Barq Obtains Initial Approval from SAMA to Add Financing Services

The Barq digital wallet has received initial approval from the Saudi Central Bank (SAMA) to add financing services to its offerings, making it the first digital wallet in the Kingdom to obtain such approval. This step represents a shift in the scope of the wallet's operations, which previously focused on payments and transfers.

The approval allows the company to develop Sharia-compliant financing products, expanding its business scope beyond basic digital services and payments. This enables the wallet to provide services closer to banking for its customers, broadening its potential revenue base.

However, the launch of these products remains contingent upon obtaining final approvals from the Saudi Central Bank, meaning the current approval is preliminary and not final. The rollout timeline remains tied to completing these regulatory procedures, which will determine when these products might begin reaching customers.

This move comes at a time when digital financial services are expanding in Saudi Arabia, with wallets and financial apps competing to offer services beyond payments and transfers, extending into financing, savings, and investments. The Central Bank sets the regulations governing these services and grants the necessary licenses amid growing demand for digital financial solutions.

What do these terms mean?

Initial Approval: A preliminary authorization from the regulatory authority allowing the company to begin preparation; it does not constitute permission for actual operations. Sharia-Compliant Financing: Financial products that do not involve usurious interest and comply with Islamic Sharia principles. Saudi Central Bank (SAMA): The entity that regulates the financial and banking sector in the Kingdom and issues licenses.