RIYADH: The Saudi Central Bank has given permission for Credit Line to conduct micro consumer finance activities, bringing the total number of licensed financial companies in the Kingdom to 77.
The approval adds another regulated lender to Saudi Arabia’s growing non-bank finance sector, which has become an important part of the Kingdom’s wider effort to broaden access to credit, strengthen financial inclusion and support innovation in financial services.
Saudi Arabia’s consumer finance sector has expanded rapidly in recent years as regulators license more non-bank lenders and fintech companies to improve access to credit.
The sector forms part of the Kingdom’s wider strategy to build a more competitive and inclusive financial ecosystem capable of supporting entrepreneurship, household financing and economic diversification.
“The Saudi Central Bank emphasizes the importance of dealing with financial institutions licensed or authorized by it,” said the bank, also known as SAMA, adding that this can be verified through its official website.
Bringing such activity under formal supervision allows SAMA to expand consumer credit options while applying regulatory controls on licensing, governance, risk management and borrower protection.
The license is significant because micro consumer finance targets smaller-value credit needs that may not always be served through traditional banking channels.
SAMA expands microfinance sector
Under SAMA’s regulations, consumer microfinance refers to consumer loans provided by finance companies licensed by the central bank. The rules also set out the licensing and operational requirements for companies offering these services.
The framework requires licensed firms to assess customers’ creditworthiness and ability to repay, while also setting financing limits of SR50,000 ($13,299) per borrower, or SR25,000 when the activity is conducted through financial technology.
The decision comes as Saudi Arabia continues to expand its fintech and finance ecosystem.
Saudi Arabia targets 525 fintech companies
The Financial Sector Development Program targets 525 fintech companies operating in the Kingdom by 2030, underscoring the government’s efforts to make digital financial services a larger contributor to the economy.
SAMA’s latest approval follows a series of recent regulatory decisions in the finance sector.
The central bank previously licensed Daftar Technologies to provide buy now, pay later services, raising the number of licensed finance companies at the time to 76, and Jack Advanced to conduct consumer finance activities, which brought the total then to 75.
It also licensed Mowafaqa Digital to provide digital brokerage services for financing entities in the Kingdom.
