Tarabut partners with Geidea to deliver financing for Saudi Arabia’s SMEs

MENA-based regulated Open Banking platform Tarabut has formed a strategic partnership with Geidea, a payments solutions provider in Saudi Arabia, with the intention to explore and potentially develop SME financing solutions in the country.

The new partnership, which is subject to regulatory approval, aims to bridge the financing gap of SAR 300 billion faced by Saudi Arabia’s 1.3 million SMEs.

In a press statement, Tarabut and Geidea called the current process for SMEs to obtain finance “often lengthy, complex and costly”.

By partnering, they plan to develop solutions that create “new, more efficient and accessible financing opportunities” for SMEs in the Kingdom of Saudi Arabia, including those that are underserved by traditional financial services, within the framework provided by the Kingdom’s Central Bank and regulator, SAMA.

L-R: Geidea chief executive officer Ziyad Alessa and Abdulla Almoayed, founder and chief executive officer, Tarabut

Geidea has more than 75% of Saudi Arabia’s point-of-sale market share and processes millions of transactions every day for businesses, including local outlets and international brands.

The partnership will see it leverage Tarabut’s decisioning and orchestration technology stack and network of bank partnerships to deliver flexible financing solutions that address lengthy approval processes and complex credit checks.

Ziyad Alessa, chief executive officer of Geidea KSA, said: “This strategic partnership with Tarabut aims to transform financing into a frictionless and always-available resource.

“Together, we plan to work towards enhancing both the user experience and business agility for SMEs, always in accordance with SAMA regulations and guidance.”

He added: “Through this partnership with Tarabut, we hope to develop a seamless real-time solution that aligns with Vision 2030’s focus on digital transformation and financial inclusion.”

Abdulla Almoayed, Tarabut’s founder and chief executive officer, said it is committed to exploring and developing solutions that tackle the challenges SMEs face in accessing financing.

“Our goal is to make this process simpler, more secure and more accessible through our technology and the partnerships we have built with banks across the Kingdom.

“Together with Geidea we are looking to identify opportunities for economic growth that align with regulatory requirements, ensuring that even the smallest businesses can access the funding they need to grow and succeed,” Almoayed added.

“We believe in building a future where technology not only meets regulatory standards but also creates new pathways for growth, inclusion and innovation, thereby unlocking the full potential of SMEs and driving economic progress from the grassroots up.”

In September, Tarabut announced the acquisition of London-based account-to-account payments platform for online businesses Vyne, to coincide with new regulations for payment initiation services (PIS) in Saudi Arabia and Open Finance in the United Arab Emirates (UAE).

Further reading: Saudi Central Bank issues second release of Open Banking Framework