Saudi Central Bank Grants New Microfinance License

MENA Signal • January 31, 2026

The Saudi Central Bank (SAMA) licensed alhulul almuntilaqa to provide consumer microfinance solutions. This brings the total number of licensed microfinance companies to 12 and raises the overall count of finance companies to 70. SAMA aims to increase transaction efficiency and promote financial inclusion through this regulatory expansion.

Why MENA Founders Should Care

Capital You need to be part of the licensed club to survive. SAMA explicitly warns against dealing with unauthorized institutions, meaning unregulated startups face existential threats in the Kingdom. The barrier to entry is now a regulatory wall, not just a technical one. If you aren't licensed, you can't access the formal market or partner with established banks. You must secure compliance capital early. Investors will demand proof of regulatory alignment before cutting checks. The funding bar has shifted from user growth to legal stability. If you can't prove you can obtain a license, you are uninvestable. The cost of doing business has risen, and only well-capitalized founders will thrive.

Consolidation Seventy licensed finance companies is a crowded field. The market is reaching saturation points where niche players struggle to find unique space. You will see established players absorbing smaller firms to acquire their customer bases. The pressure to scale is immense because the cost of compliance is high. Small micro-lenders without deep backing will get squeezed out or merged. SAMA wants to enhance efficiency, and that favors scale. Don't expect to survive as a small, independent player for long. Competing on price alone is a losing strategy against 11 other licensed rivals. You need a defensible moat, or you need to position yourself for an exit. The era of fragmented fintech is ending.

Acquisition This move opens a clear exit path for B2B founders. SAMA is pushing for "innovative financial solutions" to support these new licensees. The 12 microfinance companies need technology to manage their operations and stay compliant. You should build the tech stack that powers these lenders, not compete with them. Think credit scoring engines, automated KYC, or debt management platforms. The real value isn't in holding the loan; it's in providing the infrastructure that makes lending efficient. As more firms get licensed, the demand for specialized fintech tools will grow. Position your startup as an acquisition target for these newly capitalized banks. They have the money; you have the tech.

The Context

SAMA is systematically building a dense financial network to support the national economy. By increasing the total number of licensed finance companies to 70, the regulator is flooding the market with official options. This follows a clear pattern of supporting the finance sector through licensing rather than ad-hoc permissions. The goal is to enhance the efficiency and flexibility of transactions across the board. It represents a shift from a restricted market to an inclusive one, provided entities follow the authorized channels. SAMA emphasizes that dealing exclusively with authorized institutions is critical for market stability.

What's Next

Watch for SAMA to crack down on unlisted operators. Monitor customer acquisition costs as the 12 microfinance firms battle for market share.