SAMA grants sandbox permits to Saudi fintechs XSquare, NeotTek, and MoneyMoon 

SAMA grants sandbox permits to Saudi fintechs XSquare, NeotTek, and MoneyMoon 
 SAMA is keen to support sector development and promote financial inclusion and innovation. File
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Updated 01 October 2024
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SAMA grants sandbox permits to Saudi fintechs XSquare, NeotTek, and MoneyMoon 

SAMA grants sandbox permits to Saudi fintechs XSquare, NeotTek, and MoneyMoon 

JEDDAH: Saudi fintech startups XSquare, NeotTek, and MoneyMoon have received permits from the Saudi Central Bank to test their solutions in its regulatory sandbox.

The first two companies are authorized to launch an open banking platform, while the third firm is permitted to launch a peer-to-peer lending platform. 

The approval highlights the efforts of the central bank, also known as SAMA, to support sector development and underscores its commitment to promoting financial inclusion and innovation, the institution said in a statement.

With these additions, the total number of fintech companies currently operating under its regulatory sandbox increased to 19, adding that since its launch in 2018, the sandbox has permitted 50 fintechs to test and refine their offerings in a controlled environment, SAMA said in its release.

The Kingdom’s National Fintech Strategy, part of Vision 2030’s Financial Sector Development Program, targets the establishment of 525 firms in the industry, the creation of 18,000 jobs, and a $3.5 billion economic contribution by 2030. 

The financial authority has also released the second update under the Open Banking Framework, which focuses on the Payment Initiation Service.

This initiative is part of SAMA’s efforts to further bolster the Saudi fintech ecosystem and is expected to improve consumer experience and transaction efficiency while creating new opportunities for the Kingdom’s fintech sector to offer a broader range of products and solutions, as per a separate statement.

SAMA’s Open Banking Framework provides a set of guidelines and technical standards grounded in international best practices to foster financial technology innovation services in the Kingdom.

The second release of the framework establishes standardized procedures for offering Payment Initiation Services in a reliable and secure manner. It also outlines the responsibilities of all parties involved in delivering PIS.

Saudi Arabia’s financial technology startups have secured over $1.84 billion in venture capital investments since 2018, according to the latest official SAMA report.

Saudi Arabia’s General Authority for Small and Medium Enterprises, also known as Monsha’at, said that since the launch of the Fintech Saudi initiative, the sector has flourished and investments have been directed into 216 firms, which now employ over 6,500 people. 

This significant capital influx underscores the rapid growth of the nation’s fintech sector, now the largest in the Middle East and North Africa region.

 


ACWA Power plans selective mergers to boost profits, secures $15.4bn in financing over 2 years

ACWA Power plans selective mergers to boost profits, secures $15.4bn in financing over 2 years
Updated 45 sec ago
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ACWA Power plans selective mergers to boost profits, secures $15.4bn in financing over 2 years

ACWA Power plans selective mergers to boost profits, secures $15.4bn in financing over 2 years

RIYADH: Saudi Arabia’s energy and water desalination giant ACWA Power has drawn investor attention regarding its expansion strategy, following the approval of its shareholders for a SR7.1 billion ($1.8 billion) rights issue.

In an interview with Al-Eqtisadiah, Abdulhameed Al-Muhaidib, the company’s chief financial officer, outlined ACWA Power’s growth plans, financing approach, and future targets.

ACWA Power has been actively expanding its global presence, securing $500 million in new US agreements and reinforcing its position as Uzbekistan’s top energy investor with $15 billion committed to 19 projects, including 18 in renewables.

Strategic expansion and capital increase 

Al-Muhaidib confirmed that over 77 percent of the rights issue was subscribed by major shareholders, reinforcing confidence in ACWA Power’s strategy. The capital raise aims to fund new projects and expand the company’s global footprint, particularly in renewables, water desalination, and green hydrogen. 

“This move supports our long-term strategy to triple managed assets to $250 billion by 2030,” Al-Muhaidib told Al Eqtisadiah. The company expects annual equity contributions of $2–$2.5 billion from 2024 to 2030, up from $1–$1.3 billion in previous years. 

Selective mergers and global targets

ACWA Power is eyeing selective mergers and acquisitions in key markets to accelerate profitability and secure stable cash flows. “M&A opportunities allow us to fast-track earnings while maintaining financial discipline,” Al-Muhaidib said. 

The firm is actively exploring investments in Malaysia, Africa, and other Asian markets with high infrastructure demand. 

The proceeds from the rights issue will primarily fund new projects in the Kingdom and strategic international markets, including the Middle East, Central Asia, Southeast Asia, and China. 

2030 goals: renewables, water, and green hydrogen 

By 2030, ACWA Power aims to exceed 175 gigawatts in power generation capacity, up from 78.9 GW today, produce 15 million cubic meters of desalinated water daily, and generate 1 million tons of green hydrogen annually, with potential for an additional 1 million tons under new contracts. 

Balancing debt and equity 

Despite securing SR58.6 billion in project financing over the past two years, Al-Muhaidib emphasized that the capital increase does not signal a reduction in borrowing. 

“We maintain a balanced approach — leveraging both project debt and equity to sustain growth,” he said. 

ACWA Power’s net debt-to-operating cash flow ratio stands at 6.4 times, which is deemed healthy for growth-focused firms. 

Asia expansion and China entry 

ACWA Power’s recent acquisition in China marks its broader ambitions in Asia. “China is a strategic market, and we are evaluating opportunities in Malaysia and Africa,” Al-Muhaidib noted. The company has an 80-person team in China and a 1 GW renewable pipeline there. 

Rapid execution and financing success 

The SR58.6 billion in project financings reflects ACWA Power’s strong lender relationships and execution capabilities. “Our integrated model — combining development, investment, and operations — ensures timely delivery,” Al-Muhaidib added. 

With a focus on disciplined growth, ACWA Power remains committed to its 2030 targets while maintaining environmental, social and governance standards.


Oman’s banking sector strengthens with 8% credit growth

Oman’s banking sector strengthens with 8% credit growth
Updated 43 min 29 sec ago
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Oman’s banking sector strengthens with 8% credit growth

Oman’s banking sector strengthens with 8% credit growth

JEDDAH: Oman’s banking sector showed robust growth by May, with total credit rising 8 percent to 33.6 billion Omani rials ($87.36 billion) and deposits increasing 7.9 percent, reflecting strong private sector activity and confidence.

Data from the Central Bank of Oman revealed that credit extended to the private sector grew by 6.8 percent year on year to reach 27.9 billion rials by the end of May. Total deposits stood at 32.3 billion rials during the same period.

Oman’s banking sector remains resilient, supported by private sector engagement, expanding credit, and steady deposit growth. Regulatory reforms and growing confidence in financial institutions also continue to strengthen both conventional and Islamic banking.

Non-financial corporations held the largest share of private sector credit at 46.4 percent, closely followed by households at 44.2 percent. Private sector deposits increased by 7.4 percent to 21.9 billion rials, with households accounting for nearly half of the total.

The banking sectors of the Gulf Cooperation Council showed overall credit growth, highlighting regional economic resilience. Saudi Arabia’s credit facilities rose 14.4 percent to SR2.96 trillion by the fourth quarter of 2024, while Qatar experienced a slight 0.2 percent decline to 1.4 trillion riyals, mainly due to reduced public sector and consumer lending.

The combined balance sheet of conventional banks showed a 6.9 percent year-over-year increase in total outstanding credit. Credit to the private sector grew by 5.2 percent to 21.4 billion rials, while investments in securities fell 1.7 percent to 5.5 billion rials.

Government bond investments increased 2.2 percent to 2 billion rials, whereas foreign securities declined by 11.9 percent, according to the CBO, which added that deposits with conventional banks rose 5.7 percent to 25.2 billion rials, with private sector deposits growing 5.8 percent to 17.1 billion rials.

Islamic banking assets surged 17.5 percent to 9 billion rials, with financing increasing 12.3 percent and deposits rising 16.6 percent to 7 billion rials.

According to the CBO, broad money supply rose 6.9 percent to 25.4 billion rials, driven by a 13.9 percent increase in narrow money and a 4.4 percent rise in quasi-money. Within M1, currency with the public fell 5.1 percent, while demand deposits grew 18.6 percent.

Gas production

Oman’s total natural gas production and imports rose marginally by 0.5 percent year-on-year to 17.95 billion cubic meters by April, driven mainly by a 10.8 percent increase in associated gas production.

Meanwhile, non-associated and imported gas volumes declined by 2.1 percent, according to the state’s National Center for Statistics and Information.

Industrial projects remained the largest consumers, using 9.32 billion cubic meters, followed by power generation stations, which used 4.33 billion cubic meters. Oil fields consumed 4.21 billion cubic meters, with industrial zones using 88 million cubic meters.


Saudi Arabia opens July Sah sukuk subscription with 4.88% annual return

Saudi Arabia opens July Sah sukuk subscription with 4.88% annual return
Updated 52 min 52 sec ago
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Saudi Arabia opens July Sah sukuk subscription with 4.88% annual return

Saudi Arabia opens July Sah sukuk subscription with 4.88% annual return

RIYADH: Saudi Arabia has launched the July subscription window for its government-backed savings sukuk, “Sah,” offering an annual return of 4.88 percent—slightly up from June’s 4.76 percent.

Part of the 2025 issuance calendar managed by the National Debt Management Center under the Ministry of Finance, the sukuk reflects ongoing efforts to promote financial inclusion and encourage personal savings among Saudi citizens.

“Sah” is issued under the Financial Sector Development Program, a core component of Vision 2030, which aims to raise the national savings rate from 6 percent to 10 percent by 2030.

Targeted at individual investors, the product offers a secure, fee-free investment avenue with stable, government-guaranteed returns. The July issuance window opened at 10 a.m. on July 6 and will close at 3 p.m. on July 8.

As with previous tranches, the sukuk is Shariah-compliant, denominated in Saudi riyals, and carries a one-year maturity, with fixed returns paid upon redemption. The minimum subscription remains SR1,000 ($266.56), while the maximum is capped at SR200,000 per investor.

The marginal increase in return reflects slight shifts in domestic funding costs and market liquidity, as the government responds to growing demand for low-risk savings instruments.

Subscription is open to Saudi nationals aged 18 and above through approved digital platforms, including SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, and Al-Rajhi Capital.

The Ministry of Finance has confirmed that monthly issuances will continue, with each offering’s yield determined by prevailing market benchmarks.

According to NDMC, the sukuk also supports broader collaboration with the private sector, including banks, asset managers, and fintech companies, as the Kingdom works to expand access to savings products and build a more diversified financial ecosystem.


Saudi Arabia’s top 10 listed firms hit $2.1tn valuation, led by Aramco

Saudi Arabia’s top 10 listed firms hit $2.1tn valuation, led by Aramco
Updated 06 July 2025
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Saudi Arabia’s top 10 listed firms hit $2.1tn valuation, led by Aramco

Saudi Arabia’s top 10 listed firms hit $2.1tn valuation, led by Aramco

RIYADH: Saudi Arabia’s top 10 publicly listed companies reached a combined market capitalization of $2.1 trillion as of April 25, highlighting their dominant role in the Kingdom’s capital markets, according to a new analysis by Forbes Middle East.

The companies collectively reported $133.9 billion in net profits for 2024, reflecting the growing strength of the Kingdom’s diversified economy. The ranking covers key sectors such as energy, banking, telecommunications, industrials, and utilities.

The milestone comes as the Saudi Exchange, or Tadawul, was recognized as the world’s fastest-growing stock market in 2024. The number of listings doubled to 55, and market liquidity surged by 40 percent — a growth fueled by a streamlined capital management system that halved IPO processing times and widened investor participation.

“The banking sector dominates the ranking, securing five out of the 10 spots, with total assets amounting to $854.7 billion,” the Forbes report noted.

Saudi Aramco topped the list with a market value of $1.7 trillion. The energy giant posted $480.4 billion in revenue and $106.2 billion in net income last year, cementing its position as a global energy leader.

Aramco also advanced its international strategy through major deals in 2024, including a $12.35 billion secondary share sale in June, $25 billion in contracts to boost gas output by 60 percent by 2030, a $90 billion agreement with U.S. firms, and a joint venture with China’s Sinopec to develop a refining complex in Fujian province.

Banking giants 

Saudi Arabia’s leading banks continued to post strong performance in 2024, with several institutions recording double digit profit growth and expanding their international and digital footprints.

Saudi National Bank maintained its position as the Kingdom’s largest lender by assets, reaching $294.4 billion. The bank posted $5.6 billion in net profits and bolstered its global presence with a $500 million bond issuance in Taiwan.

Al Rajhi Bank, which holds $259.8 billion in assets, recorded an 18.7 percent rise in profits to $5.3 billion. The Islamic lender also acquired a majority stake in the fintech app Drahim, signaling a strategic push into digital finance.

Riyad Bank reported a 15.9 percent increase in profits to $2.5 billion, supported by a $750 million sukuk issuance. Saudi Awwal Bank also delivered strong results, with profits climbing 15 percent to $2.2 billion following a $1.1 billion sukuk deal.

Meanwhile, Alinma Bank saw profits jump 20.5 percent and signed a $756 million agreement with Bahri to finance oil tankers, underscoring its growing role in Shariah-compliant corporate financing.

Telecom and industrials   

In telecommunications, stc Group recorded $6.6 billion in profits, launched STC Bank, and transferred tower assets to a Public Investment Fund-led entity.  

SABIC, a global chemicals leader, recovered from a 2023 loss to post $993 million in profits and sold its Alba stake for $966 million.    

Meanwhile, Maaden, the Middle East’s top mining firm, acquired SABIC’s Alba stake and issued a $1.25 billion sukuk, contributing 20 percent of Saudi non-oil exports.   

Utilities and energy 

Saudi Electricity Co. saw a 7.5 percent increase in power output and signed a $3.6 billion gas plant deal, while raising $2.75 billion in sukuk. The company also settled $1.5 billion in historical obligations to the state, with PIF holding a 74.3 percent stake.  

Forbes ranked firms based on sales, assets, profits, and market value from Tadawul, with equal weight given to each metric.     

This elite group of companies highlighted Saudi Arabia’s economic strength, with banks and energy firms driving record profits and global expansions in 2025.   


Egypt’s non-oil private sector contracts in June as PMI falls to 48.8 

Egypt’s non-oil private sector contracts in June as PMI falls to 48.8 
Updated 06 July 2025
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Egypt’s non-oil private sector contracts in June as PMI falls to 48.8 

Egypt’s non-oil private sector contracts in June as PMI falls to 48.8 

RIYADH: Egypt’s non-oil private sector continued to contract in June, with the Purchasing Managers’ Index falling to 48.8 from 49.5 in May, as business confidence plunged to its lowest level on record. 

According to the latest S&P Global survey, this marked the fourth consecutive month below the neutral 50 threshold, signaling a continued deterioration in operating conditions. The decline was accompanied by the sharpest reduction in purchasing activity in nearly a year and a pronounced drop in sentiment about the year ahead. 

The June PMI downturn came amid escalating regional and economic pressures, with spillovers from the Gaza conflict suppressing tourism, remittance flows, and Suez Canal revenues — all key sources of foreign exchange and domestic demand. 

Concurrently, intermittent disruptions in Israeli gas exports have sparked concerns over energy reliability, while elevated freight rates have inflated import costs.  

David Owen, a senior economist at S&P Global Market Intelligence, said: “Overall expectations for future activity were the lowest ever recorded in June.”  

He added: “This downbeat sentiment reflects subdued hopes for order books, as well as concerns that geopolitical risks could cause greater economic disruption.”  

The survey, conducted between June 12 and 20, highlighted deepening demand weakness across the economy.   

Businesses widely reported that weaker order books prompted them to scale back output, while a broad stagnation in local markets contributed to the drop in new orders.  

Although the pace of decline accelerated compared to May, S&P Global noted that it remained softer than the series average.  

Purchasing volumes decreased for the fourth month running, with the contraction gathering pace to become the fastest recorded in nearly a year.  

The manufacturing sector saw the largest cutbacks among the surveyed industries.   

As a result of reduced buying levels, inventories stalled in June after having risen slightly in the preceding three months.   

The data also pointed to ongoing strains in supply chains, reflected in a slight lengthening of supplier delivery times for the second month in a row.  

Employment levels continued to weaken, though the rate of job shedding was described as fractional and was the softest observed in the current five-month sequence of workforce reductions. 

S&P Global noted that staffing cuts were driven not only by diminished demand but also by the prevailing pessimism regarding future activity.  

“Although rates of contraction accelerated from the prior survey, they remained softer than their respective historic trends,” Owen added.  

“Nevertheless, a faster drop in input purchases combined with stalling hiring activity suggests that firms expect demand to remain low and are thereby looking to make cost savings.”  

On the cost side, there was a modest reprieve for businesses. Input cost inflation eased to a three-month low, while the pace at which firms raised output prices slowed considerably from May’s seven-month high.   

This softening of price pressures provided some relief but did little to offset the overall deterioration in confidence.  

The S&P Egypt PMI is a composite index derived from survey responses from around 400 private-sector firms, designed to provide a single-figure snapshot of non-oil business conditions.   

Readings above 50 signal improvement, while those below 50 indicate deterioration.