Fintech Fortis targets Saudi Arabia’s SME sector

For the coming year, Fortis’s objective is to solidify its presence in the UAE and lay a groundwork for potential expansion across the MENA region. (SPA)
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Updated 01 October 2024
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Fintech Fortis targets Saudi Arabia’s SME sector

  • Firm outlines goals and long-term vision for its operations in the region

CAIRO: Fintech companies continue to expand in Saudi Arabia, with the nation increasingly becoming a magnet for financial technology. 

UAE-based Fortis is bringing its one-stop point of sale, customer relationship management, order management system, and payments solution to support small and medium-sized enterprises in the Kingdom. 

In an interview with Arab News, Arseny Kosenko, executive vice president of Fortis, outlined the company’s immediate goals and long-term vision for its operations in the region, particularly in Saudi Arabia, where they see substantial growth potential aligned with the Kingdom’s Vision 2030. 

Fortis is strategically launching in the UAE, setting the stage for further expansion into Saudi Arabia and other Middle East and North Africa countries. 

“We aim to successfully launch in the UAE market and create opportunities for expansion into other countries,” said Kosenko.

A strategic Kingdom 

Over the long term, Fortis aims to deeply influence the Saudi market by delivering high-quality products and services tailored to the unique needs of Saudi businesses and consumers. 

“We will be able to assist small businesses in growing in line with the plans and Vision 2030,” Kosenko stated. 

The goal is to enhance the operational capabilities of SMEs, thereby contributing to gross domestic product growth and enhancing the technological perception of the Saudi market. 

Fortis plans to cater extensively to both domestic users and tourists, particularly during significant events like Expo 2030, by improving merchant and customer interactions through their advanced omnichannel solutions. 

For the coming year, Fortis’s objective is to solidify its presence in the UAE and lay a groundwork for potential expansion across the MENA region. 

The company aims to empower businesses to thrive in a digital landscape by enhancing customer engagement and operational efficiency through their comprehensive digital tools. 

SMEs are a crucial segment for us, and how they engage with their clients shapes the evolution of our product.

Arseny Kosenko, EVP of Fortis

In response to specific needs within the Saudi market, Fortis is developing tailored features in their omnichannel platform to comply with local regulations and business practices. 

“Different regions, including Saudi Arabia, may require various features or regulatory considerations for businesses,” explained Kosenko. 

The company plans to adapt its pricing policies, marketing strategies, and partnerships to align with local business environments. 

To comply with Saudi Arabia’s evolving regulations, Fortis is committed to proactive monitoring of regulatory changes, maintaining strong communication with authorities, and ensuring that their team is well-trained in compliance requirements. 

This approach is supported by technology and automation to streamline compliance processes effectively, he explained. 

Through these strategic initiatives, Fortis is setting a course to become a pivotal player in Saudi Arabia’s digital transformation, supporting the Kingdom’s economic diversification efforts and enhancing the competitive edge of local businesses in the global marketplace. 

“Saudi Arabia is actively enhancing SME financing through regulatory support and digital transformation initiatives. This aligns perfectly with Fortis’s mission to empower SMEs with digital tools that enhance their operations and market reach.” 

While specific details about the official launch and local office establishment in Saudi Arabia are still under wraps, Kosenko mentioned that Fortis is focused on building effective partnerships that will simplify and enhance business operations, making them more efficient and improving customer relationships and overall business performance. 

As for the company’s market position, Kosenko highlighted the importance of SMEs, stating, “SMEs are a crucial segment for us, and how they engage with their clients shapes the evolution of our product.” 

Fortis aims to become an indispensable omnichannel platform that bridges the gap between merchants and customers, enhancing interactions and technological experiences for SMEs while also providing value to larger stakeholders like banks and utility companies. 

Regarding industry evolution, Kosenko emphasized the shift from traditional payment terminals to more sophisticated POS systems that support comprehensive business management including transactions, inventory, and customer data. 

“We’re seeing an increase in the adoption of order management systems that facilitate a seamless omnichannel experience for customers,” he said. 

Fortis plans to leverage these trends by continuing to prioritize customer focus and simplifying payment processes, ensuring seamless interactions between sellers and buyers through a user-friendly interface.

Business fundamentals 

Kosenko highlighted the unique hurdles SMEs encounter, stating, “Unfortunately, many SMEs lack the expertise and resources to navigate areas like customer data collection, personalization, and artificial intelligence, putting them at a competitive disadvantage.” 

Positioned at the dynamic crossroads of Europe and Asia, the Middle East is a burgeoning hub for entrepreneurship, with SMEs forming the backbone of the economy. 

“In the UAE, SMEs make up about 94 percent of all companies and employ over 86 percent of the private sector workforce,” Kosenko added, referencing a report by the UAE’s Department of Economic Development. 

Similar growth and opportunities are evident in Saudi Arabia, where initiatives such as Expo 2030 are catalyzing SME expansion, he added. 

 “Our model is software as a service, with clients paying a monthly or annual fee for licenses,” Kosenko explained. This model positions Fortis as a pivotal player in the region’s tech ecosystem, enhancing SME capabilities to manage their operations more efficiently, he added. 

Despite its recent market entry, with operations commencing just three months ago, Fortis is already showing promising revenue growth. 

“It’s premature to discuss profitability at this stage,” said Kosenko, signaling a cautious but optimistic outlook for the company’s financial trajectory. 

The motivation behind Fortis’s inception was clear. “We are focusing on a promising niche in the MENA region, which comprises between 19 and 23 million small businesses,” noted Kosenko. 

He further detailed the key performance indicators that guide Fortis’s strategy in the region: “We focus on active and paying customers, gross profit, lifetime value, and churn.” 

Fortis has successfully raised $20 million in April in investment led by Opportunity Venture, with several tranches allocated throughout 2024. 

Kosenko shared insights into how these funds are poised to propel the company’s expansion plans, particularly in the MENA region. 

He highlighted that while specific expansion plans are still under deliberation, Saudi Arabia is a strong candidate for their growth strategy due to its large market and numerous development projects. 

Regarding future funding, Kosenko expressed satisfaction with the current level of financial support, emphasizing that the focus is on leveraging this investment to accelerate product development and market introduction. 

“Our primary objective is to swiftly bring our innovative solution to market, leveraging the financial support to ensure a successful market entry,” he explained.


Education spending drives Saudi POS transactions to $3bn as other sectors slump

Updated 6 sec ago
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Education spending drives Saudi POS transactions to $3bn as other sectors slump

  • Pharmacies and medical supplies saw largest decrease
  • Total POS value stood at SR13.6 billion despite a 12.3% weekly drop

RIYADH: Saudi Arabia’s point-of-sale transactions remained above the $3 billion mark for the second week in a row due to a 32.5 percent increase in spending on education in the week ending Aug. 9.

The sector recorded SR251.79 million ($67.09 million) in transactions despite a 3.2 percent dip, reaching 161,000. It was the only one to see a positive change during the monitored period.

The total POS value stood at SR13.6 billion with a 12.3 percent weekly drop, underscoring the resilience of consumer activity across the Kingdom, according to data from the Saudi Central Bank, also known as SAMA. 

The subcategory of pharmacies and medical supplies saw the largest decrease, dropping by 24.7 percent to SR278.94 million. Spending on freight transport and courier services ranked next, falling 23.8 percent to SR48.68 million. 

Food and beverages, the sector with the biggest share of total POS value, recorded a 17.8 percent decrease to SR1.93 billion. In comparison, the restaurants and cafes sector saw a 7.9 percent decrease, totaling SR1.75 billion and claiming the second-largest share of this week’s POS.

Spending on transportation ranked third despite a 14.5 percent decline to SR1.04 billion.

The top three categories accounted for approximately 34.4 percent of the week’s total spending, amounting to SR4.71 billion.

The smallest decline was seen in the hotels sector, which decreased by 1 percent to SR349.97 million, followed by expenditure on medical services, which saw a 6.6 percent dip to SR474 million.

Spending on apparel, clothing, and accessories saw a 10.7 percent dip to SR998.90 million, and recreation and culture decreased by 13.4 percent to settle at SR345.58 million.

Geographically, Riyadh dominated POS transactions, with expenses in the capital reaching SR4.58 billion, a 9.8 percent decrease from the previous week. 

Jeddah followed closely with a 9.7 percent dip to SR1.91 billion, while Dammam ranked third, declining 9.2 percent to SR634.68 million.

Al-Qatif saw the smallest decrease, down 3 percent to SR92.35 million, followed by Abha with a 5.5 percent drop to SR285.04 million.

Hail recorded 3.99 million deals in transaction volume, down 12.6 percent from the previous week, while Tabuk reached 4.49 million transactions, falling 10.5 percent.


Oil Updates — prices steady as market awaits inventory data, US-Russia meeting

Updated 13 August 2025
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Oil Updates — prices steady as market awaits inventory data, US-Russia meeting

SINGAPORE: Oil prices were little changed on Wednesday as investors awaited US inventory data, while eyeing an upcoming meeting between US President Donald Trump and Russian President Vladimir Putin.

Brent crude futures dipped 3 cents, or 0.05 percent, to $66.09 a barrel at 9:11 a.m. Saudi time, while US West Texas Intermediate crude futures edged down 8 cents, or 0.13 percent, at $63.09. Both contracts settled lower on Tuesday.

Trump and Putin are due to meet in Alaska on Friday to discuss ending Russia’s war in Ukraine that has shaken oil markets since February 2022.

Oil investors are in a “wait-and-see mode” ahead of the meeting, said ING commodity strategists.

“The outcome could remove some of the sanction risk hanging over the market,” the ING strategists added.

Investors also awaited further cues after an industry report showed US crude stockpiles climbed last week.

Crude inventories in the United States, the world’s biggest oil consumer, rose by 1.52 million barrels last week, market sources said, citing American Petroleum Institute figures on Tuesday. Gasoline inventories dropped while distillate inventories gained slightly.

Should the US Energy Information Administration data later on Wednesday also show a decline, it could indicate that consumption during the summer driving season has peaked and refiners are easing back their runs. The driving season typically runs from the Memorial Day holiday at the end of May to the Labor Day holiday in early September.

Analysts polled by Reuters expect the EIA report to show crude inventories fell by about 300,000 barrels last week. Outlooks issued by OPEC and the EIA on Tuesday pointed to increased production this year, which also weighed on prices. But both expect output in the US, the world’s largest producer, to decline in 2026, while other regions will increase oil and natural gas production.

US crude production will hit a record 13.41 million barrels per day in 2025 due to increases in well productivity, though lower oil prices will prompt output to fall in 2026, the EIA forecast in a monthly report.

The Organization of the Petroleum Exporting Countries’ monthly report said global oil demand will rise by 1.38 million bpd in 2026, up 100,000 bpd from the previous forecast. Its 2025 projection was left unchanged.

The White House on Tuesday tempered the expectations for a quick Russia-Ukraine ceasefire deal, which may lead investors to reconsider an end to the war soon and any easing of sanctions on Russian supply, which had been supporting prices.

“Trump downplayed expectations of his meeting with President Putin ... However, expectations of additional sanctions on Russian crude continue to fall,” ANZ senior commodity strategist Daniel Hynes wrote in a note. 


Closing Bell: Saudi main index closes in red at 10,770

Updated 12 August 2025
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Closing Bell: Saudi main index closes in red at 10,770

  • Parallel market Nomu lost 91.69 points to close at 26,144.11
  • MSCI Tadawul Index edged down 0.26% to 1,391.13

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, shedding 21.98 points, or 0.20 percent, to close at 10,769.66. 

The total trading turnover on the main index reached SR4.08 billion ($1.09 billion), with 94 stocks advancing and 159 declining. 

The Kingdom’s parallel market Nomu also fell, losing 91.69 points to close at 26,144.11, while the MSCI Tadawul Index edged down 0.26 percent to 1,391.13. 

The best-performing stock on the main market was Red Sea International Co., whose share price jumped 9.96 percent to SR45.72. BAAN Holding Group Co. rose 4.98 percent to SR2.32, while Astra Industrial Group gained 4.71 percent to SR149. 

The share price of Methanol Chemicals Co. dropped by 9.92 percent to SR10.62. 

On the announcements front, Saudi Electricity Co. reported a net profit attributable to common shares of SR1.86 billion after deducting profit attributable to Mudaraba instruments for the second quarter, up 113 percent from SR0.87 billion a year earlier. 

The company’s net profit before Mudaraba payments stood at SR6.25 billion, compared to SR5.24 billion in the same quarter of 2024, reflecting a 19.26 percent increase. 

The utility’s share price slipped 0.61 percent to SR14.61. 

First Milling Co. announced it had completed the acquisition of a 100 percent stake in Jeddah-based Al Manar Feed Co. in a deal valued at SR77 million. In a Tadawul filing, the company said the acquisition aligns with its strategy to boost feed production capacity. 

With the purchase, First Milling Co. will add a daily production capacity of 450 tonnes in the feed segment, bringing its total feed output to 1,350 tonnes per day. 

The company’s share price rose 0.28 percent to SR53.20. 


OPEC projects global oil demand to rise by 1.38m bpd in 2026

Updated 12 August 2025
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OPEC projects global oil demand to rise by 1.38m bpd in 2026

  • Supply growth from producers outside OPEC+ is trimmed, signaling a tighter market outlook

LONDON: OPEC on Tuesday raised its forecast for global oil demand next year and trimmed its forecast for growth in supply from the US and other producers outside the wider OPEC+ group, pointing to a tighter market outlook.

The outlook for higher demand and a drop in supply growth from outside OPEC+ would make it easier for OPEC+ to proceed with its plan to pump more barrels to regain market share after years of cuts aimed at supporting the market.

World oil demand will rise by 1.38 million barrels per day in 2026, the Organization of the Petroleum Exporting Countries said in a monthly report, up 100,000 bpd from the previous forecast. This year’s expectation was left unchanged.

In the report, OPEC also increased its forecast for world economic growth slightly this year to 3 percent as President Donald Trump’s administration signs some trade deals and the economies of India, China and Brazil outperform expectations.

“Economic data at the start of the second half of 2025 further confirm the resilience of global growth, despite persistent uncertainties related to US-centered trade tensions and broader geopolitical risks,” OPEC said in the report.

Oil supply from countries outside the Declaration of Cooperation — the formal name for OPEC+ — will rise by about 630,000 bpd in 2026, OPEC said, down from last month’s forecast of 730,000 bpd.

OPEC's report said it now expects US output of tight oil, another term for shale, to decline by 100,000 bpd in 2026, versus last month’s outlook for flat output year on year.

“The 2026 forecast assumes sustained capital discipline, additional drilling and completion efficiency gains, weaker momentum in drilling activities and increased associated gas production in key shale oil regions,” OPEC said.

OPEC’s report also showed that in July, OPEC+ raised crude output by 335,000 bpd, a further increase reflecting its decisions this year to increase output quotas.


Cost excellence key to unlock potential of Saudi Arabia’s mining sector: Alvarez and Marsal

Updated 12 August 2025
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Cost excellence key to unlock potential of Saudi Arabia’s mining sector: Alvarez and Marsal

  • Kingdom’s mining and minerals industry is poised for sustainable long-term growth
  • It has already laid strong foundations in the sector

RIYADH: Mining firms operating in Saudi Arabia should implement disciplined financial planning, transparency, and cost ownership in their operating model to reap long-term benefits, according to an analysis. 

In its latest report, professional services firm Alvarez and Marsal said the Kingdom’s mining and minerals industry is poised for sustainable long-term growth with committed investments worth SR246 billion ($65.55 billion) supporting the sector. 

The study was released just days after the Kingdom’s ranking on the Mining Investment Attractiveness Index jumped from 104th in 2013 to 23rd in 2024, cementing the nation’s status as the world’s fastest-rising power in the exploration industry, according to Canadian public policy think tank Fraser Institute.

As a part of its economic diversification efforts, Saudi Arabia is accelerating the development of its mining sector, with the Kingdom’s mineral wealth now estimated at SR9.4 trillion ($2.5 trillion).

Commenting on the latest report, Alexander Shvets, managing director, infrastructure and capital projects – metals and mining at Alvarez and Marsal Middle East, said: “Saudi Arabia’s mining sector is now central to the Kingdom’s economic transformation.” 

He added: “Building on this momentum with embedded cost visibility and performance tracking will help operators to achieve global competitiveness and long-term value creation.” 

According to Alvarez and Marsal, adopting structured financial frameworks can help mining companies seize emerging opportunities and ensure operational excellence as the sector matures. 

“Control is not just a finance function — it’s an operational discipline. In mining, where complexity and capital intensity are high, real-time cost visibility and team capability are what turn strategy into measurable results,” said Renat Akimbitov, managing director, infrastructure and capital projects – metals and mining at Alvarez and Marsal Middle East. 

The report said Saudi Arabia has already laid strong foundations in the sector, with the establishment of institutions such as the Saudi Geological Survey, creating a dynamic and investor-friendly environment.

In March, the Kingdom also launched a new incentive package to attract foreign direct investments into the nation’s mining sector. 

At that time, the Saudi Press Agency reported that the Kingdom’s Ministry of Investment is collaborating closely with the Ministry of Industry and Mineral Resources through an exploration enablement program aimed at simplifying investments in the mineral exploration industry. 

Alvarez and Marsal outlined a strategy for mining and industrial companies to strengthen financial resilience by implementing activity-based budgeting, which links finance directly to operational drivers for greater accuracy and agility.

The report also underscored the vitality of empowering business leaders with digital dashboards to manage costs dynamically, as well as conducting structured cost review meetings to ensure accountability through regular performance tracking. 

Alvarez and Marsal further highlighted the importance of cost-capability building and said that equipping teams with practical tools and training is essential to foster a cost-conscious culture within the organization.