Saudi Arabia’s sovereign fund backs new digital bank called D360

Saudi Arabia’s sovereign wealth fund is a key investor in a new digital bank being established in the kingdom with a capital of SAR1.65bn ($440m).

The Saudi cabinet approved a licence for D360 bank on Tuesday, the central bank said in a statement.

The digital bank is backed by a “consortium of individual and corporate investors” led by Derayah Financial Company, while the kingdom’s Public Investment Fund is “one of its key investors,” according to the statement.

Saudi Arabia recently licensed two other local digital banks as officials work to develop the financial sector under Crown Prince Mohammed bin Salman’s economic diversification plan.

Digital banks have taken off with the spread of finance technology in the Middle East, a region with high internet penetration and a young population. Saudi Arabia was a relatively slow adopter of digital banking and electronic payments, but that’s accelerated significantly since the pandemic pushed more businesses and consumers online.

The Public Investment Fund didn’t immediately respond to a request for comment.