JEDDAH: Two fintech firms have entered Saudi Arabia’s consumer finance market after securing licenses from the central bank, marking a further step in expanding digital lending and financial inclusion in the Kingdom.
The Saudi Central Bank, known as SAMA, licensed Dufaa Co. for Financing to provide consumer finance, bringing the total number of licensed finance companies to 73.
It also licensed Tak Mal for Financing Co. to engage in consumer microfinance activities through financial technology, raising the number of microfinance providers in the Kingdom to 11.
Fintech companies operating in Saudi Arabia reached 261 firms by the end of 2024, surpassing the Kingom interim targets and moving closer to the Vision 2030 goal of 525 firms, according to the 2024 report of the Kingdom’s Financial Sector Development Program.
In a statement annoucing the latest licenses, SAMA said that these decisions reflect its “endeavor to support and enable the finance sector, increase the efficiency of financial transactions, and promote innovative financial solutions for financial inclusion in Saudi Arabia,” while emphasizing the importance of dealing exclusively with authorized financial institutions.
The Financial Sector Development Program seeks to build a more resilient and competitive financial sector that can support broader economic diversification.
The sector has generated more than 11,000 direct jobs, including over 8,500 within SAMA-regulated firms, while cumulative venture capital investment has exceeded SR7.6 billion ($2 billion).
The Financial Sector Development Program report noted that electronic payments accounted for 79 percent of total retail transactions in 2024, reflecting significant growth in the Kingdom’s payments system, with non-cash transactions rising to 12.6 billion from 10.8 billion in 2023.
Among the Kingdom’s leading fintech success stories, stc pay has evolved from a mobile wallet under Saudi Telecom Co. into one of the region’s largest digital payments platforms, later receiving approval from the Saudi Central Bank to transition into STC Bank.
In the buy-now-pay-later segment, Tamara has emerged as one of the region’s most prominent fintech unicorns, offering instalment-based payments across retail and e-commerce platforms.
The company became the Kingdom’s first fintech unicorn after raising $340 million in a Series C funding round in December 2023 and has grown rapidly amid rising adoption of BNPL services across the Kingdom, including for essential household and health care-related purchases.
It has attracted major regional and international investors and is widely seen as a benchmark for consumer credit innovation in Saudi Arabia.
Tabby has also expanded rapidly from the Kingdom into regional markets, building broader financial services offerings beyond BNPL, including payments and credit products, reflecting strong demand for flexible digital payment solutions among a young, digitally active population.
