// FEATURE // visionary companies with patient capital and strategic guidance.”

The SME growth opportunity: A market ripe for FinTech

The scale of the SME market opportunity in Saudi Arabia cannot be overstated. Consider the following dynamics:

1. Massive market size – With close to 2 million SMEs in operation, even modest penetration by FinTech providers translates into millions of potential customers

2. Cash-to-digital shift – Historically, SMEs relied heavily on cash. But as Saudi Arabia pushes towards a cashless economy by 2030, solutions like HALA’ s become indispensable

3. Credit gap – According to World Bank estimates, the SME credit gap in MENA exceeds US $ 250 billion. ridging even a fraction of this gap presents a huge commercial opportunity

4. Freelancer economy – In addition to SMEs, the freelance workforce is growing, demanding financial services that are flexible and digital-first

This confluence of factors makes HALA’ s embedded model – where financial services are integrated seamlessly into the SME’ s daily operations – niquely powerful.

Beyond banking: A platform for growth

HALA’ s ambitions go beyond simply providing banking services. The company envisions becoming a holistic growth platform for SMEs and freelancers. With the new funding, HALA plans to:

• Expand its lending portfolio, offering shortterm and working capital financing

• Deepen its regional footprint, extending its services beyond Saudi Arabia into other Middle Eastern markets

• Invest in technology and product innovation, particularly in areas like AIdriven credit scoring for SMEs with limited financial histories

• Strengthen its support infrastructure, offering more tools to help SMEs manage operations from expense tracking to payroll

This approach positions HALA not just as a FinTech but as a partner in business growth.

Social and economic impact

HALA’ s story also has a profound social dimension. By enabling SMEs to access affordable and reliable financial services, HALA contributes to:

• Job creation: SMEs are the largest employers in the Kingdom, so supporting their growth directly translates to more employment opportunities

• Women empowerment: Many female entrepreneurs operate SMEs, especially in retail and services. Easier access to financial tools removes barriers to their success

• Regional inclusion: Digital services mean that businesses in smaller cities or rural areas can access the same financial infrastructure as those in major urban centres

Such impacts align strongly with the impact investment thesis of funds like The Rise Fund and with Saudi Arabia’ s broader socioeconomic goals.

Looking ahead

The US $ 157 million Series B funding round is more than a financial milestone. It is seen as a signal of maturity for Saudi Arabia’ s FinTech ecosystem – a sector that has evolved rapidly over the past five years.

For HALA, the round provides the resources to double down on its mission: empowering MSMEs with tools that level the financial playing field. For SMEs, it represents hope that their

As Saudi Arabia marches towards its Vision 2030, companies like HALA are poised to become cornerstones of transformation, turning ambition into tangible impact – one small business at a time. �

AS WE LOOK AT THE NEXT PHASE OF OUR GROWTH, WE BELIEVE THAT OUR DIVERSE GROUP OF PROMINENT INVESTORS BRING VALUABLE GLOBAL EXPERTISE AND PERSPECTIVE WHICH WILL ELEVATE OUR AMBITIONS TO EXECUTE WITH EVEN GREATER SCALE AND IMPACT.

Intelligent SME. tech

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