Riyadh-Based Fintech Arib Pockets US$23.5 Million Round Led By Saudi Arabia's Merak Capital

Riyadh-based digital financing marketplace Arib has raised US$23.5 million in a funding round led by Saudi Arabia-based investment firm Merak Capital to expand its platform and support its growth in the Kingdom's fintech sector. The round, which included Sharia-compliant Murabaha financing facilities, has been painted as a reflection of investor interest in Islamic fintech products and digital lending infrastructure in the Kingdom. 

Founded by Waleed Talat and Mohamed Dessouky in Saudi Arabia in 2018, Arib operates a digital marketplace for lending products that acts as an intermediary between banks, licensed finance companies, and their customers. Licensed by the Saudi Central Bank (SAMA) as a digital brokerage platform, the company enables customers to compare offers and submit applications online based on their financial profiles and borrowing needs. 

Arib aims to use the new investment to strengthen its technology infrastructure, accelerate product development, expand operational capabilities, and introduce new financing products for consumers and businesses. The company aims to address growing demand for faster and more flexible financing solutions among younger consumers, entrepreneurs, and SMEs in Saudi Arabia. 

In an interview with Inc. Arabia, Talat, who's also the CEO of Arib, shared that the company was established to address inefficiencies in the financing process for consumers seeking access to credit. “Arib started from a simple but real problem: access to financing was available, but the journey was often fragmented, unclear, and frustrating for customers," Talat explained. "A customer looking for financing usually had to approach multiple banks or financing companies separately, repeat the same information, and still may not know where they had the best chance of approval. The challenge becomes even harder when financing is linked to a product, such as a car or a home, where the customer also has to deal with another provider, like a dealer, marketplace, or real estate company. Our mission is to make access to financing easier, faster, and more transparent by connecting customers with licensed financing institutions through one seamless digital journey. In simple terms, we want Arib to become the financing access layer in Saudi Arabia.” 

As Saudi Arabia's lending market becomes more crowded, Talat said the growing number of products and providers is increasing demand for intermediaries that can help customers navigate their choices more efficiently. “A crowded lending market does not necessarily mean the customer journey is simple," he pointed out. "In fact, the more financing providers and products exist, the more customers need a trusted intermediary that can save them time, reduce confusion, and help them compare their options more clearly. For consumers, the main gap is not only access to financing, but access to the right financing option through a smooth and transparent journey. Many customers still need to approach different banks and financing companies separately, repeat the same information, and compare offers on their own."

"For SMEs, the gap is even more visible," Talat continued. "Financing can still be difficult to navigate, especially for smaller businesses that may not know which lender is the right fit or what requirements they need to meet. This is where Arib comes in. We are not a lender; we are a licensed digital brokerage platform. Our role is to simplify the journey by connecting customers with licensed financing institutions through one digital experience, helping them compare options, understand eligibility, and move forward with more clarity and less friction. In a market with many players, we believe Arib’s role becomes even more important: to make financing easier to access, easier to understand, and easier to compare.” 

The new investment in Arib also comes as capital deployment across fintech has become more disciplined than in previous years. Reflecting on the fundraising process, Talat noted that Arib's focus on addressing a clear market need helped distinguish the company during the raise. “Fintech investors today are definitely more selective," he said. "They are no longer only looking for big ideas; they are looking for regulated businesses, real market demand, strong execution, and a clear path to sustainable growth. I believe investors backed Arib because we are solving a real problem in a large and important market. Financing is one of the most critical areas in the Saudi economy, and the need for a smoother, more transparent way to access financing is becoming stronger as the market grows.” 

Talat also pointed to the company's operating track record and market positioning as factors that helped support the raise, despite a more cautious investment environment amid ongoing geopolitical uncertainty in the region. “Arib is licensed by the Saudi Central Bank, and in fintech, trust and regulation are not secondary; they are part of the foundation,” Talat noted. “Being a regulated digital brokerage platform gives investors confidence that we are building within the right framework. We have also demonstrated strong execution: growing our network of financing partners, serving more customers, and building a model that creates value for both customers and lenders. Of course, uncertainty in the region and globally has made fundraising more challenging. Investors are more cautious and more disciplined. But in a way, this also helped quality companies stand out. For Arib, the round was a vote of confidence in the team, the model, and the opportunity in Saudi Arabia’s digital financing market.” 

For Talat, the same principles that helped Arib earn investor confidence are also the ones that should guide the next generation of fintech entrepreneurs in the region. Drawing on his experience building Arib, Talat advised founders entering the fintech sector to prioritize trust, compliance, and long-term execution over rapid growth. “One of the biggest lessons I learned from building Arib is that fintech is not only about technology; it is about trust," he said. "You can build a great product, but in financial services, you are dealing with people’s money, data, credit decisions, and long-term financial commitments. So regulation, compliance, transparency, and customer protection have to be part of the product from day one, not something you add later. My advice to founders entering fintech is to be patient and build the right foundation. This sector takes time. You need licenses, partnerships, integrations, risk controls, and the trust of regulators, lenders, customers, and investors. But if you build it properly, the opportunity can be very large. I still believe the region is one of the best launchpads for fintech entrepreneurs, especially in Saudi Arabia. The market is large, digital adoption is high, and there is strong support for financial innovation. But the market is also becoming more mature, which means founders need to solve real problems, operate responsibly, and build companies that can create long-term value.” 

Pictured in the lead image are Arib co-founders Mohamed Dessouky and Waleed Talat. Image courtesy of Arib.