Morabaha Marina acquires majority stake in Loop

By Edlyn Cardoza

Morabaha Marina Financing Company, Saudi Arabia’s leading independent non-bank SME and consumer financing company, recently announced the acquisition of an 80% majority stake in Saudi Digital Payment Company (“Loop”), the digital payments technology and services provider.

The transaction enables Morabaha Marina to expand its core lending business into fully integrated financing and payment services. It provides a unique value proposition to meet the growing market need for SME-focused financial solutions.

Established in 2012, Morabaha Marina is a pioneering sharia-compliant financing platform offering a wide range of flexible and innovative solutions. Supported by the socio-economic reforms in Saudi, the company leverages its unique position to capitalise on strong market demand estimated at SAR 659 billion and growth opportunities for consumer and SME finance.

Loop, founded in 2019, is a Major Electronic Money Institution (EMI) and one of the first FinTech players in the Kingdom. Loop is licensed by Saudi Central Bank (SAMA) to provide seamless payment technology and services. It offers customer-centric digital financial services for individuals and businesses, including electronic wallets and international transfers.

Morabaha Marina and Loop’s combined value proposition will create a digitally-driven financial ecosystem, enabling SMEs access to an array of e-Wallet-based financing and payment solutions, including several new products and services that will be launched subject to Central Bank Approval.

The transaction also supports the Kingdom’s successful initiatives under Vision 2030 to drive the digitisation of consumer payments and better serve SMEs to meet its target to increase non-cash transactions to 70% by 2025.

Commenting on the transaction, Waleed Al-Ghumlas, Managing Director and Board Member of Morabaha Marina, said: “Fully aligned with Saudi Vision 2030, the combined value proposition of Morabaha Marina and Loop creates fully integrated digital financing and payment solutions and a one-stop shop for SMEs, a key segment that has been historically underserved by traditional banks and lenders. The transaction is also in line with our ongoing growth plan and strategic objectives and builds on our established track record in consumer and SME financing and diversified credit. We are confident that the combined proposition will significantly benefit both consumers and SMEs, supporting and enabling their growth as a key catalyst for economic development in the Kingdom.”

Loop is a pioneer in Saudi Arabia’s FinTech space, created to enhance digital payments solutions provided for consumers and businesses. Joining Morabaha Marina will accelerate Loop’s growth and enhance its service offering, unlocking new opportunities focused on creating integrated digital financing and payment for both SMEs & consumers. Morabaha Marina and Loop will provide a comprehensive value proposition that will significantly contribute to the development of the Kingdom’s digital payments and financing sector under the supervision of the Central Bank of Saudi Arabia.

Despite the SME sector’s critical role in economic growth and job creation, it continues to face challenges related to financing limitations. Morabaha Marina and Loop will help bridge the gap and meet complex SME financial needs through various tailored products. Today’s announcement represents an important step in realising Morabaha Marina’s vision to develop a financial services ecosystem to serve the Kingdom’s aspirations better.