The Financial Bridge | Inside Saudi’s $93B SME Lending Surge

📌 SME Lending Surges

Credit to micro, small, and medium enterprises grew 27.6% YoY, reaching SAR 351.7 billion ($93.8B)

→ 95% of lending came from banks; 5.2% from finance companies.

→ Takeaway: SME financing is growing fast, fueled by Vision 2030 and strong lender confidence.

📌 Micro-Enterprise Lending Sees 70% Jump

Micro-enterprise credit surged 70% YoY, hitting SAR42.3B, while SMEs (under 50 employees) saw 32% growth to SAR 122.2B.

Much of this growth is tied to Kafalah guarantees, covering up to 80% of loan value.

→ Takeaway: Even small cafés, shops, and micro-businesses are now unlocking credit thanks to risk-sharing frameworks.

📌 Digital Lending Market Forecast (2025–2030)

Saudi Arabia’s digital lending market is forecasted to grow from USD 42.5B (2024) to USD 56.2B (2030), at a ~13.5% CAGR.

Key drivers include smartphone penetration, fintech adoption, and government-backed digital infrastructure.

→ Takeaway: Digital lending is emerging as a high-growth frontier, with scalable models like P2P and embedded credit gaining traction.

📌 Vision 2030 Lending Targets

Saudi Arabia’s Financial Sector Development Program (FSDP) aims to raise SME lending from 8.3% (2023) to 20% by 2030.

In Q3 2024, SME credit hit SAR 329B, up 22.6% YoY, supported by public loan guarantees and lending mandates.

→ Takeaway: Vision 2030 is more than just a strategy. It’s translating into measurable lending shifts across Saudi Arabia’s financial sector.

📌 Riyad Bank & Mastercard Launch MSME Credit Cards

Riyad Bank has partnered with Mastercard to introduce a three-tier business credit card tailored for micro, small, and medium enterprises. The offering enables flexible access to credit, helping MSMEs manage working capital and business expenses more effectively.

→ Takeaway: A timely solution addressing credit access and spend visibility for Saudi MSMEs.

Mohammed Abo Al‑Naja, Chief Corporate Banking Officer, Riyad Bank:

📌 SIC & Lendo Launch SAR 200M SME Investment Program

The Saudi Industrial Council (SIC) and Lendo, a SAMA-licensed, Shariah-compliant crowdfunding platform, have launched a SAR 200 million investment fund to support industrial SMEs. This initiative expands non-bank lending options and backs Vision 2030's industrial growth agenda.

→ Takeaway: A significant leap toward inclusive, asset-based SME financing beyond invoice factoring.

Osama AlRaee, CEO & Co-Founder, Lendo:

📌 Nqoodlet Raises $3M to Simplify SME Financial Operations

Riyadh-based fintech Nqoodlet raised $3 million in seed funding to scale its financial OS for SMEs; helping businesses with spend management, tracking, and embedded finance tools.

→ Takeaway: Nqoodlet is tackling the infrastructure gap in SME finance with fast, integrated digital tools.

Mohamed Milyani & Yara Ghouth, Co-Founders:

📌 Upstart’s AI Lending Gains Momentum (US)

AI-powered lending platform Upstart saw its stock rise 8.1% as analysts praised its ability to deliver ~90% instant loan approvals with minimal manual intervention.

→ Takeaway: AI-driven underwriting is proving to be faster, leaner, and increasingly bank-adopted; redefining cost-efficiency in credit origination.

📌 IIF & World Economic Forum Highlight Fintech's Role in Inclusion

A global report from IIF and WEF shows that 57% of fintech users are MSMEs, with 40% annual revenue growth among inclusive fintechs. The focus is shifting to underserved and informal sectors.

→ Takeaway: Fintechs are fast becoming the financial infrastructure for MSMEs; offering a benchmark for MENA lenders aiming to drive inclusion.

📌 OCTA Raises $20M to Embed SME Financing (UAE)

Abu Dhabi–based fintech OCTA secured $20M in funding from Sukna Fund to embed SME financing directly into its platform, enabling small businesses to access working capital through day-to-day tools.

→ Takeaway: Embedded finance is streamlining SME access to capital; placing credit solutions where businesses already operate.

📌 India’s Rural SME Lending Declared a Growth Priority

India’s Finance Minister called on fintechs to target rural MSMEs, not as CSR but as a business growth strategy—citing underbanked segments as “fertile ground.”

→ Takeaway: Rural MSME finance is gaining policy-level attention globally'; offering playbooks for Saudi and MENA players expanding outside urban centers.

📌 Buraydah Specialty Coffee | Al-Qassim

In a region better known for dates than flat whites, one small café in Buraydah set out to brew something bigger. But like many small businesses, they hit a familiar wall: no collateral, no credit.

Traditional lenders weren’t convinced. But Monsha’at’s Sharia-compliant SME financing changed the story.

The halal loan unlocked much-needed capital; enough to upgrade brewing equipment, renovate the space, and run targeted local campaigns. Within months, sales doubled, new staff were hired, and the café helped fuel Buraydah’s rise as a specialty coffee hub.

By 2025, they weren’t just serving espresso; they were serving proof of what inclusive SME financing can do.

→ This is the kind of challenge Abwab.ai is built to solve: helping underserved businesses gain access to credit through smarter, faster, AI-powered underwriting.

A grassroots win. A Vision 2030 story. And a future we’re proud to support.

Read the back-story › | Explore Monsha’at Financing ›

📌 SAMA Licenses “Madafuou Alarabia” for BNPL 

SAMA has licensed Madafuou Alarabia to offer Buy Now, Pay Later (BNPL) services, raising the total number of licensed finance companies in Saudi Arabia to 67.

→ Takeaway: This signals growing confidence in consumer lending innovation and alternative credit models.

📌 SAMA Licenses “Nayla Finance” for Microfinance 

Nayla Finance has been granted a license to operate in microfinance, marking another step by SAMA to strengthen access to credit for underserved segments and empower smaller lenders.

→ Takeaway: Expands financial inclusion through targeted microcredit access.

📌 SAMA Proposes Lower Bank Guarantee Requirements 

SAMA opened public consultation on reducing bank guarantee requirements for finance license applicants—from 100% to 20%. The reform aims to ease market entry and boost liquidity for new SME lenders.

→ Takeaway: A regulatory shift that could democratize SME lending by lowering barriers for fintech entrants.

📌 SMEs Now 30% of Listed Companies – CMA

CMA Chairman Mohammed Al-Quwaiz announced that 30% of listed firms on Saudi exchanges are now SMEs—thanks to initiatives like Nomu, simplified direct listings, and new SME-focused capital channels.

→ Takeaway: CMA’s push is turning equity markets into a viable funding avenue for SMEs, reinforcing Vision 2030’s goals.

📌 CMA Approves Three New Listings on Nomu 

The Capital Market Authority approved three more companies—Zahr Al Khuzama Aluminum, Sahat Almajd Trading, and Quality Education Co.—to list on Nomu, Saudi’s SME-focused parallel market.

→ Takeaway: Nomu continues to gain momentum, creating new capital pathways for high-growth SMEs.

📌 SalesFine Case Study: From Manual Checks to Scalable Lending

To match their momentum, SalesFine integrated Abwab.ai’s AI-powered credit engine into their operations; automating underwriting and streamlining KYC processes.

→ Impact (Post-Integration):

• 🕒 Loan approvals dropped from 7 days to <24 hours

• 📉 Default rates fell by 25%

• 📈 SME loan volume jumped 40% YoY

• 💸 Underwriting costs cut by 70%

By tapping into Abwab.ai’s AI-powered credit engine, SalesFine transformed operations—faster decisions, smarter scoring, and seamless scaling.

Read the Full Case Study ›