Al Rajhi Bank has acquired a 65% stake in Drahim, a Saudi-based digital financial platform, in a transaction that marks a significant moment for the kingdom's banking sector. The deal represents the first time a Saudi bank has taken a majority ownership position in a local fintech startup, signalling a shift in how established lenders are approaching technology strategy in the country.
The acquisition gives Al Rajhi direct access to Drahim's open banking application programming interfaces and robo-advisory capabilities — two areas the bank has identified as central to broadening its digital product range. Rather than developing equivalent technology in-house over several years, the deal allows Al Rajhi to internalise an existing platform and integrate it with its substantial customer base, which is among the largest in the Gulf region by account holders.
BUYING CAPABILITIES, NOT JUST COMPANIES
The Drahim transaction illustrates a wider pattern emerging across Saudi Arabia's financial sector, in which banks are acquiring fintechs primarily for the capabilities they carry rather than for market share alone. Open banking infrastructure — the APIs that allow third-party applications to interact securely with bank accounts and data — has become a particular focus as Saudi regulators push the financial system towards greater interoperability and as the kingdom's digital payment volumes continue to rise.
Al Rajhi's move into robo-advisory through Drahim also positions the bank to offer automated wealth management features to retail customers, a segment that has gained traction across the Gulf as younger, mobile-first consumers look for accessible, low-cost investment tools. The combination of open banking connectivity and algorithmic investment guidance under one roof gives Al Rajhi a foundation to build a broader digital-first product suite without the lead times associated with in-house software development.
Separately, Al Rajhi has also fully acquired Ejada Systems Company Ltd, a banking infrastructure firm, reinforcing that the institution is pursuing a comprehensive technology build-out through acquisition rather than exclusively through partnerships. The dual-track approach — majority fintech stake alongside full infrastructure acquisition — suggests a deliberate strategy to own critical capabilities that underpin its digital services rather than remaining dependent on third-party vendors.
SAUDI FINTECH AT A STRATEGIC INFLECTION
The kingdom's fintech sector has expanded rapidly as Vision 2030 efforts redirect capital and regulatory attention towards diversifying the economy and modernising financial services. Regulators have introduced frameworks to facilitate open banking, and the Saudi Central Bank has been active in licensing new entrants and encouraging incumbents to upgrade their technology stacks to remain competitive in an evolving consumer landscape.
For Al Rajhi, the Drahim deal closes a capability gap in a controlled manner: by taking a majority stake rather than a minority position, the bank retains strategic direction over the platform's development roadmap. That structure also allows Drahim to continue operating with a degree of independence while benefiting from Al Rajhi's distribution reach and balance sheet resources, a combination that could accelerate the platform's own growth trajectory beyond what it could achieve as a standalone startup.
Industry observers have noted that the acquire-not-build approach is gaining favour among Gulf banks that face the dual pressure of maintaining profitability while investing in digital transformation. Whether other Saudi lenders move to replicate Al Rajhi's approach with majority fintech acquisitions is a question the sector will be watching closely in the period ahead.