SAMA Grants Two New Consumer Finance Licenses to Fintech Firms
Saudi Central Bank Expands Digital Lending Market with Licenses for Dufaa Co. and Tak Mal for Financing Co.
The Saudi Central Bank, known as SAMA, has issued two new licenses to fintech firms, expanding the Kingdom's consumer finance market and promoting financial inclusion through digital lending.
Dufaa Co. for Financing and Tak Mal for Financing Co. have been granted licenses by SAMA, increasing the total number of licensed finance companies in Saudi Arabia to 73.
The licensed companies are set to provide consumer finance and engage in consumer microfinance activities via fintech platforms.SAMA's decision reflects its ongoing efforts to support the finance sector, enhance financial transaction efficiency, and foster innovative solutions for financial inclusion within Saudi Arabia.
Emphasis has been placed on transacting exclusively with authorized financial institutions.The Financial Sector Development Program aims to establish a more resilient and competitive financial sector capable of supporting broader economic diversification.
According to the 2024 report by the Kingdom's Financial Sector Development Program, fintech companies in Saudi Arabia have risen to 261 firms as of the end of 2024, surpassing interim targets on the path towards reaching Vision 2030's goal of 525 firms.These developments are part of a larger trend within the Saudi financial sector.
The Financial Sector Development Program has generated more than 11,000 direct jobs, with over 8,500 positions within SAMA-regulated entities and cumulative venture capital investment exceeding SR7.6 billion ($2 billion).The Kingdom's transition towards a digital economy is marked by significant growth in its payment systems.
Electronic payments accounted for 79% of total retail transactions in 2024, up from 10.8 billion non-cash transactions in 2023 to 12.6 billion.Among the success stories within Saudi Arabia's fintech landscape are stc pay and Tamara.
stc pay, originally a mobile wallet under Saudi Telecom Co., has evolved into one of the largest digital payments platforms in the region.
It later received approval from SAMA to transition into STC Bank.
Tamara has emerged as a prominent fintech unicorn, offering installment-based payment options across retail and e-commerce platforms.
Its recent Series C funding round of $340 million in December 2023 positioned it as Saudi Arabia's first fintech unicorn, and its rapid growth underscores the increasing adoption of buy-now-pay-later services.Another notable player is Tabby, which has expanded beyond its origins in Saudi Arabia to capture regional markets with a suite of financial services that include payments and credit products.
This expansion reflects the strong demand for flexible digital payment solutions among a young, digitally active population.
Dufaa Co. for Financing and Tak Mal for Financing Co. have been granted licenses by SAMA, increasing the total number of licensed finance companies in Saudi Arabia to 73.
The licensed companies are set to provide consumer finance and engage in consumer microfinance activities via fintech platforms.SAMA's decision reflects its ongoing efforts to support the finance sector, enhance financial transaction efficiency, and foster innovative solutions for financial inclusion within Saudi Arabia.
Emphasis has been placed on transacting exclusively with authorized financial institutions.The Financial Sector Development Program aims to establish a more resilient and competitive financial sector capable of supporting broader economic diversification.
According to the 2024 report by the Kingdom's Financial Sector Development Program, fintech companies in Saudi Arabia have risen to 261 firms as of the end of 2024, surpassing interim targets on the path towards reaching Vision 2030's goal of 525 firms.These developments are part of a larger trend within the Saudi financial sector.
The Financial Sector Development Program has generated more than 11,000 direct jobs, with over 8,500 positions within SAMA-regulated entities and cumulative venture capital investment exceeding SR7.6 billion ($2 billion).The Kingdom's transition towards a digital economy is marked by significant growth in its payment systems.
Electronic payments accounted for 79% of total retail transactions in 2024, up from 10.8 billion non-cash transactions in 2023 to 12.6 billion.Among the success stories within Saudi Arabia's fintech landscape are stc pay and Tamara.
stc pay, originally a mobile wallet under Saudi Telecom Co., has evolved into one of the largest digital payments platforms in the region.
It later received approval from SAMA to transition into STC Bank.
Tamara has emerged as a prominent fintech unicorn, offering installment-based payment options across retail and e-commerce platforms.
Its recent Series C funding round of $340 million in December 2023 positioned it as Saudi Arabia's first fintech unicorn, and its rapid growth underscores the increasing adoption of buy-now-pay-later services.Another notable player is Tabby, which has expanded beyond its origins in Saudi Arabia to capture regional markets with a suite of financial services that include payments and credit products.
This expansion reflects the strong demand for flexible digital payment solutions among a young, digitally active population.
