China says it will ignore US ‘tariff numbers game’
China says it will ignore US ‘tariff numbers game’/node/2597420/business-economy
China says it will ignore US ‘tariff numbers game’
Gantry cranes stand near shipping containers at Yangshan Port outside of Shanghai, China, April 15, 2025. REUTERS/Go Nakamura/File Photo
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Updated 17 April 2025
Reuters
China says it will ignore US ‘tariff numbers game’
Updated 17 April 2025
Reuters
BEIJING: China will pay no attention if the US continues to play the “tariff numbers game,” China’s foreign ministry said on Thursday, after the White House outline how China faces tariffs of up to 245 percent due to its retaliatory actions.
In a fact sheet released on Tuesday, the White House said China’s total duties include the latest reciprocal tariff of 125 percent, a 20 percent tariff to address the fentanyl crisis, and tariffs of between 7.5 percent and 100 percent on specific goods to address unfair trade practices.
US President Donald Trump announced additional tariffs on all countries two weeks ago, before suddenly rolling back higher “reciprocal tariffs” for dozens of countries while keeping punishing duties on China.
Beijing raised its own levies on US goods in response and has not sought talks, which it says can only be conducted on the basis of mutual respect and equality. Meanwhile, many other nations have begun looking at bilateral deals with Washington.
Last week, China also filed a new complaint with the World Trade Organization expressing “grave concern” over US tariffs, accusing Washington of violating the global trade body's rules.
China this week unexpectedly appointed a new trade negotiator who would be key in any talks to resolve the escalating tariff war, replacing trade tsar Wang Shouwen with Li Chenggang, its envoy to the WTO.
Washington said Trump was open to making a trade deal with China but Beijing should make the first move, insisting that China needed “our money.”
The scent of Vision 2030: Saudi oud’s journey to world markets
Ƶ’s oud makers and exporters are expanding to keep up with rising global demand
Updated 27 September 2025
Reem Walid
RIYADH: While perfumes are gaining fresh attention across the Kingdom, oud remains the soul of the Gulf’s scent identity, deeply rooted in Saudi heritage and now poised for global growth.
Ƶ’s oud and fragrance retail market is projected to see a 14 percent compound annual growth rate from 2024 to 2029, reaching approximately SR18.5 billion ($4.93 billion) by the end of the period, according to Euromonitor.
This growth will be driven largely by rising demand for premium oud-based perfumes, fueled by increasing consumer spending.
Euromonitor also showed that premium men’s fragrances, many of which feature oud, are expected to be the fastest-growing category, aligning with a regional shift toward greater male investment in personal care. Arabian Oud Co. led the market in 2024, holding a 9 percent retail value share.
Before exploring oud’s transformation, it’s worth stepping back to understand the shifting dynamics of fragrance demand in the Gulf Cooperation Council, and what gives the region its uniquely bold scent identity.
Changes in demand for luxury fragrances in the GCC in recent years
The Gulf Cooperation Council region has long stood apart as deeply sophisticated when it comes to fragrance.
“But what we are seeing today is a meaningful evolution, from passive consumption to informed appreciation,” Marco Parsiegla, CEO of Omani luxury fragrance brand Amouage told Arab News, adding: “Clients are no longer simply buying perfumes; they are seeking stories, origins, and a sense of intentionality in what they wear. It is a fact that fragrance here is not an accessory; it’s an extension of personal identity and cultural heritage.”
Founded in 1983, Amouage is a luxury fragrance house known for its rich, oud-infused scents that blend Middle Eastern tradition with modern perfumery — and it is widely available in Ƶ through upscale retailers in cities like Riyadh and Jeddah.
To keep up with demand, Saudi oud exporters are also innovating in sustain-able sourcing.
Olivier de Cointet, senior adviser, consumer and retail at Arthur D Little
Parsiegla went on to underline that the market’s growing maturity allows brands like Amouage to prioritize depth over trends. He explained that demand has shifted toward richer concentrations and limited, long-lasting creations.
“Our Exceptional Extraits, Attars, and Essences collection continue to perform exceptionally well in the GCC precisely because they reflect these values: rarity, intricacy, and permanence,” the CEO said.
“For us at Amouage, this region is not a target market, it’s home. It’s where our roots lie and where our vision is constantly challenged and refined. As we continue to expand globally, the GCC remains integral to how we define the meaning of high perfumery in a world that increasingly values quality, craftsmanship, and richness of expression,” Parsiegla added.
GCC’s distinctive scent profile
Parsiegla explained that for centuries, the region has maintained a strong connection to scent — where elements like oud, musk, and frankincense were more than commodities; they were cherished. This enduring bond with natural ingredients has cultivated a bold and distinctive scent identity.
“Unlike markets where perfumery is more seasonal or trend-driven, the GCC has developed its own codes such as layering, incense (Bakhoor), and oud which have been passed on through generations. These are not habits; they’re traditions. And in that sense, the scent profile here reflects a lived aesthetic that values intensity, permanence, and resonance,” he said.
“At Amouage, we don’t approach this profile as outsiders. We were born into it. And what makes the GCC unique is not just the preference for bold or opulent compositions, but the discernment behind those preferences. There’s an expectation here that perfume should move you, intellectually, emotionally, even spiritually. That’s a high standard to meet, but also an inspiring one,” the CEO added.
Saudi artisans and the increasing global demand for oud
Ƶ’s oud makers and exporters are expanding to keep up with rising global demand — estimated at $6 billion a year, according to newsletter Aramco World — while preserving their traditional craftsmanship.
According to Olivier de Cointet, senior adviser, consumer and retail at Arthur D Little, traditional extraction methods continue to be central to oud production, with a strong commitment to preserving the rich, complex scent — described as earthy, animalic, and leathery — that has made it a prized luxury ingredient among perfumers globally.
The govern-ment’s export promotion arm is likewise opening doors abroad through training, trade missions, and support programs.
Sundeep Khanna, partner, consumer and retail at Arthur D Little
“To keep up with demand, Saudi oud exporters are also innovating in sustainable sourcing. They have forged supply chains with Southeast Asian partners, and some major perfume houses invest directly in agarwood plantations abroad to secure high-quality supply. At home, new initiatives encourage cultivating Aquilaria trees on Saudi soil. For example, the project launched this year in Madinah to grow agarwood trees locally,” de Cointe said.
Vision 2030’s role transforming oud into a premium export
As part of Vision 2030, Ƶ has identified fragrances — particularly oud — as a key non-oil export to support economic diversification and generate employment opportunities.
From ADL’s side, Sundeep Khanna, partner, consumer and retail, explained that government efforts are enabling local fragrance brands to grow internationally and highlight Saudi artistry. In 2024, for example, Al-Majed for Oud became one of the first Saudi perfume companies to announce a public listing.
Ƶ is turning to cultivated trees and biotech solutions to safeguard supply. (AFP)
“The government’s export promotion arm is likewise opening doors abroad through training, trade missions, and support programs — part of a broader push that lifted Saudi non-oil exports to a record SR515 billion in 2024,” Khanna said.
He added that a critical driver is Vision 2030 tying cultural heritage to economic value, with programs such as “Year of Handicrafts 2025.”
Growth, sustainability of Ƶ’s oud industry
Sustainability is now central to oud’s future, and ADL’s de Cointet highlighted that with wild agarwood at risk, Ƶ is turning to cultivated trees and biotech solutions to safeguard supply.
Government projects such as the Madinah farms aim to domesticate oud production, while global producers explore lab-grown methods to produce resin without harming natural forests.
“Looking ahead, collaborations with luxury brands are expected to further boost the Saudi oud industry’s visibility and sophistication. Saudi perfume houses increasingly work with renowned perfumers and luxury houses on exclusive editions and scent development,” he said.
Partnerships to boost oud value
Speaking on behalf of ADL, Khanna shed light on how Ƶ is tapping into partnerships with leading global fragrance houses, like Penhaligon’s 2024 AlUla launch, to elevate oud’s value and reposition it as a contemporary economic asset.
“Ƶ is also forging direct collaborations and knowledge exchanges with luxury brands to enrich its local industry. The National Museum in Riyadh recently hosted ‘Perfumes of the East’ – an international exhibition, with France as a key partner, that immersed visitors in Arab perfume heritage and included workshops by perfumers like Christopher Sheldrake,” he said.
The ADL partner added that such events connect Saudi artisans with global experts, spurring innovation in blending traditional oud oil with modern techniques.
Startups secure new backing to accelerate growth, scale technologies
Updated 27 September 2025
Nour El-Shaeri
RIYADH: Startup funding activity across the Middle East and North Africa region continues to show resilience, with fintech and artificial intelligence-focused ventures drawing significant investor interest.
From early-stage rounds to global expansion plays, startups across Ƶ, the UAE, Jordan, and Tunisia have secured new backing to accelerate growth, scale technologies, and strengthen digital infrastructure.
Ƶ-based fintech startup erad has secured $33 million in debt financing, marking Indian venture debt firm Stride Ventures’ first investment in the Kingdom.
The transaction, closed during Money20/20 Riyadh, included participation from other undisclosed investors.
Founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Al-Meheini, and Youssef Said, erad offers Shariah-compliant, data-driven financing solutions to micro, small and medium-sized enterprises in Ƶ and the UAE.
The company claims to enable funding access within 48 hours. The new capital will be used to scale its platform and expand operations across both markets, with a focus on the retail, food and beverage, healthcare, and e-commerce sectors.
This latest round follows a $16 million pre-series A funding round which closed in April 2024 with backing from Y Combinator, Nuwa Capital, and others.
Stride Ventures plans $200m deployment in Ƶ
Stride Ventures has also announced plans to deploy $200 million in Ƶ over the next two years, signaling a significant push into the Gulf region’s evolving financing landscape.
The firm is targeting a diverse range of companies across sectors and sizes, aligning with Ƶ’s economic diversification goals.
Additionally, Stride aims to invest $50 million into the UAE’s private credit market and has committed $500 million for broader Gulf investments over the next four years.
Tunisia’s ANAVA commits $4m to Rasmal Innovation Fund I
Tunisia’s ANAVA Fund of Funds has committed $4 million to Qatar-based Rasmal Innovation Fund I, a vehicle supported by the Qatar Investment Authority’s $1 billion initiative.
The commitment aims to increase global venture capital access for Tunisian startups and strengthen links across the Middle East and North Africa startup ecosystems.
Rasmal Innovation Fund I targets $100 million in capital to invest in seed to series B-stage startups across fintech, B2B SaaS, healthtech, and logistics.
ANAVA, which is backed by the World Bank, KfW, and CDC, continues to deploy a fund-of-funds model to attract international fund managers and develop the local innovation economy.
Presight and Shorooq launch $100m A innovation fund
Presight, an AI-focused subsidiary of Abu Dhabi’s G42, has partnered with venture capital firm Shorooq Partners to launch a $100 million global innovation fund targeting AI ventures.
Presight–Shorooq Fund I will invest in early to growth-stage startups in AI, machine learning, and smart cities, as well as energy, fintech, augmented and virtual reality, Industry 4.0, and deep tech.
Presight–Shorooq Fund I will invest in early to growth-stage startups in AI, machine learning, and smart citie. (Supplied)
In addition to capital, the fund offers access to Presight and G42’s GPU infrastructure, secure data environments, and distribution channels.
The initiative seeks to position Abu Dhabi as a global hub for scalable and transformative AI solutions by pairing Presight’s technological capabilities with Shorooq’s investment expertise.
PayPal to invest $100m in Middle East and Africa
US-based digital payments company PayPal has announced plans to invest $100 million across the Middle East and Africa through a combination of minority investments, acquisitions, PayPal Ventures funding, and technology deployment.
The investment follows the recent opening of PayPal’s regional hub in the UAE, which aims to enhance digital commerce through improved payments, security, and international market access.
The initiative will build on PayPal Ventures’ previous investments in startups including Tabby, Paymob, and Stitch, and is positioned to help scale digital infrastructure while supporting regional entrepreneurs and small businesses.
Saudi fintech Bynow raises $1.2m from Merak Capital
Riyadh-based B2B fintech startup Bynow has secured $1.2 million in funding from Merak Capital to accelerate product development and support regional expansion.
Founded in 2022 by Rami Suliman and Ahmed Banafa, Bynow provides buy now, pay later solutions tailored for businesses, with a particular focus on small and medium-sized enterprises.
Founded in 2022 by Rami Suliman and Ahmed Banafa, Bynow provides buy now, pay later solutions tailored for businesses. (Supplied)
The company is developing tools to automate accounts receivable and payable processes.
The funding aligns with broader efforts under Vision 2030 to digitize financial services and enhance cash flow management across the SME sector.
Bwatech secures $16m to expand fintech services in Ƶ
Ƶ-based fintech Bwatech has raised $16 million in a funding round led by Sharaka Financial to fuel growth and deepen its presence in the Kingdom’s evolving digital finance sector.
Founded in 2020 by Rasha Al-Oraini and Hashem Al-Hekail, Bwatech offers a digital platform providing bank guarantees, account management, and open banking services accessible via web, mobile, and APIs.
Operating under the Saudi Central Bank’s regulatory sandbox, Bwatech aims to bolster corporate financial efficiency and contribute to the Kingdom’s broader digital infrastructure.
MoneyMoon raises $2.9m to scale P2P lending platform
Peer-to-peer lending platform MoneyMoon has raised $2.9 million in a pre-series A round led by Core Vision, with participation from family offices and angel investors.
The Saudi fintech startup will use the funds to enhance its technology stack and broaden access to Shariah-compliant short-term financing.
Founded in 2023 by Abdulmajeed Al-Askar, MoneyMoon operates under the Saudi Central Bank’s sandbox and offers Murabaha-based financing options.
The company’s mission is to advance financial inclusion and support innovation in line with Vision 2030 objectives.
Sindbad Tech raises $4.8m seed round to scale fintech offerings
Saudi fintech firm Sindbad Tech raised $4.8 million in seed funding during Money20/20 Middle East, with the round led by Alkhabeer Capital.
The funding will support the company’s expansion and continued development of financial solutions.
Founded in 2013 by Abdulaziz Al-Sultan, Mohammed Agbawi, and Ziad Aqbawi, Sindbad Tech evolved from a research initiative into a full-fledged fintech platform.
The company aims to improve transactional efficiency and contribute to Ƶ’s innovation and digital transformation agenda.
Jordan’s MADA secures $1.55m in pre-seed funding
Jordanian fintech MADA has raised $1.55 million in a pre-seed round led by Vision Ventures, with additional investment from D-Investments.
The company plans to use the funding to advance its platform and prepare for regional expansion.
Founded in 2018 by Mohammad Merie and Issa Ramadan, MADA offers buy now, pay later solutions and operates under the Central Bank of Jordan’s regulatory sandbox.
The startup seeks to offer flexible financing options while promoting financial inclusion and enhancing consumer access to digital credit products.
How Green Point transforms waste into sustainable gifts, recycles, and improves the environment in Ƶ
Rising food and plastic waste threaten the environment and public health
Updated 27 September 2025
Haifa Alshammari
RIYADH: Waste, be it food waste, plastic, or industrial byproducts, has severe negative effects on the environment, human health, and economies.
Globally, food loss and waste amount to more than 1 billion tonnes of all food produced every day, according to the statistics division at the United Nations. This crisis not only squanders water, land, energy, and labor but is also responsible for significant greenhouse gas emissions.
For example, food loss and waste contribute between 8 percent and 10 percent of global greenhouse gas emissions, also stressing land resources and biodiversity, as reported by the UN. Without urgent policy and behavioral changes, global waste generation is projected to grow dramatically.
This photo taken on June 19, 2025 shows residents throwing food waste into buckets next to a recycling collection truck in Taipei, Taiwan. (AFP)
According to the World Bank, solid waste is projected to increase by 70 percent by 2050 if urgent action is delayed, posing a threat to ecosystems, biodiversity, air quality, water quality, and human health.
In Ƶ, the scale of waste is also alarming. Saudis generate about 1.7 kilograms of waste per day for each person, according to 2023 study published by the , as the country produces about 7 million tonnes of plastic waste a year.
Food loss and waste in the Kingdom account for approximately 33 percent of the food produced, according to the same source, which corresponds to about 4 million tonnes annually, valued at approximately SR40 billion ($10.6bn)
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However, according to a 2024 report by the Saudi Press Agency, Ƶ is moving to address these issues, as the ministry of environment, water, and agriculture has set ambitious targets to recycle up to 95 percent.
Additionally, the country aims to eliminate 82 percent of existing waste sites by 2035 as part of its push toward a circular economy model, as earlier reported in the Saudi
Such efforts demonstrate how the Kingdom is taking increasingly serious steps to reduce single-use plastics, promote recycling, and transform waste into value. One of the green methods to minimize waste is recycling materials into gift products.
Muhammed Tantawy, chief marketing officer of Green Point, in an interview explained how the Saudi-based company is helping organizations shift from wasteful practices toward meaningful, sustainable alternatives, especially in the domain of gift items.
Green Point transform pineapple skin into notebooks and leather keychains, and apple peels into vegan Polyurethane leather, which makes it a green alternative to animal-derived leather. (Supplied)
“A forward-thinking company dedicated to providing innovative and sustainable corporate gifts and solutions ... helping organizations adopt environmentally responsible practices by providing products that are functional, high-quality, and eco-friendly," said Tantawy, outlining Green Point’s core values.
According to him, the company values being built revolve around sustainability, innovation, and ethical sourcing. The company prioritizes recycled, renewable, and biodegradable materials to minimize waste, while promoting conscious consumption. This approach enables Green Point to avoid becoming another source of waste and focus on being part of the solution.
Some of Green Point’s sustainable gifts are produced locally, such as essence burners made from natural bamboo, which they believe is the only truly sustainable and eco-friendly wood. Another item made from recycled cotton, or felt, is a tote bag.
"Green Point contributes to building a greener, more sustainable future in line with the Kingdom's ambitious vision." Said Muhammed Tantawy, Chief Marketing Officer of Green Point. (Supplied)
Yet, what is more impressive is how the company recycles organic waste, which benefits the environment and is biodegradable.
For example, pineapple skin is transformed into notebooks and leather keychains, and apple peels into vegan polyurethane leather, which makes it a green alternative to animal-derived leather.
The company also processes coconut shells into bowls and cups, in addition to converting coffee beans into vegan leather substitutes.
DID YOU KNOW?
• Food loss and waste in the Kingdom account for approximately 33 percent of the food produced daily.
• Ƶ is working to tackle food-waste issues through the Ministry of Environment, Water, and Agriculture, setting ambitious targets to recycle up to 95%.
• On a global scale, food loss and waste result in the waste of more than 1 billion tonnes of food a day, according to the UN.
But what makes Green Point align with Saudi Vision 2030 and the Kingdom’s sustainability goals is how the company supports the national agenda, Tantawy said.
According to him, they are “prioritizing eco-friendly and locally sourced materials and offering solutions that reduce single-use plastics and general waste.”
Even further, the CMO discussed one of their responsibilities towards a greener future, as they are promoting sustainability more broadly by educating clients about the environmental value of their products. This approach involves not just selling an item, but also raising awareness.
“Green Point contributes to building a greener, more sustainable future in line with the Kingdom’s ambitious vision,” Tantawy said.
They also process coconut shells into bowls and cups, in addition to converting coffee beans into vegan leather substitutes. (Supplied)
Overall, Ƶ’s Vision 2030 is not only focused on economic diversification and infrastructural development; it also emphasizes environmental sustainability while ensuring the establishment of a circular economy.
Because the Kingdom is committed to reducing plastic waste, promoting recycling and restoring degraded lands, and more importantly, increasing environmental awareness throughout society, Green Point illustrates how the private sector can play a role in the transformation process, by using waste and turning it into gift products, keeping practices green as well as ethical.
Through a sustainable approach, the company demonstrates that gifts are not only an expression of gratitude or celebration, but also an expression of care for the environment and the overall community in the Kingdom.
KARACHI: Pakistan is planning Saudi-linked port and shipping projects, including new gateway terminals, direct shipping routes and green ship recycling yards, as part of efforts to become a logistics bridge between the Gulf, Central Asia and China, the maritime ministry said on Friday.
Officials say Pakistan’s location at the mouth of the Arabian Sea gives it a strategic advantage in connecting Gulf energy exporters with China and the landlocked markets of Central Asia.
With Gulf–China trade volumes rising and regional shipping routes expanding, Islamabad is seeking to position its ports as key nodes in emerging transport corridors.
According to a statement from the maritime ministry, Technical Adviser for Maritime Affairs Muhammad Jawad Akhtar proposed several new projects with Ƶ.
These included “Karachi–KSA and Gwadar–KSA Gateway Terminals, expansion of the Pakistan National Shipping Corporation fleet under Saudi partnership, start direct shipping lines from Karachi to Jeddah and Gwadar to Dammam, and establish 20 green ship recycling yards at Gaddani,” the maritime ministry statement said.
Karachi Port and Port Qasim — Pakistan’s two largest and busiest seaports handling most of the country’s container and cargo traffic — along with Gwadar Port, a Chinese-developed deep-sea port near the mouth of the Arabian Gulf, are seen as key to these plans.
Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry said the effort was part of a broader plan to integrate Pakistan’s ports and logistics infrastructure with regional trade routes.
“We are not merely compiling lists of projects; we are shaping a national roadmap for logistics and connectivity,” he said.
“Pakistan performs best under compressed timelines, and this is one such moment.”
Chaudhry said Karachi Port, Port Qasim and Gwadar Port would be central to the plan, which aims to link them to regional transport corridors through rail, road and air networks.
He highlighted the importance of the long-delayed ML-1 railway modernization project — a planned multi-billion-dollar upgrade of Pakistan’s 150-year-old main railway line from Karachi in the south to Peshawar near the Afghan border — expected to boost freight and passenger traffic from the northwest province of Khyber Pakhtunkhwa to southern ports.
He said Pakistan must align its development agenda with the connectivity needs of partner countries.
Chaudhry added that a joint working group bringing together the maritime, communications, railways and defense ministries would hold its first meeting next week to shortlist priority projects for rapid funding and development.
Other ministries outlined their own connectivity priorities. The communications ministry called for laying fiber optic cables along railway lines, expanding submarine cable networks and speeding up completion of the M-6 motorway — a 394-km section of Pakistan’s north–south highway network linking the port city of Karachi to Sukkur in interior Sindh province — described as a missing link in the China–Pakistan Economic Corridor (CPEC), a multibillion-dollar infrastructure and energy program that is part of China’s Belt and Road Initiative.
The communications ministry also highlighted plans for an M-10 motorway extension through the Khirthar mountains in southern Pakistan to complement existing road infrastructure.
A petroleum ministry representative said a $300 million feasibility study was underway for a new merchant oil terminal at Hub, an industrial town near Karachi, as part of Pakistan State Oil’s infrastructure expansion strategy.
Chaudhry urged ministries to deliver a clear, investment-ready roadmap that would attract international financing and cement Pakistan’s role as a “central bridge” connecting the Gulf with Central Asia and China.
Saudi finance firms’ credit up 10% as non-bank lending sector grows
Finance companies have become pivotal in expanding credit access to Saudi consumers and SMEs
Individual finance accounted for the largest share of total credit facilities
Updated 26 September 2025
Dayan Abou Tine
RIYADH: Saudi finance companies’ outstanding credit reached SR99.37 billion ($26.5 billion) at the end of the second quarter of 2025, marking a 10.2 percent increase compared to the same period last year.
According to latest data from the Saudi Central Bank, also known as SAMA, this figure represents only about 3.12 percent of the total financing extended by the Kingdom’s commercial banks, underscoring the still-modest but growing footprint of non-bank lenders in the financial system.
Personal loans and auto financing dominated the portfolio of these companies, reflecting their consumer-centric focus. Individual finance accounted for the largest share at around 29 percent of total credit facilities, roughly at SR28.7 billion.
Auto financing was the second-biggest segment at about SR25.93 billion, followed closely by residential real estate loans, which comprised 23 percent or approximately SR23 billion of the total.
Other, smaller lending activities registered even faster year-on-year growth, albeit from a lower base. Credit card finance, for instance, jumped by about 31.5 percent over the year to reach SR2.12 billion, making it one of the fastest-growing segments.
Commercial real estate financing also saw a robust annual uptick of 22.8 percent, climbing to SR5.66 billion, as finance companies increasingly catered to property developers and businesses outside the traditional banking sector.
Loans classified under “other” rose by 14 percent to SR14.04 billion. This broad-based growth across categories indicates strong borrower appetite and an expanding role for finance firms beyond their core personal and auto loan offerings.
According to SAMA’s breakdown, the retail sector took the lion’s share of finance company lending, accounting for about 77 percent of total outstanding credit by these firms.
SAMA had noted in 2024 in its Financial Stability Report that such concentration presents a risk exposure, though roughly half of those retail loans are to public sector employees with stable incomes, which helps mitigate default risk.
Support for businesses — especially smaller enterprises — is a significant part of finance companies’ mission. Micro, small, and medium-sized enterprises together received nearly 19 percent of finance company credit as of the quarter, which is nearly double the proportion that SMEs typically represent in bank lending portfolios.
This underscores how non-bank lenders are closing the SME financing gap and supports Vision 2030’s diversification agenda, which seeks to broaden consumer and SME access to credit and lift SMEs’ share of bank lending to 20 percent by 2030.
By contrast, large corporates outside the SME category accounted for only about 4.4 percent of finance company credit, as big firms continue to rely mostly on banks or capital markets for their funding needs.
Key role for consumers
Finance companies have become pivotal in expanding credit access to Saudi consumers and SMEs, complementing banks by serving niche segments and underserved borrowers.
Though their loan book is only a fraction of the size of banks’, Saudi finance companies play an outsize role in financial inclusion. They are non-deposit-taking institutions that often serve niche markets and borrowers not fully reached by traditional banks.
In recent years, these firms have been instrumental in extending credit to underserved segments — from lower-income individuals seeking personal or installment loans, to entrepreneurs and small business owners who may lack the collateral or credit history to obtain bank financing.
The growing activity of finance companies, alongside new fintech lending platforms, is viewed as crucial to bridging this gap.
These non-bank finance firms also complement banks by taking on business models that banks might not pursue, such as leasing, microfinance, and buy now, pay later services.
As most Saudi finance companies are not allowed to take customer deposits, except in limited cases with SAMA’s prior approval, they fund their books largely through shareholder capital and wholesale funding which are bank credit lines and, where approved, sukuk or bond issuance, supplemented by retained earnings.
This structure tends to make their cost of funds higher than deposit-funded banks, so pricing and product design are calibrated to risk and speed, especially in the consumer, auto, and SME niches where exposures are often partially unsecured.
Their presence introduces more competition and choice in the credit market, provifing consumers with additional options for car loans or credit cards, and offering small businesses alternative financing when bank loans are out of reach.
Even though these companies’ overall market share is small, their impact on niche lending segments is significant, providing tailored financial solutions that complement the services of mainstream banks.
Their rapid growth in recent years has been underpinned by regulatory reforms and fintech innovation.
SAMA leading the way
SAMA has actively encouraged the expansion of this sector as part of the Financial Sector Development Program. A notable step came in January 2023, when the regulator halved the minimum paid-up capital requirement from SR100 million to SR50 million for new finance companies focusing on SME lending.
This move aimed to attract investors and enable more specialized lenders to launch operations targeting small businesses. Additionally, SAMA opened the door for new business models by licensing the first debt-based crowdfunding platforms and setting a low SR5 million capital threshold for BNPL providers, fostering a wave of fintech entrants.
Since 2022, rules have also been eased to allow finance companies to engage in multiple financing activities, such as consumer finance, real estate lending, and SME finance under one roof, rather than be restricted to a single line of business.
As a result of the pro-growth regulatory environment, the number of licensed finance companies in the Kingdom has climbed significantly. By the end of 2024, SAMA had authorized 62 finance companies operating across personal finance, mortgage, leasing, and fintech lending segments.
That momentum has continued into 2025 with SAMA’s latest licensing notice in September stating that, with the licensing of Muhlah Zamaniyah for consumer microfinance, “the total number of finance companies licensed by SAMA” reached 68.
Looking ahead, Saudi finance companies are poised for further expansion in line with the Kingdom’s Vision 2030 ambitions. Their agility in deploying fintech solutions, from instant consumer loans via mobile apps to revenue-based financing for startups, gives them an edge in reaching customer segments that value speed and flexibility.
At the same time, prudent oversight by SAMA, including updated governance and risk management frameworks, is helping ensure the sector grows sustainably.
With continued policy support and innovation, these non-bank lenders are set to deepen their role in Ƶ’s credit market, gradually increasing their 3 percent slice of the pie while empowering more consumers and entrepreneurs with access to financing.
