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The Financial Sector Development Program, known as FSDP, has released its annual performance report for 2024.

The report highlights the significant progress achieved by the program in 2024, in alignment with the objectives of Saudi Vision 2030.

Launched in 2018 as a key initiative under Vision 2030, the Financial Sector Development Program aims to enhance the strength and efficiency of ����ֱ��’s financial institutions, and position the local capital market as a leading global financial hub.��

Also, the program spans several sub-sectors, including banking, insurance, equity markets and debt markets.

Among the program’s major achievements was the growth of the fintech sector, with the number of licensed fintech companies reaching 261 in 2024.

The number of fintech companies has surpassed the targets set by the FSDP for 2024, and is on track to achieve the desired impact of reaching 525 companies by 2030.��

Notably, the Saudi Central Bank has issued licenses to 138 fintech companies, while the Capital Market Authority has licensed 52 and the Insurance Authority 14.

Electronic payments accounted for 79 percent of total retail payments in 2024, up from 70 percent in 2023. This achievement aligns with the significant growth of the Kingdom’s payment systems in 2024, as the number of electronic “non-cash” payment transactions reached 12.6 billion, compared to 10.8 billion in 2023.

These significant advancements in digital payment technologies align with the objectives of Saudi Vision 2030 — not only by reducing reliance on cash and promoting electronic payments, but also by supporting the Kingdom’s broader transition from a traditional economy to a digital one, through the encouragement of e-payments and e-commerce.

The Saudi Central Bank continues to drive progress in digital payments, including the recent approval for D360 Bank to begin operations. Notably, D360 Bank is one of three digital banks licensed by SAMA to operate in the Kingdom, with one still in the pilot phase. As of now, a total of 38 banks operate in ����ֱ��, consisting of 11 local banks, three digital banks and 24 foreign banks.

The CMA approved the offering and listing of 44 companies in the Capital Market in 2024. This included 14 companies in the main market and 30 companies in the Saudi Parallel Market. The total number of companies listed in the Saudi Capital Market reached 353.

By the end of 2024, the asset management industry in the Kingdom surpassed SR1 trillion ($266.7 billion), achieving remarkable growth and setting records. This represents a 169 percent increase compared to 2017, when total assets under management stood at SR391 billion ($104.3 billion). This surge in managed assets was also accompanied by a significant rise in the number of investment funds, which reached 1,549 by the end of 2024, a 168 percent increase from 577 funds in 2017.

I believe the Financial Sector Development Program has successfully achieved several significant milestones across various areas of the Saudi financial market, as outlined in the program’s 2024 annual performance report.

The financial achievements highlighted in the report underscore ����ֱ��’s efforts to solidify its position as a leading emerging financial market, driven by notable progress in market transparency and the implementation of strong corporate governance frameworks.

Also, these achievements reflect the advancements of the Kingdom’s commitment to financial sector reform and align closely with the objectives of Saudi Vision 2030, which aims to create a more transparent, efficient and globally competitive financial ecosystem. This is reflected in the significant advancements across fintech, the debt market, banking, insurance, and support for small and medium enterprises, as well as in the strengthening of financial sector regulations and the promotion of financial literacy.

Finally, the report highlights the strong collaboration among key financial sector regulators — including the Saudi Central Bank, the Capital Market Authority and the Insurance Authority — who work in close alignment to ensure financial stability and drive sustainable sector growth. Through this coordinated effort, the program continues to invest in modern financial technologies, enhance the banking experience, expand access to high-quality financial products and services, and modernize regulatory frameworks to improve overall efficiency and effectiveness.

The report also emphasizes the program’s commitment to aligning the financial sector with the highest international standards, enhancing its global competitiveness and delivering greater value to individuals, institutions and the wider economy.

• Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz

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