SAUDI ARABIA - Finance
CEO, Digital Cash
Bio
Omar Baidas was born and raised in Riyadh, Saudi Arabia. His journey commenced with a foundational education in software engineering, where he honed his technical skills and delved into the intricacies of computer science. Equipped with a degree from Prince Sultan University, he transitioned to the role of a lead developer. This pivotal role refined his technical expertise but also instilled a profound appreciation for collaboration and teamwork. He then co-founded a digital cash company, forging groundbreaking joint ventures licensed by the Saudi Arabian Monetary Authority (SAMA). His technical contributions were integral to developing solutions now utilized in these ventures, reshaping the financial landscape with innovative solutions. He remains committed to pushing the boundaries of innovation, and to leave a lasting legacy in the world of technology and beyond.
When Digital Cash was initiated, our central vision was to establish a comprehensive financial inclusion ecosystem, aiming to simplify people’s financial transactions. Our initial research emphasized the pivotal role of e-wallets in fostering financial inclusion for those without access to traditional banking services. Recognizing that e-wallets serve as a gateway to various digital financing options, we envisioned building an entire ecosystem catering to diverse financial inclusion needs. The importance of anticipating the actual demand and securing support from the Saudi government became evident as we embarked on our journey into digital cash two years ago. Our business model involves leveraging venture capital to develop JVs like Majd Alaamal for Payments (MAIT) and Advanced Methods for BNPL. We presented our e-wallet concept to Al Hukair Group VC, subsequently introducing features like Buy Now, Pay Later (BNPL) and obtaining approval from SAMA. The demand for financial inclusion extended to corporates and SMEs, prompting us to create a payment solution to address issues related to invoice settlement, payment collection, and overall financial management. Realizing the need for a comprehensive financing solution, we worked with Osool & Bakheet Investment Company and created Creative future (CFDB) JV to SAMA to become the first aggregator connecting various banks and financial institutions. This initiative aimed to provide financing to individuals who struggled to obtain it, particularly outside Saudi Arabia. Over the past two years, we have successfully established three to four fintech companies, aligning with our vision of creating a holistic financial ecosystem. As a single entity overseeing these endeavors, we seamlessly integrated diverse solutions to offer a complete 360-degree fintech product. Our focus on financial inclusion extends beyond digital means, encompassing villages in Saudi Arabia that lack both digital and financial resources. In line with Vision 2030’s goal of achieving a cashless society, our efforts target areas where financial inclusion is still a challenge. Instead of concentrating on well-developed cities like Riyadh, our approach involves utilizing digital tools to make financial services more accessible to people, eliminating the need for physical branch visits. Expanding our operations into Africa in 2022, we launched an e-wallet (GizePay) in collaboration with the Bank of Abyssinia, Ethiopia’s second-largest bank by customer base. With over 2.5 million users and 30,000 SMEs benefiting from our solutions, this expansion provided valuable insights that we can apply in Saudi Arabia to further our mission of promoting financial inclusion and contributing to the Kingdom’s vision of a cashless society.
The prevailing demand far outstrips the available supply, and this discrepancy is particularly evident when considering the regulatory landscape. One case in point is the regulations governing the BNPL model, where a single company is restricted from financing more than SAR0.5 billion. This regulatory constraint is noteworthy when contrasted with the actual demand identified through SAMA and the needs of the public, which together amount to SAR8.5 billion 2024-2-29. In the face of such demand, even the entry of 10 similar companies providing the same service would not saturate the market. The regulatory limitations present a scenario where each of these companies, including ours, would have a fair and viable chance to thrive in the marketplace. This points to an environment where healthy competition can coexist, fostering innovation and ensuring that the needs of the public are adequately met. Another pivotal aspect contributing to our competitive advantage lies in our diverse range of solutions deployed across different countries. This strategic diversification affords us unique insights into the authentic challenges encountered by various markets. Armed with this comprehensive understanding, we actively pursue the development and integration of additional solutions. This allows us to explore diverse avenues aimed at continually enhancing the functionality and appeal of our products. In essence, our approach goes beyond meeting immediate demand; it is about positioning ourselves as industry leaders by anticipating and addressing emerging challenges. By maintaining a proactive stance and consistently expanding our suite of solutions, we not only navigate regulatory constraints but also strengthen our position in the market, ensuring sustained relevance and success in a rapidly evolving landscape.
We are on the brink of launching four innovative products, signaling a significant expansion not only within Saudi Arabia but also across other Gulf countries. Our vision extends beyond merely crafting digital products; we aspire to establish a robust cybersecurity company and offer a spectrum of services, including marketing agency functions. Recognizing that these two core businesses often constitute a substantial portion of our expenditures, we are strategically opting to internalize these processes instead of relying solely on external subcontractors. By doing so, we aim to streamline operations and enhance efficiency. Our approach involves not only developing these products but also acquiring equity and shares in the resultant companies. In essence, these companies become integral parts of our business portfolio. This strategy aligns with our broader vision of establishing diverse companies across different sectors that complement and bolster our industry. Our commitment extends to creating entities in various domains that actively support and contribute to the growth of our industry. This multifaceted approach allows us not only to diversify our offerings but also cultivate a network of interconnected businesses that synergistically reinforce each other. In doing so, we seek to solidify our presence in the market, foster innovation, and establish a dynamic ecosystem that benefits both our organization and the industries we operate within.
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SAUDI ARABIA - Tourism
Interview
Director, UN Tourism Regional Office for the Middle East