Why UK Fintech Companies Are Heading to Saudi Arabia
The UK has long been a global leader in fintech, the sector that combines finance and technology to create innovative solutions for customers and businesses. According to a recent report by Innovate Finance, the UK fintech sector raised a record $5.7 billion in funding in 2023, accounting for 10% of the global total.
But the UK is not resting on its laurels. It is also looking to expand its fintech presence in new markets, especially in the Middle East, where there is a huge demand for digital financial services and a supportive regulatory environment.
One of the most promising markets in the region is Saudi Arabia, the largest economy in the Arab world and the home of more than 34 million people. Saudi Arabia has been undergoing a major transformation under its Vision 2030 plan, which aims to diversify its economy away from oil dependence and foster a more modern and inclusive society.
As part of this vision, Saudi Arabia has been investing heavily in developing its fintech ecosystem, with initiatives such as the Fintech Saudi hub, the Sandbox regulatory framework, and the Fintech Accelerator program. These efforts have paid off, as Saudi Arabia ranked first in the Middle East and North Africa region in terms of fintech adoption, according to a 2022 report by EY.
To tap into this growing market, a delegation of UK fintech companies will be visiting Saudi Arabia next week, as part of a trade mission organized by the Department for International Trade (DIT) and the British Embassy in Riyadh. The delegation will include some of the UK's most successful fintech firms, such as Wise plc, Revolut, Starling Bank, and Checkout.com.
The trade mission will provide an opportunity for the UK fintech companies to showcase their products and services to potential customers, partners, and investors in Saudi Arabia. It will also enable them to learn more about the local market needs, challenges, and opportunities, and to establish relationships with key stakeholders in the public and private sectors.
The trade mission is expected to generate significant benefits for both sides. For the UK fintech companies, it will open up new avenues for growth and expansion in a fast-growing and lucrative market. For Saudi Arabia, it will bring in more innovation and competition to its financial sector, which will ultimately benefit its consumers and businesses.
The trade mission is also a testament to the strong and strategic partnership between the UK and Saudi Arabia, which covers various areas of mutual interest, such as trade, investment, security, education, and culture. By fostering more collaboration and exchange in the fintech sector, both countries can leverage their strengths and expertise to create value for their economies and societies.