Saudi Arabia’s total bank credit jumped to SR3.30 trillion by year-end, fuelled by strong demand for corporate financing tied to infrastructure and development projects aligned with the Vision 2030 economic diversification agenda.

Deposits, meanwhile, recorded an annual increase of about 8.8% in February, the slowest pace in two months, while rising 2.3% compared to January.

Saudi Central Bank (SAMA) data revealed that government growth in this area was around SR127.6 billion, or 14.8%, while deposits from individuals and companies increased by approximately SR114.3 billion, up 6.1%.

“Government deposits account for about 32.5% of total holdings compared with 65.6% for deposits from individuals and companies, reflecting the continued key role of the private sector in supporting banking liquidity,” the Saudi Central Bank remarked.

According to Al-Rajhi Bank, deposit levels and banking liquidity remained within safe thresholds, while capital reserves continued to exceed regulatory requirements by a comfortable margin. Another important metric, credit growth, outpaced deposit growth, with the Saudi banks actively financing a wide range of economic activities, including real estate development, trade, manufacturing, and utilities.

The report also highlighted SAMA’s continued pivotal role in safeguarding financial stability, alongside the “Financial Sector Development Programme,” which has strengthened the competitiveness, resilience, and sustainability of Saudi Arabia’s banking system.

Al-Rajhi Bank also confirmed that the Kingdom’s fintech sector is experiencing rapid advancement in 2025, marked by deepening collaboration between banks and fintech companies within a supportive regulatory framework.

“The number of fintech firms surpassed 280 by the end of the year, operating under the guidance and support of the Saudi Central Bank and the Capital Market Authority,” Saudi Gazette reported while quoting the report.

“Banks, in partnership with startups, have successfully developed innovative services across digital payments, integrated finance, buy-now-pay-later solutions, peer-to-peer lending, and API-based platforms—driving innovation that enhances financial inclusion and economic diversification,” Saudi Gazette concluded.

The post Saudi banks hold assets worth USD 1.33 trillion appeared first on International Finance.

Established in 2024 by Shaqran Alyahya and Khalid Naili, Riyadh-based Nayla Finance operates as a fintech company licensed by the Saudi Central Bank. The company, which was the first carved-out venture out of Sanabil Venture Studio, has its paid-up capital at SAR 10 million. It has a mission of empowering micro enterprises by offering accessible, fair, and digital credit solutions tailored to the real needs of these small players.

The Challenge: Access To Capital For Micro-Enterprises

Micro-businesses like retail shops, food and beverage stalls, and e-commerce sellers face several obstacles in accessing formal finance. Banks and traditional lenders often require strong credit history, collateral, and lengthy paperwork.

“For many micro-entrepreneurs, these requirements are prohibitive, pushing them to informal lenders or stalling growth altogether. The Saudi Vision 2030 emphasises boosting SMEs’ contribution to GDP, increasing lending to them to 20%, and diversifying the economy. Meeting these goals means closing the financing gap for micro-businesses,” Nayla Finance told International Finance.

Nayla has stepped up to the challenge as the only fintech player in the market focusing exclusively on micro-financing for micro-businesses, allowing it to fully understand and deliver innovative financial products to an underserved segment. Instead of relying on standard credit history, Nayla uses proprietary scoring models that understand micro-business realities, including using alternative data. This helps them assess risk more precisely and accept businesses that the banks might reject.

From application to approval, the process is designed to be as seamless and paperless. Most importantly, the micro-financing offerings are compliant with Sharia, which matters for many business owners in the Kingdom who wish their financing to align with Islamic finance principles. Nayla offers financing up to SAR 100,000 with repayment terms of up to six months, fixed repayment schedules, and a digital decisioning process that can deliver funds much faster than traditional lenders.

Recent Progress And Funding

In March 2025, Nayla Finance raised USD 4 million in seed funding, led by Sanabil Venture Studio by Stryber. The funding is intended to help the venture scale, in addition to enhancing its technology platform (especially credit scoring), expanding its loan book, and forming partnerships across key sectors such as F&B, e-commerce, and retail. Approximately USD 2.7 million is allocated as debt financing to expand Nayla Finance’s loan portfolio.

Alignment With Saudi Vision 2030

“Nayla’s strategy aligns closely with Saudi Arabia’s Vision 2030, aiming to increase SME participation in the economy, enhance financial inclusion, and support digital transformation. Micro-enterprises are the backbone of entrepreneurship, job creation, and regional economic development. Enabling easier access to capital leads to increased business activity, job creation, and greater innovation,” the fintech player remarked.

Nayla’s journey has been promising, but challenges remain. Even with alternative scoring, small businesses tend to carry a higher risk. Ensuring default rates stay manageable will be key. Also, as a licensed financing company under the Saudi Central Bank, Nayla must maintain strict compliance, customer protection, and risk governance.

Growing from pilot volumes to large portfolios will require robust systems, partnerships, and certainly more capital. Micro-business owners might not be familiar with digital fintech options or may be wary. Building trust and awareness will be essential for Nayla.

Looking Forward

With Nayla Finance’s digital-first, low-ticket, high-frequency model and alignment with Saudi economic policy, it is well-positioned to disrupt the traditional micro-lending market. If this initiative succeeds, it could serve as a model for similar efforts throughout the broader Middle East region.
Its success will depend on how effectively it balances growth and risk, maintains customer trust, and meets the diverse needs of micro-businesses across different sectors and locations. For micro-entrepreneurs in the Kingdom, Nayla is more than just a lender; it embodies access to opportunities, speed, and fairness.

The post Nayla Finance breaks barriers for Saudi micro-businesses appeared first on International Finance.

A Landmark Achievement: Two Prestigious Global Awards In 2024

In 2024, MEDGULF achieved a significant milestone by winning two prestigious global awards from International Finance Publications Ltd. These accolades highlight the company’s leadership in delivering innovative insurance solutions and its dedication to meeting the evolving needs of the Saudi market.

Best Motor Claims Management Company

One of the awards, ‘Best Motor Claims Management Company — Saudi Arabia 2024’, recognises MEDGULF’s commitment to revolutionising its motor claims system. Through the use of cutting-edge technology and a specialised claims management team, the company has streamlined the claims process, ensuring a seamless and efficient experience for customers. This award reflects MEDGULF’s ongoing efforts to enhance customer satisfaction and build trust within the Kingdom.

Best Innovative Health Insurance Partnership

MEDGULF also received the ‘Best Innovative Health Insurance Partnership — Saudi Arabia 2024’ award, celebrating its strategic collaboration with the Roshn Saudi League. This partnership aims to provide athletes with tailored insurance solutions, promoting both health awareness and wellness across the Kingdom. The award is a testament to MEDGULF’s ability to create forward-thinking insurance solutions that support key sectors of society.

Innovation At The Heart Of MEDGULF’s Success

These prestigious awards are a reflection of MEDGULF’s commitment to innovation and quality. By continuously developing flexible and advanced solutions that meet the needs of its clients, the company upholds global standards in the insurance industry.

Looking Towards A Secure Future

With a relentless focus on customer satisfaction and sustainable growth, MEDGULF is committed to investing in enhanced services and expanding partnerships. Through these efforts, the company continues to build a more secure and stable future for individuals and businesses across the Kingdom.

The post MEDGULF sets new standards in Saudi insurance sector appeared first on International Finance.

The recent developments come after the Kingdom recorded a 75 percent increase in digital payment activities last amid the coronavirus pandemic. The central bank further added the new payment system would improve the transparency of payments between companies and individuals and facilitate immediate financial transfers between accounts in local banks, with lower fees than current interbank transfers.

The Saudi Central Bank, which was previously known as the Saudi Arabian Monetary Authority (SAMA) has encouraged companies in the insurance sector to consider merger and acquisition (M&A) deals to reduce cost, increase efficiency and improve customer service, media reports said. The central bank believes mergers and acquisitions can make the sector more competitive and strengthen its financial position.

Citing the merger of Walaa Cooperative Insurance and Metlife AIG ANB Cooperative Insurance, and of Gulf Union National Cooperative Insurance and Al Ahlia Insurance as examples, SAMA has stressed that such deals can help improve the financial solvency of the companies involved in the deal.

Last year, the apex bank also imposed a ban on combining and insurance and reinsurance brokerage activities in the same firm. The decision stems from an attempt to boost stability in the insurance sector and add value to the Kingdom’s economic growth.

The post Saudi Arabia to launch new electronic instant payments system appeared first on International Finance.

Egypt also plans to allocate $6.4 billion on the back of the coronavirus outbreak. SAMA’s package will help small and medium-sized enterprises combat the economic impact as a result of the outbreak.

SAMA’s funding is anticipated to grant SMEs six-month postponement on financial commitments such as bank payments and concessional. That said, they will be given exemptions from the costs incurred from loan guarantee programme, media reports said.

The UAE’s Targeted Economic Support Scheme comprises aims to support banks in the country through collateralised, zero-interest loans. The regulator said in a statement “The purpose of the targeted scheme is to facilitate provision of temporary relief from the payments of principal and interest on outstanding loans for all affected private sector companies and retail customers in the UAE.”

SAMA is the Kingdom’s central bank and it will oversee the banking sector’s performance. In fact, as part of its recently unveiled package, 30 billion riyals is available to banks and financing companies. This is in return for postponing loan payments for small and medium sized enterprises.

According to the regulator, the UAE banks have sufficient capital and maintain significant voluntary capital buffers.

The post Coronavirus: Saudi Arabia plans $13.3 bn stimulus for private sector appeared first on International Finance.

Ripple on CoinDesk said, “This ground-breaking pilot program is the first of its kind to be launched by a central bank. Participating banks from the [Kingdom of Saudi Arabia] will use xCurrent to instantly settle payments sent into and out of the country, with greater transparency and lower costs.”

Most GCC countries are focused on fintechs to enhance their banking efficiency. UAE’s money transfer and forex giant Western Union has also partnered with Ripple to push real-time cross-border payments using blockchain.

Western Union CEO Hikmet Ersek told Bloomberg, “We are looking especially in the processing settlement and working capital optimization, also in the regulation part, on the compliance part on the blockchain capabilities. And we do test, we do have some tests with Ripple.”

Saudi Arabian could easily save up to US$400mn each year using the blockchain software, according to Moody’s Investor Service.

The Moody’s Report reads “Moody’s estimates that even a 10 percent reduction in the cost of completing and managing a cross-border transaction will translate to savings of roughly $200m-$400m per year system-wide.”

The post Saudi Central Bank and Ripple to carry pilot test for cross-border transactions appeared first on International Finance.