Asset management firm Gulf Capital has acquired a $266.6 million stake in electronic payment solutions and financial technology company Saudi Geidea, the company announced on Tuesday.
According to Gulf Capital, the deal constitutes the largest acquisition in the Saudi Fintech sector to date.
The move comes just days after the launch of a new initiative by the Saudi Arabian Monetary Authority (SAMA) to promote fintech innovation in the kingdom by encouraging innovation and boost the country’s financial technology ecosystem.
“In a relatively short period of time, Geidea has emerged as the market leader in the financial technology sector in Saudi Arabia,” said Gulf Capital CEO Dr. Karim El Solh. “Geidea’s digital technologies also fuel the growth of the banking sector and the retail sector by providing digital financial transactions and the rapid transitioning to electronic payment systems.”
Abdullah bin Faisal Al-Othman, the founder and president of Saudi Geidea, said that “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,” he added. “We are confident that financial technology will make financial services faster, easier and less costly.”
The deal is Gulf Capital’s fifth in the technology sector and, according to the company, is part of a larger effort to develop the GCC’s payment and digital financial sector.
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.