SAMA, CMA launches Makken FinTech to empower 150 firms
The “Makken Fintech” program was inaugurated on December 18, 2023, under the auspices of the Saudi Central Bank (SAMA) and the Capital Market Authority (CMA), spearheaded by Fintech Saudi. This initiative aims to support 150 emerging financial technology companies in the Kingdom over the next three years.
The “Makken Fintech” program is part of Fintech Saudi’s strategic efforts to achieve the goals of financial technology within Vision 2030, with the objective of transforming the Kingdom into a global hub for financial technology. This transformation seeks to attract innovators and investors to establish their companies in an innovation-friendly environment within the financial technology sector.
During the program’s launch event, His Excellency Mr. Ayman Alsayari, Governor of the Saudi Central Bank, expressed his optimism about the future of financial technology in the Kingdom. He stated, “The launch of this program is a continuous step to support and develop the financial technology ecosystem within the framework of the Financial Sector Development Program.”
Furthermore, he highlighted the rapid growth experienced by Saudi Arabia in various fields, particularly in financial technology, where the number of financial technology companies reached 207 by the end of November 2023 compared to 147 companies at the end of 2022, representing a 40% growth.
The new program introduced by Fintech Saudi aims to provide comprehensive support to empower 150 emerging companies, offering technical and financial assistance, cybersecurity services, and suitable shared workspaces that enable entrepreneurs to realize their full potential and succeed in their ventures.
The financial technology sector is a cornerstone of Vision 2030 in Saudi Arabia, contributing to the creation of approximately 3,000 direct job opportunities since the beginning of 2023. By the end of the third quarter of 2023, the sector has generated over 5,000 jobs. This remarkable growth in the sector is attributed to Fintech Saudi’s endeavors aimed at empowering technology startups and programs focused on developing the financial sector in collaboration with the Saudi Central Bank and the Capital Market Authority.
Program “Makken Fintech”
The “Makken Fintech” program was launched by Fintech Saudi with significant support from the Saudi Central Bank and the Capital Market Authority. Its goal is to empower 150 emerging companies in the financial technology sector over the coming three years, significantly contributing to enhancing the growth and development of the promising financial technology sector in Saudi Arabia.
The “Makken Fintech” program offers a comprehensive range of supported services to assist financial technology companies. These services aim to foster development and advancement by reducing compliance costs associated with the highest technical and technological standards, directing the efforts of emerging entrepreneurs towards the development and improvement of the products offered.
The supported services in the “Makken Fintech” program encompass cloud computing, providing discounted packages for emerging financial technology companies from digital service providers. Additionally, there are supported services aimed at enhancing compliance with cybersecurity requirements, along with the provision of specifically designed shared workspaces for companies in the financial technology sector.
To qualify for Makken Fintech program, the emerging company must meet the following criteria:
- Registered company in Saudi Arabia, including registration with relevant government authorities.
- Not having raised more than 10 million Saudi Riyals in investments.
- The company should operate within the financial market scope or participate in the regulatory environment provided by regulatory entities.
- The company’s ownership should be Saudi, exceeding 51%.
- The emerging company aims to launch its innovations in Saudi Arabia.
- The company’s field should be innovative and aligned with the financial technology strategy within the Financial Sector Development Program for Vision 2030.
- The company’s activities and innovations should target and focus on serving the Saudi market.
Fintech Saudi
As for Fintech Saudi, it is an initiative launched by the Saudi Central Bank in collaboration with the Capital Market Authority in April 2018. Its aim is to develop and enhance the financial technology sector in Saudi Arabia, elevating its role in national social and economic development. Fintech Saudi aims to transform Saudi Arabia into an innovation hub in the financial technology field, constructing a thriving and responsible system by supporting the development of necessary infrastructure for sector growth, enhancing capacities and skills, and empowering entrepreneurs in the financial technology field across all stages of their development.
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