Saudi Arabia’s central bank announced on Tuesday that the government has approved the licensing of a third digital bank, called D360 Bank, with a capital of 1.65 billion riyals ($440 million).
It added that the Kingdom’s Public Investment Fund (PIF) was part of the consortium of companies and investors launching the new lender.
The creation of digital banks in the Kingdom is part of the Financial Sector Development Program within Saudi Vision 2030, which seeks to enable financial institutions to support the growth of the private sector, and open the way for new companies to provide financial services.
Two other local digital banks were granted the license to operate in the Kingdom last year, bringing the total number of licensed banks to 35 (11 local, three local digital banks, and 21 foreign bank branches), which reflects the strength, sustainability and attractiveness of the banking sector in particular, and the Saudi economy in general.
The Saudi Central Bank (SAMA) has been actively engaged in keeping pace with the latest developments in the financial industry and in line with the objectives of the Financial Sector Development Program that seeks to develop the digital economy; enable financial institutions to support private sector growth and provide opportunities to new companies and start-ups.
Meanwhile Reuters reported that the Saudi PIF held nearly $56 billion worth of US-listed stocks as of December last year, up from $43.4 billion at the end of September, boosted by the increased value of electric car maker Lucid.
On Sunday the government said Crown Prince Mohammed bin Salman had transferred 4% of Saudi Aramco shares worth $80 billion to PIF.
