SBI Holdings Co-Leads Funding in Saudi Sharia-Compliant Microfinance Startup

Japanese financial conglomerate SBI Holdings has co-led an undisclosed funding round into Saudi Arabian digital microfinance startup Muhlah Zamaniyah for Finance, accelerating its expansion into the Middle East through a partnership with Riyadh-based startup studio BIM Ventures. The transaction was executed through an SBI subsidiary, with BIM Ventures joining as co-lead investor. Financial terms of the investment were not disclosed.

"the investment will further strengthen its cooperative ties with BIM Ventures while laying down a medium-to-long-term foundation for capturing future financial business opportunities within the Kingdom," SBI said, framing the move as part of a broader strategic push into Saudi Arabia under the leadership of Chairman and CEO Yoshitaka Kitao.

Context and details

• Muhlah Zamaniyah for Finance was incubated and spun out of BIM Ventures' startup creation program. The firm operates a fully digitized personal microfinance platform that, according to company descriptions, allows users to complete the entire lending process—from application to the execution of funds—entirely online.
• The fintech is licensed by the Saudi Central Bank (SAMA), a regulatory credential that enables it to offer consumer lending services under the Kingdom’s supervisory framework.
• Crucially for regional customers, Muhlah’s product suite is strictly Sharia-compliant and operates under the direct supervision of a specialized Islamic finance committee, positioning the startup to serve segments of the market seeking Sharia-conformant consumer finance options.
• The investment represents the first major collaborative deployment of capital following a May 2024 basic agreement between SBI and BIM Ventures, signed with the backing of the Saudi Ministry of Investment (MISA), to establish a joint venture and launch a co-managed investment fund.
• SBI executed the transaction through one of its subsidiaries and named BIM Ventures as co-lead, signaling a closer operational relationship between the Japanese financial group and the Riyadh-based venture builder as they pursue opportunities in the Kingdom’s evolving financial sector.

Outlook

SBI’s public statement links the deal to a medium-to-long-term strategy to capture future financial business opportunities in Saudi Arabia, a market undergoing regulatory and sectoral reform aimed at expanding consumer finance options and digital financial services. For Muhlah, the backing of an international financial conglomerate and a local venture studio offers capital and partnership credentials useful for scaling under SAMA oversight and maintaining its Sharia-compliant governance.

While the exact size of the funding round remains undisclosed, the transaction is notable as the first concrete capital allocation following the SBI–BIM Ventures pact endorsed by MISA in May 2024. The alliance, and this initial investment in Muhlah, will be watched closely by industry observers tracking foreign strategic capital flows into Saudi fintechs and the development of Islamic-compliant digital lending products in the region.