Dublin, Jan. 28, 2024 (GLOBE NEWSWIRE) — The “Saudi Arabia Fintech Market Size and Share Analysis – Growth Trends and Forecast (2023-2028)” the report has been added to ResearchAndMarkets.com’s offer.
The Fintech market size in Saudi Arabia is expected to grow from USD 39.04 million in 2023 to USD 69.23 million in 2028, at a CAGR of 12.14% during the forecast period (2023-2028).
The Covid-19 pandemic and associated health measures have significantly changed customer behavior. As people seek to reduce physical contact, the demand for contactless payment services has increased significantly in 2020. Saudi Arabia is the largest market in the GCC, with a young population of which 70% are under 30 and constitute the largest population. Despite its relative youth compared to neighboring countries such as the United Arab Emirates and Bahrain, Saudi entrepreneurship is known for its organic growth. In addition, the country is home to Riyadh, the capital and largest city that aspires to be among the top 10 economies. It is announced this year by Crown Prince Mohammed bin Salman (MBS) and Jeddah, the country’s historic commercial center.
The fintech sector in Saudi Arabia is driven primarily by young, first-generation entrepreneurs competing with larger financial institutions in a competitive market. Saudi Arabia recorded 16 venture capital investments in fintech between January and August 2022, with a total value of USD 157.2 million. This is a significant increase from 2020, with USD 7.8 million and seven venture capital investments, and from 2019 with six venture capital investments totaling USD 18 million.
Nearly a third (32%) of fintechs in the Fintech Saudi database are active in payments and foreign exchange. This is followed by lending and finance in second place (19%), personal finance/cash management in third place (12%), business tools in fourth place and private fundraising in fifth place (10%). The Saudi fintech sector has high potential, given its large market and the efforts made under Saudi Vision 2030, where fintech and broader digital transformation are being given the tools and support to implement it. 2030 includes an implementation of financial services and fintech that has fostered and enabled the sector to grow.
Fintech Market Trends in Saudi Arabia
Development of advanced technologies stimulates the market
By 2030, Saudi Arabia aims to become the country where the best of data and AI becomes reality. As part of this strategy, Saudi Arabia will implement a multi-phased and multi-faceted plan that includes skills, policy, regulation, investment, research, innovation, and ecosystem development. AI can contribute $135 billion to its GDP, or 12.4% of the national GDP.
Growing use of smartphones for digital payments drives market
By 2023, the total transaction value in the digital payments market is expected to reach USD 48.90 billion. By 2027, the total transaction value is expected to reach USD 78.40 billion, representing a CAGR of 12.53% during the forecast period. The largest segment of the market is digital commerce, with a total transaction value projected to reach USD 24.96 billion in 2023. Payments accounted for two-thirds of the market and nearly 98% of the user base. This was followed by personal finance, accounting for over 30% of the fintech transaction value. 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 includes
- Rasanah Technologies LLC
- OF COURSE
- Foodique
- Sulfa
- Raqamyah Platform
- Maalem Finance Company
- Skyband
- Saudi Fintech Company
- Fleap
- Tride App
- Tamara*
For more information about this report, visit https://www.researchandmarkets.com/r/asxkyu
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