Fintech experts believe that Saudi Arabia is poised to lead the regional decentralized finance (DeFi) landscape, with strong backing from the Saudi Central Bank (SAMA) and Vision 2030 initiatives. This environment is fostering solutions to some of the challenges in the financial sector.
Abdulrahman Al-Dakheel, CEO of Taskheer, an online fintech platform, emphasized the government’s support for innovative technologies like blockchain and Central Bank Digital Currencies (CBDCs). He highlighted Saudi Arabia’s participation in a global CBDC trial aimed at enhancing cross-border payments.
Al-Dakheel credited Fintech Saudi, a SAMA initiative, for helping to build a comprehensive ecosystem for fintech entrepreneurs, offering resources for training, networking, and regulatory compliance.
Jamil Abuwardeh, co-founder of METKAF.com, said DeFi has the potential to transform Saudi Arabia’s financial sector by providing decentralized financial services to all citizens, enabling affordable lending, borrowing, and cross-border transactions with low fees.
Stefan Kimmel, CEO of UAE-based crypto exchange M2, noted the importance of collaboration across sectors, saying that progress in DeFi adoption requires joint efforts from fintechs, traditional banks, and regulators.
However, challenges remain, including regulatory uncertainties and security risks, but experts are optimistic that Saudi Arabia will maintain a balanced approach between innovation and regulation.