The Saudi Central Bank (SAMA) has launched a series of strategic initiatives and programs in 2024, underscoring its commitment to financial innovation and inclusivity. These measures align with Saudi Arabia’s Vision 2030, aimed at diversifying the economy and enhancing the financial sector’s robustness.
Enhancing Security and Accessibility
In May, SAMA introduced “View My Bank Accounts,” a service designed to improve security for individual bank account holders. This initiative aims to enhance reliability, reduce the risks of suspicious transactions, unauthorized account use, and impersonation. SAMA is committed to advancing electronic financial transactions in line with international best practices.
Navigating Macrofinancial Challenges
April saw a high-level meeting on reserve management organized by SAMA. This event addressed the complexities of the current macro-financial environment, bringing together reserve managers and experts from central banks across the Middle East and North Africa, as well as other global financial institutions. SAMA Governor Ayman Al-Sayari emphasized the importance of such meetings in navigating the evolving global financial landscape, which presents both challenges and opportunities for central bank reserve managers.
Investment Immersion Program
In April, SAMA launched the fourth edition of its Investment Immersion Program, aimed at nurturing local investment professionals. Developed in collaboration with the Wharton School of the University of Pennsylvania and major global banks and asset managers, the program offers a comprehensive curriculum combining academic courses and practical training in various investment domains.
“The program offers an advanced technical course, on-the-job training with international banks and asset management companies, and job rotation in the investment deputyship at the Saudi Central Bank under the supervision of experts in asset management and global financial markets,” said SAMA.
Targeting Saudi nationals under 27 with degrees in finance, accounting, economics, statistics, or business-related fields, the program includes continuous development initiatives to enhance technical investment skills and offers attractive employment perks.
Steering Financial Stability
In February, SAMA co-chaired the Financial Stability Board (FSB) Regional Consultative Group for the Middle East and North Africa (MENA) meeting in Riyadh. The meeting, also attended by Hassan Abdulla, Governor of the Central Bank of Egypt, and Klaas Knot, Chair of the FSB, focused on global and regional financial stability challenges, including the regulation of crypto-assets and lessons from the global banking sector turmoil of 2023.
Governor Al-Sayari highlighted the MENA region’s emergence as a global development hub, driven by its strategic location and ongoing economic diversification. He reiterated the importance of financial stability plans that align with regional economic conditions, fostering interconnected economies.
Fostering Financial Innovation
Throughout the year, SAMA has been proactive in granting licenses to various payment and crowdfunding service providers. Early in the year, Thara received authorization for debt-based crowdfunding solutions. SAMA also granted licenses to Network International Arabia for point-of-sale payment services and to Barraq for e-wallet services, aiming to increase the efficiency of financial transactions and promote innovative solutions for financial inclusion.
“This decision reflects SAMA’s endeavor to support the financial sector, increase efficiency of financial transactions, and promote innovative financial solutions for financial inclusion in Saudi Arabia. SAMA emphasizes the importance of dealing exclusively with authorized financial institutions,” stated the central bank.
In February, Alpha Arabia Finance Co. was authorized to engage in financing activities for small and medium enterprises. In April, SAMA licensed Funding Souq to provide debt-based crowdfunding solutions, increasing the number of such companies operating in the Kingdom to ten.
Sohar International Receives SAMA’s Nod
In January, Sohar International, Oman’s second-largest bank, received a non-objection certificate from SAMA to expand into Saudi Arabia. This strategic move is part of the bank’s growth strategy, demonstrating its capability to identify sustainable expansion opportunities.
“At the core of the bank’s strategic expansion lies a synthesis of personalized, customer-focused offerings and avant-garde services. These form the linchpin of the bank’s overarching strategy, aiming not only for growth but also for the sustained enhancement of the customer experience in an ever-evolving financial landscape,” said Ahmed Al-Musalmi, CEO of Sohar International.
SAMA continues to emphasize the importance of dealing exclusively with authorized financial institutions, ensuring a secure and innovative financial landscape in Saudi Arabia.
