ArabianPay, a Fintech Technology Co. and a recent entrant into the Buy Now Pay Later (BNPL) sector in Saudi Arabia (KSA), has announced its collaboration with the Shariyah Review Bureau (SRB) to obtain Sharia certification for its payment solutions catering to startups and SMEs.
Market reports indicate a projected exponential growth in the BNPL market within the Middle East in the coming years, leading to heightened competition among key industry players in the region. Mohammad Rashid AlAbdulatif, Founder and Chief Executive Officer of ArabianPay, emphasized the company’s commitment to empowering small and micro enterprises, including startups, by offering financial assistance and support. ArabianPay aims to provide swift financial solutions that enable these businesses to manage their purchases and establish connections with suppliers. Acting as a bridge, the ArabianPay platform facilitates mutually beneficial relationships between startups and various stakeholders such as retail stores, distributors, and agents, thereby enhancing the entire ecosystem and facilitating capital circulation with ease. AlAbdulatif further emphasized that ArabianPay was established to address this critical market need.
The pursuit of Vision 2030, which aims to diversify the Saudi economy beyond oil dependence, has identified Islamic finance as a vital component of the Kingdom’s economic and financial systems. AlAbdulatif expressed the company’s intention to partner with a reputable advisory firm capable of understanding the challenges faced by payment solution providers and assisting ArabianPay in meeting Sharia compliance requirements. The decision to engage SRB, a renowned and respected global Shari’a Advisory firm, was based on their extensive experience in overseeing Sharia compliance for top BNPL operators in the region. SRB, regulated by the Central Bank of Bahrain, serves a diverse clientele across the financial landscape and has established relationships with numerous fintech and blockchain entities through its comprehensive range of offerings.
Yasser S. Dahlawi, Founder and CEO of Shariyah Review Bureau, highlighted the significant growth potential of the global BNPL market, with reports indicating the possibility of reaching astronomical transaction volumes by 2025. As businesses embrace digital transformation, numerous players are entering the market simultaneously, resulting in an increase in BNPL solution providers. Dahlawi warmly welcomed ArabianPay to join the list of “interest-free” BNPL solution providers and expressed enthusiasm in supporting their efficient scaling efforts as they promote their services throughout the Kingdom.