The Financial Sector Development Program, is one of the 12 executive programs launched by the Council of Economic and Development Affairs (CEDA) to achieve the objectives of Vision 2030. The program seeks to develop the financial sector as a diversified and effective financial services sector to support the development of the national economy by stimulating savings, finance and investment.
The program is underpinned by three main pillars:
- Enabling financial institutions to support private sector growth.
- Developing an advanced capital market.
- Promoting and enabling financial planning.
Why we need the Financial Sector Development Program?
- Low level of comprehensive coverage of financial services
- Low savings rate
- Weak financial planning culture
- Limited funding sources
- The need to develop the digital/automation infrastructure
The program seeks to achieve five objectives:
- Financial diversity
- Financial inclusiveness
- Financial stability
- Digital transformation
- Depth of the financial sector
The program's initiatives aim to raise households’ savings from total income from x% to 10% by 2020, increase the total size of financial assets in the Kingdom to GDP by 201%, increase the number of adults who have bank accounts from 74% to 80%, increase SME’s share of total bank loans to 5%, and generate more high-paying jobs in the financial sector, by 2020.
This document overviews the main objectives and initiatives of the program, which is implemented by three entities (the Ministry of Finance, SAMA, and CMA).