Latest news with #FSDP
Zawya
4 days ago
- Business
- Zawya
Saudi banking sector assets hit $1.2trln in 2024
RIYADH — Saudi Arabia's financial sector exceeded key Vision 2030 benchmarks in 2024, with total banking sector assets reaching SR4.49 trillion, or 131% of the program's target of SR3.43 trillion, according to the annual report released Sunday by the Financial Sector Development Program (FSDP). The report highlights the sector's achievements in supporting economic growth and outlines strategic goals for the coming years. Among the key indicators, the Tadawul All Share Index (TASI), excluding Aramco, reached a market capitalization of 86.7% of GDP, while private credit accounted for 69% of GDP. Insurance premiums reached 2.59% of non-oil GDP, surpassing the 2024 target by 9%. Small and medium enterprise (SME) loans made up 9.4% of total lending, hitting 94% of the annual goal. Assets under management stood at 26.3% of GDP, reaching 89% of the target. Finance Minister Mohammed Al-Jadaan, who chairs the FSDP committee, said the report reflects the Kingdom's continued success in bolstering financial resilience and enabling broader economic transformation. He noted that fintech continues to play a vital role in sector growth, with 261 licensed fintech firms operating by the end of 2024. In parallel, the Saudi Central Bank (SAMA) approved the launch of D360 Bank, a digital-only financial institution, as part of the Kingdom's push toward a cashless economy. Digital payments surged to 79% of total consumer transactions last year, underscoring the sector's digital maturity. Al-Jadaan also noted continued momentum in the capital markets, with 44 new company listings in 2024 bringing the total number of listed firms to 353. The report, Al-Jadaan said, showcases the scale of reform and growth across all sectors of the Kingdom in this transformative era under the leadership of King Salman and Crown Prince Mohammed bin Salman. The Financial Sector Development Program is one of the key Vision 2030 initiatives, aimed at building a diversified, resilient economy and strengthening Saudi Arabia's regional and global standing in financial services. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Saudi Gazette
5 days ago
- Business
- Saudi Gazette
Saudi banking sector assets hit $1.2 trillion in 2024
Saudi Gazette report RIYADH — Saudi Arabia's financial sector exceeded key Vision 2030 benchmarks in 2024, with total banking sector assets reaching SR4.49 trillion, or 131% of the program's target of SR3.43 trillion, according to the annual report released Sunday by the Financial Sector Development Program (FSDP). The report highlights the sector's achievements in supporting economic growth and outlines strategic goals for the coming years. Among the key indicators, the Tadawul All Share Index (TASI), excluding Aramco, reached a market capitalization of 86.7% of GDP, while private credit accounted for 69% of GDP. Insurance premiums reached 2.59% of non-oil GDP, surpassing the 2024 target by 9%. Small and medium enterprise (SME) loans made up 9.4% of total lending, hitting 94% of the annual goal. Assets under management stood at 26.3% of GDP, reaching 89% of the target. Finance Minister Mohammed Al-Jadaan, who chairs the FSDP committee, said the report reflects the Kingdom's continued success in bolstering financial resilience and enabling broader economic transformation. He noted that fintech continues to play a vital role in sector growth, with 261 licensed fintech firms operating by the end of 2024. In parallel, the Saudi Central Bank (SAMA) approved the launch of D360 Bank, a digital-only financial institution, as part of the Kingdom's push toward a cashless economy. Digital payments surged to 79% of total consumer transactions last year, underscoring the sector's digital maturity. Al-Jadaan also noted continued momentum in the capital markets, with 44 new company listings in 2024 bringing the total number of listed firms to 353. The report, Al-Jadaan said, showcases the scale of reform and growth across all sectors of the Kingdom in this transformative era under the leadership of King Salman and Crown Prince Mohammed bin Salman. The Financial Sector Development Program is one of the key Vision 2030 initiatives, aimed at building a diversified, resilient economy and strengthening Saudi Arabia's regional and global standing in financial services.
Arab News
5 days ago
- Business
- Arab News
Saudi financial ecosystem hits $267bn milestone in 2024 in line with Vision 2030
RIYADH: Saudi Arabia's financial sector recorded exceptional growth in 2024, with fintech firms reaching 261, venture capital investment in the sector exceeding SR7.6 billion ($2.03 billion), and gross written premiums in insurance climbing to SR76.1 billion. Locally managed assets in the capital market surged to SR1 trillion ($267 billion), while foreign ownership rose to over SR420 billion. These milestones, outlined in the Financial Sector Development Program's 2024 annual report, reflect the Kingdom's accelerating progress toward the economic diversification goals of Vision 2030. Saudi Finance Minister Mohammed Al-Jadaan, also chairman of the Financial Sector Development Program Committee, emphasized that the program continues to deliver on its promise of sustainable success. He said the FSDP is building an economic future that solidifies Saudi Arabia's regional and international standing while reflecting the rapid development across all sectors in this prosperous era. The FSDP has implemented a wide range of reforms and initiatives to build a robust, diversified, and inclusive financial system. The program has helped to strengthen the Kingdom's regional and global economic standing while enabling innovation, job creation, and investment growth. Fintech emerged as a key success story in 2024, with the number of operating companies surpassing initial targets and contributing to the creation of over 11,000 direct jobs. The Saudi Central Bank licensed D360 Bank to begin operations, and electronic payments accounted for 79 percent of total retail transactions — underscoring the shift toward a cashless economy. The year also saw the launch of FinTech2024, the Kingdom's first international fintech conference. Capital markets continued their upward trajectory. With 44 new listings, the number of publicly traded companies reached 353. Locally managed assets grew 169 percent compared to 2017, reaching SR1 trillion, while foreign investor holdings jumped by 501 percent over the same period to SR 420 billion. Notable developments included the introduction of the TASI 50 index, single-stock options, Real Estate Investment Certificates, and the listing of Saudi ETFs in Tokyo, Shanghai, and Shenzhen. The Capital Market Authority also launched the Kingdom's Green Finance Framework to encourage sustainable investment. In the debt capital market, the CMA unveiled a strategic roadmap and issued the first license for an alternative trading system. The Kingdom successfully conducted its first international dollar bond issuance under the Government's Global Bond Program, attracting approximately $30 billion in orders. Meanwhile, the government introduced 'Sah,' a savings product aimed at fostering a culture of personal saving. Credit rating agencies Moody's, Fitch, and S&P issued upward revisions to Saudi Arabia's sovereign credit ratings in response to the country's fiscal discipline and financial reforms. The insurance sector also posted strong performance. Gross written premiums rose 16.3 percent from 2023 to reach SR 76.1 billion, while net profits increased by 12.5 percent to SR 3.6 billion. The Insurance Authority mandated the Saudization of all insurance product sales roles and launched a Regulatory Sandbox to support startup innovation. The number of licensed InsurTech firms rose by 56 percent. New digital services included automated motor insurance, simplified claims processes, and TELEMATICS—a unified platform for tracking driver behavior. The finance minister noted that the progress reflected in the report underscores the Kingdom's broader development efforts under the leadership of King Salman and Crown Prince Mohammed bin Salman. Support for small and medium enterprises remained a cornerstone of financial sector development. Saudi startups attracted SR 2.8 billion ($750 million) in venture capital, maintaining the Kingdom's lead in the MENA region. The share of bank credit to SMEs increased from 8.4 percent in late 2023 to 9.4 percent by the end of 2024. The SME Bank disbursed over SR1.5 billion in financing to 1,029 enterprises, while the Kafalah program facilitated SR 107.2 billion in financing guarantees—advancing the Vision 2030 target for SMEs to contribute 35 percent of GDP. On the regulatory front, the FSDP advanced significant legislative reforms to enhance transparency, competitiveness, and investor protection. Updates included new principles for finance and real estate refinance companies, revisions to debt crowdfunding rules, and regulatory changes to real estate financing. The CMA also approved omnibus accounts and relaxed conditions for debt offerings, further liberalizing capital markets. Financial literacy and capability development remained a key focus. The Financial Academy trained more than 59,000 participants through its programs since inception. The third edition of the Gulf Smart Investor Award continued to raise awareness of personal finance, while the 'Malee' program began measuring and promoting financial literacy among children aged 8 to 12. Looking ahead, the Financial Sector Development Program aims to build on this momentum in 2025 by aligning with global standards, expanding financing options, increasing financial inclusion, and deepening capital market participation. As outlined in its annual report, the FSDP remains committed to fostering innovation, enhancing regulatory efficiency, and driving sustainable growth to realize the full ambitions of Saudi Vision 2030.
Scotsman
29-06-2025
- Business
- Scotsman
SNP ministers to axe public sector jobs as near £5bn funding black hole emerges
Shona Robison has warned compulsory redundancies will be considered if 'no other route' to cutting jobs is available in order to balance the books. Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... SNP ministers are poised to shed public-sector jobs after bracing for a near £5 billion funding black hole by 2030 - amid a warning 'more than 10,000 workers could be tossed on the scrapheap'. The Scottish Government's medium-term financial strategy has revealed public services pressures and 'the cost of achieving statutory net zero and child poverty targets' will put strain on the Scottish Government's finances. The door has been opened to compulsory redundancies if not enough jobs are cut through other means. Advertisement Hide Ad Advertisement Hide Ad STUC general secretary Roz Foyer labelled the strategy as 'scything cuts to Scotland's public services'. St Andrew's House is the Scottish Government's headquarters, based in Edinburgh. | TSPL Savings worth £2.6bn will be needed to balance the books for day-to-day spending by the end of the decade. The document also predicts an additional funding gap of £2.1bn for capital investment plans. Capital spending is forecast to increase from £7.2bn in 2025-26 to £9.2bn by 2030, with more money poised to be allocated to affordable housing, public transport and a flagship strategy to decarbonise buildings. Finance Secretary Shona Robison blamed the deficit on less money being handed to Holyrood from Westminster than to core UK government departments, but Labour has accused the Scottish Government of having 'spectacularly mismanaged Scotland's budget'. Advertisement Hide Ad Advertisement Hide Ad The Scottish Government is poised to see its social security bill rise to almost £9bn by 2029. Funding gap could reach £3.5bn The Institute for Fiscal Studies (IFS) warned the funding deficit could be closer to £3.5bn - rather than just £2.6bn - due to 'optimistic' forecasts in the strategy that 'assume earnings grow significantly faster in Scotland than in the rest of the UK'. A Fiscal Sustainability Delivery Plan (FSDP) sets out that a Scottish Spending Review will set a savings target of between £300m and £700m a year over five years. Efficiency and productivity improvements, alongside reforming public services, is forecast to see savings grow from £600m to £1.5bn a year over the five-year period. Advertisement Hide Ad Advertisement Hide Ad Compulsory redundancies on the table A target of cutting the public sector workforce by an average of 0.5 per cent every year until 2030 is expected to see savings grow from £100m to £700m a year. Ms Robison told MSPs the Scottish Government will 'reshape and reform our public services'. She said: 'We will set a public sector workforce managed reduction target to reduce staffing levels by an average of 0.5 per cent per year until 2030. Advertisement Hide Ad Advertisement Hide Ad 'This will be achieved by reforming our public services as set out in the public services reforms strategy and through natural attrition and recruitment controls. SNP Finance Secretary Shona Robison 'By taking this action, we will protect valuable frontline services and continue to offer a progressive pay policy, which recognises that our public sector workforce is our most valuable asset.' Ms Robison insisted 'no compulsory redundancies maintains to be the default position'. But she added: 'As a last resort, once all steps have been taken through voluntary severance, through redeployment - if there is no other route and there are no jobs for those people involved, then the compulsory redundancy can be considered.' Advertisement Hide Ad Advertisement Hide Ad The delayed document warns 'without action, the difference between projected funding and estimated spending is set to grow from a balanced budget in 2025-26, to £2.6 billion in 2029-30'. Net zero, poverty and services pressures It adds that 'day-to-day government spending … continues to face pressures from growing demand for public services and the cost of achieving statutory net zero and child poverty targets'. The document says: 'The devolved public sector wage bill is also a significant driver of projected costs, recognising the proportionately larger and better paid public sector in Scotland. Advertisement Hide Ad Advertisement Hide Ad 'This is due to investment that Scottish Government has made in our workforces over many years. However, the wage bill needs to be more sustainable going forward. Spending pressures in health and social care are particularly acute.' David Phillips, associate director at the IFS, stressed 'tougher financial choices lie ahead, including public sector job cuts'. He added: 'By 2029-30, a funding gap of £2.6bn a year for day-to-day spending is projected. That is roughly equivalent to spending on Scottish police and fire services, or the revenue from increasing all rates of income tax in Scotland by around 4 percentage points. 'Current forecasts for the contribution of devolved tax revenues to the Scottish Budget are likely optimistic, as they assume earnings grow significantly faster in Scotland than in the rest of the UK from 2026–27 onwards. All else equal, if earnings instead grew at the same rate as in the rest of the UK, the 'funding gap' for day-to-day spending would be closer to £3.5bn.' Advertisement Hide Ad Advertisement Hide Ad STUC general secretary Roz Foyer | Andrew Milligan/PA Wire Ms Foyer said: 'They may dress it up as efficiencies, but this strategy proposes scything cuts to Scotland's public services. Over the next five years, more than 10,000 workers could be tossed on the scrapheap. 'At a time when ordinary people are crying out for help, our population is ageing, the climate crisis deepens, and public services are starved of funding, this strategy should have been a turning point towards a fairer, more progressive taxation system. Instead, we got cuts to our public services presented to us as some form of salvation.' Political 'courage' demand The trade union leader added: 'It's hollow to keep talking about improving schools, hospitals and care homes without acknowledging that it will take serious, sustained public investment. You cannot cut the staff who support these services and expect them to improve. 'We know Scottish ministers face fiscal constraints, but we need vision and political courage to build a better Scotland. Unfortunately, today ministers have chosen to cut public services rather than use their powers to help redistribute wealth, tackle inequality and invest in our collective future.' Advertisement Hide Ad Advertisement Hide Ad Scottish Labour's finance spokesperson Michael Marra Scottish Labour finance spokesperson Michael Marra said: 'This SNP Government is gearing up to make cuts because it has spectacularly mismanaged Scotland's budget. It is SNP ministers and their choices that have created a structural resource deficit of £2.6bn.' He added: 'The SNP's plans mean a funding cut of at least 12 per cent to Scotland's NHS and huge reductions in frontline workers – cuts to mitigate their incompetence. 'All of this comes at a time when A&E waiting times are atrocious, cancer waiting times are at their worst point on record, ministers are admitting lives are being lost, domestic abuse statistics are at a record high, and housebuilding rates are plummeting.' Advertisement Hide Ad Advertisement Hide Ad Scottish Conservative shadow finance and local government secretary Craig Hoy branded the strategy 'too little, too late to address years of gross financial incompetence'. He said: 'Thanks to the nationalists' mismanagement Scots will be facing continued tax rises or cuts to public services in the coming years.
Scotsman
25-06-2025
- Business
- Scotsman
SNP ministers to axe public sector jobs as £2.6bn funding black hole emerges
Shona Robison has warned compulsory redundancies will be considered if 'no other route' to cutting jobs is available in order to balance the books. Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... SNP ministers are poised to shed public-sector jobs after bracing for a £2.6 billion funding black hole by 2030 - with an admission that the wage bill is a 'significant driver' of soaring costs. A stark document has warned that public services pressures and 'the cost of achieving statutory net zero and child poverty targets' will put strain on the Scottish Government's finances - with the door opened to compulsory redundancies if not enough jobs are cut through other means. Advertisement Hide Ad Advertisement Hide Ad Savings worth £2.6bn will be needed to balance the books by the end of the decade. St Andrew's House is the Scottish Government's headquarters, based in Edinburgh. | TSPL The Scottish Government has published its medium-term financial strategy - painting a bleak picture of the public finances by 2030 without intervention. A Fiscal Sustainability Delivery Plan (FSDP) sets out that a Scottish Spending Review will set a savings target of between £300m and £700m a year over five years, while efficiency and productivity improvements alongside reforming public services, is forecast to see savings grow from £600m to £1.5bn a year over the five-year period. A target of cutting the public sector workforce by an average of 0.5 per cent every year until 2030 is expected to see savings growing from £100m to £700m a year. Advertisement Hide Ad Advertisement Hide Ad SNP Finance Secretary Shona Robison told MSPs that the Scottish Government will 'reshape and reform our public services'. She added: 'We will set a public sector workforce managed reduction target to reduce staffing levels by an average of 0.5 per cent per year until 2030. 'This will be achieved by reforming our public services as set out in the public services reforms strategy and through natural attrition and recruitment controls. Advertisement Hide Ad Advertisement Hide Ad SNP Finance Secretary Shona Robison 'By taking this action, we will protect valuable frontline services and continue to offer a progressive pay policy which recognises that our public sector workforce is our most valuable asset.' Ms Robison insisted that 'no compulsory redundancies maintains to be the default position'. But she added: 'As a last result, once all steps have been taken through voluntary severance, through redeployment - if there is no other route and there are no jobs for those people involved, then the compulsory redundancy can be considered.' Advertisement Hide Ad Advertisement Hide Ad The delayed document warns that 'without action, the difference between projected funding and estimated spending is set to grow from a balanced budget in 2025-26, to £2.6 billion in 2029-30'. It adds that 'day-to-day government spending…continues to face pressures from growing demand for public services and the cost of achieving statutory net zero and child poverty targets'. It adds: 'The devolved public sector wage bill is also a significant driver of projected costs, recognising the proportionately larger and better paid public sector in Scotland.
