Davos, Switzerland–Saudi Arabia’s finance minister Mohammed Al-Jadaan said Tuesday that financial innovation was vital in promoting global economic development and addressing challenges facing the international financial architecture.
At the same time, he called for checks to ensure stability.
“Innovations are important, but they must be regulated, or else financial stability and society will suffer,” Al-Jadaan said at the World Economic Forum panel discussion, “Financial Institutions: Innovating under Pressure”.
He also emphasized the importance of financial institutions, such as banks, for countries in combating global shocks, while continuing to develop technology in this sector.
The Saudi minister said that as part of its Vision 2023, Saudi Arabia is working to diversify its economic sources by reducing the reliance on oil revenues, adding that the kingdom is investing heavily in the gaming and electronic sports industries.
Saudi Arabia is likely to be among the world’s fastest-growing economies in 2023, he said, citing the IMF global economic growth expectations for 2023 that described the kingdom as the most promising economy in the Middle East and Central Asia.
Al-Jadaan warned of risks if the central bank digital currency was introduced, saying it will require citizens to provide a large amount of data for the system to function.