RIYADH: Saudi electronic information company Tabadul and Fintech Saudi signed a memorandum of understanding to boost the Kingdom’s financial technology in the logistics sector.

The agreement states that the two parties will create new opportunities for entrepreneurs to develop their business and products as the companies collaborate to build an ecosystem and raise awareness of the fintech industry.

Founded in 2009, Tabadul is a subsidiary of the Saudi Public Investment Fund and provides digital financial services and electronic information exchange in the logistics and business sectors.

The MoU will also allow Tabadul to support startups and grow their capabilities in the logistics sector in addition to scaling up fintech companies in cooperation with Fintech Saudi.

“This MoU cements Tabadul’s position and contributes to increasing the adoption of our fintech solutions for the logistics sector through multiple fintech channels in collaboration with our strategic partners at Fintech Saudi,” Feher Alshareif, chief strategy and innovation officer at Tabadul, said in a statement.

The MoU aims to create a point of collaboration between the two parties to support the financial technology industry by launching joint projects in line with Vision 2030.

“This also supports our goal of becoming the leading provider of integrated digital logistics solutions in the Kingdom and one of the top digital logistics providers globally,” Alshareif added.

Saudi Fintech aims to empower startups and entrepreneurs by providing them with the right financial tools to fuel operations in different sectors.

“At Saudi Fintech, we are creating an ecosystem that brings together creative entrepreneurs and prepares fintech companies to design and deliver innovative solutions that would elevate logistics services in line with the objectives of the Financial Sector Development Program and the National Industrial Development and Logistics Program,” Fintech Saudi’s Fintech Hub Manager, Nezar Alhaidar, said in a statement.

The financial technology sector has seen tremendous growth over the past years as investors are betting on Saudi Vision 2030 to transform the Kingdom’s ecosystem into a regional fintech hub.

The Kingdom has already initiated Open Banking services and will continue to evolve its financial options as experts believe a huge rise of consumer spending freedom and buy now, pay later initiatives to be launched in the near future.