Fsdp Quarterly Newsletter Q2 2023 · Page 5

 
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Financial Sector Development Highlights 
SAMA Completes Connectivity to Social Development 
Bank Through "TANFEETH" Program 
The Saudi Central Bank (SAMA) announced the completion 
of connectivity to the Social Development Bank via 
"Tanfeeth" program. The underlying objective is to 
optimize system connectivity and integration between 
Saudi government entities and banks operating in the 
Kingdom of Saudi Arabia, with a view to promoting 
automation of processes and efficiency of work flows to 
help realize Saudi Vision 2030 objectives.  
The "Tanfeeth" program seeks to promote operational 
efficiency 
by 
overcoming 
procedural 
hurdles 
in 
coordination with the government entities. It is also a 
step towards achieving SAMA's strategic objectives by 
upgrading 
its 
IT 
infrastructure 
for 
optimizing 
administrative processes including speed, quality, and 
integration with the financial institutions operating in the 
Kingdom. 
Insurance Sector Grew by 26.9% in 2022 
The Saudi Central Bank (SAMA) issued the 16th Saudi 
insurance market annual report. The report highlights the 
insurance sector's developments, financial results, and 
contribution to the Kingdom's GDP in 2022.  
According to the report, the insurance sector grew by 
26.9% in 2022, bringing gross written premiums to SAR 53 
billion. Health insurance, protection and savings 
insurance, and motor insurance recorded significant 
increases in gross written premiums. 'The report 
highlights that the penetration ratio to non-oil GDP 
increased from 1.91% in 2021 to 2.09% in 2022, due to the 
significant increase in gross written premiums. The 
overall loss ratio remained unchanged at 83.4% in 2022. 
CMA Cancels its Share in Sukuk and Bonds Trading 
Commission 
The Capital Market Authority (“CMA") announced the 
cancelation of its share in Sukuk and bonds trading 
commission starting from May 2023. 
This step comes as part of the efforts to reduce costs on 
market participants in a way that enhances liquidity, 
increases competitiveness in the local market and 
expands domestic investors' base in government debt 
issues. The step that shall contribute to achieve the 
strategic objectives of Vision 2030 related to develop a 
diversified and effective financial sector to support the 
development of economy and create an advanced capital 
market. 
By the cancelation decision, CMA affirms its commitment 
to stimulate activities of debt instruments secondary 
market, considering such commitments as long-term 
commitments, without exceptions. This comes in line 
with CMA's strategic objective relevant to developing 
Sukuk and debt instruments market to boost its 
attractiveness to issuers and investors. 
SAMA Licenses Payment Fintech Company 
The Saudi Central Bank (SAMA) licensed "Rasid Payments 
Company for Financial Technology" to provide payment 
solutions through point of sales (POS). This addition 
brings the total number of payment companies licensed 
by SAMA to 24, in addition to six companies granted in-
principle approvals. 
SAMA Permits 2 BNPL Companies 
The Saudi Central Bank (SAMA) granted "Spotii" and 
"Madfu" permits to carry out Buy Now Pay Later (BNPL) 
solutions pursuant to Saudi Central Bank Law and Finance 
Companies Control Law for providing finance to 
customers wishing to purchase products or services from
merchants without incurring term financing cost. 
This initiative is aimed at enticing a new segment of 
investors and companies that can bring bene