RIYADH: Saudi Arabia’s payments industry is experiencing strong growth, with total revenues expected to reach $21.7 billion by 2028, according to a new report by Boston Consulting Group. 

The sector’s expansion is driven by the Kingdom’s focus on digital transformation, fintech adoption, and efforts to improve financial accessibility. 

The Kingdom’s payments revenues grew from $10.3 billion in 2018 to $16.2 billion in 2023, reflecting a compound annual growth rate of 9.4 percent. By 2028, this figure is projected to grow by another 34 percent. Additionally, transaction volumes are forecasted to surge by 68 percent, from 11.3 billion in 2023 to 19 billion by 2028. 

These developments highlight Saudi Arabia as a leader in the Gulf Cooperation Council payments sector and a key driver of the Middle East’s projected 7 percent CAGR for payments revenue through 2028. 

“Saudi Arabia’s payments industry is moving toward a balanced model that integrates rapid growth with sustainable resilience,” said Lukasz Rey, managing director, partner and head of the Middle East Financial Institutions Practice at Boston Consulting Group.

“To achieve this, Saudi firms must prioritize scalable, modular infrastructures that optimize operational flexibility while reducing technology overhead. Incorporating generative AI (artificial intelligence) can elevate customer service, streamline fraud detection, and drive efficiency at scale, which are essential factors as the market matures,” she added. 

Rey went on to say that as regulatory scrutiny intensifies, companies that proactively embed risk management and compliance into their core technology will set the standard for delivering secure, innovative services that meet the high expectations of both customers and stakeholders in an evolving sector.

While Saudi Arabia and the broader Middle East region remain growth hotspots, the report highlights a significant global slowdown in the payments industry. 

Global payments revenue is expected to see a CAGR of 5 percent through 2028 — just over half of the 9 percent rate achieved over the past five years. 

The global revenue pool is expected to increase from $1.8 trillion in 2023 to $2.3 trillion by 2028. 

North America and Europe are set to experience the steepest slowdowns, with annual revenue growth of just 3 percent. 

In contrast, emerging markets such as the Middle East, Latin America, and Asia-Pacific are forecasted to see stronger development, driven by the accelerating adoption of digital payments. 

As global payments markets face increasing regulatory scrutiny, technological disruptions, and evolving customer expectations, the Kingdom is well-positioned to sustain its growth trajectory through continued innovation. 

Saudi Arabia’s efforts to modernize its payments infrastructure, expand digital payments adoption, and integrate new technologies like generative AI will play a key role in its long-term success. 

“With transaction volumes in Saudi Arabia set to increase by 68 percent by 2028, the payments sector is a regional leader in growth potential,” said Bhavya Kumar, managing director and partner at Boston Consulting Group.  

“Capturing this value, however, will require firms to build flexible, API-driven infrastructures that integrate seamlessly into digital ecosystems. By adopting agile methods and focusing on regulatory alignment, Saudi firms can adapt quickly to shifting consumer expectations and market demands,” he explained. 

“The companies that strategically invest in scalable technology and embrace a disciplined approach to risk management will distinguish themselves, fostering a resilient framework that drives sustainable success within Saudi Arabia’s dynamic payments industry,” Kumar added. 

RIYADH: US-based real estate firm JLL has secured a program management contract with AlUla Development Co. to support the Saudi city’s transformation into a global tourism hub.

Under the agreement, JLL will provide project and cost management and strategic consulting to support the planning, development, and delivery of AlUla’s hospitality, residential, and retail offerings. 

This will include feasibility studies, project planning, construction management, and final handover of completed projects, according to a press release.

The contract with the Public Investment Fund’s subsidiary was signed during a ceremony held at AlUla Development Co.’s office in Riyadh.

Speaking at the event, Maroun Deeb, JLL’s head of project and development services for Saudi Arabia and Bahrain, expressed his pride in contributing to AlUla’s ambitious vision. 

“We are honored to have been chosen to support the AlUla Development Co. on such a significant project. This appointment reinforces our reputation as one of the leading project and program management consultancies in the region,” Deeb said.

He added: “By leveraging our expertise in large-scale projects, construction data insights, leading technology, and sustainable practices, we will ensure better client outcomes.”

Saud Al-Sulaimani, country head of Saudi Arabia at JLL, emphasized the company’s in-depth involvement in AlUla’s development journey. 

He said: “JLL has been at the forefront of AlUla’s transformation from the very beginning, being one of the first companies to work on this iconic destination. Our deep-rooted expertise in supporting the Kingdom’s vision of economic diversification and sustainable growth positions us uniquely for this appointment.”

Al-Sulaimani added: “We are committed to delivering exceptional value and impactful results as we continue to build upon our legacy in Saudi Arabia and drive forward AlUla’s ambitious development agenda.”

AlUla, a region rich in history, is a cornerstone of Saudi Arabia’s Vision 2030 strategy to diversify the economy and establish the country as a global tourism hub. The area’s development focuses on balancing heritage preservation with innovative urban growth. 

JLL’s appointment builds on the company’s significant portfolio in the Kingdom. According to the press release, the project and development services team is currently managing projects with a combined capital value of $30 billion. 

The US firm’s services include overseeing development, project and program management, and cost consultancy, as well as engineering design, workplace fit-out, health and safety advisory, digital solutions, and sustainability consulting.