Digital–Financial Foundations in Saudi Arabia: Socioeconomic Inequality and Sustainable Financial Transformation

Saudi Arabia has made substantial progress in digital finance as its financial system becomes more data-driven, automated, and increasingly AI-enabled. This study examines the digital and financial foundations that may support participation in this changing financial environment using 2025 Global Findex microdata for Saudi Arabia. We construct a Digital–Financial Foundations Index based on digital account ownership, digital payment use, merchant digital payments, mobile-phone ownership, internet use, formal saving, and financial resilience. The weighted mean index score is 70.3 out of 100. Education, income, and employment are the most consistent socioeconomic correlates of the index. In the baseline model, tertiary education is associated with a 6.2-point higher score than secondary education or less, employment with a 9.9-point higher score, and membership in the richest income quintile with a 10.1-point higher score than the poorest quintile. Age shows a nonlinear relationship, with the estimated profile increasing up to approximately age 45 and declining thereafter. Gender and urban residence are not statistically significant in the main specification. The findings are also broadly stable across alternative index definitions and a fractional-response specification. The results show that socioeconomic differences in digital and financial participation remain despite widespread digital access. These findings highlight the continuing importance of education, employment, income, and financial resilience as Saudi Arabia’s financial system becomes more digital and technologically advanced.