Saudi Arabia’s growing fintech world just saw a big change. Tabby, one of the first billion-dollar fintech companies in the Middle East, bought Tweeq, the digital wallet operator. They shared this news at the 24 Fintech Conference in Riyadh. This purchase marks a big moment for fintech in the kingdom. It got a lot of attention from venture capitalists and investors.
Tweeq was founded in 2020 by Saeed Albuhairi, Abdulaziz Almalki, and Mohammad Fouad. It’s one of the early electronic money institutions in Saudi Arabia and is licensed under SAMA. With a Mastercard, Tweeq provides a digital spending account that offers users control over finances and alternatives to traditional banking. To date, it has also raised over a million dollars in financing from local funds such as STV and Raed Ventures, early investors in Tabby.
This merger is likely to add more to the services offered by Tabby by adding digital spending accounts, cards, and money management tools to its portfolio of financial services. Saeed Albuhairi, the co-founder and CEO of Tweeq, said, “We look forward to integrating Tweeq’s products into the Tabby ecosystem so that together we can serve the financial needs of millions of consumers across the GCC with a pioneering alternative to traditional banking.”
A Sign of Maturing Markets
Financial terms of the deal were not disclosed, but it is seen as fresh evidence that Saudi Arabia’s startup ecosystem is coming of age, with new ways opening for venture capitalists to exit. “Successful start-up ecosystems are flywheels, and start-up exits are a key cog,” said Alexandre Lazarow, Global Venture Capitalist and Founder of Fluent Ventures. “They help return capital to investors and catalyze new generations of angel investors.” Further, Lazarow underlined that IPOs, mergers, and acquisitions play a critical role in bringing viability to the path of investment exits in Saudi Arabia.
Saudi Vision 2030 For Fintech Industry
This acquisition fits into Saudi Arabia’s wider ambitions, as stated in its National Fintech Strategy-a key part of the Vision 2030 Financial Sector Development Programme. The strategy plans to establish 525 fintech firms by the end of the decade, creating 18,000 jobs and adding $3.5 billion to the Saudi economy. By adding Tweeq’s digital wallet and money management tools, Tabby says it is trying to help build an inclusive economy and promote a cashless society.
This purchase makes a step forward for the fintech Middle Eastern ecosystem, opening a new frontier in innovation and financial growth in the Kingdom of Saudi Arabia and its surrounding markets. The country positions itself to be the most attractive destination for investments in fintech, and the partnership with Tabby and Tweeq could unlock a more strong, diversified financial sector in the region.
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