Tarabut , a regulated Open Banking platform, and Geidea , a Saudi payments solutions provider, have signed a Memorandum of Understanding (MOU). The two companies aim to investigate the development of financing solutions for small and medium enterprises (SMEs) and to address the financing challenges faced by SMEs in Saudi Arabia, subject to necessary regulatory approvals.

According to the official press release, with approximately 1.3 million SMEs in the Kingdom and a financing gap exceeding SAR 300 billion, obtaining funds remains a complex and costly process for many. The partnership aims to streamline financing by leveraging technology and financial networks, aiming to make funding more accessible for underserved businesses. Addressing barriers to SME financing Geidea officials highlighted the partnership’s potential to improve SME financing, adding that the initiative aligns with Vision 2030’s emphasis on digital transformation and financial inclusion.

The official press release further reveals that Geidea holds over 75% of Saudi Arabia’s point-of-sale (POS) market share and processes millions of daily transactions for businesses of all sizes. By combining this network with Tarabut’s Open Banking technology and partnerships with regional banks, the collaboration plans to simplify lending processes, reduce approval times, and provide secure, real-time solutions for SMEs. Representatives from Tarabut emphasised the importance of addressing the financing gap.

They stated that the partnership aims to unlock growth opportunities for smaller businesses while adhering to regulatory standards. The partnership’s broader goals align with Saudi Arabia’s Vision 2030 strategy, which prioritises economic diversification and SME empowerment. Both companies are committed to leveraging advanced technology to create financing solutions that address real-world challenges.

As part of its Open Banking platform, Tarabut provides infrastructure for connecting banks and fintechs across the region. The company recently gained recognition from the Saudi Central Bank (SAMA) by joining its regulatory sandbox and has expanded its capabilities with acquisitions and funding. Geidea, as a leader in payments processing, brings its extensive experience and customer network to the collaboration.

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