Balancing restrictions with evolving threats: The future of BFSI cybersecurity
The BFSI sector stands at a critical inflexion point in Saudi Arabia, where rapid digital transformation spurred by Vision 2030’s ambitious economic diversification goals, is both a growth driver and a cybersecurity challenge. As banks embrace cloud, AI, and mobile-first customer experiences, they also face increasingly sophisticated cyberthreats that demand more than traditional compliance measures.
The National Cybersecurity Authority (NCA) has taken a leading role in shaping the Kingdom’s digital defence posture. From developing comprehensive regulatory frameworks to fostering cross-sector collaboration, the NCA is actively strengthening cyber resilience across the financial ecosystem. These efforts align with Vision 2030’s goal of positioning cybersecurity as a key enabler of Saudi Arabia’s digital economy and national security.
However, with the unprecedented speed and innovation with which cyberattackers operate, compliance alone cannot ensure safety; banks must develop real-time detection and response frameworks. Now, vulnerability assessment, penetration testing, and stronger governance practices are central to security programs. This signals a shift toward agile, adaptive protection that move faster against threats.
Emerging threats: DDoS, ransomware, and AI-phishing
The region's BFSI industry threat landscape has evolved beyond traditional fraud, giving rise to sophisticated and coordinated cyberattacks that challenge the resilience of entire financial ecosystems. DDoS attacks surged by 236% in Q2 2025, with critical banking infrastructure being increasingly targeted and disrupting services for millions of users.The financial sector felt the greatest impact, accounting for 38% of all incidents.
Ransomware attacks in the Middle East are notably higher than the global average, impacting 0.72% of organizations in the region compared to 0.44% worldwide. Meanwhile, AI-powered phishing campaigns have grown alarmingly sophisticated, replicating legitimate communications, and even presenting counterfeit CAPTCHA pages to avoid detection.
Addressing the people problem
Like much of the region, Saudi Arabia faces a shortage of skilled cybersecurity professionals, a gap that limits the ability of BFSI institutions to defend themselves effectively against highly sophisticated threats. Vision 2030 has recognized this challenge, emphasising local talent development as a national priority. Initiatives such as the Saudi Cybersecurity Workforce Framework and university partnerships are steps toward equipping local professionals with the expertise required to safeguard the financial sector.
Also, managed security service providers (MSSPs) and channel partners are stepping up as force multipliers, bridging critical gaps by not only supplying technology stacks but also delivering integrated, automation-driven solutions that provide comprehensive cyber protection. These partnerships empower Saudi banks to focus on strategic defence and innovation rather than reactive operations by minimising manual effort and response times.
Security-integrated design principle
Over the next five years, the Kingdom’s BFSI cybersecurity focus will need to shift towards aligning processes, systems, and policies across institutions and borders to counter real-time threats effectively.
The GCC is signalling moves toward standardised regulatory frameworks, aligning compliance requirements to enable cross-border operational security. Banks are expected to phase out legacy security stacks in favour of AI-powered, self-healing systems capable of continuously learning from evolving threats. Hybrid cloud adoption will accelerate, though subject to stringent data localisation laws, requiring vendors to provide secure, compliant infrastructure aligning with standards such as ISO 22301.
In short, security standards will shift from being a static obligation to becoming an integrated design principle. As threats evolve in complexity, success will depend on an operational fabric that combines automation, predictive analytics, and real-time threat mitigation.
Empowering long-term defence
Building resilience for the long-term requires BFSI organisations to implement:
1- Stronger security awareness programs for customers alongside incident support mechanisms to limit the fallout of fraud.
2- Continuous upskilling of cybersecurity staff, teaching them to navigate AI-driven defence tools; interpret complex threat intelligence; and collaborate seamlessly across FinTech, regulators, and technology partners.
3- Investments in proactive tools—detection, pen-testing, orchestration, etc.—that anticipate threats rather than simply respond.
As Saudi Arabia accelerates toward Vision 2030, its leadership must remain steadfast in creating a secure digital economy where innovation and protection go hand in hand. By embracing an ecosystem of shared responsibility and continuous improvement, the Kingdom’s BFSI institutions can set a regional benchmark for cyber resilience and customer trust.
Shobana Sruthi Mohan - Enterprise Analyst, ManageEngine
