HALA: Pioneering Fintech Solutions for Saudi Arabia’s SME Sector
HALA stands as Saudi Arabia’s foremost fintech innovator, delivering embedded financial services tailored specifically for micro, small, and medium enterprises (MSMEs). Recently, the company secured $157 million in a Series B funding round, marking the largest fintech Series B investment in the Middle East to date. This milestone round was spearheaded by The Rise Fund-TPG’s global impact investment platform-and Sanabil Investments, a subsidiary of Saudi Arabia’s Public Investment Fund. Additional backing came from prominent investors including QED, Raed Ventures, Impact 46, Middle East Venture Partners, Arzan VC, and BNVT Capital.
Strategic Investment Fuels HALA’s Vision for MSME Empowerment
Esam Alnahdi, HALA’s Co-founder and Chairperson, described this capital injection as a pivotal moment for the company. “This funding validates our unwavering commitment to revolutionize financial services for small businesses,” he stated. “We are grateful that our vision resonates with new investors who recognize the transformative impact we aim to achieve within the MSME ecosystem. This support accelerates our mission to drive meaningful change, and our journey is only beginning.”
HALA’s rapid year-over-year expansion underscores its operational resilience and scalability. The company’s growth aligns closely with Saudi Arabia’s Vision 2030, which prioritizes boosting SME contributions to the national GDP as a cornerstone of economic diversification.
Comprehensive Financial Solutions Tailored for SMEs
HALA offers an all-encompassing suite of financial products, including business and corporate card issuance, payment processing, money transfers, point-of-sale (POS) systems, and financing options. Currently, HALA facilitates over $8 billion in annual transaction volume and supports a client base exceeding 142,000 businesses across Saudi Arabia.
Maher Louiseh, HALA’s Group CEO and Co-Founder, emphasized the value of the diverse expertise brought by the new investors. “Their global insights will be instrumental in scaling our operations and amplifying our impact,” he remarked, highlighting the company’s ambitions for accelerated growth.
The Expanding SME Landscape in Saudi Arabia: A Growth Catalyst
The SME sector is a vital engine of Saudi Arabia’s economy, with estimates ranging from 614,000 to 1.8 million active enterprises. These businesses constitute between 90% and 99% of the private sector, underscoring their dominance. Collectively, SMEs contribute approximately 20% to 35% of the Kingdom’s GDP, translating to an estimated $310 to $375 billion annually.
Employing around 4.7 million individuals, SMEs operate across critical industries such as retail, manufacturing, and construction. Between 2016 and 2021, the sector’s GDP contribution surged by 45%, driven by government-led initiatives, digital transformation, and enhanced financial accessibility. This dynamic environment presents fertile ground for innovative digital payment and financial solutions like those offered by HALA.
Empowering Economic Growth Through Financial Inclusion
Yemi Lalude, Partner at TPG and Head of Europe, Middle East, and Africa for The Rise Fund, highlighted HALA’s unique position in the market. “HALA is exceptionally equipped to empower small and micro enterprises, which are fundamental to the region’s economic development,” she noted, emphasizing the company’s role in fostering inclusive growth.
As digital payment adoption accelerates across Saudi Arabia, HALA’s integrated financial platform is poised to become a cornerstone for MSMEs seeking streamlined, accessible, and scalable financial services.
