Saudi Arabia's banking sector assets have reached $1.2 trillion, surpassing Vision 2030 targets for financial growth, underscoring the Kingdom's economic transformation.

Saudi Arabia's financial sector has made significant strides beyond Vision 2030 benchmarks for 2024, with banking sector assets soaring to an impressive SR4.49 trillion. This figure equates to 131% of the strategic program’s target of SR3.43 trillion, as detailed in the Financial Sector Development Program (FSDP) annual report released on Sunday.

The comprehensive report outlines the sector’s achievements in promoting economic expansion and sets forth strategic objectives for future progression. Notably, the Tadawul All Share Index (TASI), excluding Aramco, reached a substantial market capitalization equating to 86.7% of the country's GDP, while private credit represented 69% of GDP.

In a significant leap, insurance premiums accounted for 2.59% of the non-oil GDP, exceeding the 2024 target by a notable 9%. Moreover, loans disbursed to small and medium enterprises (SMEs) comprised 9.4% of total lending, achieving 94% of the annual objective set.

The report also highlighted that assets under management reached 26.3% of GDP, attaining 89% of set goals. Finance Minister Mohammed Al-Jadaan, who presides over the FSDP committee, asserted that the report acknowledges the Kingdom's ongoing triumphs in fortifying financial stability and facilitating extensive economic transformation.

Minister Al-Jadaan emphasized the pivotal role fintech plays in the sector's expansion, pointing out that 261 licensed fintech companies were operational by the close of 2024. In a move to further champion cashless transactions, the Saudi Central Bank (SAMA) sanctioned the introduction of D360 Bank, a purely digital financial institution.

Digital payment penetration increased significantly to account for 79% of consumer transactions last year, indicating substantial progress in digital sophistication within the sector. Al-Jadaan also noted that the capital markets witnessed continued vigor, with 44 new companies being listed in 2024, bringing the total to 353 listed firms.

The report, as highlighted by Al-Jadaan, encapsulates the breadth of reform and development across all domains of the Kingdom in this period of substantial transformation, underscored by the leadership of King Salman and Crown Prince Mohammed bin Salman.

The Financial Sector Development Program is integral to Vision 2030, focused on cultivating a diversified, resilient economy while enhancing Saudi Arabia's stature in both regional and global financial arenas.