Saudi Financial Ecosystem Reaches SAR 1 Trillion, Paving Way for Vision 2030 Ambitions

Prime Highlights

Saudi Arabia’s economy surpassed SAR 1 trillion of domestic assets on hand during 2024.
Fintech, capital markets, and insurance all recorded double-digit growth rates, in keeping with Vision 2030 aspirations.

Key Facts

Portfolios of foreign investors increased by 501% from 2017 to SAR 420 billion.
No. of listed companies increased to 353, and 44 IPOs alone were included in 2024.

Key Background

Saudi Arabia’s Financial Sector Development Program (FSDP) recorded its best year to date in 2024 with domestic assets on a record SAR 1 trillion high. Fiscal achievement is evidence of the Kingdom’s broader integration as a globally competitive economy, the Vision 2030 vision states. Shareholding by foreign investors hit its latest record at SAR 420 billion, evidence of increasing confidence in the market and open policy. Since 2017, the growth represents a 501% rise in foreign capital inflows, testimony to improved regulatory performance as well as increased world interest in the Saudi market.

The fintech sector expanded exponentially, now comprised of 261 registered companies — more than the program’s initial triggers. More than 11,000 direct employment opportunities were created in this sector alone, a witness to its status as one of the main job drivers. Cash is still the retail payments king at 79%, amidst profound digitalization. Worth mentioning are D360 Bank’s entry into the market and the success of FinTech2024 conference, both instrumental in driving innovation and inclusion throughout the financial services industry. Capital markets also witnessed historic change.

44 new initial public offerings pushed the number of listed firms to 353. Single-stock options, Real Estate Investment Certificates, and the TASI 50 Index were most noteworthy innovations. Saudi Exchange-listed exchange-traded funds also made their debut on foreign markets in Shanghai, Tokyo, and Shenzhen, indicative of increasing financial integration of the nation with the rest of the world. The case of the Kingdom’s first dollar-denominated green bond, which was oversubscribed by almost USD 30 billion, reflects investor appetite and momentum for sustainable finance. The insurance sector was healthy with gross written premiums increasing to SAR 76.1 billion — up 16.3% — and net profits reaching SAR 3.6 billion.

Regulatory trends fueled InsurTech growth and enhanced efficiency in electronic claims settlement. Other than this, financing of SMEs has expanded by SAR 1.5 billion of SME Bank disbursements and SAR 107 billion of Kafalah scheme guarantees for funding. Overall reforms in regulation in real estate finance, refinancing, and crowdfunding are also supporting the injection of strength and competitiveness into the sector.