Banking

Saudi Arabia’s banking sector has experienced rapid growth, fuelled by regulatory reforms, foreign investment and digital innovation under Vision 2030. The sector supports key industries like renewable energy, infrastructure and tourism, driving economic diversification. Financial technology advancements, digital-only banks and updated regulations have strengthened the sector’s resilience and competitiveness. As the Kingdom modernises, the banking sector is crucial to its economic success, balancing innovation with financial stability. The shift towards open banking and digitalisation positions Saudi Arabia as a leading financial centre in the GCC and the wider Middle East. This chapter also contains interviews with Ayman Al-Sayari, Governor, Saudi Central Bank; Nadir Al Koraya, CEO, Riyad Bank; and Bader H AlSalloom, CEO, BSF.

Articles from this Chapter

Overview

Motor of excellence: Financial innovation and increased market competitiveness are helping the sector finance diversification in the Kingdom
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Saudi Arabia’s financial services sector has undergone rapid growth and structural transformation in recent years, driven by regulatory reforms, increased foreign investment, digital innovation and the Kingdom’s Vision 2030 economic diversification plan. This expansion supports broader economic goals, with Saudi banks financing major projects in renewable energy, infrastructure and tourism. By fostering these sectors, the industry is helping to diversify the Kingdom’s economy and position itself…

Analysis

Green light: Open banking policy updates are helping to transform the Kingdom’s financial services landscape
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Open banking represents a transformative shift in the financial services industry, allowing third-party providers to access consumer financial data securely through application programming interfaces (APIs). This approach is reshaping the financial ecosystem and creating opportunities for banks and financial technology (fintech) companies to enhance their products, services and internal processes. The implementation of open banking is a key component of Saudi Arabia’s broader efforts to modernise…

Interview

Supporting positions: Ayman Al-Sayari, Governor, Saudi Central Bank (SAMA), on the role of banks in diversification efforts
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Interview:Ayman Al-Sayari, Governor, Saudi Central Bank (SAMA) What steps has the Kingdom taken to help address the effects of global economic challenges? AYMAN AL-SAYARI: In recent years the most pronounced economic challenge has been global inflationary pressure. Domestic inflation has remained contained due to two main factors: the fixed exchange rate policy, given its role in dampening imported inflation; and the government’s decision to cap energy prices. These steps have helped mitigate…

Interview

Innovating forwards: Nadir Al Koraya, CEO, Riyad Bank, on the role of digital transformation in the evolution of the banking industry
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Interview: Nadir Al Koraya, CEO, Riyad Bank To what extent are banks adapting strategies and services to support economic diversification? NADIR AL KORAYA: The Financial Sector Development Programme (FSDP) is key to creating a diverse sector that supports the national economy. The FSDP has been instrumental in privatising industries, strengthening related entities and developing financial markets. It also supports private companies by expanding financial planning, and increasing funding for small…

Analysis

Streamlined transactions: Digital payment platforms see growth in emerging markets due to higher consumer demand and increased remittances
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Despite the ongoing macroeconomic and geopolitical headwinds experienced by the global economy, one area of the international financial system that has shown steady progression is digital payments. Since the Covid-19 pandemic, they have been spurred by a jump in remittance flows, and the greater availability of digital infrastructure and services, as well as higher demand for fast and seamless non-physical transactions. The trend is even more notable across low- and middle-income countries. While…

Interview

Leveraging potential: Bader H AlSalloom, CEO, BSF, on the ways in which technological advancements are shaping the sector
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Interview:Bader H AlSalloom, CEO, BSF What has been the response of the banking sector to recent shifts in the global economic landscape? BADER ALSALLOOM: The Saudi banking sector has responded to global economic shifts with a robust focus on supporting Vision 2030 and the associated giga- and megaprojects driving economic growth. Saudi Arabia has been somewhat insulated from global economic challenges, thanks largely to the substantial investment in these large-scale projects. Banks have…