Credit analytics technology provider Qarar has partnered with Biz2X aiming to improve the landscape of SME lending in Saudi Arabia. The collaboration’s main objective is to bridge the financing gap faced by SMEs, by creating an SME lending platform for Saudia Arabia with a streamlined digital experience that allows borrowers and lenders to transact seamlessly.  Moreover, lenders will be able to create their own lending marketplace through the platform, therefore enhancing the two companies’ financial offerings to the sector.

Qarar and Biz2X’s partnership will also contribute to the Saudi Vision 2030 and align with the region’s objective of notably expanding the SME sector to 22% of GDP, a significant increase from the current 9% of GDP. SME financing has been a recurrent issue, as commercial banks declined 57% of requests annually and have been reluctant to issue loans to SMEs at scale. Using Biz2X’s technology, the platform aims to transform the SME lending process and bridge the financing gap.

The company offers lenders the necessary tools and resources to provide custom and competitive SME loan solutions, leading to faster and easier access to funding. Their collaboration with Qarar strives to enhance the overall efficiency of the SME lending market while offering benefits to both borrowers and lenders. SME sector in Saudi Arabia According to Monsha’at, Saudia Arabia’s SME sector had approximately 750,000 businesses by the end of the first quarter of 2022, an increase of 15% from the same period of the previous year.

Together with the UAE, Saudia Arabia is trying to branch out its economy and generate less oil-reliant and sustainable economic growth. Moreover, the SME sector contributes to the decrease of youth unemployment in the region, with the number reaching 28% in 2022. Considering that the youth population represents almost one-third of the residents of the Arab world, SMEs offer employment opportunities in a wide range of geographic areas and industries. Besides providing skill development for young workers, SMEs represent an opportunity for women’s entrepreneurial potential, as only around 30% of Saudi Arabia’s labour force was made up of women in 2022. With the support of economic inclusiveness, the share of women-owned SMEs reached 46% in 2022, nearly doubling since 2016. In order to strengthen SME funding in the region, Saudi Arabia has established long-term plans and agencies that provide targeted support, including the Small and Medium Enterprises General Authority (Monsha’at) which was created in 2016.

More information about Qarar Qarar specialises in consultancy, data analytics, and software technology to design customer management and automation solutions, serving clients in retail banking and consumer credit across the Middle East and North Africa. Back in May 2023, the company partnered with Tarabut Gateway to improve the lending experience of MENA’s residents. Through the collaboration, both companies aimed to leverage Tarabut Gateway’s Open Banking solutions and Qarar’s expertise in credit scoring and decision automation, allowing financial institutions to provide personalised lending products. .