KSA Fintech Market Outlook to 2027
Driven by the government regulations and initiatives and the growing adoption of technology among the residents
Region:Middle East
Author(s):Chirag Gupta
Product Code:KR1272
December 2022
128
About the Report
The report provides a comprehensive analysis of the potential of the Fintech Industry in KSA. The report covers an overview and genesis of the industry, market size on the basis of GTV and volume of transactions.
Its market segmentation includes verticals, Region, Company Stage and Investment Stage; growth enablers and drivers, challenges and bottlenecks, trends driving digital adoption; regulatory framework; industry analysis, competitive landscape including competition scenario, and market shares of major players on the basis of GTV. The report concludes with future market projections of each segmentation and analyst recommendations.
Market Overview:
According to Ken Research estimates, the KSA Fintech Market – which grew at a CAGR of 25.5% in the period of 2017-2022P – is expected to grow at a CAGR of 18.5% in the forecasted period of 2023F-2027F, owing to the New Government Initiatives and Rising Service Verticals.
Payments and Currency Exchange is the largest Segment in the KSA Fintech Market followed by Lending and Finance, Personal Finance and Private Fundraising.- KSA Fintech Market is still evolving with investment driving the growth of the industry and fintech players still attracting funds in order to launch more innovative services in the market.
Key Trends by Market Segment:
By Region: Riyadh has the most number of Fintech Startups being headquartered there. There is a need to open more Fintechs in the northern region of KSA to capture the demand for Fintech in that area and enable companies to operate at a much larger scale.
By Company Stage: Every Fintech Player has to obtain a license to operate in the SAMA’s regulatory sandbox to test out their innovations before launching in the market. Such companies constitute 9% in 2022 from 20% in 2022 as more companies were declared active by SAMA.
Competitive Landscape
STC Pay has a market share of 30% and was the first unicorn in KSA followed by Foodics with 22% and Tamara with a share of 14% of KSA Fintech Market.
STC Pay, Geidea and Foodics are positioned in the opportunity area with a higher market share and a variety of innovative services and have expectations for further growth in future.
Future Outlook
The KSA Fintech Market witnessed significant growth during the period 2017-2022P, owing to increasing fund allocation, increase in government support and adoption of technology.
The demographics outlook of KSA is changing with young generation being more tech savvy and embracing innovation in the services. Fintechs are launching innovative and technology based products in order to attract younger population.
The industry is moving towards digital advancement and technologies such as AI and ML to improve capabilities.
Scope of the Report
|
By service vertical |
Payments and Currency Exchange Lending and Finance Business tools Personal financing Private fundraising Capital market Infrastructure |
|
By Region |
Riyadh Khobar Dammam Jeddah |
|
By Investment Stage |
Series A Series B and above Early (Pre-seed, Seed) Undisclosed |
|
By Company Stage |
Testing License Active Idea stage Pre commercial |
Products
Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report
- Banks and Financial Institutions
- Cash Reconciliation Companies
- Payment Aggregators
- Payment Network Companies
- Payment Interface Companies
- M-Wallet Companies
- Young First-Generation Entrepreneurs
- Payment Gateway Companies
- PoS Terminal Companies
- M-PoS Terminal Companies
Time Period Captured in the Report
- Historical Period: 2017-2022P
- Base Year: 2022P
- Forecast Period: 2023F-2026F
Companies
Major Players Mentioned in the Report
Payments and Currency Exchange-
- stc pay
- Tweeq
- CLICK PAY
- geidea
- NearPay
- neo leap
- Surepay
- PayTabs
- FOODICS
- noon payments
- CASHIN
- HYPER PAY
Lending and finances-
- Tamara
- tabby
- tamam
- FORUS
- Lendo
Private Fundraising-
- FALCOM TOJÃ
- Buthoor
- OSOOL & BAKHEET FUND
- Manafa
Business Tools & Information Provision-
- Foodics
- Flexxpay
- Penny
- wosul
Payment System Operators –
- Visa
- Apple pay
- American Express
- Google pay
Table of Contents
1. Executive Summary
1.1. Executive Summary: KSA Fintech Market
2. Country Overview of KSA
2.1. Socio-Demographic Outlook of KSA
2.2. Economic Landscape and Expatriate Population of KSA
3. Global Fintech Market Overview
3.1. Presence of Fintech Players Globally
3.2. Technologies and Trends in Global Fintech Industry
3.3. Global Fintech Investment Activity
4. MENA Fintech Market Overview
4.1. Overview of Fintech Industry in GCC
4.2. Cross-Comparison of GCC Countries
4.3. Critical Areas of Development across GCC
4.4. Cross-Comparison across MENA Region
4.5. Fintech Hubs across MENA Region
4.6. Attributes of a Successful Fintech Hub
4.7. Emerging Trends across MENA Region
4.8. MENA Venture Activity
5. KSA Fintech Market Overview
5.1. Ecosystem of Major Entities in KSA Fintech Market
5.2. Introduction to KSA Fintech Market
5.3. Evolution of KSA Fintech Market
5.4. Overview of KSA Fintech Industry (Number of Fintechs and Fintech Ecosystem Enterprise)
5.5. Value Chain Analysis - BNPL
5.6. Value Chain Analysis - Financing
5.7. Value Chain Analysis - Lending
6. Value Chain Analysis - Microfinancing
6.1. Value Chain Analysis – Personal Finance
6.2. Upcoming Technologies in KSA Fintech Market
6.3. KSA Fintech Investment Activity
7. Market Sizing
7.1. Market Size of KSA Fintech Market on the basis of GTV and Volume of Transactions,
7.2. Market Size of different Service Verticals of KSA Fintech Market on the basis of Volume
8. Market Segmentation
8.1. Segmentation of KSA Fintech Market by Service Vertical, 2022
8.2. Segmentation of KSA Fintech Market by Region, 2022
8.3. Segmentation of KSA Fintech Market by Company Stage and Investment Stage, 2022
9. Industry Analysis
9.1. SWOT Analysis of KSA Fintech Market
9.2. Growth Drivers of KSA Fintech Market
9.3. Trends and Developments in KSA Fintech Market
9.4. Trends and Developments in KSA Fintech Market: Rise of Digital Banking
9.5. Trends and Developments in KSA Fintech Market: The Era of Open Banking
9.6. Trends and Developments in KSA Fintech Market
9.7. Issues and Challenges in KSA Fintech Market
9.8. Issues and Challenges in KSA Fintech Market: Need for Talent
10. End-User Analysis
10.1. Consumer Segmentation in KSA Fintech Market
11. Supply-Side Analysis
12. Competition Landscape
12.1. KSA Fintech Market Competition Overview
12.2. Magic Quadrant of KSA Fintech Market
12.3. Market Positioning for Fintech Market in KSA
12.4. Company Profile of STC Pay
12.5. Company Profile of Foodics
12.6. Company Profile of Tamara
13. Future Outlook
13.1 Market Size of KSA Fintech Market on the basis of GTV and Volume of Transactions13
13.2 Market Size of Verticals of KSA Fintech Market on the basis of Volume of Transactions
13.3 Segmentation of KSA Fintech Market by Service Vertical, 2027F
13.4 Segmentation of KSA Fintech Market by Region, 2027F
14. Case Study
15. COVID Impact
16. Analyst Recommendations
17. Research Methodology
Disclaimer
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Research Methodology
Step 1:
Exhaustive research has been done to identify the list of major players which have a presence in fintech market of Saudi Arabia.
Step 2:
Analysts have conducted desk-based research as well as primary research to understand the value chain, business model, industry trends and collate statistics on industry level information such as purpose of taking payment, company stage, type of booking mode and other areas to create initial level hypothesis. Company level info has also been explored by referring to press release, annual report, financial statement and other documents to understand basic information around the major players.
Step 3 (Market Sizing Approach):
Market Size and CAGR ascertained via primary throughout the study period, interviews with C level executives, Directors and VP, Business Development head to understand value chain, insights and trends of fintech platforms in KSA and growth drivers and challenges faced by fintech players.
Frequently Asked Questions
01 What is the Study Period of this Market Report?
The KSA Fintech Market is covered from 2017–2027F in this report, including a forecast for 2023F-2027F.
02 What are the Key Factors Driving the KSA Fintech Market?
New Government Policies and internet user penetration is likely to fuel the growth in the KSA Fintech Market.
03 Why are most personal loans taken in Saudi Arabia?
Most loans personal loans are taken for the purpose of weddings in Saudi Arabia.
04 Who are the Market Players in the KSA Fintech Market?
stc pay, HYPER PAY, tamara, tabby, Manafa and geidea are the Market Players in the KSA Fintech Market.
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