Everything About Fintech Saudi
Fintech Saudi, created in 2018 by the Saudi government, aims to create a fintech ecosystem that will transform Saudi Arabia into a Fintech Hub. It’s a part of the Saudi Prince Muhammad Bin Salman’s Saudi Vision 2030 to make Saudi Arabia a technology-driven modern economy cutting off its dependence on oil. The government has allocated an estimated asset of 2 trillion dollars for this plan. Saudi Arabia’s financial tech sector, which includes the Fintechs as well, is supported by National Commercial Bank (NCB), the Mohsha’at Fintech Program and the Riyadh Bank Fintech fund.
Aim Of Saudi Fintech
It aims to transform the economy and create more employment opportunities by creating a fintech ecosystem in the state. It’s not the first time that Saudi Arabia is having fintech innovation, many fintech companies were operating before in Saudi Arabia. But due to the defaults in the system, such as lack of infrastructure, talent, and supporting regulations, they preferred to relocate elsewhere when needed to scale. Fintech Saudi’s motive is to provide more opportunities to empower skilled entrepreneurs for creating and flourishing more fintech startups in Saudi Arabia.
As per the report of Fintech Saudi, the Kingdom had about 20 fintech companies last year and now the number has increased to 60. In addition to this, more than 100 startups are currently in the pre-commercial phase and will start working soon. The government has made major contributions to this rapid progress.
Saudi Fintech Accelerator Program
In collaboration with the seed investment management company Flat6labs, Fintech Saudi is initiating a 3-month FIntech Accelerator program for the development of the fintech industry in Saudi Arabia. This program will provide entrepreneurs monitoring and give them a chance to showcase their innovative entrepreneurship skills at the global level. The program aims to provide entrepreneurs with:
· Key skills required for a fintech startup
· Support along the way to development
· Access that they need to flourish their fintech business in the state
Fintech Accelerator is regarded as an important milestone for Fintech Saudi by Nejoud Al Mulaik, the director of Fintech Saudi. To qualify for this program, the entrepreneurs must have a business model with consumers and income in the last three months. Moreover, they are required to be a private entity that can demonstrate their innovative fintech capabilities.
Saudi Arabia’s 2030 Vision
It is a strategic plan that aims to reduce the country’s dependence on oil by developing the fintech industry and public service sectors. The state aims to achieve this vision by:
Creating a vibrant society
Thriving country’s economy
An ambitious nation
Saudi Fintech And COVID-19 Challenges
For Fintech Saudi, 2019-2020 are pivotal for achieving the goals. According to the director of Saudi Fintech, the progress rate of the fintech companies in Saudi Arabia is not much affected. There is progress in regulations, infrastructure, and investments that have accelerated the development of the fintech industry in Saudi Arabia.
Future Of Fintech Innovation In Saudi Arabia
The government is putting great efforts into rapid fintech progress in the country. In the past years, the startup ecosystem in the Kingdom is designed to be more structured to favor a fast fintech growth rate. The increase in the number of business incubators and several accelerator programs is another significant factor to boost this sector.
According to the 2019 Global Entrepreneurship Monitor Report, Saudi Arabia has the 2nd highest ratio of adults who see reliable job opportunities to start a business in the state. This number is expected to increase in the future. Bahrain and Riyadh, the capital of Saudi Arabia, have been placed among the top Fintech ecosystems around the world which shows a promising future of fintech innovation in Saudi Arabia.