FSC 2023 concludes with 3,200 participants

The second edition of the Financial Sector Conference (FSC 2023) concluded in Riyadh, with a mood of optimism and energy to overcome market challenges to build a stronger, technology driven and sustainable economy of the future.

Over 3,200 participants assembled to discuss the way ahead for the global financial community.” Representatives from the some of the biggest global financial institutions joined government finance Ministers to listen to over 100 speakers identify the most effective road map for future growth and prosperity for the sector under the conference theme of “Promising Financial Prospects, enabling greater use of technology; diversification; cross border cooperation and embracing the green economy.

Concluding the conference, Saudi Central Bank Governor, HE Ayman Mohammed Al-Sayari, highlighted the Kingdom's efforts to provide an attractive environment for Fintech companies in line with the goals of Vision 2030, and the vital role they play to support the growth of the private sector, diversify the economy and stimulate saving, financing and investment. He added that the Kingdom aims to create an attractive environment for Fintech firms. Al-Sayari also underlined the importance of the insurance sector in the Kingdom, being a promising sector that witnesses accelerated growth, adding that Financial Sector Development Program (FSDP) partners will collaborate to support the insurance sector in the Kingdom to achieve growth and sustainability, and enhance its contribution to the Saudi gross domestic product (GDP).

Financing for the SME sector was a key debating point on the final day of the conference with the enormous growth of the sector both in the Middle East and internationally. Tala Al Jabri, Board Member, Middle East VC Association (MEVCA) identified a major financing gap for the sector. He said: “95% of enterprises in the region are SMEs and the loan profile that goes to them is only 7% – which is the lowest in the world, indicating a massive gap.”

The fintech sector in Saudi Arabia meanwhile is flourishing as Ziad Alyousef, Deputy Governor for Development and Technology, Saudi Central Bank (SAMA) explained: “In 2018, there were less than 10 companies operating in the FinTech community. Now, there are over 155 companies operating in this space in Saudi Arabia and this has led to increased investments and job creation."

In a panel session about “Shaping the Future of Global Money Flows”, Bahrain’s Minister of Finance and National Economy, HE Shaikh Salman Bin Khalifa Al Khalifa told the conference: "During times of crisis, traditionally what happens is there is a flight to quality within markets and banking systems amidst uncertainty. But one of the things it demonstrates is the imperative for deepening capital markets. By listing large companies, creating market liquidity, and fostering depth in the capital market, you manage to become the market to which people go.”

In the same panel, Egyptian Minister of Finance HE Dr. Mohamed Maait, added: "Digitalization and innovative methods for making money flows quicker and more efficient have to be used carefully with advanced regulations to ensure maximum benefits from this technology."

About entrepreneurship in the Kingdom, Dr. Nabeel Koshak, CEO and board member of the Saudi Venture Capital Co. (SVC), said the Kingdom’s interest in the development of entrepreneurship is shown through the objectives of Saudi Vision 2030, finance programs and update of policies and regulations in the financial ecosystem.

Abdulrahman Tarabzouni, Founder & CEO of STV, said that projects and innovations in the Kingdom saw three waves. First was cloning and applying the successful global experience in the Kingdom. Second, we had institutions that innovate and design according to market needs. Third, these projects have grown and are out to global markets.”

Speaking of the role of SMEs to create job opportunities, Hasan Zainal - Founder & Managing Partner, Arzan Venture Capital, said two out of 32 jobs across the world are created by SMEs. However, 80% of jobs were created by SMEs alone in Saudi Arabia in 2022, a significant improvement compared to the last four years.

On the sidelines of the conference a number of agreements and MOUs were signed with a focus on the real estate and FinTech sectors. Miyar Capital signed MOUs to create real estate funds with Jeddah Real Estate and Aseel Capital with a total investment of $365 million. Other real estate projects were announced including Al-Jazira Capital and Mohammed Saad AlAjlan Real Estate Company signing the launch of the Al Jazira, Al Malqa, and Al Ajlan Real Estate Fund, while BMK, Bandar Real Estate Company, and Masader Real Estate Company signed a separate agreement to establish a Real Estate Fund in Eastern Province and Sedco Capital launched a real estate development fund.

Moreover, Fintech Saudi signed four memorandums of understanding (MoUs) with the Saudi Aramco Entrepreneurship Center; VISA; FaceKI and the National Centre for Government Resources Systems.