- cirececo2
- May 26
- 3 min read
As the world faces the challenges of climate change and economic instability, a new frontier is emerging at the intersection of finance and sustainability: climate fintech. According to the latest World Energy Investment report by the International Energy Agency (IEA), global spending on clean energy reached $1.7 trillion in 2023, accounting for a significant portion of the total $2.8 trillion invested in the energy sector[1]. With these global investments in clean energy surpassing and outpacing fossil fuel investments for the first time, financial technologies are increasingly recognized as powerful tools to accelerate sustainable development. From blockchain-enabled carbon markets to AI-driven green investment platforms, climate fintech is revolutionizing how capital is mobilized for environmental solutions.
Climate Fintech on the Rise in Saudi Arabia
Saudi Arabia is positioning itself as a regional hub for sustainable finance. With a growing appetite for environmental, social, and governance (ESG) investments, the Kingdom is investing in platforms that connect capital markets with climate solutions. The emergence of climate fintech—digital financial technologies focused on supporting climate action—is a natural extension of this trend.
FintechSaudi, launched in 2018 by the Saudi Central Bank and the Capital Market Authority, is driving the growth of Saudi Arabia’s fintech sector by building a robust and inclusive ecosystem. Through partnerships with local banks and global fintech firms, it fosters innovation and supports long-term industry development. FintechSaudi also empowers SMEs by providing training, resources, and tailored solutions, helping talent and businesses thrive in the evolving fintech landscape[2].
“FintechSaudi is unlocking the Kingdom’s potential as a top fintech destination, building the Kingdom’s infrastructure, developing local talent and supporting entrepreneurs (Saudi Vision 2030).”
The Financial Sector Development Program (FSDP), launched in 2018, is transforming Saudi Arabia’s financial landscape by strengthening banking, insurance, capital, and debt markets. In partnership with SAMA and CMA, the program is improving access to financial services, expanding market offerings, and aligning regulations with global standards.
Notable milestones include launching a national FinTech strategy, licensing three digital banks, and founding a Financial Academy to build future talent. As a result, Tadawul is now ranked among the world’s top 10 stock markets, reinforcing Saudi Arabia’s position as a global FinTech hub[3].
Key Focus Area in Climate Fintech Innovation
ESG Data & Analytics Solutions: As climate fintech continues to evolve at the intersection of finance, technology, and sustainability, certain solution areas are standing out for their impact and growth potential. Among them, ESG data and analytics solutions lead the way, representing 47% of all climate fintech offerings (Climate Fintech Report 2024)[4]. This growth is largely driven by regulatory shifts that require companies to enhance transparency and track sustainability performance across their value chains.
These platforms help businesses and investors access accurate, real-time environmental, social, and governance (ESG) data, which is essential for informed decision-making and credible reporting. As regulatory frameworks like the EU’s CSRD and global standards such as IFRS S1 and S2 gain traction, the demand for robust ESG data infrastructure will only continue to rise.
Following ESG analytics, digital investment platforms make up 25% of the climate fintech landscape[5]. These solutions are opening doors for a broader range of investors to support green projects—from renewable energy infrastructure to carbon credit markets. By leveraging AI, blockchain, and open banking technologies, these platforms are enabling more efficient and transparent capital flows into sustainable initiatives. Together, these focus areas reflect the direction of the industry—where data-driven insights and accessible green finance tools are key to unlocking large-scale climate action and accelerating the transition to a low-carbon economy.
Saudi Arabia’s commitment to net-zero by 2060 requires unprecedented financial flows. Climate fintech provides the architecture to mobilize these funds efficiently, transparently, and inclusively. By embracing climate fintech, businesses and investors can play a central role in shaping a sustainable and resilient economy—one transaction at a time.
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