In 2019, Zain KSA's fintech arm, Tamam, made history by securing the first micro-lending license from the Saudi Central Bank (SAMA). This milestone ushered in a new era for micro-lending services across the Kingdom. Designed to comply fully with both Islamic Sharia principles and SAMA’s regulatory framework, Tamam’s system operates via a streamlined digital platform, enabling citizens and residents to obtain instant loan approvals safely and conveniently. This breakthrough has dramatically enhanced financial inclusion, providing broader access to essential financial services and supporting the objectives of the Financial Sector Development Program, a key pillar of Saudi Vision 2030.
Mr. Yousef Al Musaileem, CEO of Tamam, highlighted the immense potential of the Kingdom’s rapidly expanding fintech market, emphasizing the transformative role that fintech companies will play in reshaping financial services, particularly in personal finance.
In an exclusive interview, Telecom Review explored the key milestones of Tamam's journey and its profound impact on the financial landscape.
In your opinion, how has the fintech sector in Saudi Arabia evolved?
The fintech sector in Saudi Arabia has witnessed exponential growth in recent years, fueled by initiatives from the Saudi Central Bank (SAMA) and driven by a broader shift towards digital innovation. Substantial investments in digital infrastructure have further supported this momentum. Currently, the Kingdom boasts 216 fintech companies, with venture capital investments surpassing SAR 6.9 billion, reflecting strong interest and commitment to this promising and dynamic sector.
Thanks to the Saudi Central Bank’s supportive regulatory framework, fintech market growth has soared, especially after the launch of Saudi Vision 2030, emphasizing financial sector development. Strategic initiatives like ‘Fintech Saudi’ and SAMA's Regulatory Sandbox, alongside the Capital Market Authority, have significantly contributed to this momentum. As a result, we have emerged as one of the pioneering companies in the micro-lending sector with the introduction of Tamam in 2019.
Our presence was further consolidated through our participation as a strategic sponsor at the 24 Fintech conference. These efforts have positioned fintech as a cornerstone of the Kingdom’s economic diversification strategy, serving as a gateway to a new era of advanced digital financial services and open banking solutions.
Tamam is a trailblazer in the fintech market. How has it contributed to advancing this technology?
As the fintech arm of Zain KSA, Tamam reflects the company's strategic expansion into adjacent markets. Since its launch in 2019, Tamam has emerged as a major player in the fintech sector, making significant strides in promoting financial inclusion in alignment with the Financial Sector Development Program, a key pillar of Saudi Vision 2030.
The words of the late Eng. Sultan bin Abdulaziz Al-Deghaither, former CEO of Zain KSA, and an integral figure in Tamam’s inception, still resonate with us. He once said, "Zain KSA has always been at the forefront of delivering innovative digital services in the Kingdom. We are committed to supporting the Financial Sector Development Program towards a cashless society, a core objective of Saudi Vision 2030. Tamam embodies this ambition through our investment in fintech.”
When Tamam was conceptualized in 2019, it represented a pioneering venture in the Kingdom's fintech landscape. We were the first to secure a fully Sharia-compliant micro-lending license from the Saudi Central Bank, following an 18-month trial under the close supervision of SAMA. During this period, our system was tested for efficiency, security, and alignment with the Kingdom’s consumer needs, all within the framework of the Regulatory Sandbox.
Our enhanced market presence and substantial customer base are a direct result of the integrated, seamless, and unprecedented financing experience we provide. This success is anchored in our deep understanding of our target audience’s needs, enabling us to deliver tailored solutions through a fully digital platform. Our innovative approach not only elevates the user experience but also allows us to offer micro-lending of up to SAR 50,000, completing the entire process, from registration to disbursement, without the need to visit a bank or handle cumbersome paperwork. By streamlining this process, we accomplished two key objectives: advancing financial inclusion across the Kingdom and promoting sustainability through reduced paper consumption. In doing so, we have fundamentally redefined the micro-lending landscape.
Since Tamam's launch in 2019, our customer base has surged, reaching 2.7 million clients. This achievement represents an impressive 232% growth from 2022 to 2024. Our revenue in 2023 saw a 123% increase compared to 2022, underscoring the robust demand for our services. This success has garnered attention from both local and international stakeholders, and Tamam was recognized as the "Best Personal Financing Solution" in the Middle East at the Fintech Leaders Awards 2023, validating our significant impact on the micro-lending market in the Kingdom.
Beyond micro-lending, what are Tamam’s key products and services?
At Tamam, our growth strategy focuses on expanding our service offerings to meet the increasing demand for fintech solutions across diverse consumer segments. Our flagship products include Tawarruq financing, a type of micro-lending, and Murabaha financing, which we offer through digital installment plans on e-commerce platforms.
Our commitment to excellence extends beyond facilitating micro-lending through an intuitive digital process. We also offer flexible repayment terms of up to 18 months, empowering our customers with access to a variety of online retailers. This includes Zain's online store and the Yaqoot digital service, enabling customers to acquire their desired devices and products without financial constraints. To further elevate convenience, we support multiple payment options, ranging from bank cards and credit cards to the Mada service, Apple Pay, and local bank transfers, positioning Tamam as the go-to payment solution. Our offerings leverage cutting-edge technology, designed specifically to streamline the online shopping and payment experience, bringing our services closer to the customer.
Business sustainability in fintech hinges on continuous innovation. How does Tamam stay ahead in this fast-evolving sector?
Our expansion strategy is centered on bolstering our presence in the open banking space. We are achieving this by offering groundbreaking digital services and solutions within a secure and integrated digital ecosystem. To stay ahead, we have formed strategic partnerships with both local and global entities, uniting efforts to drive sector innovation and integrate the latest technologies into our offerings.
Given that credit data is the cornerstone of our industry, ensuring its protection and safeguarding our customers against potential risks is a top priority. To this end, we have signed a MoU with SIMAH, the Saudi Credit Bureau for credit data analysis, ensuring sound financing decisions that mitigate credit risks. We are also employing artificial intelligence and modern technologies in credit rating processes. Similarly, we've signed a cooperation agreement with Tarabut Gateway, the leading open banking platform in the MENA region. This partnership enables us to access accurate, real-time data on loan applicants’ credit histories, enhancing the customer journey. It also allows us to expand Tamam beneficiaries base, ensuring precise credit assessments, reducing risks and combating electronic financial fraud.
We have also partnered with Masdr Data Solutions, a subsidiary of the General Organization for Social Insurance, to advance the integration of artificial intelligence (AI) in financing risk assessment. This collaboration aims to provide innovative and customized financial solutions for Tamam's clients, contributing to the growth of the fintech sector in the Kingdom. Together, we will revolutionize consumer financing solutions by harnessing artificial intelligence to create a transformative impact on micro-lending. By leveraging advanced data models and practical AI applications, we are committed to enhancing the overall customer experience.
In our ongoing pursuit of digital excellence and enhanced user experiences, we have forged a strategic partnership with Lean Technologies, a prominent open banking services platform. This collaboration marks a significant milestone as we expand our offerings to include open banking-powered services, streamlining financial management and transactions. By leveraging Lean Technologies' expertise, we are committed to providing innovative solutions that align with the latest global financial trends, further elevating our user experience.
Looking ahead, what type of future do you envision for the fintech sector in the Kingdom? What role do you foresee Tamam playing in driving innovation and growth?
Undoubtedly, Saudi Arabia is poised to become a global fintech hub, driven by the comprehensive transformation of the financial sector towards digitalization and the surging interest from investors keen to capitalize on this burgeoning market. This dynamic landscape will open up new avenues for growth and expansion, especially as technologies and applications driving digital financial services continue to evolve.
Given the growing demand for convenience and affordability, I anticipate a surge in demand for fintech services. At Tamam, we remain committed to serving this vital sector and supporting the realization of Saudi Vision 2030's objectives by promoting financial inclusion and enhancing the quality of life through tailored financial solutions. To achieve this, we will continue to expand our range of services and strive to be not only the first, but the most distinguished company licensed by the Saudi Central Bank (SAMA) for micro-lending in the Kingdom.
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