UK Halal investment platform Maydan Capital has partnered with Saudi Aramco Entrepreneurship Center’s Wa’ed Ventures to channel Shariah compliant investments into ethical Saudi fintech start-ups.
This MoU was signed on the back of increasing investor interest in the Saudi fintech market. Venture investment in the Kingdom between 2017 and September 2021 clocked in a compound annual growth rate of over 40%, outperforming the rest of its MENA peers which collectively recorded a 28.6% CAGR over the same period, according to data from regulator-backed fintech hub, Fintech Saudi. In the first eight months of 2021 alone, 16 venture investments in fintech with a total deal value of US$157.2 million were signed, a significant surge from seven deals worth US$7.8 million in 2020 and six deals totaling US$18 million the year before.
The agreement is for Maydan Capital to offer its members the opportunity to co-invest alongside Wa’ed Ventures into local start-ups with an ethical focus. They both will jointly coordinate and collaborate on finding, backing and mentoring founders.
“This is an exciting partnership that is a win-win for both parties, as well as consumers that will ultimately benefit from the next generation of ethically-focused fintech firms that we back. More than ever, we need to prioritize a more sustainable sector and the only way to achieve this is by collaborating with organizations that share our vision for the future,” commented Safdar Alam, CEO of Maydan Capital.
Saudi authorities are pushing to develop Islamic fintech start-ups in line with its strong affinity with Islam and world-leading position in Shariah compliant finance. Fintech Saudi has identified 82 active fintech start-ups in 2021.