The total transaction value exceeds SAR 1 billion
Alternative asset manager, Gulf Capital has acquired a strategic stake in Saudi Geidea, the leading provider of electronic payment solutions and financial technologies in the Kingdom of Saudi Arabia, for a total transaction value exceeding SAR 1 billion. The deal constitutes the largest acquisition in the Saudi fintech sector to date.
The transaction comes days after the launch of an initiative by the Saudi ِArabian Monetary Authority aiming to promote financial technology in the Kingdom and to transform Saudi Arabia into a destination for fintech innovation, by providing a booming ecosystem driven by local and global players. Saudi Fintech strives to achieve this goal by bringing together both public and private companies to encourage innovation and increase knowledge of Fintech and by supporting the growth of small and medium companies working in fintech.
Dr Karim El Solh, Chief Executive Officer of Gulf Capital said that in relatively short period of time, Geidea has emerged as the market leader in the financial technology sector in Saudi Arabia, paving the way for more financial institutions and businesses in the Kingdom to adopt Saudi Arabia’s Vision 2030 of achieving far-reaching economic prosperity and moving towards a cashless society.
This deal is the fifth investment for Gulf Capital in the technology sector and is part of its efforts to develop the payment and digital financial transaction sector in the GCC.
“The reliance of financial institutions on financial technology in order to further develop and grow is a fundamental pillar for shaping the future of Saudi Fintech in light of the Kingdom’s clear goal of achieving cashless cities to drive economic growth. This deal is a major step in supporting investments in these areas with the aim of providing real digital transformation in financial services within Saudi Vision 2030’s targets. We are confident that financial technology will make financial services faster, easier and less costly,” said Abdullah Bin Faisal Al-Othman, founder and president of Saudi Geidea.
Geidea is a Saudi company established in 2008 with branches in Jeddah, Dammam, Abha and Tabouk in addition to 35 maintenance centers in different areas of the Kingdom. The company also has a research and development center in Bangalore, India and over 500 experts and specialists in providing IT solutions and was able in a short time to achieve substantial growth and to reach a leadership position in providing integrated financial solutions and to attract many clients to its customer portfolio in the banking and retail sectors in the Kingdom, making it the primary provider of electronic payment solutions. Geidea also received several certificates of appreciation from SAMA, Visa Card and Mastercard for its exceptional products and its dedicated and always available technical support staff in Saudi Arabia.