Latest news with #MohammedAlJadaan
Zawya
6 days ago
- Business
- Zawya
Saudi banking sector assets hit $1.2trln in 2024
RIYADH — Saudi Arabia's financial sector exceeded key Vision 2030 benchmarks in 2024, with total banking sector assets reaching SR4.49 trillion, or 131% of the program's target of SR3.43 trillion, according to the annual report released Sunday by the Financial Sector Development Program (FSDP). The report highlights the sector's achievements in supporting economic growth and outlines strategic goals for the coming years. Among the key indicators, the Tadawul All Share Index (TASI), excluding Aramco, reached a market capitalization of 86.7% of GDP, while private credit accounted for 69% of GDP. Insurance premiums reached 2.59% of non-oil GDP, surpassing the 2024 target by 9%. Small and medium enterprise (SME) loans made up 9.4% of total lending, hitting 94% of the annual goal. Assets under management stood at 26.3% of GDP, reaching 89% of the target. Finance Minister Mohammed Al-Jadaan, who chairs the FSDP committee, said the report reflects the Kingdom's continued success in bolstering financial resilience and enabling broader economic transformation. He noted that fintech continues to play a vital role in sector growth, with 261 licensed fintech firms operating by the end of 2024. In parallel, the Saudi Central Bank (SAMA) approved the launch of D360 Bank, a digital-only financial institution, as part of the Kingdom's push toward a cashless economy. Digital payments surged to 79% of total consumer transactions last year, underscoring the sector's digital maturity. Al-Jadaan also noted continued momentum in the capital markets, with 44 new company listings in 2024 bringing the total number of listed firms to 353. The report, Al-Jadaan said, showcases the scale of reform and growth across all sectors of the Kingdom in this transformative era under the leadership of King Salman and Crown Prince Mohammed bin Salman. The Financial Sector Development Program is one of the key Vision 2030 initiatives, aimed at building a diversified, resilient economy and strengthening Saudi Arabia's regional and global standing in financial services. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Arab News
6 days ago
- Business
- Arab News
Saudi financial ecosystem hits $267bn milestone in 2024 in line with Vision 2030
RIYADH: Saudi Arabia's financial sector recorded exceptional growth in 2024, with fintech firms reaching 261, venture capital investment in the sector exceeding SR7.6 billion ($2.03 billion), and gross written premiums in insurance climbing to SR76.1 billion. Locally managed assets in the capital market surged to SR1 trillion ($267 billion), while foreign ownership rose to over SR420 billion. These milestones, outlined in the Financial Sector Development Program's 2024 annual report, reflect the Kingdom's accelerating progress toward the economic diversification goals of Vision 2030. Saudi Finance Minister Mohammed Al-Jadaan, also chairman of the Financial Sector Development Program Committee, emphasized that the program continues to deliver on its promise of sustainable success. He said the FSDP is building an economic future that solidifies Saudi Arabia's regional and international standing while reflecting the rapid development across all sectors in this prosperous era. The FSDP has implemented a wide range of reforms and initiatives to build a robust, diversified, and inclusive financial system. The program has helped to strengthen the Kingdom's regional and global economic standing while enabling innovation, job creation, and investment growth. Fintech emerged as a key success story in 2024, with the number of operating companies surpassing initial targets and contributing to the creation of over 11,000 direct jobs. The Saudi Central Bank licensed D360 Bank to begin operations, and electronic payments accounted for 79 percent of total retail transactions — underscoring the shift toward a cashless economy. The year also saw the launch of FinTech2024, the Kingdom's first international fintech conference. Capital markets continued their upward trajectory. With 44 new listings, the number of publicly traded companies reached 353. Locally managed assets grew 169 percent compared to 2017, reaching SR1 trillion, while foreign investor holdings jumped by 501 percent over the same period to SR 420 billion. Notable developments included the introduction of the TASI 50 index, single-stock options, Real Estate Investment Certificates, and the listing of Saudi ETFs in Tokyo, Shanghai, and Shenzhen. The Capital Market Authority also launched the Kingdom's Green Finance Framework to encourage sustainable investment. In the debt capital market, the CMA unveiled a strategic roadmap and issued the first license for an alternative trading system. The Kingdom successfully conducted its first international dollar bond issuance under the Government's Global Bond Program, attracting approximately $30 billion in orders. Meanwhile, the government introduced 'Sah,' a savings product aimed at fostering a culture of personal saving. Credit rating agencies Moody's, Fitch, and S&P issued upward revisions to Saudi Arabia's sovereign credit ratings in response to the country's fiscal discipline and financial reforms. The insurance sector also posted strong performance. Gross written premiums rose 16.3 percent from 2023 to reach SR 76.1 billion, while net profits increased by 12.5 percent to SR 3.6 billion. The Insurance Authority mandated the Saudization of all insurance product sales roles and launched a Regulatory Sandbox to support startup innovation. The number of licensed InsurTech firms rose by 56 percent. New digital services included automated motor insurance, simplified claims processes, and TELEMATICS—a unified platform for tracking driver behavior. The finance minister noted that the progress reflected in the report underscores the Kingdom's broader development efforts under the leadership of King Salman and Crown Prince Mohammed bin Salman. Support for small and medium enterprises remained a cornerstone of financial sector development. Saudi startups attracted SR 2.8 billion ($750 million) in venture capital, maintaining the Kingdom's lead in the MENA region. The share of bank credit to SMEs increased from 8.4 percent in late 2023 to 9.4 percent by the end of 2024. The SME Bank disbursed over SR1.5 billion in financing to 1,029 enterprises, while the Kafalah program facilitated SR 107.2 billion in financing guarantees—advancing the Vision 2030 target for SMEs to contribute 35 percent of GDP. On the regulatory front, the FSDP advanced significant legislative reforms to enhance transparency, competitiveness, and investor protection. Updates included new principles for finance and real estate refinance companies, revisions to debt crowdfunding rules, and regulatory changes to real estate financing. The CMA also approved omnibus accounts and relaxed conditions for debt offerings, further liberalizing capital markets. Financial literacy and capability development remained a key focus. The Financial Academy trained more than 59,000 participants through its programs since inception. The third edition of the Gulf Smart Investor Award continued to raise awareness of personal finance, while the 'Malee' program began measuring and promoting financial literacy among children aged 8 to 12. Looking ahead, the Financial Sector Development Program aims to build on this momentum in 2025 by aligning with global standards, expanding financing options, increasing financial inclusion, and deepening capital market participation. As outlined in its annual report, the FSDP remains committed to fostering innovation, enhancing regulatory efficiency, and driving sustainable growth to realize the full ambitions of Saudi Vision 2030.
Zawya
26-06-2025
- Business
- Zawya
IMF raises forecast for Saudi GDP growth to 3.5% in 2025
The International Monetary Fund on Thursday raised its 2025 GDP growth forecast for Saudi Arabia to 3.5% from 3%, partly on the back of demand for government-led projects, and supported by the OPEC+ group's plan to phase out oil production cuts. Lower oil prices have weighed on Saudi Arabia's revenue, with the kingdom projected to post a fiscal deficit of around $27 billion this year. Still, the kingdom has pushed forward with spending on a massive economic transformation program known as Vision 2030 that aims to wean the economy off its dependence on oil. Under the program, Saudi Arabia has invested heavily in sports, tourism, and entertainment in recent years. Government spending and domestic demand are expected to fuel growth despite lower oil prices. "Robust domestic demand - including from government-led projects - will continue to drive growth despite heightened global uncertainty and a weakened commodity price outlook," said the IMF report. Saudi Finance Minister Mohammed Al-Jadaan said the kingdom would "take stock" of its spending priorities in response to a significant decline in oil revenue, the Financial Times reported in May. Still, the kingdom is committed to hosting several large international events, each of which requires significant spending on construction and development. These include the 2029 Asian Winter Games, set to feature artificial snow and a man-made freshwater lake, and the 2034 World Cup, for which 11 new stadiums will be built and others renovated. The kingdom's fiscal deficit will largely be financed by borrowing, said the IMF report. Saudi Arabia was the largest emerging market dollar debt issuer last year, but the kingdom has room to continue borrowing, with its net debt around 17% of GDP, making it one of the least indebted nations globally, according to the IMF. The IMF had lowered the kingdom's GDP growth forecast to 3% in April from an initial January estimate of 3.3%. The fund on Thursday added that non-oil real GDP growth is projected at 3.4% in 2025, about 0.8% lower than last year. (Reporting by Pesha Magid; Editing by Jan Harvey)
Reuters
26-06-2025
- Business
- Reuters
IMF raises forecast for Saudi GDP growth to 3.5% in 2025
RIYADH, June 26 (Reuters) - The International Monetary Fund on Thursday raised its 2025 GDP growth forecast for Saudi Arabia to 3.5% from 3%, partly on the back of demand for government-led projects, and supported by the OPEC+ group's plan to phase out oil production cuts. Lower oil prices have weighed on Saudi Arabia's revenue, with the kingdom projected to post a fiscal deficit of around $27 billion this year. Still, the kingdom has pushed forward with spending on a massive economic transformation program known as Vision 2030 that aims to wean the economy off its dependence on oil. Under the program, Saudi Arabia has invested heavily in sports, tourism, and entertainment in recent years. Government spending and domestic demand are expected to fuel growth despite lower oil prices. "Robust domestic demand - including from government-led projects - will continue to drive growth despite heightened global uncertainty and a weakened commodity price outlook," said the IMF report. Saudi Finance Minister Mohammed Al-Jadaan said the kingdom would "take stock" of its spending priorities in response to a significant decline in oil revenue, the Financial Times reported in May. Still, the kingdom is committed to hosting several large international events, each of which requires significant spending on construction and development. These include the 2029 Asian Winter Games, set to feature artificial snow and a man-made freshwater lake, and the 2034 World Cup, for which 11 new stadiums will be built and others renovated. The kingdom's fiscal deficit will largely be financed by borrowing, said the IMF report. Saudi Arabia was the largest emerging market dollar debt issuer last year, but the kingdom has room to continue borrowing, with its net debt around 17% of GDP, making it one of the least indebted nations globally, according to the IMF. The IMF had lowered the kingdom's GDP growth forecast to 3% in April from an initial January estimate of 3.3%. The fund on Thursday added that non-oil real GDP growth is projected at 3.4% in 2025, about 0.8% lower than last year.
Arab News
17-06-2025
- Business
- Arab News
Energy security key to inclusive growth, says Saudi finance minister
RIYADH: Energy security is not a luxury but 'a fundamental pillar for achieving development and inclusive growth,' said Saudi Arabia's Finance Minister Mohammed Al-Jadaan. Delivering the opening remarks at the OPEC Fund for International Development Forum 2025 in Vienna, Al-Jadaan warned that the absence of reliable energy access undermines critical sectors, including healthcare, education, productivity, and food and water systems. 'With rising geopolitical tensions, market volatility, and surging global energy demand, it has never been more urgent to achieve a more secure and diversified energy landscape,' Al-Jadaan said. He added: 'This requires a strategic push to diversify energy sources, scale up investment in clean technologies, and adopt innovative financing solutions to accelerate energy access and strengthen long-term energy security.' Four-point reform plan Al-Jadaan outlined four policy recommendations for multilateral development banks aimed at boosting global energy resilience. He stressed the need to support all energy sources without bias and cautioned against emissions policies that exclude major energy contributors. He said such policies risk destabilizing markets and disproportionately impact developing economies and vulnerable populations. His second recommendation focused on expanding concessional financing to underserved regions. The minister praised the World Bank's 'Mission 300' initiative, which aims to provide energy access to 300 million people in Africa, and acknowledged the contributions of the Islamic Development Bank and the OPEC Fund. Al-Jadaan also commended Saudi Arabia's Forward7 Clean Fuel Solutions for Food initiative under the Middle East Green Initiative, which promotes clean fuel deployment globally. The program has partnered with institutions including the OPEC Fund, the World Bank, the Islamic Development Bank, and the International Islamic Trade Finance Corp. De-risking and innovation Al-Jadaan's third point emphasized the need to de-risk investments in the energy sector to encourage private sector involvement. He cited mechanisms such as partial risk guarantees, political risk insurance, and blended finance structures as essential tools to mitigate risks and enhance the feasibility of energy projects, particularly in low-income and high-risk countries. 'These tools help mitigate expected risks and enhance the bankability of energy projects, especially in low-income and high-risk countries,' the minister said. In his final point, Al-Jadaan called for stronger investment in technologies such as carbon capture and sustainable hydrocarbon applications to reduce emissions and maintain supply during the transition to net-zero. He underscored the far-reaching consequences of energy poverty, including economic instability, forced migration, and increased humanitarian pressures. Al-Jadaan reaffirmed the Kingdom's aim to generate 50 percent of electricity from renewables by 2030 and achieve net-zero emissions by 2060. These goals are being pursued under the Circular Carbon Economy framework. 'In the Kingdom of Saudi Arabia, we are working with everyone to enhance energy security and eliminate energy poverty, while continuing efforts to combat climate change,' he said. Development crisis warning OPEC Fund President Abdulhamid Al-Khalifa also addressed the forum, warning of a worsening global development gap. He said the world is facing what the UN secretary-general has described as a 'development emergency,' pointing out that only 18 percent of Sustainable Development Goals have made measurable progress since their inception in 2015. 'Developing countries face a $4 trillion annual funding gap, worsened by rising debt servicing costs that are draining resources from essential services,' Al-Khalifa said. To address this, he said the OPEC Fund is ramping up efforts and leveraging momentum from previous forums. Among its recent actions, the fund has joined the 'Mission 300' initiative to expand energy access. It has also deployed $1 billion as part of its food security action plan, committed an additional $2 billion to support food supply chains in partner countries, and allocated $1 billion to combat desertification under the Arab Coordination Group's $10 billion Riyadh Global Drought Resilience Partnership. New trade facility Al-Khalifa also announced the launch of the OPEC Fund Trade Facility Initiative, a program designed to mobilize billions of dollars in support through 2030. The facility aims to help countries secure strategic imports, address trade-related liquidity gaps, and strengthen resilience against external economic shocks. 'This is a direct response to an urgent need, and a reflection of our commitments to stand by our partners when it matters most,' he said. Al-Khalifa emphasized the growing strain on trade as a development cornerstone, citing disrupted supply chains, rising costs, and foreign exchange volatility that are affecting the most vulnerable communities. Project milestones In 2024, the OPEC Fund committed $2.3 billion to 70 projects across the globe — a 35 percent increase compared to the previous year. These projects connected 300,000 households to electricity, built over 500 km of roads, and supported 75,000 farmers and 35,000 women. As the Arab Coordination Group marks its 50th anniversary this year, Al-Khalifa noted the significance of this milestone, saying the OPEC Fund is honored to stand alongside other member institutions in celebrating five decades of collaborative development efforts. 'We know from experience, when partners align their resources, expertise, and approaches, the results are transformative,' he said. Both Al-Jadaan and Al-Khalifa stressed that global cooperation and innovation are critical to overcoming current challenges and advancing toward a future of inclusive and sustainable development.
