RIYADH: Saudi Arabia’s digital journey is advancing, with the fintech sector claiming the largest share of venture capital, according to the chairman of the Capital Market Authority. In a talk at the third Saudi Capital Market Forum held in Riyadh, Mohammed El-Kuwaiz unveiled a roadmap toward a transformative era for the Kingdom’s capital market landscape. Discussing the surge in startup funding activities, El-Kuwaiz highlighted the steady rise of the fintech sector, which has emerged as the cornerstone of innovation and investment. “Interestingly, the biggest sector in venture capital was fintech or financial technology,” remarked El-Kuwaiz, underlining the industry’s pivotal role in driving financial inclusion and digital transformation. The forum witnessed a convergence of key stakeholders, investors, and industry leaders eager to explore the opportunities and challenges shaping the Kingdom’s financial sector. El-Kuwaiz discussed the pressing need for standardization in sustainability reporting, a call echoed by both investors and issuers. “I think we are fast approaching a period where the market, both investors and issuers alike, are asking us for a degree of standardization,” he said, signaling a collaborative approach to establishing a local taxonomy for sustainability reporting in conjunction with relevant regulatory bodies. Against burgeoning initial public offering activity, El-Kuwaiz unveiled a 30 percent increase in IPOs in the pipeline across the main market and the parallel index, Nomu, compared to the previous year. This surge underscores the Kingdom’s allure as an investment destination, brimming with untapped potential and opportunities for market participants. El-Kuwaiz outlined Saudi Arabia’s shift from a net exporter to a net importer of capital, heralding a paradigmatic transformation necessitating robust infrastructural enhancements. “For the first time, Saudi Arabia is encountering the proposition of transforming from a net exporter of capital to a net importer of capital,” affirmed the CMA chairman. Furthermore, El-Kuwaiz emphasized the need for private sector debt issuances to burgeon, setting a target from 4 to 18 percent of gross domestic product by 2030. This ambitious endeavor aligns with the Kingdom’s vision of fostering a prosperous and diversified financial ecosystem conducive to sustained economic growth and prosperity. Concluding his address, El-Kuwaiz lauded the Information and Communication Technology sector as a beacon of resilience and growth within the Saudi capital market. “One of the largest sectors in terms of the number of listings and the amount of capital raised is the ICT sector,” he added, underscoring its strong performance as the top sector in 2023.