SAMA Licenses Fintech Aggregator "Tamawal", Expanding Saudi Market to Six Players
The Saudi Central Bank (SAMA) has officially licensed "Tamawal" to operate as a finance aggregation service provider within the Kingdom. Founded in 2020, Tamawal aims to simplify access to financing, and its license increases the number of authorized finance aggregators in Saudi Arabia to six.
SAMA Continues to Foster Fintech Innovation
This licensing decision underscores SAMA's ongoing efforts to support and develop Saudi Arabia's financial sector. According to the central bank, promoting innovative financial solutions like those offered by finance aggregators helps increase the efficiency of financial transactions and contributes significantly to financial inclusion goals within the Kingdom.
Introducing Tamawal: A Digital Financing Broker
Search results indicate that Tamawal operates as a Digital Financing Broker (DFB). Its core offering is described as a marketplace providing customers with personalized, instantly approved loan and financing products sourced from various regulated banks and financing companies in Saudi Arabia. Additionally, reports suggest Tamawal has developed a "Tamawal as a Service (TaaS®)" technology, enabling other businesses to embed financing options directly into their own customer journeys.
The Growing Finance Aggregation Landscape in KSA
With the addition of Tamawal, the Saudi market now features six licensed companies authorized to provide finance aggregation services. This growing number signifies increased competition and choice for consumers and businesses seeking to compare and access financial products through digital platforms.
Regulatory Journey and Compliance
Tamawal has been actively working towards regulatory approval for some time. Reports indicate the fintech raised $1.1 million in a pre-Seed funding round back in February 2022, partly aimed at fulfilling SAMA's requirements. The round was reportedly led by MRK or Alkhathlan Holding Co., with participation from 500 Global (as 500 Falcons) and Saudi angel investors.
In its announcement, SAMA reiterated the importance for consumers and businesses to deal exclusively with financial institutions that hold the necessary licenses and permissions.
About Tamawal
Founded in 2020 and based in Riyadh, Tamawal was co-founded by Eng. Mohammad Alhathel (CEO) and Dr. Abdullah Alsheikh (CFO), according to information available via Wamda and Preqin based on their 2022 funding announcement. The company focuses on simplifying access to financial products through its digital brokerage platform.
Looking Ahead
Receiving the official SAMA license is a major milestone for Tamawal, allowing it to fully launch and scale its finance aggregation services in the Saudi market. This development is expected to contribute positively to the Kingdom's fintech ecosystem by providing users with more accessible and tailored financing solutions.
Source: Saudi Central Bank (SAMA