Financial Empowerment and Its Impact on Inclusive, Sustainable Growth

Before addressing financial inclusion, it is essential to understand what it means. While definitions may vary across international institutions, there is broad consensus that financial inclusion refers to the ability of all members of society, regardless of gender, age, or income level, to access financial and banking services and products, with the removal of barriers that might prevent such access.

Financial inclusion is increasingly recognized as a tool that enhances quality of life, enables better financial planning for both households and businesses, and improves preparedness for emergencies. Access to financial services makes everyday life easier, supports long-term planning, and helps individuals manage unexpected expenses.

When people have access to services such as credit and insurance, they can start and grow businesses, invest in education and healthcare, manage risks, and recover from financial shocks, thereby improving both social and economic outcomes for individuals and communities.

With the growing role of technology in finance and business, it has become essential for individuals and enterprises to access digital financial tools that allow them to actively participate in the economy and improve their standard of living. This need was especially highlighted during the COVID-19 pandemic, which underscored the critical importance of digital financial inclusion.

Moreover, financial inclusion plays a pivotal role in advancing the Sustainable Development Goals (SDGs), directly supporting 7 of the 17 goals, including poverty eradication, gender equality, economic growth, decent work, good governance, and environmental sustainability.

The Kingdom of Saudi Arabia has made significant progress in enhancing the efficiency and inclusivity of its financial sector through a range of programs and initiatives. Among the most notable is the Financial Sector Development Program, which addresses key financial challenges and is expected to significantly raise the level of financial inclusion in the country.

To support this goal, the Kingdom is implementing initiatives through development funds and banks, while also leveraging modern technology to enhance productivity and broaden access to services. In 2022, the Council of Ministers approved the Fintech Strategy, which includes measures such as eliminating fees for opening bank accounts and authorizing qualified agents to offer banking services in underserved areas.

A 2018 study by the International Monetary Fund (IMF) reported that Saudi Arabia scored over 60 points on the Financial Inclusion Index, surpassing both regional and global averages, which stood at 55 points. The Kingdom performed strongly in areas such as bank account ownership, internet accessibility, and the ability to obtain credit from financial institutions.

To sustain and build on this progress, it is crucial to foster financial literacy and awareness across society, starting from early education. This includes promoting a culture of saving, investment, and financial responsibility, expanding access to technology, and ensuring that individuals and institutions across all regions and economic sectors of the Kingdom can open accounts and secure appropriate financial services.

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