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M&A WATCH-
Al Rajhi Bank has acquired a 65% stake in homegrown fintech startup Drahim for an undisclosed sum, according to a statement from the lender. The investment will be used to improve existing products used by retail and institutional customers. The acquisition follows a Y-Combinator-led seed funding round, and a pre-seed round led by Sabil Investments. The transaction is aligned with the lender’s ambition to “be a preferred partner for emerging companies in the fast-growing fintech sector,”said Waleed Al Mogbel, managing director and CEO of Al Rajhi Bank.
Meet Drahim: Established in 2021, Drahim is a personal budget app that connects to users’ bank accounts. The app analyzes daily transactions, including sales, transfers, and receivables, and generates a detailed report on spending habits, upcoming bills, and frequently used transactions. Based on this analysis, Drahim’s AI engine offers a customized, low-risk auto-investing plan in stocks.
CAPITAL MARKETS-
Alistithmar Capital’s Areic REIT Diversified Investment Fund made its debut on Tadawul’s main market yesterday, according to a Tadawul announcement. The fund’s shares will be allowed to trade within a ±30% range for the first three days before being capped at no more than 10% up or down when circuit breakers kick in. All shares on Tadawul are subject to the 10% up-or-down rule.
The fund is a closed-end real estate fund focused on investing in income-generating properties both within and outside the Kingdom, according to its IPO prospectus (pdf). Its target size is SAR 1.2 bn, with an expected raise of approximately SAR 185 mn from the offering at SAR 10 per unit.
BANKING-
Digitizing KYC processes for banking transactions: The Interior Ministry has rolled out a fresh digital identity services system that links financial institutions with the ministry’s e-services platform Absher, in a bid to enhance transaction security, safeguard customers’ personal data, and prevent fraud, the ministry said in a statement. The new system allows individuals to easily verify their identities online in order to complete their financial transactions with ease.
FINTECH-
#1- Lendo + Kafalah: Peer-to-peer digital lending marketplace Lendo inked an agreement with the Small and Medium Enterprises Loan Guarantee Program (Kafalah) to boost MSME crowdfunding, it said in a post on X. The agreement will see the two entities provide SAR 250 mn worth of guarantees on crowdfunding platforms. Kafalah, a program managed by the Saudi Industrial Development Fund and local lenders, provides guarantees to financiers, assisting MSMEs and entrepreneurs in securing the necessary financing to develop their activities.
#2- India-based low-code digitalization provider Newgen Software Technologies has launched its end-to-end trade finance platform in the Middle East, according to a company statement. The company — which opened an office in Riyadh last year — claims that its AI-powered system can be used by financial institutions to digitize their legacy systems, and streamline trade finance.
REAL ESTATE-
Rent now, pay later: Proptech player Rize has secured Shariah certification from the Shariyah Review Bureau for its new financial model, which allows tenants to pay annual rent in monthly installments while providing landlords with upfront payment, according to a statement. The company claims that this model enhances housing affordability and accessibility, and aligns with Islamic finance principles. No further information was provided.
VENTURE CAPITAL-
Saudi Awwal Bank’s investment arm, SAB Invest, launched its inaugural private venture capital fund X-tech in a bid to support early- and growth-stage tech startups, according to a statement. The fund will offer financial backing, advisory services, and access to SAB Invest’s network.
HEALTHCARE-
Almoosa Health Group launched the Rafa Mental Health Centre at Almoosa Rehabilitation Hospital in the Eastern Province, according to a press release. The center looks to “address the rising demand for mental health services” and help improve the quality of life for patients in need of these services.
FINANCIAL SERVICES-
Authorized Policy Ins. Brokers and Ace Gallagher Ins. Brokers obtained licenses to operate as electronic ins. brokers, according to a post on X.
