Suade’s thought leadership and global outreach have assured our invitation to the Kingdom of Saudi Arabia many times and we are looking forward to working more in the region. It is hugely encouraging to see that the Kingdom of Saudi Arabia’s 2030 Vision, which includes the ‘Financial Sector Development Program’ (FSDP), sets out an ambitious agenda to transform the Saudi Arabian economy. The FSDP seeks to develop the financial industry as a diversified and effective financial services sector to support the improvement of the national economy. It plans to achieve this by stimulating savings, finance and investment through enabling financial institutions to encourage private sector growth. Suade has spent a lot of time working on automation and technological robustness. Through working with global bodies such as the WEF and SWIFT, we are seen as leaders in helping the financial services sector on subjects including AI, machine learning and data standards.
At Suade, we are excited to see that the Ministry of Finance is looking to “develop a fiscal risk management framework” alongside the SAMA. This initiative will encourage best practices and interactions in risk management across the financial sector, with a focus on key metrics regarding non-performing loans, capital adequacy and net stable funding ratios. For this to be effective there must be an overhaul of the current risk management framework as well as the correct supervision of those financial entities.
We have seen that the SAMA is keen to develop relationships with FinTechs and drive the digitalisation of the economy. This is reflected in the FSDP which has been created to open up the financial services industry to new players. The SAMA also recently set up a Regulatory Sandbox which allows firms to be innovative in a controlled environment. This, combined with the greater use of AI, which includes Saudi Arabia hosting the Global AI Summit in Riyad and forming the SDAIA (Saudi Data and Artificial Intelligence Authority), shows a clear desire to utilise technology effectively to drive the economy forward.