Qarar and Biz2X Collaborate to Bridge SMB Financing Gap in Saudi Arabia

Qarar, a leading data analytics and credit decisioning company in the Middle East, has partnered with Biz2X, a global FinTech technology and financing provider, to launch a cloud-based small- to medium-sized business (SMB) lending platform in Saudi Arabia.

This strategic joint venture aims to revolutionize SMB lending and bridge the financing gap faced by these businesses in the country, the companies said in a Tuesday (Aug. 29) press release.

The objective of this partnership is to create the largest SMB lending platform in Saudi Arabia, offering a streamlined digital experience for borrowers and lenders alike, according to the release. By leveraging Biz2X’s technology, the platform will make the SMB lending process more accessible and efficient.

Historically, commercial banks in Saudi Arabia have been hesitant to issue loans to SMBs at scale, resulting in a high percentage of financing requests being declined annually, the release said.

Qarar and Biz2X aim to address this issue by equipping lenders with the necessary tools and resources to offer tailored and competitive SMB loan solutions. This will enable faster and easier access to finance for SMBs, benefiting both borrowers and lenders.

The joint venture between Qarar and Biz2X aligns with the Saudi Vision 2030, which aims to significantly expand the SMB sector to 22% of GDP, per the release. Currently, the SMB sector contributes only 9% to the country’s GDP.

“Together, we are offering a powerful and proven platform that will help transform the [SMB] lending market in Saudi Arabia,” Qarar CEO Zaid Kamhawi said in the release.

Rohit Arora, CEO of Biz2X, highlighted the financing expertise and advanced technology that the Biz2X platform delivers.

“By bringing our technology and expertise to lenders in Saudi Arabia, we are fulfilling our mission to make [SMB] lending more accessible and efficient for businesses everywhere, fostering economic growth and prosperity,” Arora said. 

Saudi authorities have placed the creation of a thriving FinTech ecosystem high up on their list of development goals, making it a key component of the country’s Vision 2030 economic strategy.

In another solution aimed at helping SMBs in the country, Emkan Finance and IBM said in February that they have developed a digital financing product for small businesses in Saudi Arabia. This self-service digital financing product leverages an artificial intelligence (AI)-powered credit and decision-making engine to enable end-to-end digital services, including new customer registration and loan disbursement.