Tarabut Gateway, the Dubai-based fintech firm, has secured $32 million in Series A funding for promoting open banking in Saudi Arabia. The funding round was led by Pinnacle Capital, along with Tiger Global, Visa, and Aljazira Capital, among others. The company is committed to creating an open financial services industry, providing open banking benefits to consumers, banks, and fintech firms in the Middle East and North Africa.
Open banking creates data transparency by enabling third-party developers to link applications and services to financial institutions. Tarabut Gateway is among the initial participants in the Saudi Central Bank’s Regulatory Sandbox, which is a crucial aspect of the open banking framework rollout.
Abdulla Almoayed, founder and CEO of Tarabut Gateway, stated that the fundraising “reflects the potential of open banking, our advanced technology, and the trust placed in us by our partners both in the Kingdom and globally.” He further added that the funding would enable the company to fulfill its plan and support the Kingdom in achieving its ambitious Vision 2030 goals.
According to the International Data Corporation (IDC), financial services IT spending in Saudi Arabia is expected to surpass $3 billion by 2024, owing to the rapid adoption of digital banking channels. Andrew Torre, regional president of Visa for Central Europe, the Middle East and Africa, stated, “Next-generation digital experiences and innovation are driving the future of financial services, and open banking is a growing movement that can help consumers better access and manage finances.”
Pinnacle Capital, which focuses on investments in Saudi Arabia, has previously helped the first unicorn tech startup in the Kingdom, Jahez, to go public. Tarabut Gateway’s aim is to develop an open financial services industry that can benefit consumers, banks, and fintech firms in the Middle East and North Africa.
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