Saudi Open Banking acquisitions are no longer small strategic moves. They are a clear signal that traditional banks are racing to secure technology, APIs, and digital talent. The debate between “build vs. buy” is effectively over. Banks are choosing to buy.
A pioneer example is Al Rajhi Bank, which acquired a 65% stake in Drahim. This marked the first majority stake taken by a Saudi bank in a local fintech startup. The goal was not simply to gain customers. The focus was on acquiring advanced Open Banking APIs and robo-advisory capabilities that could be integrated into existing banking platforms.
In a separate move, Al Rajhi Bank fully acquired Ejada Systems Company Ltd. This strengthened its digital banking infrastructure and aligned with its ambition to become a “bank of the future.” These deals show that Saudi Open Banking acquisitions are centered on technology and talent, not branch expansion.
The Acqui-Hire Wave Is Accelerating
Saudi Arabia’s fintech ecosystem has grown at record speed. The number of fintech startups increased from just 10 in 2018 to more than 200 by 2023. Between 2021 and 2023 alone, licensed fintech firms more than doubled. This rapid growth created a strong talent pool in API development, cybersecurity, and digital payments.
Banks are now moving quickly to secure that talent.
Institutions such as Riyad Bank, Saudi National Bank, and Banque Saudi Fransi are collaborating with 11 fintech companies to deliver Open Banking services. Their priority is API integration. The objective is speed. In a market where digital demand is rising fast, building everything internally takes too long.
The urgency is clear. Saudi Arabia reached a 79% cashless transaction rate in 2024, surpassing its 2025 target early. With nearly four out of five payments now digital, banks must modernize systems quickly. Legacy infrastructure cannot support this shift alone.
At the same time, the GCC faces a tech talent shortage. Only 6% of the workforce is in technology fields. This makes experienced API engineers and cybersecurity experts extremely valuable. Instead of competing in a tight hiring market, banks are acquiring fintech firms and absorbing entire tech teams at once.
This is why Saudi Open Banking acquisitions are often described as “acqui-hiring.” Banks are buying code, systems, and skilled developers in one transaction.
Vision 2030 Makes Buying Inevitable
The strategic pressure is also driven by national targets. Under Vision 2030, Saudi Arabia aims to reach 525 fintech companies by 2030. As of mid-2024, 224 were already operational. This exceeded the interim goal of 168 companies.
This rapid ecosystem growth creates both opportunity and competition. Banks must keep pace with innovation or risk losing relevance.
Globally, the Open Banking market is projected to reach $48 billion by 2026, growing at a 24.8% CAGR. Saudi banks cannot afford to fall behind. Acquisitions allow immediate access to tested APIs and digital platforms.
In addition, the Saudi fintech sector is projected to see $181 billion in M&A activity potential in 2025. This reflects strong momentum in digital payments, partnerships, and platform integrations.
The message is simple. Building internally may offer control, but buying offers speed. In a fast-moving Open Banking environment, speed wins.
Saudi Open Banking acquisitions are not opportunistic deals. They are strategic responses to digital transformation, cashless growth, and Vision 2030 ambitions. The model has shifted from organic development to targeted acquisition.
The build-versus-buy debate is over. In Saudi Arabia’s Open Banking era, banks are buying.
Read more: How Saudi M&A Trends 2025 Reshape Startup Dreams and Mid-Market Consolidation
