RIYADH: UK-based fintech firms are well-positioned to meet the escalating demand for fintech services in Saudi Arabia, according to the Lord Mayor of London.
Alderman Alastair King, speaking at the 28th World Investment Conference in Riyadh, emphasized London's robust fintech expertise, particularly as the city advances in digitizing national debt instruments. He suggested that these efforts could foster collaboration between the UK and Saudi Arabia's burgeoning fintech sector.
"We possess remarkable expertise in London regarding fintech and financial technologies broadly. I am aware of significant demand for this sector in Saudi Arabia, making it a focal point for us," the Lord Mayor stated.
He further noted the UK's recent initiative to digitize national gilts, or debt instruments, which presents a promising avenue for joint projects. A gilt is a UK government bond denominated in sterling, and London's digitization efforts could inspire similar moves in Saudi Arabia.
King also pointed to the payments sector as ripe for exploration, given the transformative impact of fintech. Other potential areas for development include infrastructure, insurance, legal services, asset management, and banking.
"London stands as the premier global hub for professional services. Saudi Arabia is the G20's fastest-growing economy. There exists a remarkable synergy between us, offering myriad opportunities for collaboration," the Lord Mayor remarked during the interview.
Additionally, King highlighted broader opportunities stemming from Saudi Arabia's energy transition and economic diversification, particularly in asset management, banking, and insurance. He underscored the role of both large corporations and small and medium-sized enterprises in driving innovation.
"In London, our financial and professional services ecosystem thrives on the synergy between small and medium-sized companies and larger ones. My role involves encouraging British firms, regardless of size, to seize international market opportunities," the Lord Mayor explained.
He concluded by expressing his hope that more British firms would expand into Saudi Arabia and other Gulf Cooperation Council markets, especially in professional services, and that greater investment flows would benefit the UK's financial and professional services sector.
During a panel discussion at the World Investment Conference, Nan Li Collins, senior director of investment and enterprise at the UN Conference on Trade and Development, discussed global investment trends, stressing the need for effective regional policies and multilateral efforts to counter fragmentation and protectionism.
Collins highlighted three key trends shaping the market: the long-term growth of trade and investment, global fracturing, and digitization, which has seen investment in digital services surge from 60 percent to 80 percent over the past decade.
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