The Financial Sector Development Program aims to develop a diversified and effective financial sector to support the development of Saudi Arabia's economy, diversify its sources of income, and stimulate savings, finances and investments. The aim is to achieve this ambition by boosting financial sector institutions, and by developing the Kingdom's financial market to become an advanced capital market without weakening the financial sector's stability. Listed under the Financial Sector Development Program’s umbrella are several sub-sectors, including banking, insurance, investment, and stock and debt markets.
The Financial Sector Development Program was launched in 2017 in order to enable financial institutions to support the growth of the private sector, develop an advanced capital market and to boost and enable financial planning.
In the previous stage, the Program achieved great success after having the Saudi Stock Exchange “Tadawul” join the global indices “FTSE” and “MSCI”, which contributed to the success of the initial public offering of Saudi Aramco shares in 2019. The Program also increased support in the field of financial technology for startups, and led many efforts with a significant impact on citizens, such as moving towards a cashless society and launching the instant payment system, which exceeded its goals in less than 12 months.
In the next stage, the Program will continue to strengthen financial institutions to support the private sector, through boosting the financial planning options and increasing the share of financing SMEs in banks. The program will also develop a sustainable and thriving insurance sector in the Kingdom, increasing the share of non-cash transactions from 36% in 2019 to 70% in 2025. To ensure overall financial stability of the financial services sector, the program adheres to relevant international standards, including the requirements of the Bank for International Settlements and the International Organization of Securities Commissions.
H.E. Mr. Mohammed Abdullah Al-Jadaan
H.E. Eng. Mr. Khalid bin Abdulaziz Al-Falih
H.E. Mr. Faisal bin Fadhil Alibrahim
H.E. Mr. Ayman bin Mohammed Alsayari
H.E. Mr. Mohammed bin Abdullah Al-Quwaiz
Mr. Sami bin Ibrahim Alhussaini
Mr. Fahad bin Abduljalil Al-Saif
Enabling financial institutions to support private sector growth
Ensuring the formation of an advanced capital market
Promoting and enabling financial planning
In banking assets achieved
Increase in the market value of the stock market as a percentage of GDP (*Ex Aramco).
Emerging companies (such as financial technology companies) will be enabled to drive innovation and competition
Increase in the share of financing SMEs from banks
Increase in the contribution of the insurance sector by increasing gross written premiums
Increase in the share of cashless operations to develop the digital infrastructure
Saudi Arabia continues to support innovation and entrepreneurship by providing $695m+ in indirect lending initiatives to more than 2,300 beneficiaries.
In 2021, the number of FinTech companies licensed by the Saudi Central Bank reached 18.
Cashless payments exceeded cash transactions for the first time in Saudi Arabia, reaching 57% in 2021.
Launching the Derivatives Market launched on 30 August 2020. One of FSDP’s initiatives, as a significant step in advancing the Saudi capital market.
In 2020, the Kafalah program experienced significant growth, increasing the value of guarantees issued by 156%, amounting to SAR 12.3 Bn.
The Saudi Stock Exchange, Tadawul, has successfully completed the joining of the global indices: MSCI, Standard & Poor's Dow Jones and FTSE Russell.
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