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Saudi FinTech Firms Secure $23 Million Funding in March

It is expected that the number of users of digital banking services will reach 2.5 billion by 2024, up from 1.9 billion in 2020 (Reuters)
It is expected that the number of users of digital banking services will reach 2.5 billion by 2024, up from 1.9 billion in 2020 (Reuters)
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Saudi FinTech Firms Secure $23 Million Funding in March

It is expected that the number of users of digital banking services will reach 2.5 billion by 2024, up from 1.9 billion in 2020 (Reuters)
It is expected that the number of users of digital banking services will reach 2.5 billion by 2024, up from 1.9 billion in 2020 (Reuters)

Saudi Arabia’s financial tech sector has scored over $23 million in funding since March, marking a surge from last year’s 51% share.

The sector saw investments topping $704 million in 2023, with the number of companies ballooning from 10 to around 207. Saudi Arabia aims to push this to 525 by the decade’s end.

A report issued by the Islamic Corporation for the Development of the Private Sector revealed that, driven by a youthful population of over 35 million, with 65% under 35, Saudi Arabia boasts a GDP per capita exceeding $23,000 and a 93% internet penetration rate.

This fertile ground has propelled the financial tech sector to prominence, contributing 51% of the Kingdom’s total bold investments in 2023.

In 2024, “Moyasar” financial company led its first investment round with $21 million, while “Rakeez Financial” secured $2 million.

Globally, the fintech industry is booming, with digital banking users projected to hit 2.5 billion by 2024, up from 1.9 billion in 2020, according to a report by Juniper, a technology research firm.

This shift is fueled by the rise of mobile phones, banking apps, and digital payment methods like “Apple Pay” and “PayPal.”

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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.