Saudi Arabia’s Cashless Future (And Why Corporate Spend Needs To Catch Up)

Saudi Arabia’s ambition to become a cashless economy is moving at pace. As part of the Financial Sector Development Program (FSDP), the Kingdom has set a target for 70 percent of all transactions to be non-cash by the end of 2025. It’s a goal that not only reflects shifting consumer behavior, but also signals a deeper transformation taking place across the business landscape.

The pressure is now on for companies, not just consumers, to embrace digital-first financial systems. While point-of-sale innovation has led the digital finance conversation, the transformation of corporate spending, where most operational inefficiencies still live, remains overlooked.

Saudi’s e-invoicing mandate, led by the Zakat, Tax and Customs Authority (ZATCA), is already reshaping the way companies issue and manage financial documents. Now in its second phase of implementation, the mandate requires integration with government systems and real-time reporting. This regulatory push is prompting organizations to overhaul legacy finance processes that were often cumbersome and draining on resources.

Manual invoicing, disconnected expense tracking, and end-of-month reconciliations are, in today’s digital, immediate world, no longer viable. Businesses need tools that offer real-time visibility across both their income and spend, enabling faster, cleaner reporting, and full alignment with ever-evolving regulatory requirements. For those willing to adopt, it’s a chance to modernize both to stay compliant and operate more intelligently.

Traditional bookkeeping models are reactive by nature, tracking what has already been spent rather than what’s happening now. That’s beginning to shift, with smart corporate cards and automated reconciliation tools allowing companies to move from retrospective financial oversight to live expense control.

This shift is particularly valuable in a region like the GCC, where business is increasingly fast-paced and decentralized. Whether it’s managing travel expenses across multiple cities or keeping tabs on procurement across teams, real-time systems reduce the risk of overspending, fraud, and human error. They also speed up decision-making and empower teams with autonomy whilst keeping financial control under a centralized system.

In Saudi Arabia especially, the startup ecosystem is flourishing. With dedicated government funds like Monsha’at and supportive regulatory frameworks, more entrepreneurs than ever are entering the market. But with fast growth comes financial pressure, and poor spend management remains one of the biggest threats to early-stage companies.

Many startups still rely on spreadsheets, manual approvals, and fragmented reporting, which can quickly spiral into cash flow chaos. As founders scale, the ability to track, cap, and forecast spending becomes vital. Tools that provide real-time oversight and automated controls can be the difference between burning through capital and building sustainably.

Going digital isn’t just about speed or convenience; it’s also about intelligence. Every transaction generates data, and that data, when captured and analyzed correctly, becomes a strategic asset. From budgeting and auditing to investment planning and departmental accountability, expense data is increasingly at the heart of sound financial decisionmaking. With the right platforms in place, chief financial officers and finance leads can identify inefficiencies, benchmark costs, and uncover new opportunities to drive value, supporting sustainable growth.

About The Author

Ayham Gorani is the co-founder of Pemo, the all-in-one spend management solution for businesses. Based in Dubai, Gorani has been instrumental in developing Pemo’s product software offering over the past three years. He has a strong tech background, and he has driven Pemo’s product offering with the company, making over 300 updates to its software solutions to ensure it is continually building, while also offering the most efficient and effective solutions for its customers.

This article first appeared in a special edition of Inc. Arabia created for Money20/20 Middle East in September 2025. To read the full issue online, click here.