RIYADH: Saudi Arabia’s financial and digital sectors are flourishing as the Kingdom pushes ahead with its Vision 2030 economic diversification strategy, according to the Minister of Finance.
Speaking at the Financial Sector Conference in Riyadh, Mohammed Al-Jadaan said Saudi Arabia has already achieved remarkable results as it seeks to establish a sustainable future away from its dependency on oil.
He said the Kingdom has already become one of the fastest-growing financial markets in the world, adding: “Assets of the Saudi banking sector increased by 37 percent since 2019, reaching SR3.6 trillion($960 billion) by the end of 2022, while the number of financial technology companies increased during that period from 20 to 147 companies in 2022.
Al-Jadaan indicated that Saudi Arabia continues its path as a reliable partner for investors, highlighting that five international financial institutions joined the local first dealer program.
“The Public Investment Fund completed its first-ever international green bond issuance for $3 billion in October and another $5.5 billion, last month, as a source of success for Saudi Arabia,” the minister said, adding: “The National Development Fund last year injected nearly $4 billion to support local and international investors for projects in industry, energy, mining, and logistics.”
Al-Jadaan also stated that the Kingdom is in the transitional phase to the new financial reality, as the percentage of electronic payments in the retail sector reached 57 percent of total transactions, and about 40,000 workers have been trained in the financial sector.
The minister expressed his pride in the private sector’s statistics, where female participation in the labor market has reached 37 percent, the home ownership rate has risen to 62 percent and the real estate sector has quadrupled since 2018.
“Saudi Arabia’s transformation is well on the way and we’re ready to work together and establish more productive and continuous partnerships,” he continued.
The privatization initiative is now working on more than 200 projects in 17 selected areas, providing investors with numerous opportunities, adding that the stock market is rapidly growing.
Al-Jadaan also gave his thoughts on the collapse of the US-based Silicon Valley Bank, which was shut down by regulators on Friday in what was the biggest failure of a bank in the country since the 2008 financial crisis.
“It is a clear warning to everyone,” the minister stated, adding: “Generally, I think it is multiple failures, possibly a supervisory issue, it is an institution issue, a concentration issue, and we could see this coming with the hikes and interest rate, people should have seen this coming.
Al-Jadaan said: “Our experience and effective implementation of macro potential measures contribute to the resilience of the financial system against shocks. We see this clearly in the Saudi market.”
