Global investors in Saudi startups saw a 17% growth in the second quarter of this year. The fintech sector’s liquidity rose by 9%, reaching a total of 2.8 trillion riyals by the end of May. Active commercial registrations hit 1.5 million, with a 4% growth in new registrations.
Fintech Revenues
A report for the second quarter revealed that global fintech revenues totaled 918.8 billion riyals last year. The number of online shoppers is expected to reach 33 million this year. Saudi Arabia hosts 216 fintech companies, with venture capital investments in the sector amounting to 6.9 billion riyals. Startups in the kingdom received 1.54 billion riyals in funding, creating 6,500 jobs in the financial development sector.
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Cashless Transactions
The target for cashless transactions is 80% by 2030. The financial sector’s contribution to GDP is 13 billion riyals, with SME housing finance aimed to grow by 20% by 2030, up 6% from 2019. The global fintech market is expected to generate 5.6 trillion riyals by 2030, capturing 7% of global financial services revenue. In the second quarter, 20,000 SMEs and entrepreneurs benefited from various services and programs. A total of 581 SMEs qualified for the “Jadeer” service, and 86 brands were listed on the Franchise Excellence Center platform. Additionally, 72 entities supported startups in the first half of the year.
Startup Growth
Fintech startups led the funding scene last year, with investments totaling 2.6 billion riyals from 30 deals. Venture capital investments in fintech startups grew by 181%, accounting for 51% of all venture capital in the kingdom. Fintech deals comprised 24% of total venture capital transactions, with 26 Saudi companies securing funding.
Asset Value
Managed assets of fintech companies reached 8.3 billion riyals. Global investments were valued at 426.4 billion riyals, with 275.6 billion riyals funding 1,734 deals in the U.S. and 91.9 billion riyals funding 1,514 deals in Europe, the Middle East, and Africa. Venture capital in fintech amounted to 173.6 billion riyals, with payment technology funding at 77.6 billion riyals. Real estate technology received 5.3 billion riyals, AI-based fintech investments were 45.4 billion riyals, insurtech funding was 30 billion riyals, and regulatory technology funding was 9.8 billion riyals.
- 17% growth in global investors
- 3 trillion riyals fintech liquidity
- 919 billion riyals in fintech revenues
- 33 million online shoppers this year
- 8 billion riyals in managed assets
- 426 billion riyals in global investments
- 77.6 billion riyals in payment technology funding
- 173.6 billion riyals in venture capital for fintech
- 5 billion riyals in real estate technology funding
- 30 billion riyals in insurtech funding
- 30 fintech deals
- 2 billion riyals in startup funding
