RIYADH: Financial transactions have been made easier by rapid and accelerating growth in technologies, but there are still obstacles to overcome, said Nabil Koshak, CEO of the Saudi Venture Capital Company.

“Investors should fund the development of technologies that help fight these obstacles and crimes,” said Koshak, a panelist at the Arab Forum of Anti-Corruption Agencies and Financial Intelligence Units on its second day on Thursday in Riyadh.

With the interconnectedness and rapid development of global markets, corruption represents a major threat and carries significant risks for investors.

Discussing ways in which businesses and financial institutions manage the dangers of market corruption, Koshak said: “Investing in this sector attracts capital from the world’s top venture capital and financial firms. These firms noticed a significant gap and difficulty that the authority, financial institutions, and governments face; as a result, as technology advances, investors will have more and bigger opportunities to invest.”  

Based on the effects of corruption, and its repercussions on economic stability and sustainable development, there is an increasing trend among corporate and institutional investors to adopt proactive methods to confront these risks directly, he said.

“In 2016, Saudi Vision 2030 emphasized the importance of sectoral investment, innovation, and entrepreneurship, particularly among developing companies and small and medium-sized organizations. In 2023, funding and venture investment in the Kingdom were increased, and from 2018 to today it became the top Middle Eastern country to invest. The Saudi Venture Investment Company’s initiative prompted over 50 investment funds to invest in technology and emerging companies in general,” he added.

By prioritizing anti-corruption measures and integrating them into decision-making frameworks, investors are reshaping the standards of responsible investment and demonstrating a commitment to ethical business conduct.  

“The digital economy is a strong regulatory framework for Saudi Arabia. Even to stimulate investment in technologies related to the field of combating digital crimes, we are proud of Saudi Arabia’s entrepreneurs and investors. Participation of startups and entrepreneurs to establish companies that contribute to developing technologies in combating crimes, such as Mozoon Company, Amwal Company, and others,” Koshak said.

He said that the significant changes that took place in this sector did not come out of nowhere. Vision 2030 was focused on innovation, entrepreneurship, and small and medium enterprises.

Koshak said that it is important to continue supporting and empowering entrepreneurs and innovators in order to find innovative solutions that keep pace with the challenges.

He added that It is critical to recognize that as the digital economic transformation accelerates, new and different challenges will emerge.

Innovation and creativity are important tools to find solutions that keep pace with this accelerating digital transformation in various sectors, the most important of which is the fight against financial crime, Koshak said.