The embedded finance industry in this region is expected to grow by 9.1% annually to reach US$4.80 billion in 2024.
The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 22.2% from 2024 to 2029. The country's embedded finance revenues will increase from US$4.80 billion in 2024 to reach US$13.10 billion by 2029.
The embedded finance sector in Saudi Arabia is undergoing rapid and transformative growth, driven by technological advancements, strategic partnerships, and a supportive regulatory environment. Over the past few months, significant product launches, collaborations, and acquisitions have underscored the sector's momentum, highlighting its potential to enhance financial accessibility and customer experiences. With the government’s push for digital transformation and open banking, the sector is poised for further innovation and expansion, solidifying Saudi Arabia's leadership in the embedded finance space within the MENA region.
As the country continues to align its fintech advancements with Vision 2030, Saudi Arabia is positioning itself as a key financial hub, offering a dynamic ecosystem where fintechs and traditional institutions collaborate to deliver integrated financial solutions. This environment not only fosters competition but also drives financial inclusion, ensuring that more consumers and businesses benefit from cutting-edge financial services. The path ahead for Saudi Arabia’s embedded finance sector appears bright, marked by ongoing innovation and a commitment to digital excellence.
Product Launches and Innovations
Coop Finance+ Launch
In October 2023, additiv supported Coop in launching Coop Finance+, a new app that integrates various financial services, including banking products and individual pension solutions, to improve consumer access to financial products.
Strategic Partnerships
Manigo and SurePay Partnership
In September 2023, Manigo, a fintech-as-a-service platform, partnered with Saudi-based SurePay to introduce embedded finance solutions for businesses and consumers. This collaboration focuses on integrating advanced financial products within SurePay's digital payment solutions.
In September 2023, London-based Manigo partnered with Saudi payments solution provider SurePay to launch embedded finance solutions tailored for businesses and consumers. The partnership focuses on integrating Manigo's fintech platform with SurePay's digital payment solutions to foster innovation and improve financial accessibility in the Kingdom.
Funding Souq and Qoyod Collaboration
In March 2024, Funding Souq partnered with Qoyod, an accounting software provider, to embed financing options directly into Qoyod's platform, thereby improving financial accessibility for SMEs. These launches underscore the growing momentum in Saudi Arabia's embedded finance sector, driven by technological advancements and a focus on enhancing customer experiences.
In March 2024, Funding Souq, a platform focused on SME financing, partnered with Qoyod, a leading accounting software provider in Saudi Arabia. This collaboration aims to embed financing options directly into Qoyod's platform, enhancing access to financial services for small and medium enterprises.
Manigo and SurePay Collaboration
Finshape and Arab National Bank Alliance
In January 2024, Finshape formed a strategic alliance with Arab National Bank (ANB) to redefine the banking experience through personalized financial solutions. This partnership leverages technology to enhance customer engagement and service delivery.
These collaborations highlight the increasing synergy between fintech companies and traditional financial institutions in Saudi Arabia, aligning with the country's Vision 2030 goals for economic diversification and digital transformation.
Key Merger and Acquisitions
Hyperpay Acquires Sanad Cash
In July 2023, Hyperpay, a leading payment solutions provider, acquired Sanad Cash, a corporate expense management platform. This acquisition enables Hyperpay to broaden its service offerings and position itself as an all-in-one digital platform for businesses.
Cashin Acquires Cardless
In October 2023, Cashin, a payment solutions provider, acquired Cardless, allowing it to offer digital card services through its platform. This move aims to expand Cashin's capabilities in delivering innovative payment solutions.
RasMal Acquires Pentugram
In March 2024, RasMal, a financial services provider, acquired Pentugram, a UAE-based firm, to expand its private capital investment management solutions offerings. This acquisition is part of RasMal's strategy to enhance its service portfolio and cater to broader financial needs.
These acquisitions underscore the dynamic nature of Saudi Arabia's embedded finance sector as companies seek to enhance their capabilities and improve customer offerings through strategic mergers and acquisitions.
Regulatory Changes
Open Banking Framework
The Saudi Central Bank (SAMA) has continued implementing the open banking framework, officially announced in January 2021. This framework is designed to boost competition and innovation in the financial sector by allowing third-party providers to access bank data, facilitating the development of new financial products and services.
Fintech Saudi Initiatives
Fintech Saudi, a joint initiative by SAMA and the Capital Market Authority (CMA), has been actively promoting the growth of the fintech ecosystem. Recent efforts include supporting startups and enhancing regulatory clarity, which fosters innovation in embedded finance.
Regulatory Sandbox Expansion
SAMA has expanded its regulatory sandbox, allowing fintech companies to test new products and services in a controlled environment. This initiative is designed to encourage innovation while ensuring regulatory compliance, thereby supporting the growth of embedded finance solutions.
These regulatory advancements reflect Saudi Arabia's commitment to building a vibrant fintech ecosystem as part of its Vision 2030 goals, positioning the Kingdom as a leading financial hub in the region.
This report offers a comprehensive, data-centric analysis of the embedded finance industry. It covers lending, insurance, payment, wealth and asset-based finance sectors and provides a detailed breakdown of market opportunities and risks across various sectors. With over 75+ KPIs at the country level, this report ensures a thorough understanding of embedded finance market dynamics, market size, and forecast.
It breaks down market opportunities by type of business model, consumer segment, and distribution model. In addition, it provides detailed information across various segments in each sector of embedded finance. KPI revenue helps in getting an in-depth understanding of end market dynamics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.
Scope
This report provides in-depth, data-centric analysis of Embedded Finance industry in Saudi Arabia. Below is a summary of key market segments.
Saudi Arabia Embedded Finance Market Size and Forecast
- Embedded Finance by Key Sectors
- Retail
- Logistics
- Telecommunications
- Manufacturing
- Consumer Health
- Others
- Embedded Finance by Business Model
- Platforms
- Enabler
- Regulatory Entity
- Embedded Finance by Distribution Model
- Own Platforms
- Third Party Platforms
Saudi Arabia Embedded Insurance Market Size and Forecast
- Embedded Insurance by Industry
- Embedded Insurance in Consumer Products
- Embedded Insurance in Travel & Hospitality
- Embedded Insurance in Automotive
- Embedded Insurance in Healthcare
- Embedded Insurance in Real Estate
- Embedded Insurance in Transport & Logistics
- Embedded Insurance in Others
- Embedded Insurance by Consumer Segments
- B2B
- B2C
- Embedded Insurance by Type of Offering
- Embedded Insurance in Product Segment
- Embedded Insurance in Service Segment
Embedded Insurance by Business Model
- Platforms
- Enabler
- Regulatory Entity
- Embedded Insurance by Distribution Model
- Own Platforms
- Third Party Platforms
- Embedded Insurance by Distribution Channel
- Embedded Sales
- Bancassurance
- Broker’s/IFA’s
- Tied Agents
- Embedded Insurance by Insurance Type
- Embedded Insurance in Life Segment
- Embedded Insurance in Non-Life Segment
- Embedded Insurance in Non-Life Segment
- Motor Vehicle
- Fire and Property
- Accident and Health
- General Liability
- Marine, Aviation and other Transport
- Other
Saudi Arabia Embedded Lending Market Size and Forecast
- Embedded Lending by Consumer Segments
- Business Lending
- Retail Lending
- Embedded Lending by B2B Sectors
- Embedded Lending in Retail & Consumer Goods
- Embedded Lending in IT & Software Services
- Embedded Lending in Media, Entertainment & Leisure
- Embedded Lending in Manufacturing & Distribution
- Embedded Lending in Real Estate
- Embedded Lending in Other
- Embedded Lending by B2C Sectors
- Embedded Lending in Retail Shopping
- Embedded Lending in Home Improvement
- Embedded Lending in Leisure & Entertainment
- Embedded Lending in Healthcare and Wellness
- Embedded Lending in Other
- Embedded Lending by Type
- BNPL Lending
- POS Lending
- Personal Loans
- Embedded Lending by Business Model
- Platforms
- Enabler
- Regulatory Entity
- Embedded Lending by Distribution Model
- Own Platforms
- Third Party Platforms
Saudi Arabia Embedded Payment Market Size and Forecast
- Embedded Payment by Consumer Segments
- B2B
- B2C
- Embedded Payment by End-Use Sector
- Embedded Payment in Retail & Consumer Goods
- Embedded Payment in Digital Products & Services
- Embedded Payment in Utility Bill Payment
- Embedded Payment in Travel & Hospitality
- Embedded Payment in Leisure & Entertainment
- Embedded Payment in Health & Wellness
- Embedded Payment in Office Supplies & Equipment
- Embedded Payment in Other
- Embedded Payment by Business Model
- Platforms
- Enabler
- Regulatory Entity
- Embedded Payment by Distribution Model
- Own Platforms
- Third Party Platforms
Saudi Arabia Embedded Wealth Management Market Size and Forecast
Saudi Arabia Asset Based Finance Management Industry Market Size and Forecast
- Asset Based Finance by Type of Asset
- Hard Assets
- Soft Assets
- Asset Based Finance by End Users
- SME’s
- Large Enterprises
Reasons to buy
- In-depth Understanding of Embedded Finance Market Dynamics: Understand market opportunities and key trends along with forecast (2020-2029).
- Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
- Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate embedded finance strategy; assess market specific key trends, drivers, and risks in the industry.
- Get Sector Insights: Drawing from proprietary survey results, this report identifies opportunities across embedded lending, embedded insurance, embedded finance, and embedded wealth sectors.
- Get insights at segment level, by the distribution model and by business model in key embedded finance segments
- Insights into the asset based finance market size and by type of assets, by end users.
Table of Contents
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 130 |
| Published | September 2024 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value ( USD | $ 4.8 Billion |
| Forecasted Market Value ( USD | $ 13.1 Billion |
| Compound Annual Growth Rate | 22.2% |
| Regions Covered | Saudi Arabia |
