A look at Financial Sector Development Program’s aspirations in 2022

Logo of Financial Sector Development Program

The Financial Sector Development Program (FSDP) aims to achieve certain aspirations this year. It targets 24 listings in the Saudi market in 2022.

It also aims to raise foreign investor ownership of the equity market capitalization to 16% by the end of the year and increase the assets under management as a percentage of gross domestic product (GDP) to 25.6%. 

The program also aims to further deepen the debt instruments market as a percentage of GDP to 18.7% through various strategic initiatives, such as working with government authorities on addressing the mechanism of calculating Zakat.

The Saudi Central Bank (SAMA) aims to launch the fintech strategy. 

The program also aims to launch open banking policy to allow bank customers to manage their bank accounts, share data safely, and allow third-party service providers to access customers’ banking information after their consent. On the other hand, customers can benefit from the best financial products and services, and have all accounts in one control panel and have access to use-friendly banking activities.

The FSDP aims to launch a bank for small and medium-sized enterprises (SMEs) to target gaps in the current SME financing, and to expand the indirect lending initiative, which provides liquidity for financing firms and enhances their role in SME financing. 

Other targets include expansion in government-backed products to mitigate the COVID-19 impacts and speed up recovery of SMEs, increased cooperation with the private sector to offer various savings products, and the launch of new investment programs for Saudi Venture Capital Co. (SVC), including business accelerators, start-up studios, as well as venture capital and debt funds.