JEDDAH: Saudi Arabia has achieved a major milestone in its financial transformation, reaching a 79 percent cashless transaction rate in 2024 — surpassing its 2025 target ahead of schedule, according to an official.

In an exclusive interview with Arab News, Khaled Al-Dhaher, vice governor for supervision and technology at the Saudi Central Bank, also known as SAMA, said: “By the end of the second quarter of 2025, the number of fintech companies operating in the Kingdom reached more than 280.”

Explaining the sector’s progress, the senior official said the country has seen a remarkable transformation, evolving from a traditional, bank-centric model to one of the most dynamic financial ecosystems in the region.

Saudi Arabia’s fintech sector is growing rapidly, driven by regulatory reforms, digital innovation, and investment in financial infrastructure. Through initiatives supporting startups, digital payments, and open banking, the Kingdom is building a future-ready ecosystem that advances inclusion, efficiency, and Vision 2030 goals.

Strategic leadership

Al-Dhaher highlighted how SAMA has leveraged its core mandate of monetary and financial stability to position Saudi Arabia as a global fintech hub, building its strategy on four pillars: resilience, excellence, influence, and development.

“This means enhancing structured and adaptive regulations through controlled sandboxes, clear licensing pathways, and supervisory expectations that foster responsible innovation,” he said.

He added that with top-class infrastructure, Saudi Arabia is well positioned to roll out fintech solutions to its digitally enabled population while deepening international engagement with regulators, financial institutions, and global platforms.

SAMA has implemented several measures to foster fintech growth, starting with the establishment of Fintech Saudi in 2018 by SAMA and the Capital Market Authority, acting as a springboard to support common infrastructure for the sector.

“As a continuation of these efforts, SAMA and the CMA announced the Fintech Enablement Program, ‘Makken’ in 2023 to empower entrepreneurs and startups in the fintech industry by providing support with advanced technology, cloud, and cybersecurity capabilities,” he added. 

He emphasized that SAMA’s strategy aligns closely with the Fintech Strategy, part of the Financial Sector Development Programs under Vision 2030. The strategy, approved by the Council of Ministers in 2022, sets ambitions to transform the Kingdom into a leading global fintech hub by enhancing innovation, deepening financial inclusion, and ensuring financial services are accessible, efficient, and competitive.

“Through this approach, and in alignment with the Fintech Strategy, SAMA ensures that fintech growth is both well-regulated and impactful, positioning Saudi Arabia as a credible and resilient hub within the global fintech landscape,” he said.

Financial Inclusion

Al-Dhaher noted that national payment systems and regulatory frameworks have facilitated mobile wallets, real-time payments, and streamlined digital onboarding.

“On the financing side, SAMA has established frameworks for microfinancing and debt crowdfunding, ensuring that innovative solutions are deployed safely while extending services to individuals and SMEs that were previously underserved,” he said.

He added that for consumers, innovations such as open banking and micro-savings tools are making financial services more accessible, personalized, and inclusive.

Global integration

Al-Dhaher also highlighted the role of international fintech entrants, emphasizing that their participation enhances the competitiveness of the domestic market and aligns Saudi Arabia’s payment infrastructure with the highest international standards.

He pointed to recent developments as evidence, including the launch of Google Pay at Money20/20 Middle East, enabled through the national payment system, MADA, and the agreement with Ant International to enable Alipay+ payments by 2026.

He said these initiatives reflect how global platforms are partnering with national infrastructure to better serve both residents and international visitors, contributing to a robust, future-ready financial ecosystem.

“SAMA continues to encourage global participation with clear rules and regulations, ensuring technical interoperability with national systems, and implementing strong consumer-protection frameworks,” he said.

Innovation frameworks

Al-Dhaher explained that SAMA’s approach is rooted in structured adaptiveness noting that a core example is their Regulatory Sandbox, which allows fintechs to test new business models in a safe and controlled environment, while providing SAMA with real-time insights.

To date, he added, over 70 fintechs have been admitted, with more than 25 successfully graduating into fully licensed providers. 

“Several key regulations, including EMIs, crowdfunding, and digital payments, have been shaped directly through sandbox engagements,” he said.

Beyond the sandbox, the official said, SAMA has developed frameworks like the Open Banking initiative, balancing innovation with strict governance, privacy, and security standards. “This combination of phased approvals, outcome-based supervision, and strong safeguards allows us to foster innovation while ensuring stability and consumer trust.”

Operational resilience

The SAMA official emphasized that maintaining resilience and competitiveness amid global technological disruption is a key priority.

He stressed that financial institutions and third-party providers are required to comply with regulations on operational resilience, cyber-risk management, and business continuity, ensuring consistent governance, security, and accountability.

“By enforcing these requirements and maintaining close supervisory oversight, SAMA ensures that the domestic fintech ecosystem is well-prepared to manage technological disruption and global market volatility, while remaining competitive and positioned for regional and international growth,” he said.

With the rise of AI, big data, and digital finance, SAMA is leveraging emerging technologies to drive innovation while protecting privacy, security, and consumer trust.

Responsible fintech innovation

Al-Dhaher explained that the central bank follows national best-practice guidelines for AI adoption, placing reliability, security, and privacy at the core of its initiatives.

He added that SAMA also maintains “close dialogue with industry stakeholders, using surveys, on-site interviews, and partnerships to gather timely insights. This collaboration helps to foster a culture of prudent innovation.”

Discussing fintech’s broader impact, Al-Dhaher said solutions can broaden financial access, support underserved segments such as SMEs, and boost efficiency and competitiveness across the economy.

“These outcomes are directly aligned with Vision 2030, where sustainable growth, diversification, and financial inclusion are central objectives,” he said.

He emphasized that SAMA’s priority moving forward is to ensure fintech innovation is purposeful and well-regulated, advancing technology while meeting genuine market needs, protecting consumers, and reinforcing financial stability.

“We are focused on enabling an environment where fintech can thrive, talent and investment are nurtured, and innovation addresses real market needs while ensuring financial stability and consumer protection,” he said.