RIYADH: Saudi Arabia’s move to encourage financial intermediaries to invest in the private sector is expected to boost the Kingdom’s fintech sector, according to two companies focusing on entering the Saudi market. In the first eight months of last year, the Kingdom had witnessed venture capital deals in the fintech sector worth $157.2 million, compared to only $7.8 million in the prior year. Sovereign and Arabian Enterprise Incubator, or Sovereign AEI, said that SAMA’s recent Open Banking initiative — which aims at growing the digital economy — will further bolster the sector and develop an advanced capital market in Saudi Arabia. “Saudi Arabia is fast becoming a regional hub for inbound investment as a result of the economy"s growth, particularly during the pandemic, when many investors were forced to pivot due to supply chain delays and inflation in their home countries. Saudi investors, on the other hand, are looking to diversify their portfolios through outbound investment in order to bring global expertise and capabilities to Saudi Arabia,” Paul Arnold, managing director of Sovereign Saudi Arabia, said. The two companies also noted that the Kingdom is well-placed to experience a higher growth of mergers and acquisitions in 2022 due to the government’s efforts to boost the private sector and battling the pandemic.