Etihad Qoo Telecommunications Company (“Qoo”) announced a new strategic milestone: its subsidiary, Qoo Money, has received final approval from the Saudi Central Bank (SAMA) to operate in the Kingdom of Saudi Arabia, offering micro-consumer finance services. This significant development will further enhance the company’s expansion in the digital financial services sector, leveraging its robust technological infrastructure and extensive customer base.
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company clarified that its capital is SAR 20 million. Through this license, the company aims to provide flexible and fast financing solutions for individuals, contributing to meeting their daily purchasing needs and enhancing their access to financial services easily through digital channels.
A broader context within Vision 2030 and financial transformation
This step falls within the broader context of the Financial Sector Development Program, a key pillar of Saudi Vision 2030. The Kingdom aims to build a diversified and innovative financial sector and encourage the emergence of financial technology (Fintech) companies that offer new services, enhance financial inclusion, and improve transaction efficiency. Microfinance is a vital tool for achieving these goals, as it targets a broad segment of consumers who may not be able to access financing through traditional banking channels, thus supporting the growth of the retail sector and stimulating the economic cycle.
Strategic importance and expected impact
Domestically, the entry of “Qo Money” into this market is expected to increase competition among financial institutions, which will positively impact consumers by providing them with more options and more competitive terms. This expansion also represents a strategic shift for “Qo” from a mere telecommunications operator to a comprehensive digital services provider, a global trend adopted by major telecommunications companies to leverage their data and customer relationships to deliver value-added services in other sectors, such as fintech.
Regionally, this license reinforces Saudi Arabia's position as a leading fintech hub in the MENA region and encourages further local and foreign investment in this promising sector. The success of telecommunications companies in entering the financial services sector opens the door to innovative business models and reflects the maturity of the regulatory and legislative environment established by the Saudi Central Bank to support innovation while simultaneously protecting consumers.
