Saudi Arabia recorded 16 venture capital investments in the fintech sector between January and August 2022, with a total value of $157.2 million. This is a significant increase from 2020, with $7.8 million and seven venture investments, and from 2019 with six venture investments totaling $18 million.
Nearly a third (32%) of fintechs listed in the Fintech Saudi database are involved in payments and foreign exchange. This is followed by Lending & Finance in second place at 19%, Personal Finance/Cash Management in third place at 12%, Business Tools in fourth place and Private Fundraising in fifth place at 10%. The Saudi fintech sector has high potential, given its large market and efforts under Saudi Vision 2030, where fintech and broader digital transformation receive the appropriate tools and support for their implementation . The 2030 horizon includes the implementation of financial services and financial technologies that have enabled and enabled the sector to grow.
Financial technology market trends in Saudi Arabia
Development of advanced technologies drives the market
By 2030, Saudi Arabia’s vision is to become the place where the best of data and AI will become reality. Under this strategy, Saudi Arabia will implement a multi-phased, multi-faceted plan that includes skills, policy, regulation, investment, research, innovation and ecosystem development. AI can contribute $135 billion to the GDP, which corresponds to 12.4% of the national GDP.
Growing use of smartphones for digital payments drives the market
By 2023, the total transaction value in the digital payments market is expected to reach $48.90 billion. By 2027, the total transaction value is expected to reach $78.40 billion, representing an annual growth rate of 12.53% during the forecast period. The largest segment of the market is digital commerce, with an expected total transaction value of $24.96 billion in 2023. Payments accounted for two-thirds of the market and almost 98% of the user base. Next comes personal finance, which accounts for more than 30% of the value of fintech transactions. Smartphone payment transactions in Saudi Arabia increased by 352% to 19.7 million in April 2020, compared to just 4.4 million the previous year.
A selection of companies mentioned in this report include
- Rasanah Technologies LLC
- OF COURSE
- Foodic
- Sulfa
- Raqamyah Platform
- Maalem financing company
- Heavenly Band
- Saudi Financial Technology Company
- Chip
- Tride app
- Tamara*
For more information on this report, visit https://www.researchandmarkets.com/r/asxkyu
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