Saudi Arabia’s fintech sector has moved into a new phase of expansion just as the central bank begins licensing companies to provide open banking services, reinforcing the kingdom’s push to become the Gulf’s most advanced digital finance market. By the end of 2024, the country had 261 active fintech firms, well above the Financial Sector Development Program’s target, and the latest SAMA move suggests that momentum is continuing in 2026 rather than fading.
The original growth story was already impressive. Saudi fintech companies had generated more than 11,000 direct jobs and attracted cumulative venture capital of more than SAR 7.6 billion, according to the FSDP’s 2024 report. The sector’s rise also helped push digital payments to 79 per cent of retail transactions in 2024, a sign that consumer behaviour is shifting quickly in a market that once depended heavily on cash.
Now the next layer is open banking. SAMA’s decision to start licensing fintech firms for open banking services is significant because it opens the door to more competition in payments, data sharing and personal finance products. That could benefit start-ups and mid-sized financial companies that have spent years building customer interfaces but have been waiting for broader regulatory access to the banking rails.
The policy is also consistent with Saudi Arabia’s wider Vision 2030 goals. The country wants to deepen financial inclusion, expand electronic payments, and create a larger role for private capital and innovation in the financial system. The government has already shown it can pair regulation with industrial policy, and fintech has become one of the clearest examples of that approach.
For investors, the signal is clear: Saudi Arabia is still one of the most attractive fintech markets in the Middle East, especially in payments, lending infrastructure, wealth tech and Islamic finance. The combination of a young population, strong state backing and a maturing licensing framework is hard for regional rivals to match. The challenge now is execution. Open banking can accelerate innovation, but it also demands tighter data governance, stronger cyber controls and clearer consumer protections. If SAMA balances those risks well, Saudi Arabia could move from being a fast-growing fintech market to a rule-setting one for the wider region.
