Saudi - Fintech 2024

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ABOUT
STRATEGIC PARTNER ECOSYSTEM PARTNERS
IMPACT46
Impact46 is a CMA authorized asset management and advisory that focuses on alternative Saudi
Arabian investment opportunities. Our name comes from Riyadh, the city we’re based in, which sits
on our planet’s 46th longitudinal line. From this single point, located in the heart of Saudi Arabia, we
reach out to the furthest corners of the Kingdom and invest in those who wish to make an impact.
ENDEAVOR
Established in 1997, Endeavor is leading a global movement of High Impact entrepreneurs and
promotes economic growth and job creation by selecting, mentoring and accelerating the best High
Impact Entrepreneurs in the world. To date, Endeavor has assessed more than 70,000 entrepreneurs
and selected more than 2,300+ High Impact Entrepreneurs, who head 1,336 fast growing companies.
With the support of the global network of Endeavor mentors, these High Impact Entrepreneurs
have produced over 3 million jobs, generated more than US$42 billion in revenue, $12.3B in equity
raised in 2021, and continue to inspire future generations to innovate and take risks. Endeavor has its
headquarters in New York City and operates in more than 41 markets across the world.
© All rights reserved, Endeavor Saudi Arabia 2022.
ENDEAVOR INTELLIGENCE UNIT (EIU)

EIU is the research arm of the organization, aiming to create value for High Impact Entrepreneurs,
the greater entrepreneurial ecosystem and Endeavor, by providing perceived value insights with
reliable data.
ENDEAVOR TEAM
Lateefa Alwaalan Vincent Speranza
Managing Director, Endeavor Saudi Arabia LATAM Regional Advisor and Managing Director,
Endeavor Mexico
Kholoud Alharbi
ESG & Insights Research Associate, Endeavor Saudi Arabia Enrico Robles Del Rio
CFO & Intelligence Director, Endeavor Mexico
Elan Fox
Project Leader, Endeavor Mexico Paulina Alvarez Corona
Insights Senior Manager, Endeavor Mexico
Carol Martinez
Data & Analytics Manager, Endeavor Mexico Shahad Basseet
Marketing Associate, Endeavor Saudi Arabia
Mario Fernando Escobar
Data Analyst, Endeavor Mexico Alan Hurtado Mendoza
Brand & Experience Manager, Endeavor Mexico
Ana Paula Parrodi Wiechers
Insights Analyst, Endeavor Mexico Juan Carlos Muñoz
Digital Marketing Associate, Endeavor Mexico
Carmen Gutierrez Romero
Editorial Design Mariana Guzmán
Brand Experience Trainee II, Endeavor Mexico
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ACKNOWLEDGEMENTS
W
e want to give a special thanks to Abdulaziz Al-Omran and
Basmah Alsinaidi from Impact46 for inspiring this project
and shaping it from the very beginning.
We are also grateful to the ecosystem entrepreneurs and stakeholders who took
part in this study, enriching the analysis and interpretation of our findings, and who
agreed to be interviewed:
Mai Abdulwahab (NQOODLET), Naif AbuSaida (Hakbah), Nasser Al-Ajaji (FSDP),

Youseff Al-Dabbagh (Themar), Iyad Al-Dalooj (Penny Software), Ahmed Al-Enazi
(STC Pay), Hisham Al-Falih (Lean Technologies), Moayad Alfallaj (Rasan), Mr.
Abdullah Al-Furaijhi (Al-Rajhi Bank), Abdulmajed Al-Hamzah (Rain), Reem Alharbi
(Checkout.com), Mansour Al-Harbi (Missaan Fintech), Hashem Al-Hekail (BwaTech),
Basem Al-Jedai (Moyasar), Abdulaziz Al-Jouf (PayTabs), Faisal Al-Qarni (Mala’a
Technologies), Osama Al-Raee (Lendo), Mansour Al-Saleh (Saudi Central Bank), Hadi
Saeed Al-Shakhori (Wa’ed Ventures), Modhie Al-Shammary (Riyad Bank), Basmah
Al-Sinaidi (Impact46), Abdulmajeed Al-Sukhan (Tamara), Nasser Al-Tamimi (Rasmal),
Abdulrahman Al-Theeb (Scopeer), H.E. Ziad Al-Yousef (Saudi Central Bank), Ahmad
Al-Zaini (Foodics), Nezar A. Alhaidar (Fintech Saudi), Saeed A. Assiri (SABB),
Abdulrahman Bin Nujayfan (Mthmr), H.E. Mohammed El-Kuwaiz (Capital Market
Authority) Maan Eshgi (VentureSouq), Reem Ikram (ThriftPlan), Sultan Ghaznawi
(Awaed), Feras Jalbout (Baraka), Maher Loubieh (Hala), Alex McCrea (Visa), Amer
Siddiki (Themar), Waleed Talat (Arib).
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Contents
PROLOGUE 5
1. EXECUTIVE SUMMARY 6
2. GLOBAL FINTECH LANDSCAPE 13
3. OVERVIEW OF THE FINTECH ECOSYSTEM IN SAUDI ARABIA 26
4. PANORAMA OF FINTECH IN SAUDI ARABIA 33
5. OBSTACLES 64
6. RECOMMENDATIONS 76
ANNEX I 78
ANNEX II 82
REFERENCES 84
ATTRIBUTION 87
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PROLOGUE
W
hat started as an inquisitive thought during a conversation
with Endeavor Saudi turned into several months of in-
depth research; and finally we present to you this insightful
report. We decided to sponsor this work with the hope that it would
shed some light on the great standards established by regulators
and the work of entrepreneurs. We came a long way in developing
a thriving FinTech industry in Saudi that will pave the way for the
sector’s future growth. This report not only gives us the opportunity
to look back at what was achieved, but also gives us a glimpse of
the opportunities that lie ahead.
The Kingdom constitutes a fertile ground for the emergence of financial technology
"FinTech" companies at scale across various industries. Having a large base of users
connected to the Internet through mobile devices and granting them access to FinTech
services delivered to their fingertips opens the door to a great deal of opportunities.
Our strong payments infrastructure and mature capital markets further drive our pro-
pensity to use modern technologies. However, the late success of FinTech companies
could not be attributed to these bright entrepreneurs alone. The Kingdom’s legislation
in this field, represented by the Central Bank and the Capital Markets Authority, spans
not only guidance but incubation too; which helps in honing each founder’s vision
and ultimately brings to consumers new innovative technologies that are well-vetted.
We look forward to the encouraging promise of this sector; which is to increase the
operational efficiency of providers and improve the quality of services experienced
by users of the system as a whole. In particular, expectations are high for the
implementation of the Open Banking policies adopted by the Central Bank, in addition
to The Financial Technology Strategy approved by the Council of Ministers headed
by the Custodian of the Two Holy Mosques on May 24, 2022. All these changes
coupled with the work of ambitious entrepreneurs will undoubtedly accelerate
FinTech development over the next few months.
I hope the information brought to light in this report inspires the financial sector,
and broader entrepreneurial ecosystem, to continue creating a positive impact by
embracing technology; and a great thank you to all of those who spent the time
researching, drafting, preparing, and supporting the publication of this report.
Regards,
Abdulaziz Al-Omran, CEO
Impact46
1. EXECUTIVE SUMMARY
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A
convergence of global and local factors have turned Saudi
Arabia into a market ripe for FinTech innovation. FinTech is
growing globally and the opportunity for digital financial
services in MENA is particularly strong. As such, economies that are
able to capture information regarding their FinTech sectors, as well
as analyze and diagnose their challenges, will be able to capitalize
on new opportunities for FinTech innovation.
The COVID-19 pandemic has created a two-fold opportunity for FinTech. First, the
pandemic has driven digital adoption more so than public policy or marketing had
prior to 2020. Second, and more specific to Saudi Arabia, the pandemic undoubtedly
accelerated the urgency of oil-rich countries to diversify their economies in response
to falling petroleum prices. In March 2020, the price of oil dropped by 24%, the
sharpest decline since 1991.1 Consisting of more than two-thirds of Saudi Arabia’s
exports, petroleum is a critical component of the Saudi economy. A gradual price
decline of petroleum since 2014 fueled by the global energy transition away from
fossil fuels is a major driver of Saudi Arabia’s push for economic diversification.
In response to these trends, the Saudi Arabian government in 2017 launched Vision
2030, a national framework to diversify and modernize the Saudi economy. In
addition to establishing goals in health, education, and tourism, Vision 2030 has set
strategic aims to transform and inject new energy into the conventional financial
sector to achieve desired economic impacts by:
• Increasing the number of fintechs operating in the Kingdom from 20 in 2019 to:
• 150 by 2023
• 230 by 2025
• 525 by 2030
• Increasing the share of bank SME loans from 5.7% in 2019 to:
• 11% by 2025
• 20% by 2030
• Increasing the share of cashless transactions from 36% in 2019 to:
• 70% by 2025
• 80% by 2030
Endeavor’s analysis concludes that while the Saudi Arabian FinTech ecosystem is
well-positioned to achieve these goals, the entrepreneurial sector is dealing with a
late start and faces challenges of gaps in efficiency across several fronts.
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Endeavor identified 100 homegrown Saudi Arabian potential to not only unleash exponential growth for
fintech startups & scaleups. This quantity of new the digital sector but also positively impact Saudi
ventures illustrates the sector's dynamic growth Arabian economic growth.
and impact: 90% of all the companies were founded
in the last decade, and 68% in just the last five Based on the map of 100 fintechs, a survey of 50
years. Most of these companies are still early-stage startups and scaleups, and interviews with more
startups, as 57% were founded in 2019 or after. than 30 entrepreneurs and stakeholders, Endeavor
The FinTech entrepreneurial community has the reveals the following insights:
I. Impact and influence of the FinTech entrepreneurial community:
• Entrepreneurial activity in the FinTech sector in • Employment is largely concentrated in just 22

Saudi Arabia has grown significantly, increasing companies that have managed to scale (i.e.
from just 15 startups in 2014 to 100 in 2022, a reached 50 or more employees) and which
6.7x increase in eight years. represent 75% of all jobs in the FinTech
entrepreneurial sector.
• Collectively, this community of entrepreneurs
is responsible for the creation of more than • However, growth in jobs over the past two years
6,000 jobs. has been accelerated by the creation of new
ventures. Based on information from 50 fintechs
• In the last decade, 100 companies have been
surveyed for this study, companies founded in
founded in the sector. The top three segments
2021 were responsible for 67% of new jobs
these companies are operating in are Payments,
created in 2021. Likewise, companies founded
Lending and Enterprise Financial Management
in 2022 created 70% of the new jobs in 2022.
(EFM).
Figure 1. Growth in Employees Over Time
5000
70%
4000
1128
3940
3000
67%
NUMBER OF EMPLOYEES
480
2000 883
2333
440
1000
1011
0
2020 2020 2020 2021 2021 2021 2022
GROWTH FROM GROWTH GROWTH FROM GROWTH
EXISTING FROM NEW EXISTING FROM NEW
COMPANIES VENTURES COMPANIES VENTURES
Source: Endeavor Intelligence Analysis, 2022.

*N = 50 surveyed FinTech firms.
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• Companies in the Payments and Lending • Most Saudi fintech startups are targeting
verticals lead the sector in terms of growth in existing bank clients and only a small portion
absolute number of jobs created. However, when of startups (16%) are targeting unbanked
looking at the rate of growth in jobs created, the users. A high penetration of banking services
Crowdfunding and Digital Banking verticals throughout the Kingdom is validated by this
stand out with recent annual employment observation.
growth rates above 200%.
Figure 2. Employee Growth 2020-2021 by Segment
Crowdfunding 219%
Digital Banking & Neo-Banks 212%
Trading & Markets 166%
Payments 100%
Wealth Management 100%
Personal Financial Management (PFM) 100%
Enterprise Financial Management (EFM) 100%
E-Wallets 100%
Lending 74%
0% 50% 100% 150% 200% 250%

*The graph represents the median of the percentage of the historical growth in employment distributed by segments for which there is suﬀicient information. Some verticals,
such as InsurTech, were not assessed due to too small of a sample size.
**N = 50 surveyed FinTech firms.
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Figure 3. Target Market
Underbanked SMEs 33%
Business to Business
27%
(B2B): Corporates
Banked Consumers 27%
Banked SMEs 24%
Unbanked SMEs 10%
Underbanked
8%
Consumers
Unbanked Consumers 6%
Business to
Government (B2G)
2%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 34%
TOTAL RESPONSES (%)

*The graph represents the selected target market(s) of surveyed fintechs.
• The collective monthly transactional amount of • In terms of the number of active users per
all surveyed startups sums up to an estimated month, the 50 fintech startups surveyed for this
US$443 million, which amounts to US$5.3 billion study collectively reach almost 2 million, the
per year. High-performing companies (those majority being final consumers, while companies
generating US$5 million or more per month) and businesses came in second place.
reach a total of over US$400 million per month,
• Despite the fact that Saudi Arabia is the
representing 97% of the overall sample. While this
largest and most attractive market for fintechs
is relatively low when compared to traditional banks
in MENA, 41% of the Saudi companies
in Saudi Arabia, this illustrates the FinTech sector’s
surveyed have international operations.
current size. Supported by the fact that by 2030
Of the internationalized startups, the top
Saudi Arabia plans to have 525 FinTech companies
destination countries are the UAE (85%), Egypt
operating and our sample considers only 50,
(55%), Kuwait (45%), and Bahrain (40%). The
the sector’s cumulative transactional revenue is
most common reasons for exporting financial
evidence of its growth potential. If the FinTech
services, as remarked by entrepreneurs, are
sector maintains this rate of operational revenue
access to tech talent and greater regulatory
and achieves Vision 2030’s goal of 230 fintechs by
flexibility.
2025, the estimated total transaction size of the
FinTech sector in 2025 would be around US$27 • Disruptive innovation creates the core of FinTech
billion per year. This is calculated by considering business models and translates into greater
an individual CAGR of 50% for the 50 surveyed efficiency in digital services for consumers.
fintechs, 50 additional FinTech startups that are Endeavor found that 69% of fintechs have full
part of the map, and the projected transactional proprietary development of their technology,
volume of 43 new startups for each year expected based on information from 50 fintechs surveyed
to enter the market with a CAGR of 100%. for this study.
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• The primary technologies used in enabling • Over US$1 billion has been raised in Venture
FinTech products and services are Open Capital (VC) ($660M), Corporate Venture Capital
Platforms & APIs, Mobile & Apps, Cloud (CVC) and Private Equity investment by Saudi
Computing, and Big Data. These types fintechs across 80 deals over the past 5 years,
of technological innovations are key to a with over 80% of investment raised by the
developing FinTech sector. Lending and Payments segments.
Figure 4. Technology Enabling the Sector
Open Platforms & APIs 19%

Mobile & Apps 15%
Cloud Computing 13%
Big Data & Analytics 11%
Machine Learning 10%
Digital Marketing tools 10%

Cybersecurity tools 8%
Prediction 7%
Hardware 2%
Deep Learning 2%
Natural Language Processing 2%
Cryptocurrencies & Blockchain 1%
Natural Language Understanding 1%
IoT 1%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
TOTAL COMPANIES (%)

*The graph represents the technology-enabling tools and systems most used by fintechs for their products and services.
• The biggest rounds in the sector were led by Tamara, Geidea, and STC Pay), several of which
CVC with a mix of co-investments of local and were CVC rounds which supports the trend
foreign investors. Tamara’s last two rounds mentioned above.
(Series A & B) for US$100M+ were each led
• Even though the sector has not yet seen a
by Checkout.com, a UAE-founded company
unicorn in the formal definition, 2 there are
through its venture arm, with the participation of
a few around the corner. In 2020, after two
Impact46 and Khwarizmi Ventures, both of which
years of operations, STC Pay, one of the largest
are KSA funds. Tamara's Series B round was co-
Saudi E-wallet companies in the hands of over
led by Sanabil Investments (a KSA-based fund),
6 million users, reached an equivalent valuation
with participation from other investors such as
of US$1.3 billion after raising US$200M from
Endeavor Catalyst, Shorooq Partners and Coatue
Western Union. 3 This valuation turned the
Management, funds based in the USA and the UAE.
company into the first non-traditional unicorn
• As seen in other FinTech communities, mega- in the FinTech sector, since it is a subsidiary of
rounds (US$50M+ and above) account for STC Group. In 2021, STC Pay also received a
over 80% of all capital raised by fintechs and are license to convert into a digital bank by SAMA,
concentrated in just four companies (Foodics, becoming the first in the sector to do so.
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II. Challenges & opportunities identified:
• According to Endeavor’s Regional & Global respondents, respectively. These challenges

FinTech Thermometer (see below), Saudi are common difficulties faced by entrepreneurs
Arabia ranks high in its capacity to become an globally, particularly those in emerging markets.
entrepreneurial hub for the MENA region and The biggest gaps in talent are found in
beyond, due to digital and financial enablers, Cybersecurity, Product Development, Data
financing capacity, market size, and government Science and Analytics, Software Engineering,
support. The targets set by Vision 2030 aim to and Compliance & Legal.
transition the Kingdom’s economy into a modern,
• More specific to the Saudi context, cooperation
financially sustainable and predominantly
with financial institutions and compliance
cashless society, a transformation in which
with laws and regulations were the next
FinTech startups play a vital role.
biggest issues for entrepreneurs, where 82%
• Two regulators, the Saudi Central Bank (SAMA) and 72% indicated these as either ‘Major’ or
and the Capital Market Authority (CMA), have ‘Minor’ obstacles respectively. Indeed, 55%
created regulatory sandboxes and issued of entrepreneurs spend over 100K a year
licenses to a total of 60 fintech startups as in compliance costs, a rate that went up to
of October 2022. The licensing of fintechs is a 83% among scaled companies (50 or more
crucial generator of consumer trust, and creates employees). After Salaries and Developing
a needed filtration process. Nonetheless, a Technologies, Compliance is the third biggest
regulatory system inevitably creates challenges operating cost indicated by entrepreneurs.
for entrepreneurs, even those with innovative
• The FinTech sector has an average female
and profitable business models, such as
workforce participation rate of 29%, and
'timeline uncertainty in the licensing process',
among companies with 50+ employees, that
high capital requirements for pre-revenue
average rises to 31%.
startups, and restrictions regarding data
sovereignty. However, opportunities to enhance • The teams most common for women to work in
the system are feasible. For example, the recent are Human Resources, Legal & Compliance,
decision by SAMA to transition its sandbox from and Engineering. As mentioned above, Legal
a cohort model to an “always open” approach is & Compliance and Engineering are two of the
a step in the right direction. areas with the highest demand for talent. Since
they are also two of the most common areas for
• The availability of tech talent and managerial
female employees to work, if more women were
talent are the top challenges faced by FinTech
to join the FinTech sector, the supply for those
entrepreneurs, indicated as either a ‘Major’
areas could be closer to matching the demand.
or ‘Minor’ obstacle by 83% and 86% of survey
2. GLOBAL FINTECH LANDSCAPE
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Saudi Arabia has already become a fertile market for the

FinTech sector, attracting global FinTech players and incubating
local startups. Our dynamic regulatory system has stimulated the
sector’s growth in line with Vision 2030 and has become a model
for the region. The success of the FinTech sector can also be
accredited to the many entrepreneurs that continue to
innovation technology and financial business models,
creating products and services for Saudi consumers.
His Excellency Mohammed El Kuwaiz,

Chairman of the Capital Market Authority
G
lobally, FinTech has consolidated into a sector dominating
entrepreneurial ecosystems. FinTech has attracted more
Venture Capital (VC) than any other sector, 4 and as of
September 2022, FinTech was home to 247 unicorns, or private
companies valued at or more than US$1 billion, representing 20% of
the world’s 1,190+ unicorns. 5
Saudi Arabia is uniquely positioned to develop its FinTech sector and expand
financial services through technology. Saudis are hyper-connected and increasingly
well-educated compared to their neighboring countries – in 2020 71% of Saudis were
enrolled in higher education, compared with 60% in Bahrain, 54% in the UAE, 45%
in Oman, 34% in Jordan, and 21% in Qatar. 6 To understand the snapshot of Saudi
Arabia’s FinTech ecosystem presented in this study, a global perspective is first
needed to evaluate the digital and financial indicators that enable the sector.
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For this study, Endeavor created a FinTech with emerging FinTech ecosystems and similar
Thermometer analyzing 28 different variables development indicators. Saudi’s score was also
pertaining to financial and digital adoption, drawing compared with that of the Middle East North Africa
on data from the 2021 edition of the World Bank’s (MENA) region, as well as those of countries with
Global Findex Database and the 2019 edition of the mature FinTech sectors: the United States, the
EY’s Global FinTech Adoption Index, to see where United Kingdom and China.
Saudi Arabia stands in relation to other geographies.
These variables included statistics such as “Bank Below are the results of the FinTech Thermometer
account ownership (% age 15+)”, “Saved at a financial on a global scale and a regional scale, including
institution (% of age 15+)” and even “Received breakdowns of some of the digital and financial
wages through a mobile phone (% age 15+)”. Saudi variables used in thermometer calculation. Also
Arabia’s FinTech Thermometer score was compared included are indicators comparing the maturity of Fin-
with that of Latin America’s given both are regions Tech sectors and startup ecosystems more broadly.
Figure 5. FinTech Thermometer by Region
United States 69%

51%
United Kingdom 51% 64%
50%
Saudi Arabia 62%
49%
49%
Latin America & Caribbean 56%
(excluding high income)
47%
China 56% World:

63%
Middle East & North Africa 50%
0% 20% 40% 60% 80%

*This information corresponds to data collected from the 2021 Global Findex Database by The World Bank and the 2019 Global Fintech Adoption Index by EY for the United States,
the United Kingdom, Saudi Arabia, Latin America, China, the MENA region, and the World average. Consulted: 08/31/2022.
**This graph shows the FinTech Thermometer score of each geography assessed based on 28 indicators of digital and financial inclusion pulled from the aforementioned sources.
***Latin America & Caribbean excludes Chile and Uruguay, the only two high-income countries in the region.
These results provide evidence that Saudi Arabia (higher than Latin America, MENA, World, and just
has a comparatively high level of digital and financial below the UK), 72% in debit card ownership (above
adoption, overtaking the Middle East & North Africa Latin America and just below China), and 91% in
(MENA) average, the Latin America average and number of mobile internet users (higher than the
even China. United States but lower than China and the UK).
Saudi Arabia even ranked higher than all others in
Considering specific indicators, Saudi Arabia had metrics such as paying utility bills using a mobile
an array of high scores, including 74% in bank phone (43%) and receiving wages into a financial
account ownership (higher than the Latin American institution account (55%).7
average), 62% e-commerce usage in the past year
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Saudi Arabia ranked high on indicators such as bank LAC), and using the internet to pay bills in the past
account ownership, e-commerce usage, and debit year (62% in SA vs. 60% in China and 33% in LAC).
card ownership, similar to China, the US and UK, and
to varying degrees LAC. Saudi Arabia had higher Focusing in on FinTech Thermometer scores of
indicators than China in paying utility bills using a countries in the MENA region, Saudi Arabia stands
mobile phone (43% in SA vs. 0% in China and 18% out as a leader in digital and financial adoption,
in LAC), received wages into a financial institution with higher rates than rival markets in the UAE,
account (55% in SA vs. 35% in China and 20% in Egypt, and Bahrain.
Figure 6. FinTech Thermometer in MENA
Saudi Arabia 62%
Algeria 51%
Jordan 51%
Morocco 50%
United Arab Emirates 49%
Lebanon 49%
Iraq 47%
Egypt, Arab Rep. 38% World:

63%
Tunisia 37%
Middle East & North Africa 50%
0% 20% 40% 60% 80%

*This information corresponds to data collected from the 2021 Global Findex Database by The World Bank and the 2019 Global Fintech Adoption Index by EY for Saudi Arabia, Algeria,
Jordan, Morocco, the United Arab Emirates, Lebanon, Iraq, Egypt, Tunisia, the MENA average and the World average. Consulted: 31/08/2022.
**This graph shows the FinTech Thermometer score of each geography assessed based on 28 indicators of digital and financial inclusion pulled from the aforementioned sources.
Saudi Arabia scored the highest in indicators such as Below is a breakdown of some of the Thermometer
e-commerce usage, paying bills using the internet, variables comparing Saudi Arabia with other
debit card ownership, and borrowing from and geographies, illustrating in what areas Saudi Arabia
saving at a financial institution. Saudi Arabia scored has comparatively strong enablers, such as mobile
only slightly lower than the UAE in indicators such as subscriptions per 100 people (124), and GDP per
bank account ownership and credit card ownership, capita (US$23.5K), and in what areas it has further
but above all other analyzed countries. These opportunity to grow, such as VC activity.
metrics, along with the attractive size of the Saudi
market, position the Kingdom as the region’s most
attractive market for international fintechs.
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Table 1. Digital & Financial Variables - GLOBAL SCALE

Latin
Country / America &
Metrics Saudi Caribbean European
Arabia MENA (LAC) Union USA UK China
Population 35,340,680 472,494,995 658,089,208 446,946,712 331,893,740 67,326,570 1,412,360,000
GDP per capita $23,585 $7,696 $8,340 $38,234 $69,287 $47,334 $12,556
Total VC activity $548M $2.6B $14.8B $35.3B $341.5B $17.3B $121.2B
# of VC deals 139 590 772 2,121 17,637 848 6,606
Smartphone adoption 93% 79% 77% 79% 88% 90% 77%
Owns a credit or debit

72.1% 32.6% 42.1% 91.9% 91.4% 96.7% 77.6%
card (% of age 15+)
Cash-based payments
as a share of total 34% 56% 75% 20% 20% 17% 6%
transactions
Financial institution
74.3% 52.6% 73.5% 97.4% 94.5% 99.8% 88.7%
account (% of age 15+)
Population saving at a
financial institution 32.6% 9% 14.9% 56% 65% 61% 44.7%
(% of age 15+)
Sources: Endeavor Intelligence Analysis, 2022, for further information see Annex I.
*All figures are expressed in USD and reflect 2021 data with the most recent complete information.
**In place of the broader LAC region, VC activity and deal count in this analysis considers Mexico, Central America and South America.
***In place of the European Union, VC activity and deal count in this analysis considers all of Europe.
****For VC activity and deal count, China is considered as the ‘Greater China’ region which is defined as China, Hong Kong, Macau, and Taiwan
*****For VC activity and deal count, MENA is defined as Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Syria, Tunisia,
United Arab Emirates (UAE), and Yemen.
Emerging markets in the Middle East and North Africa region are fast developing
their FinTech ecosystems. Although fintechs in Saudi Arabia emerged relatively late
compared to regional and global competitors, the country is catching up fast. A 2021
national survey by Fintech Saudi found that 74% of Saudis have used at least one
FinTech solution. 8
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Table 2. Digital, Financial & General Variables - REGIONAL

Country / Saudi
Metrics Arabia UAE Bahrain Kuwait Oman Qatar Egypt Jordan
Population 35,340,680 9,991,083 1,748,300 4,328,550 5,223,380 2,930,524 104,258,330 10,269,020
GDP per capita $23,585 $36,284 $22,232 $24,811 $16,439 $61,276 $3,876 $4,405
Labor force, female 20.4% 17% 19.4% 24.6% 12.6% 14% 18.6% 17.5%
Internet users 98% 100% 100% 99% 95% 100% 72% 66%
Credit card
17% 48% 32% 23% 30% 35% 4% 3%
penetration
Financial institution
account 74% 85% 85% 82% 75% 68% 26% 43%
(% of age 15+)
Used a mobile
phone or the
internet to
check account 60% 47% 45% 42% – – 3.2% 13.5%
balance in the past
year (% of age 15+)
Made or received
a digital payment
in the past year 73% 77% 77% 75% – – 20% 36%
(% of age 15+)
Population saving
at a financial
36% 11% 31% 27% – – 4% 4%
institution
(% of age 15+)
Sources: Endeavor Intelligence Analysis, 2022, for further information see Annex II.
*All figures are expressed in USD and reflect 2021 data with the most recent complete information, except for Bahrain and Kuwait in the last 3 rows which reflect 2017 data.
** “-” means no data available for this country.
In comparison to other MENA neighbors, Saudi Arabia has varied economic and
financial enablers. For example, the rate of internet banking is moderate, signaling
an opportunity for fintech companies to digitize financial services for banked
consumers, a consumer group that only 19% of Saudi fintech companies already
target, 9 Bank account ownership is lower than in neighboring Gulf Cooperation
Council (GCC) countries, but this gap has yet to be leveraged by Saudi fintechs,
as only 11% target unbanked consumers.
19
2.1 Ecosystem and Regulatory Development in MENA and Saudi Arabia
To complement financial, economics and digital Arabia’s FinTech ecosystem development lags
indicators, Endeavor assessed the ecosystem behind the Kingdom’s economic and market
development of Saudi Arabia and its neighboring strength, signaling opportunities for future growth
countries, comparing metrics for evaluating both for local and international fintechs that wish
regulatory systems and ecosystem growth by to penetrate the Saudi Arabian market.
number of fintechs and VC investment. Saudi
Table 3. FinTech Ecosystem Development - REGIONAL

Country / Saudi
Metrics Arabia UAE Bahrain Oman Qatar Egypt Jordan
GDP $833B $358.8B $38.8B $85B $179.5B $404B $45.2B
VC activity $548M $1.5B $52M $3M $19M $491M $117M
# of deals 139 169 24 6 24 147 46
Number of unicorn 0 0 0 0
0 3 0
companies
Number of fintechs 100 144 36 5 17 112 28
FinTech VC activity $238M $362M $34.5M – $52.4M $91.8M $24.5M

(USD million)
Creation of first
2018 2016 2017 2020 Plan to Launch 2019 2018
regulatory sandbox
FinTech companies
licensed by main 60 – – 1 39 – –
regulator(s)
Sources: Endeavor Intelligence Analysis, 2022, for further information see Annex III.
*Data for Venture Capital Activity excludes Debt and Private Equity.
** “-” means no data available for this country.
***All figures are expressed in USD and reflect 2021 data with the most recent complete information.
****For Saudi Arabia, this number includes Accelerator, Angel, Pre-Seed, Seed, Series A, Series B, and Undisclosed VC rounds.
In addition to Saudi Arabia, the United Arab FinTech regulation in the UAE. In 2018, DIFC issued
Emirates and Egypt are the MENA region’s globally- the first licenses for FinTech companies in the
recognized FinTech hubs. Crowdfunding segment. Since then, the UAE has
become a hotspot for global players, particularly
Fintech regulation in the UAE is administered by those in the Payments, Crypto & Blockchain and
five regulators, each one with a distinct geographic Robo-advisory space. As a true international
jurisdiction. The FinTech sector is concentrated in magnet, roughly half of the fintechs operating in the
two ‘financial free zones’ – the Dubai International UAE hail from outside the GCC.
Financial Centre and the Abu Dhabi Global Market.
Each financial free zone has its own financial In Egypt, there are at least 112 FinTech and FinTech-
regulator, laws, and courts. IP protection is based enabled companies, according to FinTech Egypt,
on global standards and the legal system follows with 30% of companies in Payments, and 13% in
English common law. Lending, the top two segments.10 In 2021, over
US$159 million in total financing had been raised by
In 2017, DIFC’s launch of Fintech Hive, an the Egypt-based FinTech sector, a major rise from
accelerator program, marked the beginning of just US$1 million in 2017.11
20
Similar to Saudi Arabia, the Egyptian FinTech (SAMA) and the Capital Market Authority (CMA).
landscape is governed as a centralized physical These regulators have issued several licenses for
jurisdiction, with regulations issued by the Central which fintechs in regulated verticals must apply
Bank of Egypt. The concentration of FinTech for and receive in order to operate in accordance
business is also apparent in Egypt, with 80% of the with the government. The following graph shows
identified companies having teams and operations the amount of companies licensed by CMA
located only in Cairo. Moreover, 22% of companies and SAMA by year since the regulation began.
have expanded internationally, a lower number than As of August 2022, 50 entrepreneurial fintech
that of Saudi fintechs, to be discussed further.12 ventures have been licensed by SAMA and CMA,
and amount to half of the identified fintechs in
The Saudi FinTech sector is regulated by two Endeavor’s mapping.
government bodies: The Saudi Central Bank
Figure 7. Post-Sandbox Fintechs Licensed by SAMA and CMA
22
20
21
18
16
14
12 14
10
APPROVED FINTECHS
8
9
6
2 4
0
2
2018 2019 2020 2021 2022

*This information corresponds to data collected by Endeavor from the SAMA and CMA online databases.
**This graph shows the number of Saudi fintechs that have received a license from SAMA or CMA and that have gone through the sandbox. This graph excludes fintechs that were licensed
directly without going through the sandbox.
**N = 50 companies
A key feature of FinTech regulation is a regulatory sandbox, which allows fintechs

operating in newly regulated or soon-to-be regulated segments to test their
product with a limited number of users in an environment closely observed by
regulators. In addition to helping entrepreneurs optimize their product, sandboxes
help regulators understand a FinTech segment before license requirements and
compliance frameworks have been finalized. Sandboxes are typically geared
towards companies using a new technology or business model which a regulator
wishes to test since its applications in the market are not fully known.
21
Whenever there are new advances in emerging

technologies there are new risks. Business-related risks,
economical risks, cybersecurity, and even privacy risks.
We need to understand and experiment on these new
technologies to help mitigate risks to both consumers
and the greater ecosystem.
Mansour Al-Saleh,
Head of Innovation Hub at Saudi Central Bank
Since the establishment of its sandbox in 2018, The latest CMA application round for fintechs
CMA has thus far held five cohorts,13 and SAMA involved around 100 applicants. According to the
has held three.14 SAMA recently changed its CMA, around 10% will advance to receive a license,
sandbox model from cohort-based to an ‘always while the other 90% will not and can be divided into
open’ approach, allowing applicants to apply to a few categories. Roughly half of them are invited
SAMA’s regulatory sandbox when they are ready to reapply in the next cycle as they are determined
and use their chosen business model, since they to have a potentially viable business model but are
no longer have to shift it to align with the business considered by the CMA as not ready to scale.16
model determined for the cohort. 15
Another group includes companies that do not need
a license from CMA to start their business, while
In 2022, the CMA shifted its license-issuing model another consists of applicants who are effectively
to an always-open application portal, however, the asset managers, and should apply for a standard
regulator reviews batches of applications in two advisory license, not a FinTech license.17 According
cycles per year. Reviewing a group of applications to the CMA, around 15% will advance to receive a
together allows the CMA to compare business license, while the other 90% will not and can be
models of the companies applying. divided into a few categories.
22
A filtration process is necessary. While the vetting process

creates a small chance of losing potentially successful
startups, the threat of a weak actor mishandling
money and destroying consumer trust in the FinTech
sector makes compliance necessary.
Abdulaziz Al-Jouf,
Founder & CEO at PayTabs
Saudi Arabia stands out as an ecosystem making to the growth of any FinTech sector, it can create
rapid gains driven primarily by local entrepreneurs. challenges for entrepreneurs operating in regulated
While the country has not produced a startup that FinTech segments.
has grown into a unicorn and remained private,
Saudi fintechs have begun to raise record financing The flowchart below shows the 29 SAMA-licensed
rounds, ripening the market for its first billion fintech companies by the year they applied to the
dollar valuation. Jahez and STC Pay are two Saudi SAMA sandbox, and the year they graduated from
companies valued over one billion USD. However, the sandbox. For example, of the 15 companies who
Jahez, an e-commerce company and prior unicorn, applied to the sandbox in 2019, 47% had graduated
has gone public through an IPO in Tadawul, the from the sandbox the following year, 33% in 2021,
Saudi Stock Exchange, in January 2022 with a and 20% in 2022.
market capitalization of US$2.4 billion.18 This
market cap has since grown to US$2.75 billion as of Longer testing periods in the sandbox can be highly
September.19 STC Pay is valued at over one billion beneficial for fintechs. More time in the regulatory
dollars (USD), but is a fully owned subsidiary of sandbox allows for more liberal product testing and
telecom giant Saudi Telecom Company and as such rigorous trial runs, since sandboxed companies
does not represent the typical path of a startup awaiting license approvals are free to test their
growing into a unicorn. products under the supervision of authorities. The
rigor and volume of trial runs are evidence of the
While government regulation creates order, Saudi regulators’ meticulous approach to assessing
transparency, and trust, factors that are crucial new technologies.
At Dawul, we prefer to be in the sandbox

until we reach product market fit since we
are building an innovative product that
needs time to mature.
Mansour Al-Harbi,
CEO at Missaan Fintech
23
Figure 8. Year of Application to and Graduation from the SAMA Sandbox
APPLICATION YEAR GRADUATION YEAR
2018
6 COMPANIES 6 COMPANIES
2020
14 COMPANIES
5 COMPANIES
2019
15 COMPANIES
7 COMPANIES Y
N
1C
OM
PA
2021
6 COMPANIES
3 COMPANIES
NY
M PA
1 CO
2020
7 COMPANIES
5 COMPANIES
2022
9 COMPANIES
2022
1 COMPANY
1 COMPANY

*This information corresponds to data collected by Endeavor from the SAMA online database.
**This graph shows the year of application to and graduation from the SAMA sandbox for Saudi fintechs that are in Endeavor’s mapping.
**N = 29 fintech companies.
The biggest year gap companies fall into is two in 2019 and graduated from it in 2022. During this
years from their application to their graduation time, regulators were in close contact with Lendo
from the SAMA sandbox. However, now that and other companies in the sandbox cohort
regulation is being solidified for these technologies to find the best regulatory model. Preliminary
and business models, this timeframe is expected regulations were issued for public opinion in 2021
to shrink. For example, Lendo, a crowdfunding and Lendo received its debt crowdfunding license
startup targeting SMEs, applied for the sandbox in March, 2022. 20
Generally, the relationship between

fintechs and regulators is healthy, largely beneficial,
and is a learning experience. Regulators are making
progress in learning how to differentiate fintechs from
traditional banks and create compliance and cyber-security
guidelines specifically tailored for them.
Maher Loubieh,
Co-Founder at Hala
24
Currently, there are 46 fintechs in Endeavor’s support of SAMA. 9 companies are currently in the
mapping that are in or have passed through the sandbox and 12 have graduated from the sandbox
regulatory process with SAMA, 25 of which have and are awaiting their license.
already been licensed and operate with the full
Strict FinTech regulations were not a barrier

to entry and in fact eased the process to launch
and build our company. The licensing gave us greater
credibility, speeding up our customer
acquisition efforts.
Sultan Ghaznawi,
Co-Founder at Awaed
Since companies often modify their product and can’t fully operate in the market without a license.
business model in the sandbox testing phase, they On the other hand, fintechs typically receive a
are required to submit a new application for their ‘temporary permit’ to operate with some restrictions
license upon graduation. This has both negative until they are granted the full license, and as such
and positive consequences for startups. On the one are exempt from paying for the full compliance that
hand this prolongs the period in which a fintech can would come with the official license. This issue is
begin to generate significant revenue, since they discussed in-depth in Section 5.
Figure 9. Approval Status of Licensing from SAMA
Licensed directly, no Sandbox participation
17%
8 COMPANIES
Post-Sandbox, license received
37%
17 COMPANIES
Active in Sandbox
20%
9 COMPANIES
Post-Sandbox, awaiting license
26%
12 COMPANIES

**This information corresponds to data collected by Endeavor from survey responses and provided by SAMA, as of October, 2022.
**This graph shows the location of HQ for Saudi fintech companies.
**N = 46 companies.
25
Regulators in Saudi Arabia are highly active in promoting the FinTech sector’s
development whilst ensuring the protection of the Kingdom’s consumers. As
such, SAMA and the CMA are creating a regulatory environment that is emerging
as a model for other GCC and MENA countries looking to stimulate FinTech
entrepreneurship.
In many countries, the regulatory environment

towards startups can be very difficult to navigate – policies
are set in stone with little feedback from the startups.
In KSA, we are very lucky. Vision 2030 created a strong
government will to enable startups, and regulators are
forward-looking and allow entrepreneurs to collaborate in
order to construct an efficient regulatory framework.
Reem Ikram,
Co-Founder and CEO at ThriftPlan
3. OVERVIEW OF THE FINTECH
ECOSYSTEM IN SAUDI ARABIA
27
Saudi Arabia has already become a vibrant hub

for the FinTech sector, attracting global FinTech players,
investors and nurturinglocal startups.
Our dynamic regulatory system has stimulated the
sector’s growth in line with Saudi Vision 2030 that soon
will become a model for the region. The success in the
Fintech sector is largely accredited to the entrepreneurs
and the quality of services rendered.
His Excellency Fahad Abdullah Almubarak,

Governor of the Saudi Central Bank
3.1 Methodology
T
o construct an accurate map of the FinTech entrepreneurial
ecosystem in Saudi Arabia, Endeavor considered companies
that met the following criteria:
• For-profit and active companies that adhere to the definition of FinTech:

"companies using technology as a core of their business model to add value to
the financial services sector."
• Companies founded in Saudi Arabia, and that still operate their headquarters there.
• Companies created by entrepreneurs as startup ventures.
To focus on the Kingdom’s homegrown entrepreneurial landscape, Endeavor

considered FinTech companies that were created in Saudi Arabia by entrepreneurs
as startup ventures. As a result, the number of fintechs identified may be different
from other sources, such as the 147 FinTech companies operating in the Kingdom as
registered by Fintech Saudi in their 2022 annual report. 21
28
3.2 Overview of the FinTech Ecosystem in Saudi Arabia
Saudi Arabia has already become a fertile market for the

FinTech sector, attracting global FinTech players and incubating
local startups. Our dynamic regulatory system has stimulated the
sector’s growth in line with Vision 2030 and has become a model
for the region. The success of the FinTech sector can
also be accredited to the many entrepreneurs that continue to
innovate in technology and financial business models,
creating products and services for Saudi consumers.
H.E. Ziad Al-Yousef,

Deputy Governor For Development and Technology at the Saudi Central Bank
Saudi Arabia’s FinTech sector is highly diversified, it succeed, has diversified across industry segments,
with the top segment accounting for just over a and grew rapidly during the covid-19 pandemic.
quarter of the total companies: Payments (26%).
Numbering 15 companies in 2014, the FinTech Saudi Arabia’s FinTech ecosystem is highly
sector has grown 6.5x by 2022, amounting to 100 diversified with the top segment accounting for just
companies in 2022. Saudi Arabia's ecosystem can under a quarter of the total companies: Payments
be characterized as a sector that has sufficient (24%). The following three segments by number of
access to the country’s investment network, is the companies are Enterprise Financial Management
recipient of strong government determination to see (14%), Crowdfunding (14%), and Lending (12%).
Figure 10. Total Number of Companies

100
100
90 97
80
81
70
60
STARTUPS AND SCALEUPS
50 57
40
43
30
31
20
24
10
18
15
9 10
0
Pre-2010 2011 2014 2015 2016 2017 2018 2019 2020 2021 2022

*This information corresponds to data collected by Endeavor from survey responses and platforms like Crunchbase, Pitchbook, and CB Insights.
**This graph shows the cumulative number of operating Saudi fintechs by year.
***N = 100 companies.
29
Innovations in technology and business models economies, including Saudi Arabia’s, are often
are leading to the growth of specific segments. embedded in long-established systems and can
For example, the recently launched Open Banking be resistant to change. For this reason, InsurTech
policy is expected to directly contribute to the – adding value to the insurance sector through
growth of the Digital Banking and PFM segments. technology – is a particularly disruptive segment
Other segments, such as Insurance or ‘InsurTech’ of the broader FinTech sector and can lead to a
are small but have a uniquely high potential for substantial number of companies in the next few
growth. The insurance industries of many emerging years as entrepreneurs enter this field.
Figure 11. Companies by Segment
Payments 26%
Enterprise Financial Management (EFM) 14%
Crowdfunding 14%
Lending 12%
Personal Financial Management (PFM) 10%
Trading & Markets 6%
InsurTech 5%
Digital Banking & Neo-Banks 5%
Wealth Management 4%
E-Wallets 3%
Scoring 1%
0% 5% 10% 15% 20% 25% 30%
TOTAL COMPANIES (%)

**This graph shows the breakdown of the mapped Saudi fintechs by segment.
For analyzing investment, Endeavor offers two approaches:
1) This first methodology gives a full image of the 2) The second focuses solely on VC and early-
capital raised by companies in the FinTech sector, stage investments: Angel, Accelerator, Pre-
and includes Angel, Accelerator, Pre-Seed, Seed, Seed, Seed, Series A, B, C, Crowdfunding,
Series A, B, C, Crowdfunding, Undisclosed VC, Undisclosed VC, and CVC rounds, and excludes
Private Equity, and Corporate Venture Capital Private Equity, typically raised by late-stage
(CVC) rounds. Additionally, this approach startups or companies that are owned in part or
includes five companies that are not in Endeavor’s in full by other corporations.
mapping of entrepreneurial ventures, such as
STC Pay, which is a fully-owned subsidiary of
telecom giant Saudi Telecom Company.
30
Throughout the past few years of enabling entrepreneurs

to make an impact, the FinTech space has been on the frontline
of our investment ethos. Impact46 thus far has witnessed
the exit of two of its portfolio companies within the FinTech
sector, pouring more than 200 million SAR into FinTech across
a variety of financial offerings, and we are bullish
on further investing in this space.
Abdulaziz Al-Omran,
CEO at Impact46
The graph below uses the first approach, broadening the scope to include CVC and
Private Equity rounds raised by all companies in the Saudi fintech sector, regardless of
their entrepreneurial or corporate attributes. According to these metrics, companies
raised US$1.18 billion over the last five years. The biggest rounds in this analysis
include a US$200 million investment by Western Union in STC Pay and a US$266
million Private Equity investment round led by Gulf Capital in Geidea.
Figure 12. Total Financing 2017-2022
37
350M 35
$367M
300M 30
250M $282M 25
$238M
200M 20
TOTAL CAPITAL RAISED (USD)
$207M
17
150M 15
100M 10
DEAL COUNT
7 7
50M 5
3 3
0M $24M $1M 0
2017 2018 2019 2020 2021 2022
Source: Endeavor Intelligence Analysis, as September, 2022.

**This graph shows the amount and deal count of Angel, Accelerator, Crowdfunding, Pre-Seed, Seed, Series A, B, C,
Undisclosed VC, Corporate Venture Capital (CVC), and Private Equity rounds
***N = 46 companies and 74 deals
31
The following graph uses the second approach, focusing on VC rounds, and shows a
total of US$660 million raised over the last five years. After a decline between 2017-
2020, VC investment in the FinTech sector exploded in 2021, jumping to US$237
million, 5x larger than the previous four years combined. Angel and Seed rounds
accounted for 67% and 70% of all rounds in 2021 and 2022, respectively, correlating
with the increase in fintech companies in the two years prior; the sector grew from
57 companies in 2019 to 97 in 2021.
Figure 12.1 Venture Capital Investment 2017-2022
37
350M 35
$367M
300M 30
250M 25
200M $238M 20
17
150M 15
100M 10
DEAL COUNT
6 6
50M 5
3 3
$1M $15M $7M
0M $24M 0
2017 2018 2019 2020 2021 2022
Source: Endeavor Intelligence Analysis, as September, 2022.

**This graph shows the amount and deal count of Angel, Accelerator, Crowdfunding, Pre-Seed, Seed, Series A, B, C,
Undisclosed VC, and Corporate Venture Capital (CVC) rounds
Two companies have recently raised explosive VC rounds. Foodics, a payment

management system for restaurants raised a US$170 million Series C in 2022, and
Tamara, a Buy-Now-Pay-Later lending platform, raised a US$110 million Series A
in 2021 and a US$100 million Series B in August 2022. Tamara’s Series A was the
Saudi FinTech sector’s largest VC round at the time and one of the six largest deals
in MENA in 2021. 22 These two fintechs are well-positioned to become the country’s
next unicorns.
As with other tech sectors, the FinTech sector is highly concentrated in Riyadh,
where investment funds and supporting organizations are mostly located, and where
digital infrastructure is particularly strong.
32
In line with the concentration of FinTech company in Jeddah raised by Arib, a digital Lending broker,
headquarters in Riyadh, investment in the FinTech and Pi Flow, a Wealth Management accounting
sector is centered in the capital as well. The only platform. These companies are headquartered in
rounds raised outside of Riyadh were Seed rounds Jeddah.
Figure 14. VC Investment by City

Figure 13. Companies by City of HQ 2017-2022
Jeddah
Riyadh
80% 1%
Dammam
9%
Jeddah
Riyadh
11% 99%
*This information corresponds to data collected by Endeavor from survey responses and
platforms like Crunchbase, Pitchbook, and CB Insights.
*This information corresponds to data collected by Endeavor from survey responses
**This graph shows the total sum of Angel, Seed, Series A, B, C, Undisclosed VC,
and platforms like Crunchbase, Pitchbook.
Tand CVC capital raised by the location of company HQ.
**This graph shows the location of HQ for Saudi fintech companies.
***N = 29 companies and 70 deals.
**N = 100 companies.
4. PANORAMA OF FINTECH
IN SAUDI ARABIA
34
4.1 Ecosystem Stakeholders
S
audi Arabia has a variety of advantages when it comes to
FinTech growth. In addition to a young population (two-thirds
below 35 years), large market size (35 million people), and
OECD membership, Saudi Arabia’s tech sector has a large ecosystem
of stakeholders ready to invest and support entrepreneurs.
Accelerators, such as Taqadem, Badir, Flat6Labs, and even MIT’s Enterprise Forum
Arab Startup Competition, are crucial to early-stage growth, giving fintechs the
opportunity to test and tweak their product. These accelerators also give fintechs
metrics of their product’s viability which they can show to investors. Raising early-
stage capital is particularly crucial for fintechs operating in regulated verticals in
order to obtain the necessary financing to satisfy the regulators’ capital requirements
to obtain the license. Endeavor recently published a report on the Riyadh Tech
Sector which maps out accelerators, funds, and support organizations facilitating
tech entrepreneurship in Saudi Arabia’s capital. 23
Vision 2030, the national strategy for diversifying the Kingdom’s economy,
essentially calls for an all-hands-on-deck approach to spurring fintech growth to
reach 525 fintechs by the year 2030. SAMA, CMA, the Financial Sector Development
Program, and government-sponsored initiatives such as Fintech Saudi are vital
elements of that strategy. Venture capital investors, discussed in-depth later in
the report, are taking on a bigger role as the sector matures and startups seek out
larger funding rounds.
As part of the Kingdom’s transformational journey (vision 2030),

the FSDP has been tasked to carry out the development
of the financial sector, with FinTech at its core. FSDP seeks
to stimulate private sector growth through guidance and
frameworks, and has already produced a dynamic
network of FinTech startups.
Nasser Alajaji, Assistant Director General of the

Financial Sector Development Program
35
4.2 Sector Mapping
A snapshot of the FinTech sector below shows that many companies remain small,
while a few have grown substantially in terms of number of employees. The largest
players by employee size – such as Foodics, Geidea, Emkan Finance, PayTabs, Hala,
among others – raise some of the sector’s largest rounds, generate high transaction
volume, and have the highest rates of gender diversity.
Figure 15. FinTech Ecosystem Mapping
Quara
Financing
Rasan Noon
Payments
Marn
Nuqtah
OneCard
Integrated
Networks Payments
Enterprise Financial Management (EFM)
Hala Crowdfunding
Direct FN
Lending
Manafa
Neoleap Personal Financial Management (PFM)
BCare
Trading & Markets
Alhamrani InsurTech
Universal
Digital Banking & Neo-Banks
Emkan Finance
Geidea Wealth Management
E-Wallets
Scoring
Foodics
Skyband
Tamara
Tamam
Tayseer

*This information corresponds to data collected by Endeavor from survey responses and platforms like Crunchbase, Pitchbook.
**This mapping shows companies by segment where the size of the bubble represents the number of employees.
36
Figure 16. New Fintech Companies Per Year
25
24
20
15
16
14
12
10
7
5 6
5
1 1 1 1 1 1 3 3
2 2
0
1980
1999
2000
2006
2015
2019
2008
2009
2011
2014
2016
2017
2018
2020
2004
2021
2022
**This graph shows the number of Saudi fintech companies established per year.
While market factors such as diminishing opportunities or increasing customer ac-

quisition costs due to increased competition could be responsible, these factors are
unlikely to be the sole reason.
Neither do economic challenges seem to be the primary factor. Economic

data during the covid-19 pandemic show that Saudi Arabia’s 2020 economic
contraction (-4.1%) was less severe than that of its neighbors UAE (-6.1%), Bahrain
(-4.9%), the Arab World average (-5.1%), and the OECD average (-4.5). 24 Moreover,
Saudi funds have remained optimistic about the Kingdom’s market performance,
contrary to the global investment outlook on startup sectors.
37
A more likely explanation is the materialization More players in the FinTech sector means progress
of costs and wait-times related to the regulatory towards Saudi Arabia’s financial and digital goals.
system. Once entrepreneurs understood that By the end of September 2022, the number of
setting up a fintech in some of the most profitable PoS terminals in the Kingdom had exceeded 1.3
segments, such as Payments, Lending and million, a 46% increase from just under 900k a year
Crowdfunding, requires applying for and complying before. 25 The number of PoS transactions grew from
with licenses, they may have been de-incentivized 3.65 billion in the first 9 months of 2021 to 5.24
to establish a new startup. These regulatory- billion (+44%) during the same time period. 26 The
related challenges will be elaborated on later in continued growth of companies in the Payments
the study. sector is helping the Kingdom reach its goal of 70%
cashless transactions by 2025.
Figure 17. Companies by Year Founded and Segment

25
Crowdfunding
Digital Banking & Neo-Banks 14
20 E-Wallets
3
Enterprise Financial Management (EFM)
2
InsurTech
Lending 11
15 4
Payments 3
Personal Financial Management (PFM) 4
14
Scoring
10 10
5
10 Trading & Markets 5
Wealth Management
1
12
4 2
22
3
3 7 25
5 1 3 6
1 7 10
3
2 15 18 9
17 5
2 4 5
2 7 10 2 3 1 26
4 12 4
0 1 1 1 2 1 1 1 1 2 2 3 6
2009
1980
1999
2000
2015
2004
2006
2008
2011
2014
2016
2017
2018
2019
2020
2021
2022

**This graph shows the number of Saudi fintech companies established per year by segment.
38
4.3 Monthly Transactions
In terms of the total value of monthly transactions, business models have achieved 5 million USD in
46% of the sampled companies reached more monthly transactions or more. The segment with
than 5 million USD, and of the companies with 50+ the highest transaction values is Payments, where
employees, 100% reached monthly transactions of 5 85% of sampled companies operate with at least 5
million USD. High volume and fast transactions are million USD in monthly transactions.
essential for fintechs, especially as they begin to scale.
Broken down by segment, a diverse array of On the low end of the spectrum is the Personal
Figure 18. Total Value of Monthly Transactions
45%
46%
40%
35%
30%
25%
20%
TOTAL COMPANIES
20%
15%
10% 14%
5% 9%
6%
0% 3% 3%
Less than 25K -50K 50K -100K 100K -500K 500K-1M 1M-5M 5M USD
25K USD USD USD USD USD USD and above

*This information corresponds to data collected by Endeavor from survey responses.
**This graph shows the total gross revenue of monthly transactions as reported by surveyed fintechs distributed by ranges of USD.
PFM as a business model is not a very attractive business,

especially since consumers in the GCC or MENA are not as fond
of subscription models as those in other countries such
as the U.S. We have built Malaa with a focus on unit
economics, away from the subscription model
and the regular personal finance noise.
Faisal Al-Qarni,
Co-Founder at Malaa Technologies
39
Financial Management (PFM) segment, where 50% of companies generate less

than 25K USD in monthly transactions. Opportunities remain for PFM companies
to innovate new services and reach new customers in their efforts to drive up their
transaction revenue in the Saudi market.
Figure 19. Monthly Transactions by Segment

100%
29% 33% 100% 100% 7% Crowdfunding
50% 20% 19%
90% Digital Banking & Neo-Banks
7%
E-Wallets
80% 21%
6% Enterprise Financial Management (EFM)
70% 6% Lending
43% 6% Payment Services
60% 33% 40% 7%
13% Personal Financial Management (PFM)
50% 7% Trading & Markets
TOTAL COMPANIES
50% 38% 21% Wealth Management

40%
30% 20%
33%
29% 14%
20%
10% 20% 14%

6%
0% 6%
Less than
25K USD
25K-50K
50K-100K
1M-3M
USD
USD
100K-500K
USD
500K-1M
USD
USD
5M USD
and above
Prefer not
to answer

****This graph shows the number of Saudi FinTech companies established per year by segment. Some verticals, such as InsurTech, were not assessed due to too small of a sample size.
40
4.4 Target Market
As mentioned before, the largest target market for that in Türkiye (32%), Indonesia (20%), or Latvia (74%),
fintechs is underbanked SMEs. Closing the gap which shares Saudi Arabia’s level of GDP per capita.27
between the high demand of SME loans and the
low supply from traditional banks is a major goal Fintechs are tackling this problem as well. The
of Vision 2030, which aims to raise SME loans as a most common target market among the 50
percentage of bank loans to 11% by 2025. In 2019, surveyed fintechs for this study was underbanked
bank loans to SMEs rested at 5.7% of the banking SMEs, especially high among Crowdfunding and
sector’s financing portfolio. This is much lower than Lending startups.
The micro & small SMEs are always the ones with
the least financing options. Once we tested our product,
we realized how big the pain point is and the potential
for innovation. On the supply side, peer to peer investment
into this sector is readily available from what we have
seen already with product testing.
Amer Siddiki,
Co-Founder & CEO at Themar
Figure 20. Target Market
Underbanked SMEs 33%
Business to Business
27%
(B2B): Corporates
33%
Banked Consumers 27%

27%
Banked SMEs 24%

27%
Unbanked SMEs 10% 24%
Underbanked Consumers 10%

8%
Unbanked Consumers 8%
6%
Business to 6%
Government (B2G)
2%
2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 34%
TOTAL RESPONSES (%)

**The graph represents the selected target market(s) of surveyed fintechs. The numbers may not add up to 100, as the question was a multiple choice response.
41
Based on survey results, Open Platforms & APIs, companies is Open Platforms & APIs (18%), followed
Mobile & Apps, and Cloud Computing are the top by Cloud Computing (15%), while among PFM
three technological systems and tools that fintechs companies is Mobile & Apps (19%), followed by Open
firms use. Among companies with 50 or more Platforms & APIs (17%). Among companies with
employees the top three tech systems and tools are international operations, 17% use Open Platforms &
Open platforms & APIs, Mobile & Apps, Big Data & APIs, 14% use Mobile Apps & Machine Learning, and
analytics. The most used technology by Payments another 14% use Machine Learning.
Figure 21. Technology Enabling the Sector
Open Platforms & APIs 19%

Mobile & Apps 15%
Cloud Computing 13%
Big Data & Analytics 11%
Machine Learning 10%
Digital Marketing tools 10%

Cybersecurity tools 8%
Prediction 7%
Hardware 2%
Deep Learning 2%
Natural Language Processing 2%
Cryptocurrencies & Blockchain 1%
IoT 1%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
TOTAL COMPANIES (%)

**This graph shows the selected responses to the question, “Which of the following technologies enable your product or service?”
42
The following graph shows the share of integration of technology systems and tools
by segment. Interestingly, Digital Banking & Neo-Banks is the segment that uses the
highest number of different technologies, at 92%.
Figure 22. Technology Enabling the Sector by Segment
Open Platforms & APIs 14% 6% 17% 17% 8% 11% 11% 14%
Mobile & Apps 14% 7% 14% 14% 10% 7% 10% 10%
Cloud Computing 16% 8% 12% 20% 12% 12% 12% 4%
Crowdfunding
Big Data & Analytics 14% 5% 24% 14% 14% 5% 14% 10%
Machine Learning 15% 5% 25% 20% 15% 5% 10% 5%
E-Wallets
Digital Marketing tools 21% 5% 16% 21% 16% 5% 5% 5% 5% Enterprise Financial Management (EFM)
Cybersecurity tools 13% 6% 6% 19% 19% 6% 19% 13% InsurTech
Prediction 15% 8% 31% 8% 15% 8% 15% Lending
Hardware 25% 25% Payments

Personal Financial Management (PFM)
Deep Learning 25% 25% 25% 25%
Trading & Markets
Natural Language Processing 33% 33% 33%
Wealth Management
Cryptocurrencies & Blockchain 50% 50% Scoring
IoT 100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
TOTAL RESPONSES (%)

**This graph shows the selected responses to the question, “Which of the following technologies enable your product or service?”
4.5 Investment
The following investment analysis focuses on the competition is tough. Broken down by segment,
financing environment for startups during their Lending companies have captured 51% of total
launch, early and mid-stage phases, employing the financing raised, followed by Payment services,
second approach described above which focused on which have raised 26%. These two segments
Angel, Seed, Series A-C, Undisclosed VC deals, and raised large rounds in 2021 and 2022, such as
CVC, and not including Debt or Private Equity rounds. a US$110 million Series A and a US$100 million
Series B both raised by Tamara, a Lending startup
Raising capital is a crucial part of startup growth, founded by entrepreneurs Abdulmajeed Alsukhan,
particularly in FinTech where international Turki Bin Zarah and Abdulmohsen Albabtain.
43
Saudi investors are confident in the FinTech

sector and the opportunities that remain. InsurTech is
a widely underserved market, Lending is growing fast,
and Digital Banks have a lot of innovation potential.
Those are the segments we are currently focusing on.
Maan Eshgi,
Partner at VenturesSouq
Payments companies such as PayTabs and Geidea have captured large amounts of
financing. InsurTech companies are raising large rounds as well as they transform
a traditional industry by applying digital models to partially or fully analog firms.
Catalyzed by the pandemic-induced push towards digitization and technology
adoption, InsurTech is a small but growing sector with a large market potential.
Startups such as Rasan, an InsurTech startup led by Founder and CEO Moayad
Alfallaj which raised a US$24 million Series A round led by Impact46, is one of
the success cases of InsurTech. Rasan’s digital platform Tameeni is disrupting the
traditional insurance industry by digitizing the distribution process and integrating
insurance policies from insurance firms on its platform.
We initially began as an insurance e-marketplace;

however, today, we are a full-fledged InsurTech providing a
range of products to Insurance and Financial Institutions.
Our successful Series A round was crucial in helping us
diversify our services and scaling operations,
serving the entire Insurance value chain.
Moayad Alfallaj,
Co-Founder & CEO at Rasan
44
Figure 23. Total Capital Raised by Segment 2017-2022
Wealth Management Crowdfunding
Trading & Markets 1% 2% E-Wallets
1% 2%
Personal Financial Management (PFM) Enterprise Financial Management (EFM)
1% 3%
InsurTech
6%
Payments 8%
39%
Lending
37%
**This graph shows the share of Angel, Seed, Series A, B, C and Undisclosed VC rounds raised by segment.
To date, VC deals have been nearly exclusively in The graph below shows the average and median
early-stage rounds. Between 2017-Q2 2022, 42% of size of investments deals raised by Saudi fintechs
financing has been in Series A rounds, with the biggest by financing round. All rounds show an average
tickets closing in 2021 and 2022. While the Saudi that is higher than the median, apart from Series
FinTech sector is growing, the focus on early-stage C, which includes a US$170 million round raised
rounds show that companies have yet to mature and by Foodics.
raise later-stage financing, which is typically larger
in amount and more international in investor origin.
Figure 24. Average and Median Size of Funding Type
MEDIAN: $50K
Angel AVERAGE: $1.09M
MEDIAN: $1.53M
Seed AVERAGE: $2.07M
MEDIAN: $5.5M
SeriesA AVERAGE: $19.31M
MEDIAN: $19.98M
SeriesB AVERAGE: $38.12 M
MEDIAN: $170M
SeriesC
AVERAGE: $170 M
MEDIAN: $13M
Undisclosed - VC AVERAGE: $13M
0M 10M 20M 30M 40M 50M 60M 70M 80M 90M 100M 110M 120M 130M 140M 150M 160M 170M

**This graph shows the average and median deal size of Angel, Seed, Series A, B, C, and Undisclosed VC rounds raised by Saudi fintechs.
45
The global correction in valuations and decline in investment in Saudi FinTech remains in early stages
investment size has not yet been seen in Saudi Arabia. and Seed funding, while small, has been raised by
Nonetheless, some entrepreneurs have expressed many fintech companies.
that they believe there is overvaluation in Saudi Arabia.
Some pre-launch rounds are large which can, in part, be The average Seed capital investment among 31
explained by the high capital requirements for license. rounds between 2017-22 is US$2 million, while the
The two graphs below illustrate two key findings: VC average Series A round among 10 rounds is US$19
Figure 25. Deal Count by Funding Type

100%
50% 100% 67% 80% 48% 70%
1 DEAL 3 DEALS 4 DEALS 4 DEALS 13 DEALS 7 DEALS
90%
80%
DEAL TYPE
70%
Seed
60% Angel
Series A
50%
PERCENTAGE OF TOTAL
50% 19% Series B

5 DEALS
1 DEAL Series C
40%
Undiclosed - VC
30% 22%
17%
1 DEAL 6 DEALS 10%
1 DEAL
20%
20% 10%
10% 17% 1 DEAL 1 DEAL
1 DEAL 1 DEAL (4%)
7% 10%
1 DEAL
0% 2 DEALS
2017 2018 2019 2020 2021 2022

**This graph shows the numerical and proportional amount of deals raised by funding type per year.
Figure 26. Venture Capital Distribution by Funding Type

320M
DEAL TYPE
300M
$33M Angel
280M 1 DEAL
Seed
260M
$100M Series A
240M 1 DEAL
Series B
220M $34M Series C
200M 13 DEALS
Undiclosed - VC
180M $152M
6 DEALS
160M
$170M
140M 1 DEAL
120M
100M
80M
60M
40M $20M
1 DEAL
20M $1M
$20M $26M
0M 1 DEAL 3 DEALS 2 DEALS
2017 2018 2019 2020 2021 2022

**This graph shows the numerical and proportional amount of deals raised by funding type per year.
46
million. The abundance of early-stage capital is a Accelerators, incubators, family funds and
good sign for entrepreneurs looking to kick-start institutional investors have all contributed to the
a fintech company, especially for those entering a abundance of Angel and Seed capital in Saudi
regulated vertical, since they will need sufficient Arabia. Sources of capital, such as the Jada Fund
capital to maintain their venture while they await of Funds, are supported by the government with
their license. However, later-stage rounds will need the intention of spurring innovation in the FinTech
to materialize in 1-2 years if these Saudi fintechs sector and SVC.
are to mature, particularly for those in regulated
verticals after receiving their CMA or SAMA license. Facing global economic headwinds and
market corrections across tech sectors, many
Within the Payments segment, Buy-Now, Pay-Later international institutional investors have become
has been a trend that investors are attracted to, a less bullish on startup sectors. During these
trend that Tamara, a digital Lending startup, targets periods, international investors would rather
as well. To receive a license and be successful, invest in a more seasoned market where startups
Lending companies need especially high amounts in regulated verticals have proven that they can
of capital to scale their operations so as to have grow after receiving their license. Nonetheless,
debt reserves sufficient for servicing loans to their Saudi VCs have remained active in the Kingdom’s
customers. investment scene.
Figure 27. Most Active Funds 2017-2022
500 Global STV

Impact 46 COUNTRY: COUNTRY:
UNITED STATES SAUDI ARABIA
COUNTRY: SAUDI ARABIA
DEALS: 4 DEALS: 4
DEALS: 8
Saudi
Venture
Raed Ventures Capital
Company Seedra Ventures
COUNTRY: SAUDI ARABIA
DEALS: 5 COUNTRY: COUNTRY: SAUDI ARABIA
SAUDI ARABIA
DEALS: 3
DEALS: 4

**This graph shows the top 6 investors in terms of capital invested in Angel, Seed, Series A, B, C, Undisclosed VC, and CVC rounds raised by Saudi fintech companies.
47
Figure 28. Investor Country of Origin

Indeed, of the funds that have been active in the
Saudi FinTech sector, 61% are Saudi funds, 20% are
Saudi Arabia 61%
from the UAE, 11% are from the United States, and
2% are from the UK.
United Arab 20%
Emirates
Impact46 is the largest investor of Saudi fintech
United States 11%
companies. The fund participated in 8 deals with a
total investment amount of US$44 million captured
United Kingdom 2%
by the mapped fintechs. Around 40% of Impact46’s
0% 10% 20% 30% 40% 50% 60% 70%
portfolio is in FinTech, and other VCs are following
its lead by focusing on companies in Lending and
PERCENTAGE OF TOTAL
Payments. Other segments gaining momentum in
Source: Endeavor Intelligence Analysis, 2022. the Saudi market include Asset Management and
*This information corresponds to data collected by Endeavor from survey responses and
platforms like Crunchbase, Pitchbook, and CB Insights.
Crowdfunding, among others.
**This graph shows the country of origin of each fund that participated in investment
rounds raised by Saudi fintechs.
***N = 67 investors
Despite a recent global decline in VC funding,

local funding in Saudi Arabia remains strong.
Funding is shifting from early-stage to later-stage,
and while deal size has shrunk, Saudi funds still understand
that the Kingdom’s FinTech sector growth is only beginning.”
Basmah Alsinaidi,
Partner at Impact46
At present, institutional investors are major players in the Kingdom’s FinTech

ecosystem, but institutional investors play a small role in Saudi Arabia’s asset
management industry compared to individual or family investors. In 2019, only 41%
of locally managed assets in the Kingdom were managed by institutional investors,
contrasting with 54% in the UAE, and 60% in Qatar. 28
Fintechs, particularly in crowdfunding, are themselves revolutionizing investment

channels. Themar, a Peer-to-Peer (P2P) purchase finance platform targeting
underbanked micro- and small-businesses led by entrepreneurs Amer Siddiki and
Yousef Al-Dabbagh, aims to target the SME financing gap. Both entrepreneurs had
worked in micro-sized businesses (as defined by revenue of less than 15 million
SAR or around 4 million USD) and saw firsthand the difficulty of receiving loans
from traditional channels due to lack of required collateral.
48
4.6 Employment
In Saudi, like in much of the world, there’s been a shift

in people’s perception of having a job. There are more
hard-working people who want to be part of a mission,
and that changes how things are done, rather than just
having a secure job. We see a lot of people leaving big
name companies and coming to work in a more
dynamic environment where they are more
impactful – the startup sector.
Abdulmajeed Alsukhan,
Co-Founder & CEO at Tamara
Collectively, the 100 fintech companies entrepreneurial landscape in FinTech, Endeavor

identified in this study employ 6,276 employees. provides employment analysis of companies
Of the 92 companies that have been founded in founded in the post-Internet era.
the past 10 years, only 25% of those companies
have reached scale (i.e. directly employ 50 The highest number of these scaled companies
or more employees). In total employee count, is in Payments (10) and in Lending (5). Scaled
scaled companies employ roughly 75% of companies comprise 60% of the Insurance
the Saudi FinTech workforce, amounting to segment, 50% of the Trading & Markets segment,
4,700 employees. To accurately assess the and 42% of the Lending segment.
Figure 29. Scaled Companies (50+ Employees) by Segment
Payments 38% 62%
Enterprise Financial Management (EFM) 21% 79%
Crowdfunding 21% 79%
Lending 42% 58%
Personal Financial Management (PFM) 10% 90%
Trading & Markets 50% 50%
InsurTech 60% 40%
Digital Banking & Neo-Banks 20% 80%

1-49 Employees
Wealth Managements 100%
+50 Employees
E-Wallets 33% 67%
Scoring 100%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26%
TOTAL COMPANIES (%)

*This information corresponds to data collected by Endeavor from survey responses and platforms like Crunchbase and LinkedIn.
**This graph shows the companies that have scaled to employ 50+ workers, as a share of total companies in each segment.
49
The sample below shows employee data for the 50 surveyed fintechs in the
mapping across 3 years. While the absolute figures are not representative, since
they are of only half of the companies in the sample, YoY growth percentages
depict growth of each segment and the overall sector. This growth in employees is
perhaps the most indicative metric of the FinTech sector’s growth.
Figure 30. Employee Growth 2020-2022 by Segment
2,645
2500 188
119
357
2000
254 Personal Financial Management (PFM)

1,570
111 Crowdfunding
NUMBER OF EMPLOYEES
1500
+39% 191 Digital Banking & Neo-Banks
142
+4% 282 Enterprise Financial Management (EFM)
134
1000 E-Wallets
+88% 137 +76% 1,040
Lending
681 +154% 272
InsurTech
500 592 Wealth Management
101
+148%
Trading & Markets
107
239 Payments
0
2020 2021 2022

*This information corresponds to data collected by Endeavor from survey responses and platforms like Crunchbase and LinkedIn.
**This graph shows the company's growth in employees in each segment.
Roles which are in high demand include: cybersecurity, compliance/legal, and

software engineers. The latter can be hired internationally, but the former two roles
must be filled by Saudi nationals, due to Saudization policies, an issue discussed
later on in the report.
A variety of fintech entrepreneurs acquired experience in the banking sector before

starting their companies, which equipped them with valuable financial expertise.
In addition to providing potential founders with professional banking experience,
banks support the market by creating their own innovations, investing in FinTech
companies, incubating fintechs, and even hosting their products as an offering of
the bank.
50
4.7 Banks and Open Banking
The perspective of the banking sector towards Other banks engage with FinTech in a variety of
FinTech has changed dramatically in recent years. ways, as seen by Saudi Arabian British Bank (SABB).
Today, most banks proactively engage with the Theirs is a four-pillar strategy: 1) ‘Incubate’ whereby
FinTech sector in a variety of ways. the bank mentors fintech leaders and facilitates
their market entry, 2) ‘Operate’ whereby the bank
Some banks, such as Al Rajhi Bank, are diving offers their banking products to fintechs, 3) ‘Execute’
into FinTech themselves and investing in the whereby the bank identifies and contracts fintechs
development of their own FinTech products. to help the bank execute its digital transformation
Al Rajhi has developed two products that now strategy, and 4) ‘Invest’ whereby the bank’s newly
operate as subsidiary companies: Neoleap and approved fintech fund invests in fintechs.
Emkan Finance. Similarly, Alinma Bank has created
its digital payments platform: Alinma Pay. These Riyad Bank established its US$27M (100M SAR)
FinTech subsidiaries give banks a foothold in the Riyad Fintech Fund in 2019. It has invested in
FinTech sector, and help the bank in the digital companies such as Forus Financial, a financing
transformation of its own services. platform for SMEs led by Nasibah Bent Saleh al-
Rajh, in which it led the company’s Series A round.
If a FinTech entrepreneur has an idea or a ready FinTech

product, they can come to SABB and launch it in the market as
a product hosted by the bank – if it is successful, they can spin it
off into a fintech of their own. This allows FinTech entrepreneurs
to reduce many investments they need to make
when launching alone in this capital-intensive sector.
Also, this type of partnership helps accelerate
the FinTech company’s time to market.
Saeed A. Assiri,
Chief Digital Officer at SABB
51
Open Banking is a major achievement in the consumer data is highly beneficial in innovating
development of Saudi Arabia’s FinTech sector, and new services.
is redefining the relationship between the banking
sector and FinTech entrepreneurs. With strong Notably, Open Banking disrupts the exclusive
encouragement from the startup community, SAMA access to consumer’s financial data that banks have
announced its Open Banking policy in 2021 with long enjoyed. This new mechanism opens the door
the goal of creating opportunities “to imagine and for new players such as fintechs to benefit from
access new ways of managing money”. 29 massive amounts of information. Under pressure to
remain relevant, banks will need to innovate their
Open Banking is a model that utilizes open own products and services, and can use fintechs
Application Programming Interfaces (APIs) with the as distributors or can even partner with fintechs
purpose of enabling Third-Party Providers (TPPs), to offer their products and services under the
which are typically fintechs, to aggregate consumer bank’s domain. Despite this, Open Banking can still
data and build enhanced applications and services generate profits for banks. According to Accenture,
for consumers. Open Banking is expected to lower banks that engage in Open Banking can benefit
the barriers to entry for startups, resulting in from an increase in revenues of at least 20% derived
increased competition. from SME and corporate clients.
As of October 2022, five fintechs had received Notably, Open Banking disrupts the exclusive
the Open Banking license: Malaa Technologies, access to consumer’s financial data that banks have
BwaTech, Lean Technologies, Mod5r, and Rabet. 30 long enjoyed. This new mechanism opens the door
As per Saudi regulations, all Saudi banks are for new players such as fintechs to benefit from
required to comply with Open Banking and indeed massive amounts of information. Under pressure to
many have established open APIs that are used by remain relevant, banks will need to innovate their
FinTech companies. Riyad Bank has already created own products and services, and can use fintechs
an open innovation platform while Arab National as distributors or can even partner with fintechs
Bank and Saudi National Bank have established to offer their products and services under the
their own sandboxes for testing. 31 bank’s domain. Despite this, Open Banking can still
generate profits for banks. According to Accenture,
Achieving an Open Banking partnership with a banks that engage in Open Banking can benefit
bank is a major goal of many fintechs, particularly from an increase in revenues of at least 20% derived
in the PFM and Payments segments where more from SME and corporate clients. 32
52
Open Banking is a huge opportunity. We partnered

with Lean Technologies for our new digital platform
for SME loans, wherein Lean Technologies aggregates
all the SME’s account statements throughout the banking
sector for our review. This allows us to know our
clients better and construct optimal loan offers
based on trustworthy data.
Modhie Al-Shammary,
Senior Vice President & Country Head of SME Finance at Riyadh Bank
As seen in other countries, Open Banking works. In the UK, the number of consumers
using open banking data has risen by 3x in 2021 and over 450 TPPs are using Open
Banking in the EU. 33 Regulators have issued mandatory Open Banking policies in
the UK (2018), Hong Kong (2019), Bahrain (2020), and in other countries, such as the
US and Singapore, regulators are acting more as facilitators in bringing banks and
startups together through non-binding guidelines.
Saudi Arabia’s long-awaited Open Banking policy is now widely implemented and
expected to spur innovation and growth in the FinTech sector. Ultimately, the biggest
beneficiaries from Open Banking are Saudi Arabia’s growing number of digitally-
native consumers.
53
4.8 Women in FinTech
Female workforce participation in Saudi Arabia has On average, FinTech employees are 29% female,
increased dramatically since 2017. According to the and among companies with 50+ employees, that
World Bank, Saudi female workforce participation average rises to 31%. By segment, 30% of companies
has risen from 15% in 2017 to 20.9% in 2020, higher in the Payments segment have female workforce
than in the UAE (17%), Bahrain (19%), Egypt (19%), rates of 41-50%, a relatively high share. By contrast,
Qatar (14%), Jordan (18%), and even the Arab World 43% of companies in the PFM segment have female
average of 20.6%. 34
workforce rates of 11-20%, one of the lowest rates in
the FinTech sector.
Within the entrepreneurial and investment

community, female founders are today getting
a lot of overdue attention. There are funds and incubators
that focus on women, and I strongly believe that in the
next 2-3 years we will see even more female founders.
Reem Ikram,
Co-Founder and CEO at ThriftPlan
COVID-19 has been helpful in getting women into Female FinTech entrepreneurs spoke to Endeavor
the workforce. Instead of forcing them to choose about this phenomenon, agreeing that for female
between going into the office and caring for their professionals, remote work has eliminated the
children, remote work enables women – who are dilemma of choosing between professional
often the primary caretaker of their children in opportunities and having children. Nonetheless,
Saudi Arabia – to juggle multiple responsibilities achieving a work-life balance remains a challenge
from home. for female entrepreneurs with children.
In the past 6 years the position of women

has improved in Saudi society, particularly
in entrepreneurship. Mindsets have also changed;
female entrepreneurs are more respected now
by their male colleagues, employees, and investors.
Mai Abdulwahab,
Co-Founder & VP of Commercial & Operations at NQOODLET
54
While female entrepreneurs are entering the FinTech one aim to raise the supply of female tech talent by
sector and workforce participation has risen, there preparing female participants for entrepreneurship
remains a shortage of female tech talent. The in a variety of tech fields.
shortage of women in tech roles is not limited to Saudi
Arabia or even the MENA region, but throughout the As FinTech companies grow, their teams become
world. In the MENA region, where tech is growing more gender balanced. The Payments segment
fast, more female developers are needed. has the highest number of companies with 50+
employees, whereas only 10% of PFM companies
US technology giant Apple recently launched an have scaled to 50+ employees, much lower than
all-female Developer Academy at Princess Nourah Payments’ 38%. The graph below shows the
bint Abdulrahman University in Saudi Arabia. 35
distribution of companies by range of female
Nine-month intensive coding programs such as this employment.
70% of our team is software engineers,

and in the two years since I founded the company,
we haven’t received nearly the same amount of
CVs from female developers. A more diverse team
is a top goal for us, but there simply aren’t many
female developers in the GCC.
Feras Jalbout,
Founder & CEO at Baraka
Figure 31. Companies by Percentage of Female Employees
25%
Avg: 29%
24%
20% 21%
19% 19%
15%
TOTAL COMPANIES (%)
10%
5%
5% 5% 5%
2%
0%
<10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80%
FEMALE EMPLOYEES (% OF TOTAL)

**This graph shows the distribution of companies by their range of female employment.
***N = 50 surveyed fintechs.
55
Figure 32. Women Employed by Area of Company
Human resources 16%

Legal compliance 13%
Engineering (includes software) 13%
Finance 11%
Marketing 9%
Sales 9%
Customer service 7%
Business development 4%
Product 4%
IT 3%
Strategy 3%
Co-Founder 1%
Cyber-security 1%
Data 1%
Logistics 1%
Operations 1%
Quality control 1%
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16%
TOTAL PROFILES (%)

*This information corresponds to data collected by Endeavor from LinkedIn on more than 2,600 FinTech employees profiles of 88 companies,
of which 1,228 had complete information online, and 70 were female.
**N = 70 female employees.
Based on an assessment of female employees, organizational structures report that female

women are most represented in Human Resources representation is highest among analyst positions
(16%), Legal & Compliance (13%) and Engineering (40% of all analyst titles are held by women). However,
(13%). This analysis draws on the 70 publicly available only 6% of C-Level positions are held by women.
LinkedIn profiles of female employees among all the With the right opportunities, the representation of
FinTech firms mapped. Companies with hierarchical women in leadership positions can increase.
56
4.9 Demographics of Founders
A full assessment of the entrepreneur is

always a major part of our consideration of whether
to invest, as well as new shifts in the market
and understanding the gaps in technology.
Hadi Saeed Al-Shakhori,

Business Incubation Manager at Wa'ed Ventures
Upon assessing the profiles of 83 founders in the Saudi FinTech ecosystem, Endeavor
presents the average profile of a FinTech entrepreneur.
Figure 33. Saudi Arabia’s Typical FinTech Founder
1% ARE WOMEN AVERAGE AGE AT FOUNDING:

30 years
91% LIVE IN RIYADH

55% PREVIOUSLY
21% HAVE FOREIGN FOUNDED A COMPANY
WORK EXPERIENCE
40% PREVIOUSLY WORKED IN THE
59% HAVE A STEM DEGREE FINANCIAL & BANKING INDUSTRY
(40% IN ENGINEERING AND COMPUTER SCIENCE)
46% STUDIED INTERNATIONALLY

76% HAVE A GRADUATE DEGREE IN EITHER BACHERLOR’S
OR MASTER’S DEGREE
(50% MBA)

*This information corresponds to data collected by Endeavor from survey responses and sources such as LinkedIn.
**This graph shows the typical profile of the average founder by several metrics.
***N = 83 profiles.
57
The graph below shows a breakdown of the professional background, based on

83 founders who lead the fintechs shown in the mapping. The findings show that
previous leadership experience, either as a founder or other C-Level positions, and
high-level English skills are the most recurring attributes among the most successful
founders. The attributes of founders of scaled companies include that 76% had
previous C-Level experience, 54% had previously started their own company, and
46% studied internationally.
Figure 34. Professional Background of Founders by Company Size
Experience at 75%
C-Level 58%
Founded a 54%
company 47%
Studied 46%
internationally 22%
Managerial 43%
experience 57%
32%
STEM degree
52%
Foreign work 29%
experience 22%
Engineering work 14%
experience 28%
Financial work 11%
experience 18%
Worked at a 100+ 11%
employee company 13% Founders of companies with >50 employees
7% Founders of companies with 1-49 employees
Consulting work
experience 10%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80%
TOTAL PROFILES (%)

**This graph shows the founder’s previous experience broken down by the size of their current company
***N = 83 profiles.
58
Looking at professional background by industry, 40% of founders have previous

experience in the banking and financial industry. Among founders with undergraduate
STEM degrees 35% have banking and financial experience and 26% have IT
experience. Among entrepreneurs who had founded a company before, 43% worked
in the banking and financial industry.
Figure 35. Previous Experience by Industry

Banking & Financial
Services
40%
IT Services 20%
Manufacturing 3%
Oil & Gas 3%
InsurTech 3%
Education 3%
Transporting &
Shipping
3%
Consulting &
Business Services
3%
Retail 2%
Government
Administration 2%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 34% 36% 38% 40% 42%
PERCENTAGE OF TOTAL

**This graph shows the top 10 industries that FinTech founders had worked in prior to founding their current FinTech startup.
***N = 83 profiles.
59
In terms of educational background, 59% of fintech them hold a STEM undergraduate degree and 72%
founders hold bachelor's degrees in science, hold a non-STEM graduate degree, mostly in the
technology, engineering, or mathematics (STEM)- fields of business and economics.
related fields. Indeed, the top fields of study in bachelor
degrees for FinTech founders are engineering (25%) The rate of STEM vs non-STEM in the educational
and computer science (18%). 36% of the identified background of founders fluctuates between FinTech
founders hold a graduate degree, with 64% of those segments. For example, for Payments founders,
having studied business and/or economics. the rate of STEM in undergraduate degrees went
up to 67%, and in graduate degrees increased to
Mixing a bachelor degree in STEM and a graduate 34%. Comparatively, for PFM, the rate of STEM in
degree in business or economics seems to be a undergraduate degrees went down to 57%, but went
trend for the most experienced entrepreneurs in the up in graduate degrees to 33% where it consisted
sector. Among entrepreneurs who founded another solely of degrees in Information Technology, one of
company before their current fintech startup, 61% of the STEM majors.
Figure 36. Educational Background of Founders
UNDERGRADUATE MASTERS
60%
25% 48%
70%
50%
60% FIELD
40% Engineering
15% 50%
Social Science
PERCENTAGE OF TOTAL
Business
30% 18% 40%
Computer Science
13% 30% Economics

20% Information Technology
19%
20% 5% Marketing
10%
10% 4% 14% Science and Math
10% Humanities
6%
5%
4% Architecture
0% 3% 0% 5% 5%
Non-STEM STEM Non-STEM STEM

**This graph shows the undergraduate and graduate field of study for fintech founders.
***N = 83 profiles.
60
The age of founders is relatively diverse, with and the average age is 37 years, suggesting that
less than half in their 30s, the age of most new entrepreneurs see sufficient prior experience,
entrepreneurs globally. However, 69% of the whether previously in a startup or in the banking
identified FinTech founders are between 25-39, sector, as beneficial before founding their startup.
Figure 37. Age of Founders

Between 60-64 years 1%
AVERAGE
Between 40-44 years 10% CURRENT AGE:
Between 35-39 years

37 27%
AVERAGE AGE
AT FOUNDING:
30
0% 5% 10% 15% 20% 25%
PERCENTAGE TOTAL

**This graph shows the distribution of founders by their current age.
***N = 83 profiles.
Founders with an undergraduate STEM degree are background have highly sought-after skills leading
substantially older than their counterparts who did to more job offers that delay their entrepreneurial
not receive a STEM degree. 54% of founders without pursuits. Professionals with a non-STEM educational
STEM experience are below the age of 34, whereas background may be more likely to follow their
24% of founders with an undergraduate STEM degree entrepreneurial ambitions earlier because of less
are below the age of 34. Conversely, in the 35-44 lucrative alternatives being offered to them.
age bracket, the rate of founders with a STEM degree
goes up to 51%, while for those without a STEM For their bachelor degrees, only 21% of FinTech
degree, the rate is 24%. While a variety of factors may founders studied in another country, whereas for their
explain this difference, professionals with a STEM graduate degrees, 71% of founders went abroad.
Figure 38. International vs. Local Education of Founders

UNDERGRADUATE MASTERS
Saudi Arabia International
79% 71%
International Saudi Arabia
21% 5%
0% 20% 40% 60% 80% 0% 20% 40% 60% 80%

**This graph shows the rate of domestic and international schooling for founders’ undergraduate and graduate degrees.
***N = 83 profiles.
61
As the digital economy grows, Saudi students in the Arts and Humanities decreased from 30%
are pursuing more business-oriented and STEM to 25% and in the Social Sciences and Journalism
careers. In Saudi public universities, the share of decreased from 11% to 5% during the same period. 36
students majoring in Business Management grew For FinTech entrepreneurs, business degrees are
from 20% of all students in 2014 to 30% in 2018, while the fourth most common undergraduate degree and
Science, Math and Statistics majors grew from 5% in graduate degrees it is by far the most common
to 9% during the same period. By contrast, majors field of study, in the form of an MBA.
Having a STEM background is beneficial, but

I knew from experience that diving into a new industry
is risky without having a subject matter expert. That’s why
partnering with a banking sector expert, which my co-founder
has experience in, would add a lot, especially in
understanding the details of finance and leveraging
connections within the industry.
Yousef Al-Dabbagh,
Co-Founder & COO at Themar
Among teams of two or more founders, the rate experience gives a leg-up in the FinTech
of a STEM educational background is 29%, but sector. While that combination would create the
that rate rises to 55% among single-founder perfect match of engineering skills and financial
companies. STEM backgrounds are beneficial in knowledge, that combination is not as common as
leading tech companies, and previous banking one would think.
4.10 International Expansion of Saudi Fintechs
International expansion is a major goal of financing, but to export innovative business models.
tech startups. For Saudi fintechs, the rate of The FinTech offerings of Saudi Arabia’s most
international expansion is 41%, either through successful companies can be highly demanded in
physical internationalization or digital acquisition of other markets throughout the region, particularly
customers in new markets. those with nascent FinTech sectors. The expansion
of Hala to Pakistan, Tamara to Kuwait, and PayTabs to
International expansion represents an opportunity a wide range of MENA, African, and Asian countries
not only to acquire new customers or access more is representative of this phenomenon.
62
The United Arab Emirates is the top destination Egypt (14%), Kuwait (12%), Bahrain (11%), and Oman
market for internationalized Saudi fintechs, as 22% (9%). Indeed, international expansion is largely
of the 100 mapped Saudi fintechs have operations limited to MENA countries, with few exceptions:
there. The next four destination countries with the Pakistan (4%), the United Kingdom (3%), India (3%),
highest share of internationalized Saudi fintechs are and Türkiye (1%).
Ultimately, the opportunity to grow a

fintech here in Saudi Arabia is more than in any
country in the region. The power of money
– the cash flow – and the size of the consumer market
in Saudi Arabia are considerable factors that
encourage us entrepreneurs to succeed.
Waleed Talat,
Co-Founder & CEO at Arib
Figure 39. International Expansion of Saudi Fintechs
United Arab Emirates 22%

Egypt 14%
Kuwait 12%
Bahrain 11%
Oman 9%
Qatar 5%
Jordan 5%
Pakistan 4%
Iraq 4%
United Kingdom 3%
Morocco 3%
Lebanon 3%
India 3%
Turkey 1%
Sudan 1%
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23%
PERCENTAGE TOTAL

**This graph shows the percentage of Saudi fintechs that have expanded to international destination markets (self-reported via the survey).
**N = 50 surveyed fintech firms.
Payments companies, and to a lesser degree Lending companies, typically have

strong financial backing by VCs and thus have the resources to expand into new
markets, either through M&A or by organically hiring staff in the destination country.
63
Being a SAAS product, we were able to

have a wide footprint and acquire users in the GCC,
neighboring countries and Europe. This was done by
being active at events, participating in accelerators,
and being extremely active on social media.
Nasser Al-Tamimi,
Co-Founder & COO at Rasmal
Digital Banking, along with Wealth Management, are two segments that do not
necessarily hold cash, and are therefore not subject to FinTech regulations in other
markets. Therefore, these companies are more incentivized to expand.
Figure 40. International Operations
BY SEGMENT OVERALL
Digital Banking &

100%
Neo-Banks Yes
41%
Wealth Managements 50% 50%
E-Wallets 50% 50%
Trading & Markets 50% 50%
Lending 40% 60%
Personal Financial
Management (PFM) 25% 75%
Crowdfunding 17% 83%
InsurTech 100%
Enterprise Financial
Management (EFM) 25% 75% No
Payments 60%
59%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
TOTAL COMPANIES (%)

**This graph shows the percentage of companies in each segment that have set up international operations.
5. OBSTACLES
65
D
espite the many advantages the Saudi Arabian market
presents, its FinTech entrepreneurs still face tough obstacles
in starting and scaling their businesses. Below are the results
of a survey, ordered by largest to smallest selections of “Major
Obstacle”, answered by 50 entrepreneurs representing 50 of the
100 companies in our FinTech Mapping.
Figure 41. Obstacles Faced by FinTech Entrepreneurs
Availability of tech talent 65% 17% 17%

Cooperation with traditional financial entities 50% 32% 18%
Compliance with laws and regulations 41% 31% 28%
Access to talent development resources 40% 13% 47%
Digital infrastructure 39% 14% 46%
No Obstacle
Availability of managerial talent 39% 46% 14%
Minor Obstacle
Talent retention 33% 38% 29% Major Obstacle
Access to debt or equity financing 24% 17% 59%

Taxes 20% 20% 60%
Social attitudes and cultural norms of consumers
towards digital financial products/services 17% 37% 47%
Access to consumers 9% 32% 59%
Fraud / Theft 7% 30% 63%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
TOTAL RESPONSES (%)

**This graph shows the responses to the question “To what extent have you found the following elements to be obstacles to running a fintech company in Saudi Arabia?”
on a scale of ‘No Obstacle’, ‘Minor Obstacle’ or ‘Major Obstacle’, ordered in order of highest to lowest in Major Obstacle.
***N = 50 surveyed fintech firms.
In line with global trends, the issue most perceived as a “Major Obstacle” is the
availability of tech talent. The fight for developers, UX and UI designers, software
engineers and specialists in other tech areas is particularly fierce in emerging
markets where local startups compete with international players who are often able
to offer tech talent higher salaries.
For 41% of entrepreneurs, compliance with laws and regulations is a major obstacle.
While the Saudi regulatory system is still being shaped and inefficiencies are
expected, these two Saudi-specific obstacles are impediments holding the Saudi
FinTech sector back from fully competing in the global market.
66
For 50% of entrepreneurs, cooperation with while they await a license. The lack of ease
traditional financial entities is a major obstacle. in building partnerships with banks is likely
This is expected since partnerships with banks inhibiting FinTech growth, particularly in the
are necessary for fintechs who need a licensed Lending, Payments, PFM, EFM and Crowdfunding
cash custodian to hold their customers’ cash segments.
Figure 42. Obstacles Faced by Scaled Fintechs (50 or more Employees)
Availability of tech talent 100%

Cooperation with traditional financial entities 50% 25% 25%
Compliance with laws and regulations 57% 29% 14%
Access to talent development resources 67% 33%
Digital infrastructure 60% 40%
No Obstacle
Availability of managerial talent 50% 38% 13%
Minor Obstacle
Talent retention 50% 50% Major Obstacle
Access to debt or equity financing 43% 29% 29%

Taxes 33% 67%
Social attitudes and cultural norms of consumers
towards digital financial products/services 17% 83%
Access to consumers 14% 86%
Fraud / Theft 33% 67%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
TOTAL RESPONSES (%)

**This graph shows the responses only of companies with 50 or more employees to the question “To what extent have you found the following elements to be obstacles to running
a fintech company in Saudi Arabia?” on a scale of ‘No Obstacle’, ‘Minor Obstacle’ or ‘Major Obstacle’.
67
Talent retention, and access to tech and managerial are often not willing to trade a reduction in salary
talent are issues that are not unique to Saudi for equities or Employee Stock Ownership Plans
Arabia. Moreover, the newness of Saudi Arabia’s (ESOP). This forces startup leaders to concentrate
entrepreneurial sector impacts its ability to attract resources into handfuls of higher salaried
talent and retain it. In interviews for this study, positions. As a result they lack the funds to invest
entrepreneurs remarked that most employees in a variety of necessary roles.
Scarcity and the significant push towards privatization

fuel higher salaries, and hiring remotely would make sense
if that were financially advantageous, but talent
is expensive everywhere now, and we'd rather invest
and spend here on local talents.
Faisal Al-Qarni,
Co-Founder at Malaa Technologies
Every surveyed entrepreneur agrees that the with the banking sector for professionals with
accessibility of tech talent and talent retention are financial experience. Remote working has made it
obstacles. A lack of tech talent and talent retention possible for startup leaders to look outside of the
are major issues that can inhibit the growth of Kingdom for certain positions, but that often incurs
startups, particularly when competition is high with a higher compensation than the market rate for
other tech sectors for developers, and competition local Saudi hires.
68
5.1 Access to Talent
The only reason we are not growing as fast as

we want to is because of a lack of talent.
The revenue is there, the funding is there,
but finding managerial talent and senior tech talent
is our biggest challenge.”
Osama Al-Raee,
Co-Founder & CEO at Lendo
In Saudi Arabia, access to talent with certain skills While Saudi authorities have set up upskilling
and experience is especially challenging. Below are programs and talent matching initiatives, filling tech,
the areas in which the lack of talent is most pressing. managerial and compliance roles remains a challenge
Looking at specific segments, the top areas lacking for fintech startups. Banking experience is in high
talent in Payments is Compliance (20%), in PFM is demand for roles of compliance, cybersecurity, and
Data Science and Analytics (19%). banking operations.
Figure 43. Areas Lacking Talent
Compliance/
Anti Money
Cyber security Software Laundering
engineering
20% Data science and UX 12%
and design
analytics
13%
15%
Distribuited Records
Technology/ Serial
Databases
Network
5% security
Product development APIs 3%

19%
Cloud Computing
9% 3%
**This graph shows the responses of companies to the question “What are the areas in which technical talent is lacking in your company?”.
69
Rasan’s competitive advantage is our skilled

team with deep expertise in InsurTech. Currently,
the insurance sector is catching up fast with the
banking sector in terms of technical talent,
creativity and innovation, driving the industry’s
overall alignment with Vision 2030.
Moayad Alfallaj,
Co-Founder & CEO at Rasan
To address this need, the National Technology salary for the first 9 months of the venture, and also
Development Program aims to reduce the risk of gives financial support to new startups looking to
starting a new venture by paying a new founder’s hire talent.
Finding the right CTO was,

for a while, our biggest challenge for us.
Today, we build all of our technology
in-house. As a fintech company,
we are nothing without tech.
Abdulrahman Bin Nujayfan,

Co-Founder & COO at Mthmr
A common approach mentioned by entrepreneurs and matches them with internships at global fintech
with gaps in access to certain talent is to hire companies. The initiative also provides educational
someone as close to the desired qualifications as programming for FinTech regulators. 37
possible and train them, either through programs
at accelerators and government initiatives, or Some fintechs have looked abroad to hire talent,
through educational development resources at the particularly tech specialists. Remote working did
company. The Saudi government is keenly aware allow Hala to hire outside of the Kingdom, but these
of the FinTech sector’s need for skilled talent. As companies are limited by compliance, risk, and
outlined in the FSDP Delivery Plan, Fintech Saudi cybersecurity laws which restrict Fintech activity
spearheads several initiatives that upskill Saudi outside of Saudi Arabia. Support roles in areas such
professionals, particularly in software programming, as engineering and marketing can be outsourced.
70
5.2 Regulation & Licensing
In terms of the sector’s perception of the FinTech framework that are particularly beneficial to fin-
regulations, entrepreneurs fall into two categories: tech startups. For example, several entrepreneurs
those that agree with the regulation and its have remarked that giving fintech companies an
requirements, and those that view it as an obstacle ‘operating permit’ rather than a full license upon
to the sector’s growth. graduation from the sandbox is highly beneficial,
even though that means they have to reapply for
In addition to ensuring transparency, countering a full license. The temporary permit allows them
money-laundering, and generating trust with con- to improve their product and develop their legal
sumers, there are elements of the Saudi regulatory team before needing to comply with a full license.
Consumer adoption was relatively easy

once we received the CMA license for equity
crowdfunding. It’s a stamp of approval that validates
our legitimacy and helps us earn trust with
businesses and consumers.
Abdulrahman Altheeb,
Founder & CEO at Scopeer
71
In a single-option response, entrepreneurs surveyed view the regulations as primarily positive and state
by Endeavor as part of this study were asked to readiness to comply. Another 14% responded that
define their views on the FinTech regulations. they believe the regulation will create barriers to
Interestingly, the two highest individual responses entry for smaller firms. Overall, these responses
contrast with each other. While 41% of entrepreneurs create a dichotomy of perceptions: 55% negative ,
perceive that the high cost of regulations will 38% positive, and 8% primarily concerned about the
generate inefficiencies, 38% of other entrepreneurs entrance of international competitors.
Figure 44. Entrepreneurs’ Perception of FinTech Regulations
I completely agree
The high costs with the regulations
required to comply and I am ready to comply
with the regulations will
generate inefficiencies
38%
41%
Fintech regulations
create larger entry
I’m worried about the barriers for startups or
entrance of international new companies than previously
competitors that could
affect my operations
14%
8%

**This graph shows the responses to the question “Which of the following options best fit your perception of FinTech regulations?”
The view that high compliance costs will generate high costs will generate inefficiencies was E-Wallets
inefficiencies is not mutually exclusive from (27%), followed by Lending (20%). Payments
understanding and agreeing with the overall goals companies were split, with one third in agreement
of the regulations. From Endeavor’s interviews with with the regulations and one third worried about the
over two dozen entrepreneurs for this study, it is clear entrance of international competitors. 57% of PFM
that most hold a positive overall perception of the companies agreed completely with the regulations
regulation, while criticizing specific areas, whether and were ready to comply.
it be the high capital requirements, uncertainty
regarding the timeline of license approval, or the By segment, the rate of companies with compliance
high cost of annual compliance. costs of 100K per year rose to 75% in Crowdfunding,
71% in Payments, 67% in Wealth Management and
The most represented segment in the positive declined to 50% of companies in EFM, 50% in
perception of agreeing with the regulations was Lending, 50% in PFM, and 33% in E-Wallets. Further
PFM (29%), followed by Crowdfunding (21%). The research is needed to understand just how much
most represented segment for the perception that above 100K these companies are spending.
72
Figure 45. Annual Cost of Regulatory Compliance
60%
55%
50%
40%
30%
TOTAL RESPONSES (%)
20%
10%
11%
8%
5% 5% 5% 5% 5%
0%
Less than 10K -25K 25K -40K 40K -55K 55K -70K 70K-85K 85K-100K More than
10K USD USD USD USD USD USD USD 100K USD

**This graph shows the responses to the question “How much does FinTech regulation compliance cost you (annually)?” on a scale of options valued in USD.
A major factor of the critical perception of the higher costs to ensure full compliance and proper
regulation is the cost of compliance. 55% of surveyed safekeeping of data. As seen in the focus of
fintechs reported a yearly cost of compliance companies with 50 or more employees, higher
upwards of 100K per year. The rate of 100K or more compliance costs seem to go hand in hand with a
in compliance costs rises from 55% to 83% when more critical perception of fintech regulation.
looking only at companies employing 50 or more
employees. Moreover, the perspective that high Overall, FinTech entrepreneurs see regulation
compliance costs will generate inefficiencies rises as having played a major role in the sector’s
from 41% to 57% when looking only at companies development. However, regulation can be more
with 50 or more employees. efficient. For instance, whenever a business model
is not explicitly regulated by FinTech-designed
Bigger companies handle more data, and since regulation, authorities typically refer to the existing
more is at stake, regulatory bodies may be incurring regulation used for banks.
We grew fast and now we process more

transactions than several smaller banks,
but we are not a bank. Nonetheless,
the Central Bank views us similar to how they view
banks in terms of regulations and
requirement of control functions.
Maher Loubieh,
Co-Founder at Hala
73
5.3 Data Sovereignty
The reason why technology companies

are able to grow to such a scale today is because
of the Cloud, especially with international cloud providers.
Local data storage inhibits our capabilities and thus
our ability to rival our global competitors.
Abdulmajeed Alsukhan,
Co-Founder & CEO at Tamara
In March 2022, Saudi Arabia's new Personal Data Protection Law (PDPL) came into
force, introducing an array of regulations for ‘data controlling’ entities or entities
that process and transfer personal data of consumers in Saudi Arabia. In addition to
common standards of accountability, transparency, and the appointment of a Saudi
data protection officer ('DPO'), the PDPL also requires, albeit with broad and vague
exceptions, data controlling entities to process and store all consumer data within
the Kingdom. 38
I believe that the Kingdom’s Personal Data Protection

Law (PDPL) is now more relevant and important as ever,
especially in the wake of the digital transformation the Kingdom,
and specifically the F&B sector has been going through.
We, at Foodics, have the infrastructure and governance
systems to ensure that we, and our customers, are fully compliant
with the laws and regulations that regulate the use of customer
data, and we encourage the wider sector to follow suit.
Ahmad Al-Zaini,
CEO & Co-Founder at Foodics
While enacted to protect Saudi consumer data, mandating that all FinTech data to
be stored locally in the Kingdom can incur heavy costs on FinTech startups. Storing
data on the Cloud, particularly those operated by global companies, is a feature of
the global tech economy that allows fintechs to hold large quantities of consumer
data. Moreover, methods of local data storage, such as data centers, are susceptible
to heat waves, which is a growing problem in Saudi Arabia. Dashboard analytics can
fail during high heat, which has happened several times this summer alone to fintech
startups. These heat waves are becoming more severe – in June temperatures
reached 45 degrees celsius in Riyadh, indicating a need and opportunity for
innovators in heat-resistant data hardware. 39
74
5.4 International expansion to Saudi Arabia
As evident from the regional and international The sheer size of its digitally native 35 million-strong
benchmarking in Section 2, Saudi Arabia is well- market lowers the risk of return. International players
positioned as a destination for international fintech such as Visa (USA), Checkout.com (UK/UAE) and
expansion due to its high level of digital adoption Tabby (UAE), have soft landed in the Saudi market and
and financial inclusion. have since become active players in the Kingdom.
In order to scale and improve the ecosystem,

we have to be open to international players. In our
initiatives & programs, we support international fintechs
because we understand that innovations entering the
Saudi market benefit not only Saudi consumers,
but also Saudi entrepreneurs in the form
of inspiration, competition, and partnerships.
Nezar A. Alhaidar,
Director of Fintech Saudi
In addition to a young population, a high GDP per providing digital onboarding tools for their clients.
capita, and a renowned network of VCs, Saudi Electronic IDs have also become more widespread
Arabia offers a wide range of global companies that in Saudi Arabia 40 and make the identification
act as enablers for fintech startups by developing methods that are required as part of KYC more
technology, facilitating Open Banking services, and efficient and user-friendly.
In order to scale and improve the ecosystem,

we have to be open to international players. In our
initiatives & programs, we support international fintechs
because we understand that innovations entering the
Saudi market benefit not only Saudi consumers,
but also Saudi entrepreneurs in the form
of inspiration, competition, and partnerships.
Reem Al-Harbi,
Saudi Arabia General Manager at Checkout.com
As stated earlier, startups that are not granted a as unfamiliarity with trends in the Saudi market,
FinTech license are often invited to reapply once difficulty navigating the bureaucracy of Saudi
their model is more developed and ready to scale. regulations, a lack of partnerships with Saudi banks
For international startups, other challenges may or other factors.
make it even harder to earn a fintech license, such
75
While various governmental initiatives across

the region aim to stimulate FinTech growth, in some cases,
the wait times for a permit or license are long and thus lead to
substantially higher cash burn rate which
then requires entrepreneurs to raise much larger
sums to fund their businesses before they can
turn into a self-sustaining and profitable business.
Feras Jalbout,
Founder & CEO at Baraka
Foreign entrepreneurs interviewed for this study and compliance officers must be Saudi nationals.
spoke about the difficulties they faced, which These policies also set quotas on the ratio of
included setting up a company, coordination with foreign:domestic workers in certain sectors. While
regulatory authorities, and deepening ties with banks Saudization policies impact the ease of hiring among
and other fintechs. businesses that expand into Saudi Arabia, this
approach attempts to bring down the unemployment
Saudization policies present a unique challenge to rate, which stood at 12% in 2019, 41 and is ultimately
foreign businesses expanding to Saudi Arabia. For strengthening the skillset required of Saudi nationals
fintechs, these policies mandate that cybersecurity to sustain a growing FinTech sector.
?
There are challenges that foreign entrepreneurs
face when launching and scaling an innovation
in Saudi Arabia. It often takes more time to set up
operations and attract the right resources since
we are newcomers and need to deepen ties
with ecosystem stakeholders.
Anonymous Foreign FinTech Founder

6. RECOMMENDATIONS
77
Regulation and Licensing
Based on interviews and surveys conducted with Banking and the issuance of Open Banking
FinTech entrepreneurs, it is evident that the regulatory license needs to roll out quickly.
system constructed by the Saudi government is a
2) Ensure a level playing field. Incumbent players
crucial enabler of the sector’s growth. To further
(banks, telecom corporations, etc.) with significant
stimulate entrepreneurship in the FinTech sector,
resources are able to leverage their wide user
Endeavor presents three recommendations for
base for FinTech growth whereas entrepreneurial
government authorities and other stakeholders:
ventures may not enjoy the same advantages.
1) Accelerate Open Banking compliance. Open 3) Encourage partnerships between FinTech

Banking is a major achievement for the FinTech startups and retailers in order to bridge the
regulatory system, but in order for startups to gap for fintechs to reach scale quicker. This can
take advantage of this and obtain first-mover further enable embedded finance which in turn
advantage, the compliance of banks with Open promotes financial well-being.
Foreign Founders and Saudization
The government’s Saudization policies, aimed at hire Saudi employees. In Mexico, Endeavor found
strengthening employment in the private sector, have that foreign founders on average employed 103
the right intentions of favoring employment of Saudi employees and mixed foreign-local founding teams
nationals and bringing down unemployment. But to employed on average 162, whereas local founders
ripen the Saudi market for foreign entrepreneurs employed on average 34. In raising capital, foreign
to start and grow their startups, easier pathways founders were more successful too, raising 39%
should be created for foreign founders to enter the more than local founders over a 10 year period.
Saudi market and innovate new products. Foreign entrepreneurs can be vital to attracting
capital and employing Saudi skilled workers,
Indeed, foreign founders can bring new ideas and either by starting new ventures in the Kingdom or
capital, and can create companies that scale and in co-founding one with a Saudi national.
Talent Retention and Access to Talent
Attracting the right talent, and retaining them, is giving them a stake in the company’s success.
a problem for entrepreneurs around the globe. However, employees may not be so keen to trim
In Saudi Arabia this issue is exacerbated by the their salary in exchange for equities or ESOPs. A
intensity of competition from banks, government timeline of upcoming investments, and a history of
regulators, and other fintechs, especially over roles incremental financing rounds can boost employee
that are in high demand: cybersecurity, regulation confidence in the company and entice them to
compliance/legal, and software engineers. trade portions of their salary for equities or ESOPs.
For this, more VC activity is needed in companies
High salaries, particularly for tech talent, are a looking to scale their operations but cannot do so
major obstacle for startup leaders. One solution because of employee apprehension at equities
is to incentivize employees with equity or ESOPs, and ESOPs.
78
ANNEX I
Methodology: Tables I, II, and III are primarily is used, whereas for variables where information
based on external sources, all of which are cited for geographies derives from different sources,
here. For variables where all the information for all each geography is named, for example, “Saudi
geographies derives from the same source, “All” Arabia:” “Latam:”, etc.
Table I: DIGITAL & FINANCIAL VARIABLES – GLOBAL SCALE
Population: All: "Population, total - United States, United Kingdom, Middle East
& North Africa, Latin America & Caribbean, European Union, China, Saudi Arabia",
World Bank, 2021 data. https://data.worldbank.org/indicator/SP.POP.TOTL?end=2021&locations=US-GB-
ZQ-ZJ-EU-CN-SA&start=1993
GDP per Capita: All: “GDP per capita (current US$) - United States, United Kingdom,
Middle East & North Africa, Latin America & Caribbean, European Union, China,
Saudi Arabia”, World Bank, 2021 data. https://data.worldbank.org/indicator/NY.GDP.PCAP.
CD?end=2021&locations=US-GB-ZQ-ZJ-EU-CN-SA&start=1993
Total VC activity: Saudi Arabia: “MENA 2022 Venture Investment Report”, Magnitt,
2021 data. https://magnitt.com/research/mena-2022-venture-investment-report-50797; MENA: “MENA
2022 Venture Investment Report”, Magnitt, 2021 data. https://magnitt.com/research/mena-2022-
venture-investment-report-50797; Latam: “Why 2021 was a breakout year for Latin America’s
VC ecosystem”, PitchBook, 2021 data. https://pitchbook.com/news/articles/2021-latin-america-
vc-deals-breakout-year; Europe: “European Venture Report”, PitchBook, 2021 data. https://
pitchbook.com/news/reports/2021-annual-european-venture-report; USA: “PitchBook-NVCA Venture

Monitor”, PitchBook, 2021 data. https://pitchbook.com/news/reports/q2-2022-pitchbook-nvca-venture-
monitor; UK: “UK-based start-ups attracted $32.9 billion VC funding during 2021, finds
GlobalData”, GlobalData, 2021 data. https://www.globaldata.com/uk-based-start-ups-attracted-32-
9-billion-vc-funding-2021-finds-globaldata/; China: “Greater China Venture Report”, PitchBook,

2021 data. https://pitchbook.com/news/reports/h1-2022-greater-china-venture-report
# of VC deals: Saudi Arabia: “MENA 2022 Venture Investment Report”, Magnitt, 2021
data. https://magnitt.com/research/mena-2022-venture-investment-report-50797; MENA: “MENA 2022
Venture Investment Report”, Magnitt, 2021 data. https://magnitt.com/research/mena-2022-
venture-investment-report-50797; Latam: “Why 2021 was a breakout year for Latin America’s
VC ecosystem”, PitchBook, 2021 data. https://pitchbook.com/news/articles/2021-latin-america-
vc-deals-breakout-year; Europe: “European Venture Report”, PitchBook, 2021 data. https://
pitchbook.com/news/reports/2021-annual-european-venture-report; USA: “PitchBook-NVCA Venture

Monitor”, PitchBook, 2021 data. https://pitchbook.com/news/reports/q2-2022-pitchbook-nvca-venture-
monitor; UK: “UK-based start-ups attracted $32.9 billion VC funding during 2021, finds
GlobalData”, GlobalData, 2021 data. https://www.globaldata.com/uk-based-start-ups-attracted-32-
9-billion-vc-funding-2021-finds-globaldata/; China: “Greater China Venture Report”, PitchBook,

2021 data. https://pitchbook.com/news/reports/h1-2022-greater-china-venture-report.
79
Smartphone adoption: Saudi Arabia: “Digital 2021: Saudi Arabia”, DataReportal,

2021 data. https://datareportal.com/reports/digital-2021-saudi-arabia; MENA, LAC, EU, China: “The
Mobile Economy 2022”, GSMA, 2022 data. https://www.gsma.com/mobileeconomy/wp-content/
uploads/2022/02/280222-The-Mobile-Economy-2022.pdf; USA: “US smartphone penetration

continues to climb, while tablet penetration is stagnant”, Insider Intelligence, 2021
data. https://www.insiderintelligence.com/content/us-smartphone-penetration-continues-climb-while-
tablet-penetration-stagnant; UK: “Digital 2021: The United Kingdom”, DataReportal, 2021

data. https://datareportal.com/reports/digital-2021-united-kingdom
Credit or Debit Card ownership: All: “The Global Findex Database 2021: Financial
Inclusion, Digital Payments, and Resilience in the Age of COVID-19”, The World Bank,
2021 data. https://www.worldbank.org/en/publication/globalfindex
Cash-based payments: Saudi Arabia, MENA, China: “The Countries Most Reliant on
Cash in 2021”, Merchant Machine, 2021 data. https://merchantmachine.co.uk/most-reliant-on-cash/;
LAC: “Cash Remains Dominant Amid Rise in Latin American Payment Choice”, Cash
Matters, 2021 data. https://www.cashmatters.org/blog/cash-remains-dominant-amid-rise-in-latin-american-
payment-choice; EU: “The Evolution of the European Payments Market: From Cash to Digital,
What do Europeans Want?”, Payments Europe, 2021 data. https://www.paymentseurope.eu/
wp-content/uploads/2021/11/The-Evolution-of-the-European-Payments-Market_Payments-Europe_Spread.pdf ;
USA: “2022 Findings from the Diary of Consumer Payment Choice”, Federal Reserve
Bank of San Francisco, 2022 data. https://www.frbsf.org/cash/publications/fed-notes/2022/may/2022-
findings-from-the-diary-of-consumer-payment-choice/; UK: “The cash census: Britain’s relationship

with cash and digital payments”, The RSA, 2022 data. https://www.thersa.org/globalassets/_
foundation/new-site-blocks-and-images/reports/2022/03/the-cash-census-report_v3.pdf
Table II: DIGITAL, FINANCIAL, GENERAL VARIABLES – REGIONAL
Financial institution account: All: “The Global Findex Database 2021: Financial
2021 data. https://www.worldbank.org/en/publication/globalfindex
Population saving at a financial institution: All: “The Global Findex Database 2021:
Financial Inclusion, Digital Payments, and Resilience in the Age of COVID-19”, The
World Bank, 2021 data. https://www.worldbank.org/en/publication/globalfindex
Population: All: “Population, total - Saudi Arabia, United Arab Emirates, Bahrain,
Kuwait, Jordan, Egypt, Arab Rep., Oman, Qatar”, World Bank, 2021 data. https://data.
worldbank.org/indicator/SP.POP.TOTL?end=2021&locations=SA-AE-BH-KW-JO-EG-OM-QA&start=1993
GDP per capita: All: “GDP per capita (current US$) - Saudi Arabia, United Arab
Emirates, Bahrain, Kuwait, Jordan, Egypt, Arab Rep., Oman, Qatar”, World Bank, 2021
data. https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?end=2021&locations=SA-AE-BH-KW-JO-EG-
OM-QA&start=2017
80
Labor force participation rate, female: All: “Labor force, female (% of total labor
force) - Saudi Arabia, United Arab Emirates, Bahrain, Kuwait, Jordan, Egypt, Arab
Rep., Oman, Qatar,” World Bank, 2021 data. https://data.worldbank.org/indicator/SL.TLF.TOTL.
FE.ZS?end=2021&locations=SA-AE-BH-KW-JO-EG-OM-QA&start=1993
Internet users: Saudi Arabia, UAE, Bahrain, Kuwait, Oman, Qatar, Egypt: “Individuals
using the Internet (% of population) - Saudi Arabia, United Arab Emirates, Bahrain, Kuwait,
Jordan, Egypt, Arab Rep., Oman, Qatar”, World Bank, 2020 data. https://data.worldbank.org/
indicator/IT.NET.USER.ZS?end=2020&locations=SA-AE-BH-KW-JO-EG-OM-QA&start=2014; Jordan (2018
data): “Individuals using the Internet (% of population) - Saudi Arabia, United Arab Emirates,
Bahrain, Kuwait, Jordan, Egypt, Arab Rep., Oman, Qatar”, World Bank, 2018 data. https://
data.worldbank.org/indicator/IT.NET.USER.ZS?end=2020&locations=SA-AE-BH-KW-JO-EG-OM-QA&start=2014
Credit card penetration: Saudi Arabia: “Saudi Arabia”, PPRO, 2021 data. https://www.
ppro.com/countries/saudi-arabia/; UAE: “United Arab Emirates”, PPRO, 2021 data. https://www.
ppro.com/countries/united-arab-emirates/ ; Bahrain: “Bahrain”, PPRO, 2021 data. https://www.
ppro.com/countries/bahrain/; Kuwait: “Kuwait”, PPRO, 2021 data. https://www.ppro.com/countries/
kuwait/; Oman: “Oman”, PPRO, 2021 data. https://www.ppro.com/countries/oman/; Qatar:

“Qatar”, PPRO, 2021 data. https://www.ppro.com/countries/qatar/; Egypt: “Egypt”, PPRO, 2021
data. https://www.ppro.com/countries/egypt/; Jordan: “Jordan”, PPRO, 2021 data. https://www.
ppro.com/countries/jordan/
Financial institution account: Saudi Arabia, UAE, Egypt, Jordan: “The Global Findex
Database 2021: Financial Inclusion, Digital Payments, and Resilience in the Age of
COVID-19”, The World Bank, 2021 data. https://www.worldbank.org/en/publication/globalfindex;
Bahrain, Kuwait: “The Global Findex Database 2017: Measuring Financial Inclusion
and the Fintech Revolution”, The World Bank, 2017 data. https://openknowledge.worldbank.
org/handle/10986/29510; Kuwait: “Kuwait”, PPRO, 2021 data. https://www.ppro.com/countries/
kuwait/; Bahrain: “Bahrain”, PPRO, 2021 data. https://www.ppro.com/countries/bahrain/ ; Oman:

“Oman”, PPRO, 2021 data. https://www.ppro.com/countries/oman/; “Qatar”, PPRO, 2021 data.
https://www.ppro.com/countries/qatar/
Used a mobile phone or the internet to check account balance in the past year:
Saudi Arabia, UAE, Egypt, Jordan: “The Global Findex Database 2021: Financial
2021 data. https://www.worldbank.org/en/publication/globalfindex; Bahrain, Kuwait: “The Global
Findex Database 2017: Measuring Financial Inclusion and the Fintech Revolution”,
The World Bank, 2017 data. https://openknowledge.worldbank.org/handle/10986/29510
Made or received a digital payment in the past year: Saudi Arabia, UAE, Egypt,
Jordan: “The Global Findex Database 2021: Financial Inclusion, Digital Payments, and
Resilience in the Age of COVID-19”, The World Bank, 2021 data. https://www.worldbank.org/
en/publication/globalfindex; Bahrain, Kuwait: “The Global Findex Database 2017: Measuring
Financial Inclusion and the Fintech Revolution”, The World Bank, 2017 data. https://
openknowledge.worldbank.org/handle/10986/29510
81
Population saving at a financial institution: Saudi Arabia, UAE, Egypt, Jordan: “The
Global Findex Database 2021: Financial Inclusion, Digital Payments, and Resilience in
the Age of COVID-19”, The World Bank, 2021 data. https://www.worldbank.org/en/publication/
globalfindex; Bahrain, Kuwait: “The Global Findex Database 2017: Measuring Financial
Inclusion and the Fintech Revolution”, The World Bank, 2017 data. https://openknowledge.
worldbank.org/handle/10986/29510
Table III: FINTECH ECOSYSTEM DEVELOPMENT – REGIONAL
GDP: All: “GDP (current US$) - Saudi Arabia, United Arab Emirates, Bahrain, Kuwait,
Jordan, Egypt, Arab Rep., Oman, Qatar”, The World Bank, Consulted on: 30/09/2022.
https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2021&locations=SA-AE-BH-K W-JO-EG-OM-
QA&start=2017
VC Activity 2021: All: “MENA 2022 Venture Investment Report”, Magnitt. Consulted
on: 30/09/2022. https://magnitt.com/research/mena-2022-venture-investment-report-50797
# of deals 2021: All: “MENA 2022 Venture Investment Report”, Magnitt. Consulted
on: 30/09/2022. https://magnitt.com/research/mena-2022-venture-investment-report-50797
Number of unicorn companies: All: “The Complete List of Unicorn Companies”, CB

Insights, consulted 21/09/2022. https://www.cbinsights.com/research-unicorn-companies
Number of fintechs: Saudi Arabia: Endeavor Intelligence Analysis 2022; UAE: “UAE
Fintech Report 2021”, Fintech News Middle East, 2021 data. https://fintechnews.ae/wp-
content/uploads/2021/07/UAE-Fintech-Report-2021.pdf; Bahrain: Endeavor Intelligence Analysis

2022; Oman, Jordan: “Fintech: Middle East & Africa 2021”, The Fintech Times, 2021
data. https://thefintechtimes.com/country-reports/ ; Egypt: “Egypt FinTech Landscape Report”,
FinTech Egypt, Consulted on: 30/09/2022. https://enterprise.press/wp-content/uploads/2022/02/
Egypts-FinTech-Landscape-Report-2021.pdf; Qatar: “FinTech Startups in Qatar”, Magnitt, https://
magnitt.com/en-qa/startups/fintech , Consulted on: 30/09/2022.
FinTech VC activity 2021: All: Endeavor Intelligence Analysis 2022, Pitchbook,

Consulted: 26/09/2022.
Creation of first regulatory sandbox: All: “An Overview of Regulatory Sandboxes in the
Middle East and Africa Region”, The Fintech Times, March, 2021. https://thefintechtimes.
com/an-overview-of-regulatory-sandboxes-in-the-middle-east-and-africa-region/
Fintechs licensed by the main regulator: Saudi Arabia: Endeavor Intelligence

Analysis; Oman: “The Arab Monetary Fund Publishes the "Second Edition of the Arab
Region Fintech Guide", Arab Monetary Fund, July, 2021. https://www.amf.org.ae/en/news/27-
07-2021/arab-monetary-fund-publishes-second-edition-arab-region-fintech-guide; Qatar: “From Qatar
to the World: a report on the state of FinTech in Qatar”, Qatar Fintech Hub, 2021.
https://fintech.qa/wp-content/uploads/2020/07/A-report-on-the-state-of-FinTech-in-Qatar-1-Oct-2021.pdf
82
ANNEX II
Methodology, Biases and Limitations
• Project Objective: This work was developed by Endeavor, to provide a

detailed analysis of the FinTech landscape in Saudi Arabia; this research
aims to nurture, with open information, the different stakeholders in Saudi
Arabia's entrepreneurship ecosystem — entrepreneurs, consumers, investors,
business leaders, policymakers, and civil society — a perspective on the
historical trends, existing challenges, and future opportunities.
• Limitations: Some of the information in this study was obtained from various
public and private sources. Estimates were also made to understand the
relevance of FinTech Startups and Scaleups in the tech entrepreneurial
community, and this should be considered as such at all times. The content
in this document is merely informative and qualified professionals should be
consulted to justify decision-making.
• Selection Bias (Survey): The companies that appear in the sample of this
study answered the entirety of our survey. Some responses were omitted if
they did not fill out the survey completely or if the entrepreneur fell outside of
the scope of the sector and presence in Saudi Arabia.
• Information Bias: The classification of the companies in the study was

according to the most relevant category to which their products or services
belong. A company may have belonged to more than one category.
• Data Collection: Endeavor identified a sample of 100 entrepreneurial ventures

in the FinTech sector, of which were considered as actively operating. These
entrepreneurs were then segmented by the most relevant category as
mentioned before. Additionally, entrepreneurs were selected based on the
following criteria:
• Headquarters in Saudi Arabia
• Companies founded in or after 2010, apart from 1 company founded in 1980

and 1 in 10
• 99 that are highly relevant, by an entrepreneur and not as part of a holding

or a big-company.
For the purposes of this study, “FinTech startups” refers to companies that are 1)
set up on the internet (“digital-first” or “digital-native”) or 2) actively developing
new technologies or tech-based businesses in the financial sector. Thus, tech is
not just “traditional” companies with a technological service. They were classified
in the following subsectors: Payments, Enterprise Financial Management (EFM),
Crowdfunding, Lending, Personal Financial Management (PFM), Trading & Markets,
InsurTech, Digital Banking & Neo-Banks, Wealth Management, E-Wallet, and Scoring.
83
The survey targeted FinTech entrepreneurs and was disseminated via email to 100
entrepreneurs identified in Saudi Arabia and on social media. The target number
of surveys was determined by a simple random sampling, with a 95% confidence
interval and a 10% margin of error. To learn more about the methodology, write to
us at enrico.robles@endeavor.org.mx
• Demographics analysis: A sample of 83 FinTech entrepreneurs was identified

and an analysis of their LinkedIn profiles was conducted to assess the
following:
• Professional background
• Past work experience
• Positions held
• Years spent in each position
• Size of the FinTech company they currently lead
• Company location
• Company industry
• Educational background
• Academic degree (bachelor or undergraduate, master, or other degree)
• Field of study
• Duration
• Country of the educational institution
• The estimates for the current age, age of entrepreneurship and work
experience are based on the assumption that the entrepreneur was 18 years
old when they began their undergraduate education and 23 years old when
they completed their undergraduate education.
84
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86
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STRATEGIC PARTNER ECOSYSTEM PARTNERS

© All rights reserved, Endeavor Saudi Arabia 2022.

ENDEAVOR INTELLIGENCE UNIT (EIU)

Mai Abdulwahab (NQOODLET), Naif AbuSaida (Hakbah), Nasser Al-Ajaji (FSDP),

2. GLOBAL FINTECH LANDSCAPE 13

3. OVERVIEW OF THE FINTECH ECOSYSTEM IN SAUDI ARABIA 26

4. PANORAMA OF FINTECH IN SAUDI ARABIA 33

• Increasing the share of cashless transactions from 36% in 2019 to:

I. Impact and influence of the FinTech entrepreneurial community:

• Entrepreneurial activity in the FinTech sector in • Employment is largely concentrated in just 22

Figure 1. Growth in Employees Over Time

Source: Endeavor Intelligence Analysis, 2022.

Figure 2. Employee Growth 2020-2021 by Segment

Digital Banking & Neo-Banks 212%

Trading & Markets 166%

Wealth Management 100%

Personal Financial Management (PFM) 100%

Enterprise Financial Management (EFM) 100%

0% 50% 100% 150% 200% 250%

Source: Endeavor Intelligence Analysis, 2022.

Underbanked SMEs 33%

Banked Consumers 27%

Banked SMEs 24%

Unbanked SMEs 10%

TOTAL RESPONSES (%)

Source: Endeavor Intelligence Analysis, 2022.

Figure 4. Technology Enabling the Sector

Open Platforms & APIs 19%

Digital Marketing tools 10%

TOTAL COMPANIES (%)

Source: Endeavor Intelligence Analysis, 2022.

II. Challenges & opportunities identified:

• According to Endeavor’s Regional & Global respondents, respectively. These challenges

Saudi Arabia has already become a fertile market for the

His Excellency Mohammed El Kuwaiz,

Figure 5. FinTech Thermometer by Region

United States 69%

United Kingdom 51% 64%

China 56% World:

0% 20% 40% 60% 80%

Source: Endeavor Intelligence Analysis, 2022.

Figure 6. FinTech Thermometer in MENA

Saudi Arabia 62%

United Arab Emirates 49%

Egypt, Arab Rep. 38% World:

Middle East & North Africa 50%

0% 20% 40% 60% 80%

Source: Endeavor Intelligence Analysis, 2022.

Table 1. Digital & Financial Variables - GLOBAL SCALE

Total VC activity $548M $2.6B $14.8B $35.3B $341.5B $17.3B $121.2B

# of VC deals 139 590 772 2,121 17,637 848 6,606

Smartphone adoption 93% 79% 77% 79% 88% 90% 77%

Owns a credit or debit

Table 2. Digital, Financial & General Variables - REGIONAL

Population 35,340,680 9,991,083 1,748,300 4,328,550 5,223,380 2,930,524 104,258,330 10,269,020

2.1 Ecosystem and Regulatory Development in MENA and Saudi Arabia

Table 3. FinTech Ecosystem Development - REGIONAL

GDP $833B $358.8B $38.8B $85B $179.5B $404B $45.2B

VC activity $548M $1.5B $52M $3M $19M $491M $117M

# of deals 139 169 24 6 24 147 46

Number of fintechs 100 144 36 5 17 112 28

FinTech VC activity $238M $362M $34.5M – $52.4M $91.8M $24.5M