Payments giant Visa Inc. has made its first open banking investment in the Middle East, joining Tiger Global Management in backing UAE-based fintech firm Tarabut Gateway’s latest fundraising which outlines an expansion to Saudi Arabia, according to Bloomberg.
Tarabut raised $32 million to fund its expansion in Saudi Arabia, also tapping local investors such as Pinnacle Capital and Aljazira Capital, Tarabut founder and Chief Executive Officer Abdulla Almoayed said in an interview with Bloomberg.
“There are a few regions in the world that still present great opportunities, and we’re in one of them,” he said. The funding environment globally is “only going to get worse before it gets better,” according to the Bloomberg report.
Startups in Saudi Arabia have continued to raise funding even as venture capital deals slow globally.
FinTech deal activity in Saudi Arabia reached 25 deals in the first three quarters of 2022, increasing 19% compared to the same period in 2021. Saudi Arabian FinTech investment reached $313m in the first nine months of 2022.
