Saudi Arabia’s central bank has licensed two new finance companies, widening the regulated market for consumer credit and digital finance aggregation as the Kingdom accelerates efforts to deepen financial inclusion and support competition in the non-bank finance sector.
The Saudi Central Bank, known as SAMA, granted Muwafaqa Alragmiya a licence to provide finance aggregation services and approved jak almuqaddimah Company to offer consumer finance. The licensing of jak almuqaddimah Company raises the number of finance companies authorised by SAMA to 75, underscoring the steady expansion of regulated lenders and technology-enabled finance providers in the Kingdom.
The two approvals point to a dual regulatory approach: broadening consumer access to credit while encouraging platforms that help borrowers compare finance options from authorised providers. Finance aggregation services have become an increasingly important part of the market as customers seek faster digital channels, clearer pricing and easier comparison between lenders. Consumer finance, meanwhile, remains central to household credit demand, including personal finance, instalment-based products and digital lending models.
SAMA said the decisions formed part of its effort to support the finance sector, raise the efficiency of financial transactions and promote innovative solutions that advance financial inclusion. The central bank also repeated its warning that customers should deal only with authorised financial institutions, a message that has become more prominent as digital lending, buy-now-pay-later services and online finance marketplaces expand.
The licensing activity comes as Saudi Arabia’s fintech ecosystem moves from early-stage expansion into a more regulated phase. The number of fintech players operating in the Kingdom reached 301 by the end of 2025, compared with 261 a year earlier, reflecting strong growth in digital payments, financing solutions, wealth technology and insurance technology. Finance-focused companies have become one of the fastest-growing segments, supported by rising demand from consumers and small businesses for quicker access to credit.
Saudi Arabia’s financial-sector reform programme has placed fintech and digital finance at the centre of the Kingdom’s broader economic diversification strategy. The policy objective is not only to increase the number of providers, but also to create a more competitive market in which banks, finance companies and technology platforms operate under clearer regulatory standards. That approach is intended to reduce reliance on informal or unlicensed finance channels while improving transparency for borrowers.
Muwafaqa Alragmiya’s authorisation adds to the developing finance aggregation segment, where licensed platforms act as intermediaries between customers and finance providers. Such services can reduce search costs for borrowers by displaying available financing options, eligibility criteria and product features through digital channels. The model also gives lenders access to customers beyond traditional branch networks, particularly younger consumers and small businesses that increasingly prefer mobile-first financial services.
The approval for jak almuqaddimah Company strengthens the consumer finance segment at a time when household credit products are becoming more diversified. Licensed consumer finance companies are expected to comply with SAMA’s prudential, conduct and disclosure requirements, including rules designed to ensure responsible lending and fair treatment of customers. The central bank’s oversight is aimed at balancing wider access to credit with safeguards against excessive borrowing and opaque pricing.
The Kingdom’s finance market has also been shaped by rapid adoption of cashless payments and digital identity tools, which make it easier for lenders to verify customers, process applications and manage risk. Digital payments now account for a large share of retail transactions, while open banking initiatives and data-driven underwriting are creating new opportunities for finance providers to serve customers with shorter approval times and more tailored products.
The policy backdrop is favourable, but the expansion also brings challenges. A larger number of licensed providers increases competition, which can lower costs and improve service quality, but it also requires close supervision of advertising, affordability checks, data protection and complaint handling. Regulators across the Gulf have faced similar questions as fintech firms move into areas once dominated by banks, including consumer credit, small-business finance and instalment-based payment products.
SAMA has used licensing as a tool to bring new entrants into the formal regulatory perimeter while maintaining control over market conduct. The central bank has licensed digital banks, payment providers, finance companies and fintech firms through a staged approach that allows innovation but keeps activities subject to approval. Its repeated advice to use authorised providers signals concern over fraud, misleading offers and unregulated platforms that may target consumers through online channels.
The new licences also reinforce Riyadh’s ambition to position itself as a regional fintech hub. Growth in the sector has attracted venture funding, created specialist jobs and increased competition in financial services. Cumulative fintech investment in the Kingdom has reached several billion riyals, while employment in the sector has expanded as firms scale operations in payments, financing, regtech and wealth management.
The Saudi Central Bank, known as SAMA, granted Muwafaqa Alragmiya a licence to provide finance aggregation services and approved jak almuqaddimah Company to offer consumer finance. The licensing of jak almuqaddimah Company raises the number of finance companies authorised by SAMA to 75, underscoring the steady expansion of regulated lenders and technology-enabled finance providers in the Kingdom.
The two approvals point to a dual regulatory approach: broadening consumer access to credit while encouraging platforms that help borrowers compare finance options from authorised providers. Finance aggregation services have become an increasingly important part of the market as customers seek faster digital channels, clearer pricing and easier comparison between lenders. Consumer finance, meanwhile, remains central to household credit demand, including personal finance, instalment-based products and digital lending models.
SAMA said the decisions formed part of its effort to support the finance sector, raise the efficiency of financial transactions and promote innovative solutions that advance financial inclusion. The central bank also repeated its warning that customers should deal only with authorised financial institutions, a message that has become more prominent as digital lending, buy-now-pay-later services and online finance marketplaces expand.
The licensing activity comes as Saudi Arabia’s fintech ecosystem moves from early-stage expansion into a more regulated phase. The number of fintech players operating in the Kingdom reached 301 by the end of 2025, compared with 261 a year earlier, reflecting strong growth in digital payments, financing solutions, wealth technology and insurance technology. Finance-focused companies have become one of the fastest-growing segments, supported by rising demand from consumers and small businesses for quicker access to credit.
Saudi Arabia’s financial-sector reform programme has placed fintech and digital finance at the centre of the Kingdom’s broader economic diversification strategy. The policy objective is not only to increase the number of providers, but also to create a more competitive market in which banks, finance companies and technology platforms operate under clearer regulatory standards. That approach is intended to reduce reliance on informal or unlicensed finance channels while improving transparency for borrowers.
Muwafaqa Alragmiya’s authorisation adds to the developing finance aggregation segment, where licensed platforms act as intermediaries between customers and finance providers. Such services can reduce search costs for borrowers by displaying available financing options, eligibility criteria and product features through digital channels. The model also gives lenders access to customers beyond traditional branch networks, particularly younger consumers and small businesses that increasingly prefer mobile-first financial services.
The approval for jak almuqaddimah Company strengthens the consumer finance segment at a time when household credit products are becoming more diversified. Licensed consumer finance companies are expected to comply with SAMA’s prudential, conduct and disclosure requirements, including rules designed to ensure responsible lending and fair treatment of customers. The central bank’s oversight is aimed at balancing wider access to credit with safeguards against excessive borrowing and opaque pricing.
The Kingdom’s finance market has also been shaped by rapid adoption of cashless payments and digital identity tools, which make it easier for lenders to verify customers, process applications and manage risk. Digital payments now account for a large share of retail transactions, while open banking initiatives and data-driven underwriting are creating new opportunities for finance providers to serve customers with shorter approval times and more tailored products.
The policy backdrop is favourable, but the expansion also brings challenges. A larger number of licensed providers increases competition, which can lower costs and improve service quality, but it also requires close supervision of advertising, affordability checks, data protection and complaint handling. Regulators across the Gulf have faced similar questions as fintech firms move into areas once dominated by banks, including consumer credit, small-business finance and instalment-based payment products.
SAMA has used licensing as a tool to bring new entrants into the formal regulatory perimeter while maintaining control over market conduct. The central bank has licensed digital banks, payment providers, finance companies and fintech firms through a staged approach that allows innovation but keeps activities subject to approval. Its repeated advice to use authorised providers signals concern over fraud, misleading offers and unregulated platforms that may target consumers through online channels.
The new licences also reinforce Riyadh’s ambition to position itself as a regional fintech hub. Growth in the sector has attracted venture funding, created specialist jobs and increased competition in financial services. Cumulative fintech investment in the Kingdom has reached several billion riyals, while employment in the sector has expanded as firms scale operations in payments, financing, regtech and wealth management.
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