Saudi Arabia’s financial sector has exceeded several major Vision 2030 benchmarks in 2024, according to the annual report released by the Financial Sector Development Program (FSDP) on Sunday. The Kingdom’s total banking sector assets soared to SR4.49 trillion, surpassing the program’s target of SR3.43 trillion by 131%. This achievement is seen as a testament to the nation’s ongoing financial reforms and commitment to building a resilient and diversified economy.
Strong Market Capitalization and Credit Growth
The Tadawul All Share Index (TASI), excluding Aramco, reached a market capitalization equivalent to 86.7% of the country’s GDP. This significant indicator reflects growing investor confidence and robust performance in capital markets. Furthermore, private credit accounted for 69% of GDP, signaling healthy lending activity across the economy.
Insurance and SME Lending Surpass Expectations
Insurance premiums reached 2.59% of Saudi Arabia’s non-oil GDP, exceeding the 2024 target by 9%. Meanwhile, lending to small and medium enterprises (SMEs) grew steadily, making up 9.4% of total lending. This achievement represents 94% of the annual target, reflecting the government’s ongoing efforts to empower local businesses and enhance financial inclusion.
Asset Management Sector Shows Positive Momentum
The report also notes that assets under management stood at 26.3% of GDP in 2024, reaching 89% of the target set by the Vision 2030 roadmap. This growth highlights increased investor participation and the maturation of the Kingdom’s asset management industry.
Fintech Sector and Digital Transformation Drive Growth
Finance Minister Mohammed Al-Jadaan, who chairs the FSDP committee, emphasized that the sector’s progress reflects Saudi Arabia’s broader economic transformation. A key contributor to this progress is the expanding fintech ecosystem. By the end of 2024, the Kingdom had 261 licensed fintech companies in operation, playing a critical role in advancing financial services and innovation.
Further accelerating digital adoption, the Saudi Central Bank (SAMA) approved the launch of D360 Bank, a fully digital financial institution. This move aligns with the national strategy to transition toward a cashless economy. In fact, digital payments accounted for 79% of all consumer transactions last year—a clear sign of the sector’s digital maturity and customer readiness.
Capital Markets See Surge in Listings
Al-Jadaan also highlighted the ongoing momentum in capital markets. In 2024 alone, 44 new companies were listed, bringing the total number of firms on the Saudi exchange to 353. This growth is reflective of investor confidence and the Kingdom’s strong regulatory environment.
A Vision for the Future
The FSDP’s annual report underscores the depth of reform taking place across Saudi Arabia’s financial landscape. It reflects the Kingdom’s strategic shift under the leadership of King Salman and Crown Prince Mohammed bin Salman, emphasizing a future built on innovation, inclusion, and resilience. The program remains a cornerstone of Vision 2030, aiming to position Saudi Arabia as a regional and global leader in financial services.
