The Saudi Islamic fintech market is predicted to grow up to $47.5 billion by 2025 with a transaction volume worth $17.8 billion, according to an industry report.
The Global Islamic Fintech (GIFT) Report, conducted jointly by DinarStandard, an Islamic economic management consultancy, and Elipses, a financial advisory and investment firm which observes the fintech market across the Organization of Islamic Cooperation (OIC) countries, reveals that Saudi Arabia had the largest estimated Islamic fintech market size last year with a valuation of $17.9 billion and it is projected to grow by 22 percent annually to reach $47.5 billion by 2025.
As per the report, the Kingdom secured the second rank in the GIFT index which analyzed 64 countries and applied 32 indicators across five different categories namely talent, regulation, infrastructure, Islamic fintech market and ecosystem, and capital.
Abdul Haseeb Basit, co-founder and principal at Elipses and the report’s author, said that the Islamic fintech sector was steadily developing with “strong pockets” of activity across the globe.
“Most encouraging are the developments in OIC countries where large target markets exist. The number of fintech identified is more than double the amount first identified three years ago, demonstrating the rapid expansion in this sector which is set to continue growing at an accelerating pace.”
Nejoud Almulaik, director of Fintech Saudi, an initiative launched by the Saudi Central Bank (SAMA) and the Capital Market Authority, stated that “Fintech Saudi continues to work with all the relevant stakeholders in the Kingdom to develop an environment in which Islamic fintech companies can prosper and become global leaders in driving Islamic fintech innovation.”