Saudi Arabia’s Financial Sector: A New Era of Innovation and Growth
By Shayne Heffernan
Saudi Arabia is on an extraordinary path to becoming a global financial powerhouse, driven by Vision 2030 and a dynamic shift toward innovation and technology. The Kingdom’s financial sector is at the heart of this transformation, showcasing economic resilience and attracting international attention. As of May 2025, Saudi Arabia’s GDP is growing at a steady 2.7%, signaling robust economic health. Foreign direct investment (FDI) surged by 12% in 2024, reaching $26 billion, a clear sign of growing investor confidence in the Kingdom’s evolving financial landscape. Meanwhile, the banking sector has expanded significantly, with total assets hitting SR3.5 trillion ($933 billion USD) in 2024, up 8% from the previous year. These figures paint a picture of a thriving economy, and at Knightsbridge, we’re thrilled to be part of this journey.
A Foundation for Financial Innovation
The numbers tell a compelling story of Saudi Arabia’s readiness for financial innovation. With an internet penetration rate of 98%—one of the highest globally—and mobile phone subscriptions exceeding the population at 120%, the Kingdom boasts a tech-savvy society primed for digital financial services. This digital infrastructure supports the rapid adoption of cutting-edge technologies like blockchain, which is revolutionizing how financial transactions are conducted. From digital wallets to tokenized assets, these innovations are making finance more efficient, secure, and accessible. For instance, smart contract-based tools are enabling fractional ownership of assets, empowering retail investors and democratizing wealth creation. At Knightsbridge, we see this as a game-changer, and we’re excited to collaborate with local partners in Riyadh to harness blockchain for new economic opportunities.
Economic Resilience and Diversification
Saudi Arabia’s economic indicators reflect stability and progress. Inflation remains steady at 2.3%, ensuring consumer purchasing power and fostering a favorable environment for investment. The unemployment rate has dropped to an impressive 3.5%, signaling job creation and social stability—key pillars for sustained growth. The non-oil sector now contributes 51% to GDP as of 2024, highlighting the success of diversification efforts under Vision 2030. This shift reduces reliance on oil and strengthens the financial sector’s role in driving the economy forward. Additionally, the Kingdom’s Ease of Doing Business ranking has soared from 62nd in 2020 to 38th in 2025, a testament to regulatory reforms that make Saudi Arabia increasingly attractive to global businesses and investors.
Riyadh: The Emerging Global Financial Hub
Riyadh is fast becoming the beating heart of Saudi Arabia’s financial ambitions. The Financial Sector Development Program, a cornerstone of Vision 2030, is enhancing financial inclusion and positioning the capital as a global financial hub by 2030. The surge in FDI and the banking sector’s growth to SR3.5 trillion in assets provide a solid foundation for this vision. Coupled with investments in digital infrastructure—such as 5G networks and smart city projects like NEOM—Saudi Arabia is setting the stage for a future where technology and finance converge seamlessly. Knightsbridge is proud to contribute to this transformation, partnering with Saudi entities to develop blockchain skills, build a new layer of economic services, and establish Riyadh as a leading wealth management center.
A Bright Future Ahead
Saudi Arabia’s financial sector is not just growing—it’s thriving. With a young population (over 60% under 30) and a digital payments adoption rate of 62%, the Kingdom is embracing the tools of tomorrow. The Saudi Central Bank’s (SAMA) financial innovation sandbox is nurturing fintech startups, further fueling this momentum. Stable economic indicators, a business-friendly environment, and a commitment to technological advancement make Saudi Arabia a beacon of opportunity in the Middle East and beyond. At Knightsbridge, we’re excited to play a role in shaping this future, bringing our expertise in digital solutions to support the Kingdom’s goal of becoming a global financial leader. The data speaks for itself: Saudi Arabia is on the rise, and we can’t wait to see what’s next.
