Middle East alternative asset management firm Gulf Capital announced on Monday it has acquired a strategic stake in Saudi Arabia fintech, Geidea. According to the company, this deal with Geidea is claimed to be the largest acquisition in the Saudi Fintech sector to date and the transaction comes just day s after the launch of an initiative by the Saudi Arabian Monetary Authority that aims to promote fintech in the country and help “transform” Saudi Arabia into a destination for fintech innovation.
Geidea was founded in 2008 and is the official distributor of Verifone and a payment solution company. The company claims to be a leading integrated software solutions provider, employing more than 400 experts dedicated to providing unique innovative information technology solutions. While sharing more details about the transaction, Dr Karim El Solh, CEO of Gulf Capital, stated:
“We are delighted to partner with Geidea, the leading payment solutions company in Saudi Arabia and to help support it on its ambitious growth and expansion plans. In a relatively short period of time, Geidea has emerged as the market leader in the financial technology sector in Saudi Arabia, paving the way for more financial institutions and businesses in the Kingdom to adopt Saudi Arabia’s Vision 2030 of achieving far-reaching economic prosperity and moving towards a cashless society. Geidea’s digital technologies also fuel the growth of the banking sector and the retail sector by providing digital financial transactions and the rapid transitioning to electronic payment systems. I look forward to working with Geidea towards achieving its vision of becoming the leader in the payment technology sector in the GCC region.”
Abdullah Bin Faisal Al-Othman, Founder and President of Geidea, commented:
“The reliance of financial institutions on financial technology in order to further develop and grow is a fundamental pillar for shaping the future of Saudi Fintech in light of the Kingdom’s clear goal of achieving cashless cities to drive economic growth. This deal is a major step in supporting investments in these areas with the aim of providing real digital transformation in financial services within Saudi Vision 2030’s targets. We are confident that financial technology will make financial services faster, easier and less costly.”
Gulf Capital also reported that this deal is its fifth investment in the technology sector and is part of its efforts to develop the payment and digital financial transaction sector in the GCC.