Saudi robo-advisor Madkhol has secured a Shariah stamp of approval for its digital financial planning and wealth management service, growing the Kingdom’s Islamic fintech community.
Certified by Bahrain’s Shariyah Review Bureau (SRB), Madkhol was founded by Saad Atyan in 2021.
“We believe we are at an inflection point where the burgeoning financial services are growing into a more connected yet decentralized digital financial world,” said Saad, who is also the firm’s CEO and board member, adding: “At Madkhol, we assess your risk profile and financial goals to determine what works for you—providing automated investing with guidance along the way. We have developed an automated approach and are utilizing the progressive digital asset regulatory framework of Saudi Arabia in offering digital financial services that are safer, faster and better.”
There are at least four other Islamic robo-advisors in Saudi Arabia, according to the IFN Islamic Fintech Landscape as at the 11th February 2022.
It is likely there will be more Islamic digital investment managers joining the Saudi market, which places a great emphasis on Shariah compliance, and is experiencing favorable demographic changes.
The number of ultra-high-net-worth individuals (UHNWIs) in the Kingdom in 2022 grew faster than any other market in the world over the last five years, clocking in a 227% surge over the period, according to Knight Frank. This positive trend is also seen in the wider Middle East: Knight Frank predicts that UHNWIs in the region will increase by 24.6% by 2025, solidifying itself as the fourth-largest wealth hub globally.
“Year on year we have been witnessing a rise in digital adoption by the market players. Start-ups have been at the forefront of this disruption who seek top technological solutions whilst complying with the Shariah requirements,” according to Yasser S Dahlawi, the founder and CEO of SRB.