Data analytics and credit decisioning company Qarar and fintech Biz2X are aiming to bridge the financing gap faced by SMEs in Saudi Arabia under a new strategic joint venture, the companies have announced.
In a statement, the companies said they are collaborating on the largest SME lending platform in Saudi Arabia so SME borrowers and lenders can transact more seamlessly. Through Biz2X’ technology they will provide lenders with tools to offer tailored SME loan solutions so businesses can secure finance more efficiently. Lenders will also have the ability through the platform to create their own lending marketplaces, enhancing their financial offerings to the SME sector, the firms said.
The joint venture is aligned with Saudi Vision 2030 and the Kingdom’s goal to significantly expand the SME sector to 22% of GDP, a substantial increase from its current contribution of 9% of GDP. Historically, up to 57% of SME financing requests were declined annually by commercial banks, which have been reluctant to issue loans to SMEs at scale.
Zaid Kamhawi, CEO of Qarar, said: “We are excited to partner with Biz2X to support the development of the SME sector in Saudi Arabia. This partnership knits together our combined technical expertise, established international success, and on-the-ground market presence. Together, we are offering a powerful and proven platform that will help transform the SME lending market in Saudi Arabia.”
Rohit Arora, CEO of Biz2X, added, “Our partnership with Qarar reflects 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 SME lending more accessible and efficient for businesses everywhere, fostering economic growth and prosperity.”
The companies will showcase the Biz2X platform exclusively at Seamless Saudi Arabia in Riyadh from 4 – 5 September 2023.