The Competitiveness of the Saudi Financial Sector: Analysis Within the Framework of Vision 2030

ABSTRACT This paper presents an in‐depth academic analysis of the competitiveness of the Saudi financial sector, assessing its evolution, current status, and future path within the transformative framework of Vision 2030. The study investigates key dimensions of competitiveness, such as regulatory frameworks, market structure, technological innovation (with a focus on fintech), global integration, and the sector's contribution to economic diversification. Using a mixed‐methods methodology informed by a structured qualitative review and a new quantitative analysis of Financial Soundness Indicators (FSIs), this paper posits that while the Saudi financial sector has advanced considerably in efficiency and innovation, its global competitiveness is still developing. As Havrlant (2021) asserts, Vision 2030 redefines finance from a passive utility to an active architect of diversification—a conceptual shift this paper adopts to evaluate competitiveness not as an end, but as a means to structural transformation. The analysis highlights ongoing challenges such as market concentration, talent shortages, and the need for more developed non‐bank financial markets. The paper concludes that the ambitious targets of the Financial Sector Development Program (FSDP) are essential for boosting competitiveness, positioning Saudi Arabia as a leading regional financial hub, and ultimately supporting the broader goals of economic diversification and sustainable growth outlined in Vision 2030.