Public-private collaborations crucial to tackling unemployment, Saudi minister says
Updated 29 January 2025
REEM WALID
RIYADH: Stronger working between governments, the private sector, and international organizations is needed to address the global unemployment crisis, according to a top Saudi official.
During the opening remarks of the Global Labor Market Conference taking place in Riyadh from Jan. 29 – 30, the Kingdom’s Minister of Human Resources and Social Development Ahmad bin Sulaiman Al-Rajhi highlighted that with 67 million young people unemployed across the world — and over 20 percent of youth in some regions outside of education, employment, or training — targeted policies are urgently needed to tap into this labor market potential.
Global employment grew in 2024, along with the expanding labor force, keeping the unemployment rate steady at 5 percent, the same as in 2023. However, the growth in employment was too weak to address the ongoing global shortage of decent work, according to the International Labor Organization.
“While the challenges may vary, the solutions require collaboration between governments, the private sector, and international organizations. By working together, we develop strategies that benefit everyone,” Al-Rajhi said.
“The numbers are concerning, and the urgency is clear. These figures are not just statistics, they represent untapped potential in all of our labor markets,” the official added, stressing that addressing youth unemployment with the right strategies is essential for driving economic growth and social progress worldwide.
The minister went on to note that freelance work has become a growing opportunity in Saudi Arabia.
“Registered freelancers increased from 400,000 in 2020 to 2.2 million this year. This growing industry now contributes almost SR72.5 billion ($19.33 billion) to the economy. The majority of these freelancers are young people,” Al-Rajhi said.
He concluded his opening remarks by saying: “The following critical questions will guide our efforts to shape effective policies that can transform our labor markets at home while also shaping the global labor market. What innovative policies for strengthening youth employment have been applied and with what results? What new initiatives our trials can help us better to understand how to quickly get job seekers into jobs? How is technology impacting youth employability?”
The minister added that the GLMC is a platform for discussion and a space for action. It exists to identify policies and strategies that can be adapted and scaled across countries, with a clear focus on the young people who will quickly form the core of the global labor market.
We are pleased to inaugurate the second edition of the #GlobalLaborMarketConference with an International Ministerial Meeting. His Excellency, Minister of Human Resources and Social Development, Eng. @Ahmed_S_Alrajhi, chaired the meeting and announced eight decisive actions for a… pic.twitter.com/xNOm8FlF5S
Vice Minister for Labor Sector in Saudi Arabia Abdulla Nasser Abuthnain highlighted that empowering young people with skills, opportunities, and support is vital to achieving Saudi Vision 2030.
“Our approach focuses in creating pathways to quality jobs that drive productivity and innovation,” Abuthnain said.
“Here in Saudi Arabia, the Ministry of Human Resources and Social Development has introduced a comprehensive youth development strategy designed to address the most pressing challenges facing young Saudis. As a result, the need rate for youth aged 15 to 24 has decreased from 17.8 percent in 2022 to 13.7 in the second quarter of 2024,” he added.
The minister continued to stress that with regard to the freelance market, Saudi Arabia is working on enhancing workforce flexibility by offering 690 contracts under flexible work arrangements and more than 204,000 remote work contracts.
“Finally, we are enhancing job matching through digital platforms. Our unified national employment platform Edarat integrated AI (artificial intelligence) to connect to job seekers with employees, ensuring more efficient and tailored matching process,” Abuthnain said.
“In closing, Saudi Arabia remains committed to fostering dynamic labor market that empowers its youth, equip them for future and position them as a key contributor to global economy,” he added.
The Kingdom is emerging as an international leader in addressing labor market challenges, skill development, and workforce requalification, according to a report released by GLMC in December.
The inaugural report, issued by the conference hosted by Saudi Arabia’s Ministry of Human Resources and Social Development, emphasized the government’s initiatives to bridge the gap between academic qualifications and market demands.
These efforts include enhancing education and training programs and preparing young job seekers for the rapidly evolving global labor landscape.
KARACHI: The International Monetary Fund (IMF) approved a $1 billion disbursement for Pakistan under a loan program secured by the government last year, Prime Minister Shehbaz Sharif said in an official statement late Friday.
The announcement followed an IMF Executive Board meeting to finalize staff-level agreements related to the $1 billion payout, as well as Pakistan’s new $1.3 billion arrangement under a climate resilience facility approved in March.
The meeting took place at a time when Pakistan is working to revive investment amid a gradually stabilizing macroeconomic environment, following a prolonged downturn that compelled it to seek external financing from allies and global lenders.
“Prime Minister Shehbaz Sharif expressed satisfaction over the IMF’s approval of the $1 billion tranche for Pakistan and the failure of India’s underhanded tactics against the country,” his office said in a statement issued after the board’s decision.
Media reports said recently India had attempted to pressure the IMF to block the disbursement, citing heightened military tensions between the two neighbors following a deadly April 22 attack in Indian-administered Kashmir that left 26 tourists dead.
New Delhi blamed Islamabad for the assault, an allegation Pakistani officials repeatedly denied.
Sharif said international financial institutions had “responsibly rejected” India’s narrative and reaffirmed their trust in Pakistan’s economic strategy.
“Indian efforts to sabotage the IMF program have failed,” he said, adding the disbursement would help stabilize the economy and steer it toward long-term recovery.
He praised Deputy Prime Minister and Foreign Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb and other members of the government’s economic team for their role in securing the funds.
Pakistan has been working to broaden its tax base, improve energy sector efficiency, and unlock private sector growth as part of its reform commitments under the $7 billion IMF loan program.
“By the grace of God, the country’s economic situation is improving, and Pakistan is moving toward progress,” Sharif said. “The government remains committed to tax reforms, energy sector improvements and private sector development.”
He reiterated that Pakistan would stay the course on economic stabilization, effective performance and long-term planning.
The IMF funding approval comes at a critical time for Pakistan, as it seeks to reassure global investors and shore up foreign exchange reserves amid geopolitical instability and upcoming budget negotiations.
KARACHI: The Pakistan Stock Exchange (PSX) rebounded sharply on Friday, climbing over 3,500 points, as investor sentiment improved ahead of an International Monetary Fund (IMF) Executive Board meeting and what some analysts described as easing tensions between Pakistan and India.
The benchmark KSE-100 index recovered 3,647.82 points, or 3.52 percent, closing at 107,541.45, after a historic plunge of 6,482 points on Thursday, the largest single-day drop in the index’s history, triggered by fears of an escalating conflict between the two nuclear-armed neighbors.
"The recovery was on account of optimism on IMF Executive Board meeting scheduled to consider Extended Fund Facility (EFF) program, where market expects smooth approval," Topline Market Review said after the end of trading. "Overall decline in cross border hostilities also provided stimulus to investor sentiment."
The EFF, a $7 billion loan program secured by Pakistan in September last year, is aimed at stabilizing the country's economy through structural reforms and fiscal consolidation.
While Pakistan’s authorities say macroeconomic indicators have improved in recent months, they view the IMF support as critical for sustaining gains and transitioning toward growth.
Some analysts also linked the improved investor confidence to what they described as a gradually easing geopolitical situation between India and Pakistan.
"Stocks staged sharp recovery as investor eye de-escalation in Pakistan-India tensions after US appeal for end to violence," Ahsan Mehanti, the Chief Executive Officer of Arif Habib Commodities, told Arab News.
Raza Jafri, the head of Intermarket Securities, said any de-escalation could extend the positive stock market trend.
"Institutional value buying, especially in blue-chip high dividend yielding stocks, saw the KSE100 rebound today," he added.
Tensions between India and Pakistan spiked this week after New Delhi launched missile strikes on multiple locations in Pakistan, blaming Islamabad for a deadly April 22 attack in Indian-administered Kashmir that killed 26 tourists. Pakistan has denied involvement.
The crisis triggered a 12 percent decline in the Pakistani market from April 23 to May 8.
The geopolitical unrest posed a major challenge for Prime Minister Shehbaz Sharif’s efforts to stabilize the economy, which depends on a number of factors including increased foreign investment, exports and revenue generation.
KARACHI: Prime Minister Shehbaz Sharif on Friday lauded the contribution of overseas Pakistanis as workers’ remittances surged to a record $31.2 billion during the first ten months of the current fiscal year, with Saudi Arabia emerging as the top source of inflows.
According to data released by the State Bank of Pakistan (SBP), remittances rose by 30.9 percent during July-April FY25 compared to $23.9 billion received in the same period last year.
In April alone, Pakistan received $3.2 billion, showing a 13.1 percent year-on-year increase. The inflows were mainly sourced from Saudi Arabia ($725.4 million), United Arab Emirates ($657.6 million), United Kingdom ($535.3 million) and the United States ($302.4 million).
“Prime Minister Shehbaz Sharif expressed satisfaction over a 31 percent increase in remittances during the first 10 months of fiscal year 2025 compared to the previous year,” a statement issued by his office said.
“Remittances reaching a record level is a reflection of the confidence of overseas Pakistanis in government policies,” it quoted him as saying.
Remittances form a vital pillar of Pakistan’s external sector, helping stabilize the current account, fueling domestic consumption and easing the country’s reliance on external borrowing.
Earlier this year, in March, the SBP recorded an all-time monthly high of $4.1 billion in remittance inflows, driven by seasonal factors and improved formal channel usage.
Pakistan has focused on boosting exports and remittances in recent years as part of broader efforts to strengthen its external sector and address economic vulnerabilities.
The central bank has also revised its FY25 remittance projection upward from $36 billion to $38 billion, citing current trends.
‘A revolution in the way people travel’ — Saudi aviation industry soaring with sky-high ambition
Updated 09 May 2025
Miguel Hadchity
RIYADH: Increased technology integration and greater connectivity over the next five years will see Saudi Arabia cement its position as a global aviation hub, experts have told Arab News.
In a comprehensive assessment of the Kingdom’s air sector, analysts and industry insiders have set out how investment in infrastructure, the roll out of new airlines, and a focus on sustainability will see Saudi Arabia reach its Vision 2030 goals.
The Kingdom is targeting handling 330 million passengers annually across 250 destinations by the end of the decade, as well as transporting 4.5 million tonnes of cargo.
The industry laid the groundwork for this growth in 2024, achieving record-breaking results with the 94 million passengers transported representing a 15 percent year-on-year increase, alongside a 10 percent rise in flight activity, and a 52 percent boost in air cargo, to reach nearly 1 million tonnes.
The International Air Transport Association’s Regional Vice President for Africa and the Middle East, Kamil Al-Awadhi told Arab News that the Kingdom is preparing for the aviation sector to play an even bigger role in its future.
“Over the next five years, we expect continued development in digitalization and connectivity, and for Saudi Arabia to be in an even stronger position as a global hub, driving economic and social growth for the Kingdom,” he said.
Al-Awadhi also emphasized that the nation’s regulatory reforms and commitment to sustainability will be key factors in attracting international airline partnerships and investment.
He added: “GACA’s (the General Authority of Civil Aviation) revision of its charging scheme, to make Saudi airports more competitive in the region, is a positive step, now and for the future. As is its establishment of an independent economic regulatory framework.”
The top official noted that Saudi Arabia is the first country in the Middle East and North Africa to do this, and encouraged others to follow.
Riyadh Air — a portal to the Kingdom
A key development in the sector is the highly anticipated debut of Riyadh Air, Saudi Arabia’s new full-service airline, set to launch in 2025.
The company has made significant strides in preparation for its release, including major aircraft acquisitions, strategic alliances, and technological investments.
Mark Bothorn, principal of innovation practice at Arthur D. Little Middle East, highlighted that the launch of Riyadh Air is a “watershed moment for Saudi Arabia’s aviation sector — an event of this scale and significance happens perhaps once a decade.”
He added: “As a full-service national flag carrier, Riyadh Air will not only enhance domestic connectivity but also position the Kingdom’s capital as a major global aviation hub.”
Bothorn further anticipated that the new national carrier would serve as an ambassador for Saudi Arabia, embodying the nation’s vision through cutting-edge design, unparalleled guest experience, and world-class connectivity. “The way the world perceives Riyadh will, in many ways, be shaped by the experiences this airline delivers,” he added.
Mark Bothorn, principal of innovation practice at Arthur D. Little Middle East. Supplied
The airline has ordered 60 Airbus A321neo jets, with plans for additional wide-body aircraft this year. It has secured agreements with Singapore Airlines, Air China, and Delta Air Lines to enhance interline connectivity, codeshare operations, and frequent flyer benefits.
Riyadh Air is collaborating with Artefact to develop an advanced data analytics platform that aims to offer hyper-personalized services and seamless digital-first experiences. Its initial routes will connect Saudi Arabia to major cities in Europe, North America, and Asia, enhancing its international connectivity.
Riyadh Air plans to connect with more than 100 cities by 2030. Shutterstock
The Kingdom’s existing airlines are also undergoing significant transformations to cater to the growing demand and enhance international reach.
Saudia has placed a historic $19 billion order for 105 Airbus A320neo aircraft to expand its fleet, set for delivery starting in 2026.
Additionally, the airline is enhancing its maintenance and repair capabilities through a partnership with Air France-KLM. Flyadeal, Saudia’s budget airline, aims to double its fleet to 100 aircraft by 2030, offering affordable travel options across domestic and regional routes.
Flynas, the region’s top low-cost airline, secured a 280-aircraft deal, including Airbus A320neo and A330neo models, to support its aggressive expansion strategy. The airline also introduced new routes connecting Saudi Arabia to Africa and Europe.
Bothorn commented on the impact of heightened market contenders, saying: “Increased competition is always a catalyst for innovation and improvement, and in Saudi Arabia’s aviation sector, it will lead to two transformative outcomes.”
First, enhanced connectivity will strengthen Riyadh’s position as a global business hub by providing seamless access to international markets through more flights and improved routing.
Second, Riyadh Air, unburdened by legacy systems, has the potential to redefine air travel, setting new benchmarks in passenger experience and efficiency, according to Bothorn.
Airport infrastructure soars
To handle the volume that new airlines will be attracting, Saudi Arabia is investing heavily in airport infrastructure.
King Salman International Airport in Riyadh is set to become one of the world’s largest airports, with ongoing developments led by global firms including Foster & Partners and Jacobs Engineering. The airport will increase its capacity to accommodate 120 million passengers by 2030.
King Khalid International Airport’s expansion includes upgrades to Terminals 1 and 2, increasing capacity to 14 million passengers annually. Saudia’s deal with German aerospace company Lilium NV will introduce 50 electric vertical takeoff and landing jets, making it the first airline in the region to invest in sustainable air travel.
Bothorn emphasized the impact of airport infrastructure advancements. “For many travelers, the airport experience is often the most stressful part of a journey — navigating terminals, dealing with security bottlenecks, and enduring long waits.”
He added: “A seamless integration between the airport and airlines can dramatically transform this, replacing frustration with efficiency and even moments of delight.”
Bothorn envisioned airports that proactively anticipate passenger needs, with real-time updates enabling travelers to relax in lounges or dine rather than wait at gates.
An impression of how King Salman International Airport will look when construction is completed. File
Investment turbines spin
Saudi Arabia’s business aviation sector is thriving, driven by an influx of high-net-worth individuals and economic expansion. The sector, valued at $1.2 billion in 2023, is expected to grow at an annual rate of 8.88 percent from 2025 to 2029.
GACA is further boosting this sector by removing restrictions on foreign on-demand charter flights, allowing international operators to enter the domestic private aviation market starting in May.
Infrastructure and transportation developments outlined in the 2025 Saudi budget report reinforce these aviation ambitions. The gross domestic product of the transportation and logistics sector grew by 6.4 percent in the first half of 2024.
Total investment contracts signed in this sector amounted to over SR200 billion ($53.3 billion). Saudi Arabia has also strengthened its global presence by securing key positions in international aviation organizations, including hosting the UNCTAD Global Supply Chain Forum in 2026 and chairing the Executive Council of the Arab Civil Aviation Organization.
To enhance aviation services, the Kingdom has looked to implement modern and eco-friendly transportation initiatives during the Hajj season, including self-driving taxis, smart delivery vehicles, and increased aircraft seat capacity for pilgrims. Performance-based operations and maintenance contracts have been executed to enhance asset management efficiency.
Plans for 2025 include SR42 billion allocated for the infrastructure and transportation sector, which will witness the launch of several travel lounges across international airports, licensing new national air carriers, and expanding public bus networks to improve intercity and regional connectivity.
Al-Awadhi of IATA further elaborated on the nation’s role in shaping global aviation policies. “Many countries in the region look to Saudi Arabia for developing their aviation sectors, so the Kingdom plays an important role in shaping regional policies.”
Recent work revamping economic regulation related to consumer protection, safety and security has been followed by other countries in the region, according to the top official.
“We’re stronger as an industry when standards are aligned, not just regionally but globally,” he added.
Private jets and Saudi Arabia’s aviation roadmap
Saudi Arabia has made developing the private aviation market a key part of its roadmap for the sector, with the charter and corporate jet segments being supported by infrastructure upgrades such as six new general aviation airports.
The sector’s growth aligns with Vision 2030’s diversification efforts, particularly in tourism and entertainment, with destinations like AlUla and the Red Sea International Airport, capable of handling 1 million tourists annually, driving demand.
During 2024’s Future Aviation Forum, GACA unveiled a roadmap aimed at increasing the general aviation sector’s contribution to GDP, targeting a tenfold growth to reach $2 billion by 2030. The plan encompassed the business aircraft sector, including private charter flights and corporate aviation.
Sustainability is another focus, with GACA’s plan targeting net-zero emissions by 2060 through initiatives such as sustainable aviation fuel and AI-driven efficiency optimizations. However, challenges, including limited sustainable aviation fuel supply, remain.
The International Air Transport Association’s Regional Vice President for Africa and the Middle East Kamil Al-Awadhi. Supplied
The 35 percent SAF blend, supplied by Arabian Petroleum Supply Co., reduces aircraft emissions by up to 35 percent per flight, aligning with RSG’s broader sustainability efforts, including 400 megawatt-peak of solar installations and plans to plant 50 million mangroves by 2030.
The airport, operational from 2023 and with international flights beginning in 2024, serves the growing Red Sea destination, set to feature 50 resorts by 2030.
The next five years will bring transformative benefits for travelers flying to and from Saudi Arabia. Expanded airline networks will improve connectivity, reduce layovers, and increase travel convenience.
The rise of low-cost carriers like flyadeal and flynas means more budget-friendly flights for domestic and international routes. AI-driven services, biometric security checks, and world-class airport infrastructure will streamline travel, making it more efficient and comfortable.
“Expect nothing short of a revolution in the way people travel,” Bothorn said. He explained that long queues at security and immigration, endless gate waits, and the anxiety of either rushing through the airport or arriving far too early “will become relics of the past.” He projected air travel to become more intuitive and enjoyable.
Al-Awadhi added that Saudi Arabia is investing heavily in digital processing of passengers and integrating latest technologies at airports.
“We can certainly expect better passenger experience and customer service,” he said, adding: “Airlines are also updating their fleets so travelers will be flying on the latest aircrafts, enjoying what new technologies have to offer. Improved connectivity will provide travelers with more choices, enhancing the overall customer experience.”
Investments in eVTOL aircraft and eco-friendly practices signal a shift toward greener aviation. Saudi Arabia is undergoing a historic transformation in its aviation sector, with massive investments, strategic expansions, and cutting-edge innovations that will redefine the travel experience.
By 2030, the Kingdom aims to be a premier global aviation hub, offering world-class connectivity, seamless air travel, and state-of-the-art airport facilities.
Saudi Arabia fast-tracks shift to cashless economy on back of fintech boom
Updated 09 May 2025
Nadin Hassan
RIYADH: Saudi Arabia is accelerating its journey toward becoming a cashless society, propelled by a booming fintech sector, rising consumer adoption of digital services, and a proactive regulatory framework.
From Riyadh’s tech districts to small shops in remote towns, the Kingdom is swiftly shifting from coins and notes to codes and clicks.
With Vision 2030 as the blueprint, Saudi Arabia is leveraging its young, digitally connected population and progressive regulatory framework to fast-track its evolution into a cashless economy.
“The branch-based and cash-based banking model is transforming into a world of mobile banking, artificial intelligence-enabled services, open banking, and digital financing solutions,” Khalid Al-Sharif, CEO of Abdul Latif Jameel Finance, told Arab News, adding: “The Kingdom’s shift to a cashless economy offers a significant opportunity for financial institutions to rethink and embrace digital-first business models to remain competitive.”
Fintech revolution
As of 2023, the number of fintech companies in Saudi Arabia hit 216, surpassing the target of 150 by 44 percent. Direct jobs in the sector have crossed 6,500, more than double the initial projections.
Venture capital investment in Saudi fintechs surged sixfold in 2023 compared to the previous year, with companies raising SR2.5 billion ($666 million) across 10 funding rounds. The Kingdom’s fintech assets under management are projected to approach $64 billion in 2024, signaling substantial momentum.
“The fintech sector in the Kingdom is positioned for rapid growth in the coming years, driven by multiple factors, including increased digital banking adoption, a young and tech-savvy population, and the government’s push for diversification under Vision 2030,” Imad Kaddoura, partner at PwC Middle East, told Arab News.
He continued: “By collaborating on areas such as digital wallets, AI-driven financial services, and blockchain-based solutions, Saudi Arabia can position itself as a regional leader in fintech.”
Digital banking redefined
The Kingdom’s banking sector is undergoing a digital revolution. The emergence of digital-only banks and mobile-first services is reshaping how consumers engage with financial institutions.
With a youthful, connected population, the appetite for frictionless banking is surging. Saudi digital banks are tapping into AI, machine learning, and data analytics to deliver hyper-personalized services, breaking down traditional barriers to banking.
These innovations are streamlining operations while reaching underserved communities. Opening accounts, accessing loans, or managing personal finances is becoming faster, easier, and more inclusive.
“Achieving financial inclusion for everyone in a cashless society is imperative,” said Al-Sharif. “The advancement of alternative credit scoring, digital lending platforms, and mobile-based services is helping to bridge the gap.”
Mobile payments
The Saudi Central Bank has been working to strengthen the Kingdom’s digital payment infrastructure. File
The adoption of mobile payment solutions has skyrocketed, with services like stc pay, Apple Pay, and Mada Pay leading the charge. From groceries to utility bills, consumers are embracing contactless options for everyday transactions.
“In 2023, electronic payments engaged in 70 percent of all retail consumer transactions in Saudi Arabia, up from 62 percent in 2022,” Al-Sharif noted. “This signals a remarkable change in consumer preferences and a broader transition toward a fully digital economy.”
This shift is driven by both private sector innovation and regulatory support. The Saudi Central Bank, also known as SAMA, continues to strengthen the digital payment infrastructure and security, while aiming to achieve 80 percent non-cash transactions by 2030 — a goal now well within reach.
Retailers, restaurants, and service providers are rapidly embracing digital payments, integrating cashless solutions into daily business operations.
Blockchain and open banking
Saudi banks and fintech firms are also experimenting with blockchain in regulatory sandboxes launched by SAMA. These controlled environments enable firms to test innovations while ensuring regulatory compliance — a model that’s attracting global fintech players and investors alike.
“Saudi Arabia’s regulatory landscape has evolved rapidly to support a dynamic fintech ecosystem — but with innovation comes complexity,” Said Murad, senior partner at Global Ventures, told Arab News.
“What sets Saudi Arabia apart is its proactive, collaborative regulatory approach. Initiatives like the Regulatory Sandbox by Fintech Saudi and SAMA provide a critical runway for fintechs to test and iterate,” he added.
Open banking is further redefining financial services by enabling secure, consent-based data sharing between banks and third-party providers.
“Open banking is not a disruption — it’s a redefinition of how financial services are built, delivered, and experienced in Saudi Arabia,” Murad said. “By enabling secure, consent-based data sharing ... it’s reshaping the competitive landscape.”
The cashless transition is not just about convenience — it has deep social and economic ramifications.
By broadening access to banking services, Saudi Arabia is fostering financial inclusion, bringing unbanked and underbanked populations into the fold.
“Digital financial services can extend access to millions who have historically been underserved by traditional banking,” Murad noted. “Fintech innovation is already playing a central role. Hakbah, for example, is redefining savings in the digital era by modernizing Jameya — the traditional group savings model — into a platform that’s accessible, secure, and user-friendly.”
He added: “By digitizing familiar behaviors, Hakbah empowers individuals, particularly the underbanked, to build financial resilience and long-term security.”
Kaddoura went on to say: “Financial inclusion in a fully digital economy relies on a few key elements. It’s essential to increase mobile banking access and improve digital literacy, particularly for underserved populations.”
Digital payments and alternative lending platforms are also making it easier for entrepreneurs to access capital, manage transactions, and grow their businesses. Meanwhile, the growing fintech ecosystem is helping create jobs, attract tech talent, and position Saudi Arabia as a regional financial powerhouse.
Safeguarding the digital shift
Cybersecurity is more important than ever. Shutterstock
Despite this progress, challenges remain. As the financial system becomes more digitized, cybersecurity and consumer trust become critical.
“While digital payments bring numerous advantages, they also introduce cybersecurity and fraud risks that must be carefully managed,” Al-Sharif warned.
“We implement robust security measures including advanced encryption, AI-driven fraud detection, and multi-factor authentication to protect our clients’ information.”
Murad echoed this concern: “As digital payments become the norm, cybersecurity and fraud prevention must become foundational pillars of the financial ecosystem. The same infrastructure that enables speed, scale, and convenience also introduces new vectors for cyberattacks.”
Beyond security, talent development is another key concern.
“Financial institutions need to focus on long-term digital strategies, invest in talent development, and collaborate with regulatory bodies to adopt disruptive technologies while maintaining financial sector stability,” Kaddoura said.
Financial literacy also plays a pivotal role. “Underserved communities still require financial solutions that accommodate their needs,” said Al-Sharif. “Educational programs are essential to empower consumers to make informed financial decisions.”
Digital-first economy
Saudi Arabia’s journey toward a cashless society is seen as being part of a societal and economic transformation.
“The shift toward a cashless economy is more than a technological evolution — it’s a catalyst for economic growth, operational efficiency, and financial inclusion,” Murad said. “A cashless Saudi Arabia is about building a digital-first economy that is more efficient, inclusive, and resilient.”
With Vision 2030 as the guiding force, fintech innovation as the engine, and an increasingly digital-savvy population as the driver, Saudi Arabia is redefining the future of finance and setting a regional benchmark along the way.
