Credit: Tumisu from Pixabay.

Saudi Arabia is set to issue licences to the country’s first two digital lenders as part of its larger economic reform plan.

According to Saudi Press Agency (SPA), the Cabinet has given its go-ahead to the country’s finance minister to issue licences to STC Bank and Saudi Digital Bank.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The proposals were approved during a virtual meeting chaired by King Salman, the report added.

Initially, STC Pay will be transformed into a digital bank called STC Bank with a capital of SAR2.5bn ($666.7m).

Subsequently, a group of investors will establish Saudi Digital Bank as a local lender with a capital of SAR1.5bn ($400m).

Later, Finance Minister Mohammed Al-Jadaan said on Twitter that the move is aligned with the Saudi Financial Development Program.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The Middle East country is now seeking to develop a digital infrastructure in the financial sector as part of the Vision 2030 programme.

Last year, the central bank of the country licenced 16 local fintech firms enabling them to offer payment services, microfinance and digital insurance brokerage.

Recently, a Saudi fintech called Tweeq secured a seven figure USD investment in the funding round. Tweeq will offer a spending account app to enable the users to receive and make payments, set budgets and financial goals.