Name
Global FinTech Guide
Country _ Name
Saudi Arabia
SectionTitle
Loan services/factoring/loan broking/finetrading
Body
FinTechs belonging to this category act as a loan creditor (even short and very short-term loans), are broking loans or receivables or conduct factoring of loans, which were given to private or business customers. In this business area you also find “peer-to-peer” (P2P) services, in which FinTechs enable a multitude of users to give loans (and brokered by the FinTech-platform) to other users or companies.

Finetrading is hereby a financial service of FinTechs, where they buy due receivables and grant the debtor an extension of payment time. 

As an ancillary service some FinTechs offer alternative credit assessment services to check the solvency of a borrower.

Introduction

Attitude of the country towards loan-giving-, factoring-, brokerage-, finetrading- and ancillary services

Saudi Arabia has a favourable approach towards loan-giving, factoring, brokerage, finetrading, and ancillary services. The government has been supportive of innovations and has introduced various initiatives to encourage their growth. However, it is essential to note that the country follows Islamic banking principles, which prohibit interest-based transactions. As such, all platforms must adhere to Sharia-compliant financing models.


Legal affairs

Obligations and requirements to provide loan-giving-, factoring-, brokerage-, finetrading, and ancillary services described above

Key legal considerations for FinTechs in this space include:

  • Licensing: Obtaining a license from the Saudi Arabian Monetary Authority (SAMA) and complying with its regulations. The licensing process involves submitting a detailed business plan, financial projections, and meeting capital adequacy requirements.
  • Sharia compliance: All financial services, must adhere to Islamic banking principles, which prohibit interest-based transactions. Accordingly FinTechs must follow Sharia-compliant financing models.
  • Consumer protection: Compliance with relevant consumer laws and ensuring transparent and ethical practices, including disclosure of terms, conditions, and fees.
  • Financial reserves: Maintaining adequate financial reserves to ensure stability and solvency.
  • Ongoing compliance: Regularly reporting financial and operational data, undergoing periodic audits, and complying with any changes in regulations.

Additional comments regarding the legal situation for loan-giving-, factoring-, brokerage, finetrading-, and ancillary services or what FinTech’s must be aware of in this business area

N/A


Economic conditions

Market size for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services and biggest companies in this business area

As of May 2025, Saudi Banks extended loans totalling $845 Billion. This represents an annual growth rate of 16.28%, driven primarily by corporate lending. Business loans now constitute over half of all bank credit, indicating a shift towards financing large projects and enterprises.  Some of the notable players providing services in this market include:
  • 38 licensed banks in the Kingdom, including 11 local banks, 24 branches of foreign banks, and 3 digital banks
  • Tamam
  • Tabby
  • Tamara
  • Nayifat Financing Company

Additional comments regarding the economic situation for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services or what FinTech’s must be aware of in this business area

N/A

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