Saudi Fintech Is Done with Growth at All Costs : Investors Now Want Profitability and Portfolio Quality - FINTECH.TV

Saudi fintech investment shifts from growth-at-all-costs to profitability and portfolio quality

Saudi fintech continues to capture the lion’s share of startup capital even as overall funding fell sharply in H1 2026, but investors are increasingly demanding profitability and high-quality lending portfolios. Buy-now-pay-later platform Tabby’s recent $233 million raise at a $6.5 billion valuation illustrates the new bar for deals, industry adviser Fadi Al Awami told attendees at Money20/20 Riyadh.

"Definitely the value of the transaction matters. But with respect to the business model — which is lending — another important factor is the quality of the portfolio," said Fadi Al Awami, Financial and Business Adviser and Fintech Consultant at The Consultation Centre, in a conversation with Bassel Sabri at Money20/20. "Tabby proved to have good profitability and a very good quality portfolio. And that is what makes investors really interested."

That combination — meaningful transaction value plus demonstrable profitability and portfolio health — is reshaping how venture capital and corporate backers approach the Saudi market. Al Awami highlighted that fintech nonetheless accounted for roughly two thirds of capital raised in the country during the period, signalling continued investor appetite for digital financial services that can scale and integrate with incumbent banking systems.

• Tabby: $233 million funding round at a $6.5 billion valuation.
• Fintech share: approximately two thirds of startup capital in H1 2026.
• Bank investors named: Riyad Bank, SAB, and GIB deploying capital into fintech infrastructure.

Al Awami read direct significance into banks’ increasing direct investments. "That really gives us a sign that banks have moved from being enablers to investors. Not only because of the money they invest, but because of the capabilities and resources they bring," he said, adding that such backing enhances trust across the fintech ecosystem.

He warned international fintechs against a cautious, phased market entry that leans on agents or exploratory partnerships. "Many companies planning to expand want to do it in phases — explore the market first through an agent or partner. I do not agree with this approach," Al Awami said bluntly. His advice: "do not come to explore. Come to invest."

Al Awami laid out a clear sequence for companies entering Saudi Arabia: first, understand the regulatory framework; second, secure local talent or partners to lead operations; third, bring capital to acquire customers and demonstrate a full operating setup. "You cannot just come alone and try to grow the market, because the dynamics here are different," he said.

The message to founders and investors is twofold. For founders, especially those in lending and payments, Saudi demands committed local presence, regulatory clarity and strong portfolio metrics from day one. For investors, the opportunity remains substantial but selective — banks’ direct capital and operational involvement signal that durable, revenue-generating fintechs will receive the most support as the market matures.

As market participants recalibrate expectations away from pure growth toward sustainable unit economics, the winners in Saudi’s next fintech wave will likely be those that combine scalable models with proven profitability and local operational heft.