Sovereign Wealth Funds as Market Creators: Financial Architecture in Saudi Vision 2030

Abstract

Can Saudi Arabia use its financial system to build durable industries outside of the energy sector? This article contends that the kingdom is developing a “financial developmental state,” in which digital infrastructure, adaptive regulation, and sovereign capital can create new markets but may also reproduce dependence on the state. The study examines the performance of Vision 2030's Financial Sector Development Program over the decade between 2016 and 2025, focusing on digital payments, regulatory sandboxes, the Open Banking Framework, and the Public Investment Fund. The analysis finds achievements in diversification and inclusion, such as fintech growth from 10 firms in 2018 to 261 in 2024, and women's account ownership rising from 58.2 percent in 2017 to 73.5 percent in 2024. However, the article shows that limits persist. Despite improvements in small‐business lending, investment remains concentrated in Riyadh, and non‐oil growth still depends on state capital. The findings offer lessons for other resource‐dependent economies and implications for US engagement with Gulf financial governance.