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Reforms offer a prosperous future in Saudi financial sector: Minister

Saudi Finance Minister Mohammed Al-Jadaan
 

Saudi Finance Minister expresses confidence on reforms under Vision 2030

Finance Minister Mohammed Al-Jadaan expressed confidence that ongoing financial and economic reforms, as part of Vision 2030, will pave the way for a prosperous future in Saudi Arabia's financial sector.

Addressing the annual report of the Financial Sector Development Program, Al-Jadaan emphasized the program's commitment to advancing the financial sector by integrating it into the digital economy and leveraging modern technologies such as artificial intelligence and big data.

 

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The program, among eleven executive initiatives launched under Vision 2030, aims to diversify and enhance the financial sector to bolster the national economy, promote savings, financing, and investment, and bolster sector efficiency to tackle challenges effectively.

Al-Jadaan noted Saudi Arabia's continued progress in competitive indicators, ranking third among the G20's most competitive countries, according to the Global Competitiveness Center of the International Institute for Administrative Development. He highlighted the surpassing of targets for financial technology companies, reaching 216 firms against a goal of 525 by 2030.

Minister of Investment Khaled Al-Falih underscored Saudi Arabia's resilience amidst geopolitical fluctuations and stringent monetary policies. Structural reforms contributed to lower inflation rates and improved the investment climate, resulting in a credit rating upgrade to A+. Notably, Saudi Arabia led the Middle East and North Africa region in venture investments and witnessed increased investment licenses for financial and insurance institutions.

 

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Minister of Economy and Planning Faisal Al-Ibrahim highlighted the program's role in driving growth in financial, insurance, and business services activities by about 5.2 percent annually until the third quarter of 2023. Efforts aimed at diversifying investment financing sources and attracting foreign investment through private financing channels and financial technology platforms were emphasized.

The report outlined initiatives by the Central Bank and the Capital Market Authority to develop regulatory frameworks and empower the financial technology sector, with the Central Bank aiming to empower local and international fintech companies and launch digital banks and savings products.

The Capital Market Authority aims to enhance the Saudi market's attractiveness for foreign investors and increase foreign investors' ownership to 17 percent of the total market value of free shares by the end of the year.

 

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Overall, the comprehensive reforms and initiatives outlined in the report demonstrate Saudi Arabia's commitment to positioning itself as a global financial hub and fostering sustainable economic growth in line with Vision 2030.

Source: https://english.aawsat.com/

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