Financial Sector Development Program

The Financial Sector Development Program aims to develop a diversified and effective financial sector to support the development of Saudi Arabia's economy, diversify its sources of income, and stimulate savings, finances and investments. The aim is to achieve this ambition by boosting financial sector institutions, and by developing the Kingdom's financial market to become an advanced capital market without weakening the financial sector's stability. Listed under the Financial Sector Development Program’s umbrella are several sub-sectors, including banking, insurance, investment, and stock and debt markets.

The Financial Sector Development Program was launched in 2017 in order to enable financial institutions to support the growth of the private sector, develop an advanced capital market and to boost and enable financial planning.

In the previous stage, the Program achieved great success after having the Saudi Stock Exchange “Tadawul” join the global indices “FTSE” and “MSCI”, which contributed to the success of the initial public offering of Saudi Aramco shares in 2019. The Program also increased support in the field of financial technology for startups, and led many efforts with a significant impact on citizens, such as moving towards a cashless society and launching the instant payment system, which exceeded its goals in less than 12 months.

In the next stage, the Program will continue to strengthen financial institutions to support the private sector, through boosting the financial planning options and increasing the share of financing SMEs in banks. The program will also develop a sustainable and thriving insurance sector in the Kingdom, increasing the share of non-cash transactions from 36% in 2019 to 70% in 2025. To ensure overall financial stability of the financial services sector, the program adheres to relevant international standards, including the requirements of the Bank for International Settlements and the International Organization of Securities Commissions.