ASSESSING THE INFLUENCE OF BLOCKCHAIN TECHNOLOGY AND EMERGING DIGITAL INNOVATIONS ON SAUDI ARABIA'S FINANCIAL SECTOR: CHALLENGES, OPPORTUNITIES, AND FUTURE PERSPECTIVES

Abstract

The integration of blockchain technology and emerging digital innovations is reshaping the financial landscape in Saudi Arabia, offering both opportunities and challenges in the context of Vision 2030. This study aimed to assess the adoption readiness, regulatory environment, and stakeholder perceptions regarding blockchain in the Saudi financial sector. A mixed-methods approach was employed, combining stakeholder interviews, SWOT and regulatory framework analyses, and international benchmarking. The findings reveal a significant disparity in adoption between fintech startups more agile and innovation-driven and traditional banks, constrained by regulatory ambiguity and infrastructural limitations. Notable opportunities include enhancing financial inclusion, improving cross-border transactions, and reducing fraud through transparency. Quantitative analysis indicated that fintech startups show a 75% readiness rate, compared to 45% among traditional banks. The study also modeled scalability constraints and identified a legal gap in blockchain regulation. The research underscores the need for clear policies, technological investment, and institutional collaboration to enable large-scale blockchain deployment. These insights contribute to policy recommendations for financial transformation in Saudi Arabia and provide a comparative outlook to guide similar economies.