RIYADH: As Saudi Arabia moves forward to achieve the goals of Vision 2030, the Kingdom’s Central Bank is at the forefront, leading a range of pivotal initiatives and giving the green light to several institutions in 2024. These measures reaffirm the country’s dedication to promoting financial innovation and inclusion. .
Saudi Arabia’s central bank, known as the Saudi Arabian Monetary Agency, has launched a flurry of programs and approvals this year, from offering secure account services to engaging in high-level discussions on reserve management and expanding investment training endeavors.
In addition, it issued licenses to enhance payment and crowdfunding services, enhancing its pivotal role in the economic diversification of the Kingdom.
Below are some of the important developments and initiatives undertaken by the Saudi Arabian Monetary Agency this year:
Enhance security and accessibility
In May, the Saudi Arabian Monetary Agency announced the launch of a new initiative entitled “View My Bank Accounts” for individual bank account holders. The new service aims to enhance reliability and reduce the risks of suspicious transactions, unauthorized use of the account and identity theft.
SAMA added that it is continuously working to develop electronic financial transactions in accordance with international best practices.
Dealing with macro financial challenges
In April, the apex bank held a high-level meeting on reserve management, aiming to target the complexities of the current macrofinancial environment. The event brought together reserve managers and experts from central banks across the MENA region, along with participants from other major financial institutions, to delve into the latest trends in foreign exchange reserve management.
Saudi Arabian Monetary Agency Governor Ayman Al-Sayyari highlighted how the evolving global landscape presents new challenges and opportunities for central bank reserve managers. He stressed the importance of such high-level meetings in dealing with the complexities of the current macrofinancial environment.
Investment Immersion Program
In another development, the Central Bank of Saudi Arabia began the registration process for its fourth edition of the Investment Immersion Program in April, which aims to nurture and employ local investment professionals.
Developed in collaboration with the Wharton School of the University of Pennsylvania, along with major global banks and asset managers, this program offers a comprehensive curriculum featuring academic courses and hands-on training across different investment areas.
“The program offers an advanced technical course, on-the-job training with international banks and asset management companies, and job rotation in the Investment Agency of the Central Bank of Saudi Arabia under the supervision of experts in asset management and global financial markets.” The Saudi Arabian Monetary Agency said.
In addition, participants will benefit from continuous development programs aimed at enhancing their technical investment skills, in addition to a range of distinctive employment benefits.
The program is designed for Saudi citizens under the age of 27 who hold a bachelor’s or master’s degree in finance, accounting, economics, statistics, or business-related fields from accredited local or international universities.
Financial Stability Guidance
In February, the Central Bank, represented by the Governor of the Saudi Arabian Monetary Agency, Al-Sayyari, co-chaired the meeting of the Regional Advisory Group of the Financial Stability Board for the Middle East and North Africa in Riyadh.
The meeting was also attended by Hassan Abdullah, Governor of the Central Bank of Egypt, and Kalas Odeh, Chairman of the Financial Stability Board.
Discussions during the meeting focused on challenges related to weaknesses in global and regional financial stability, including the implementation of the global regulatory framework for crypto-asset activities.
In addition, the meeting analyzed lessons learned from the disruptions affecting the global banking sector in 2023, along with financial risks arising from the high interest rate environment and non-bank financial intermediation.
Al-Sayyari stressed the emergence of the Middle East and North Africa region as a global center for development, driven by its strategic location and ongoing economic diversification efforts. He also highlighted the International Monetary Fund’s assertion in its report on regional economic prospects that the Middle East and North Africa region is resilient in the face of negative macro-financial risk scenarios.
Al-Sayyari stressed the importance of developing plans that support financial stability, are compatible with the economic and financial conditions of the region, and enhance the interconnection between its economies.
Members also received an update on the Financial Stability Board’s 2024 work program and discussed the Financial Stability Board’s report on initial lessons learned from banking disruptions in 2023.
The Financial Stability Board’s Regional Advisory Group for the Middle East and North Africa includes financial and regulatory authorities from Saudi Arabia, Kuwait and the United Arab Emirates, along with Bahrain, Oman and Qatar. In addition, it includes Egypt, Algeria, and Jordan, in addition to Lebanon, Morocco, Tunisia, and Turkey.
Promoting financial innovation
Throughout the year, the central bank has been proactive in granting licenses to various payment and crowdfunding service providers.
It started the year by allowing Thara to offer debt-based crowdfunding solutions. At the same time, the Saudi Arabian Monetary Agency also granted licenses to Network International Arabia for payment services at points of sale and to Barraq for electronic wallet services.
Highlights
• The Saudi central bank, known as the Saudi Arabian Monetary Agency, has launched a wave of programs and approvals this year, ranging from providing secure account services to engaging in high-level discussions on reserve management and expanding investment training endeavors.
• Governor of the Saudi Arabian Monetary Agency, Ayman Al-Sayyari, stressed the importance of developing plans that support financial stability, are in line with the economic and financial conditions of the region, and enhance the interconnectedness between its economies.
“This decision reflects the Saudi Arabian Monetary Agency’s endeavor to support the financial sector, increase the efficiency of financial transactions, and promote innovative financial solutions for financial inclusion in the Kingdom of Saudi Arabia. The Saudi Arabian Monetary Agency stresses the importance of dealing exclusively with licensed financial institutions.
In February, the Central Bank extended the mandate of Alpha Arab Finance Company to participate in financing activities for small and medium enterprises.
In April, the Saudi Arabian Monetary Agency licensed Funding Market to provide debt-based crowdfunding solutions, bringing the total number of such companies operating in the Kingdom to 10.
Sohar International obtains approval from the Saudi Arabian Monetary Agency
In January, Sohar International, the second largest bank in the Sultanate of Oman, received a no-objection certificate from the Saudi Arabian Monetary Agency as it set its sights on expanding into Saudi Arabia.
This strategic step is consistent with the bank’s growth strategy, demonstrating its ability to identify opportunities for sustainable expansion.
It is expected that the bank’s entry into the Saudi market will help Omani companies seeking to enter the Kingdom’s market.
“At the heart of the bank’s strategic expansion lies a combination of personalized, customer-focused offerings and pioneering services. These initiatives form the cornerstone of the bank’s overall strategy, which aims not only to achieve growth, but also to To enhance customer experience in a sustainable manner in an ever-evolving financial landscape.”
Overall, the proactive measures taken by the Saudi Arabian Monetary Agency confirm its commitment to supporting Saudi Arabia’s economic growth and its resilience in the ever-evolving global financial landscape.