Interview: Ayman Al Sayari, Governor, Saudi Central Bank, on digitalisation trends and the changing regulatory environment
In what ways is the banking sector being guided to support economic diversification objectives?
AYMAN AL SAYARI: Economic transformation has expanded the role of the banking sector beyond traditional oil-linked activity. Credit demand has grown across non-oil segments, including industrials, renewable energy, digital economy activities and related services. Banks have also stepped up financing for micro, small, and medium-sized enterprises, particularly in retail and services, recognising their importance to employment and sustainable growth. The regulatory approach has remained focused on ensuring resilience across the system, with capital strength, sound risk management and prudent liquidity practices allowing banks to continue supporting diversification objectives through economic cycles.
How is the regulatory environment evolving to enable innovation while protecting consumers?
AL SAYARI: The regulatory environment has evolved to balance innovation with consumer protection and financial stability. Frameworks governing digital financial services are structured to accommodate new technologies while maintaining high standards of security, transparency and data protection. Initiatives such as open banking enable secure data sharing and greater customer choice, while clearly defined requirements around cybersecurity, disclosures and customer rights safeguard trust.
Which steps are being taken to strengthen corporate governance within financial institutions?
AL SAYARI: Regulatory policies are being modernised through a structured and adaptive approach that aligns closely with global standards. One example is the use of controlled testing environments that allow innovative financial products and business models to be assessed in real market conditions, helping ensure that regulation remains practical and forward looking. In parallel, corporate governance requirements across financial institutions have been strengthened, with clearer board-level responsibilities, enhanced risk management expectations and more robust disclosure practices.
What factors are driving the transition towards digital payments and how is infrastructure being enhanced to support digital transactions?
AL SAYARI: The shift towards digital payments is being driven by a combination of policy direction, infrastructure investment and changing consumer behaviour. Progress towards a less-cash economy has been rapid, supported by a robust national payments infrastructure that enables fast, secure and interoperable transactions. Domestic card and contactless networks, instant payment platforms and government payment systems have expanded capacity and availability, while real-time settlement systems provide the backbone for high-value and bulk payments. Infrastructure has been reinforced by clear regulatory oversight and a digitally savvy population, leading to widespread adoption of mobile wallets, e-commerce and contactless solutions.
By what means can the Kingdom deepen cross-border banking cooperation, particularly with key international financial markets?
AL SAYARI: Cross-border banking cooperation is being strengthened through bilateral relationships with international regulators and supervisory authorities. Cooperation agreements and memoranda of understanding support the exchange of supervisory information, technical expertise and best practices. These arrangements enhance oversight of cross-border activities, reinforce confidence among international counterparties, and contribute to financial stability as the Kingdom’s financial services providers expand both their regional and global engagement.
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