The “24 Fintech” conference saw two acquisition deals involving “Al Rajhi Bank” (1120) and “Tabby,” marking a strong conclusion to the first edition of the “major tech event.”
Details
Al Rajhi Bank acquired a 65% stake in the “Drahim” app, a financial management and robo-advisory platform licensed by the Saudi Central Bank (SAMA).
The bank said it aims to strengthen its leadership in the financial sector through the acquisition.
Meanwhile, Saudi-based “Tabby,” a leader in payments and shopping across the Middle East and North Africa, signed an agreement to acquire “Tweeq,” a local digital wallet licensed by SAMA that operates in the fintech sector.
The two deals took place on the sidelines of the international fintech conference “24 Fintech,” which was held in Riyadh from September 3 to 5.
This is part of Saudi Arabia’s efforts to become a “major hub” for fintech.
So what
Al Rajhi Bank noted that its acquisition is considered the “first of its kind” for a Saudi bank, given that it saw the lender snap up a majority stake in a domestic fintech startup.
Drahim aims to provide open banking services and fintech solutions to individuals, to become the “leading platform” in offering investment and savings services to non-corporate clients in the region.
Waleed Al-Mogbel, Managing Director and CEO of Al Rajhi, mentioned that this investment will contribute to making the bank a “perfect partner” for rapidly growing fintech startups.
Al-Mogbel added that developing the financial sector is one of the primary objectives of the Saudi Vision 2030 strategy, which aims to have the national fintech company count reach 525 firms by 2030.
Some context
Tabby believes that its acquisition will allow it to expand its range of financial products through the Tweeq digital wallet, offering digital spending accounts, cards, and money management tools for its customers.
The company’s general manager, Abdulaziz Saja, noted that the acquisition will be fully funded through a combination of cash and shares in Tabby for Tweeq’s shareholders.
In an interview with “Al Arabiya Business,” Saja expects the deal to be completed by the end of this September.
It’s worth noting that Tweeq was founded in 2020 as the first licensed digital wallet to operate in the Kingdom, serving as an alternative to traditional bank accounts.
Now what
Saja announced that Tabby plans to go public on the Saudi market by late 2025 or 2026.
He also said in an interview with “Argaam” that the company’s outgoing financing has reached USD 10 billion, with this year’s financing alone amounting to USD 7 billion.
He also noted that a large portion of the company’s capital is sourced from loans extended by global banks like JP Morgan, and lower US interest rates will help cut costs.
