The Kingdom of Saudi Arabia is looking to expand the SME sector to 22 per cent of its GDP in accordance with its Saudi Vision 2030. Playing its part in achieving this, Qarar, the wholly owned subsidiary of SIMAH and the Middle East’s prominent data analytics and credit decisioning company has partnered with Biz2X, a global fintech and financing provider.
The primary objective of the partnership agreement is to bridge the financing gap faced by SMEs. The companies are creating an SME lending platform in Saudi Arabia. SMEs will have a digital experience that empowers borrowers and lenders to transact seamlessly. Lenders will also have the ability through the platform to create their own lending marketplaces. This further enhances their financial offerings to the SME sector. The companies invite lenders to contact them for early access to the platform.
Zaid Kamhawi, CEO of Qarar, expressed his enthusiasm for the collaboration, stating: “This partnership knits together our combined technical expertise. It establishes international success and on-the-ground market presence. Together, we are offering a powerful and proven platform that will help transform the SME lending market in Saudi Arabia. We applaud the Saudi Vision 2030 and are delighted to be contributing to the ambitious fintech initiatives throughout the Kingdom.”
Achieving the Saudi Vision 2030
The joint venture will be a major contributor to the Saudi Vision 2030. It is aligned with the Kingdom’s goal to significantly expand the SME sector to 22 per cent of GDP. This is a substantial increase from its current contribution of nine per cent of GDP. Historically, up to 57 per cent of SME financing requests were declined annually by commercial banks, which have been reluctant to issue loans to SMEs at scale.
Leveraging Biz2X’s technology, the platform will equip lenders with the necessary tools and resources to offer tailored and competitive SME loan solutions. In turn, this will result in faster and easier access to finance. The Qarar-Biz2X partnership enhances the overall efficiency of the SME lending market. This benefits both borrowers and lenders alike.
Rohit Arora, CEO of Biz2X, added: “Our partnership with Qarar reflects the financing expertise and advanced technology that the Biz2X platform delivers. By bringing our technology and expertise to lenders in Saudi Arabia we are fulfilling our mission to make SME lending more accessible and efficient for businesses everywhere. This will foster economic growth and prosperity.”