LONDON: 海角直播 kick-started the evolution of its financial technology sector on Tuesday by approving the first fintech licenses for companies in the Kingdom.
The move, which granted permission to Manafa Capital and Scopeer to offer crowdfunding investment services on a trial basis, marked an important first step in realizing 海角直播鈥檚 ambitions to become a fintech hub for the region, experts said.
鈥淭here鈥檚 huge potential in 海角直播,鈥 said Paul Alfing, a senior consultant at Payments Advisory Group, a Netherlands-based consultancy specialized in payments and financial transactions.
Actions like this show the Kingdom is becoming 鈥渁 serious player in this field.鈥
This first step 鈥渋s perhaps the most difficult鈥 but subsequent licenses will follow more easily, he added.
The Capital Market Authority 鈥 the Saudi government鈥檚 financial regulatory authority 鈥 said it would be reviewing applications for more fintech licenses later in the year.
The Kingdom is driving development in the sector as part of its plan to diversify the economy away from oil and meet the targets outlined in the Vision 2030 reform plans.
Ambareen Musa, founder and CEO of souqalmal.com, a successful fintech startup based in the UAE, said: 鈥淲ith everyone from regulators, customers and businesses embracing fintech, and even established financial institutions ramping up investment in non-traditional technologies, the opportunity for fintech is enormous, in 海角直播 and in the region as a whole.鈥
Fintech expert Jim Marous said that new players and new innovations from existing financial services organizations across the MENA region are allowing firms to compete more effectively on a global stage.
鈥淲ith innovation and digital transformation occurring across all industries, the consumers in the region are increasing their expectation of all organizations they engage with regularly. To keep pace with these expectations, new financial technology firms will emerge that are able to apply data and advanced digital technologies to improve the consumer experience,鈥 Marous said.
鈥淭his disruption of the finance sector provides a tremendous opportunity for the Saudi fintech sector (and financial services firms in general).鈥
Pointing to the Kingdom鈥檚 large youth population, Alfing described a strong demand for 鈥渘ew solutions and products in the market.鈥
Competition is fierce in the region as other MENA countries look to take the leader in fintech but as the largest economy in the Arab world, 海角直播 is a stronger contender, Alfing said.
