In recent years, the financial and banking sector in Saudi Arabia have been ripe for disruption, introducing new scale and opportunities.
With the growing digitization of investment banking, the synergy between fintech and regulatory technology (regtech) acts as a catalyst for reshaping the sector’s outlook.
This shift provides fertile ground for companies to provide tech-driven solutions tailored to corporate and financial institutions (FIs), attracting global players like TeamSec to set up operations in Saudi Arabia.
Robust Financial & Banking Sector Boost TeamSec’s Presence in Saudi Arabia
TeamSec is considered the first cloud-based platform that streamlines the securitization process in its founding country, Turkey.
Its deep expertise, combined with advanced tech capabilities, enabled TeamSec to bring its innovation to Saudi Arabia, a growing market for alternative financing.
“The [Saudi] market is evolving quickly. The growth is driven by regulatory enhancements and a growing appetite for alternative funding mechanisms. And this presents significant opportunities for players like TeamSec,” said Esad Ekram, Founder & CEO of TeamSec.
“The potential to collaborate with leading financial institutions and contribute to the development of a robust capital market was a key motivator, ” he added.
TeamSec’s footprint expansion into Saudi Arabia and the wider GCC region is largely supported by AstroLabs.
For TeamSec, AstroLabs has played a key role in helping the company navigate the intricacies of the business registration process and get in sync with Saudi regulatory frameworks.
Ekram further emphasized AstroLabs’ role as a matchmaker, facilitating industry connections necessary to make the market entry smoother and more effective.
“Our experience with AstroLabs’ expansion team has been excellent. The support we’ve received, especially in navigating local regulations and establishing connections within the ecosystem, has been invaluable,” he noted.
“A key highlight was the smooth facilitation of our licensing process in Saudi Arabia and subsequent introductions to key stakeholders in Saudi. The team has made our expansion process both seamless and efficient,” Ekram explained.
Through its platform, TeamSec helps facilitate access to capital credit in the Saudi market by offering comprehensive securitization services that enable its clients to issue a wide range of structured finance products.
Currently, TeamSec is engaged in several asset-backed securities (ABS) projects in Saudi, enabling financial institutions (FIs) to transform illiquid assets into investable securities.
This eventually empowers FIs to unlock balance sheet efficiency while supporting growth across sectors.
Fostering Local Digital Innovation in Saudi Arabia
Part of its growth plan is activating products relevant to the local market and its unique needs. One of these is residential mortgage-backed securities (RMBS).
The product is designed to help lenders optimize cash flow and improve liquidity in real estate. The availability of mortgage credit eventually supports home ownership, stimulates demand in the housing sector, and drives overall economic development.
Considering the Kingdom’s rising status as a global hub for Islamic finance, TeamSec is also exploring opportunities in the issuance and securitization of Sukuk. As of 2023, the total Islamic assets across sectors exceeded $830 billion, making Saudi a vital market for Sharia-complaint products.
One of the primary reasons identified Saudi Arabia as an expansion destination is Vision 2030’s focus on improving competitiveness and increasing economic diversification.
The ongoing transition towards market openness enhances the domestic financial market liquidity, further attracting enhanced investor participation. These factors forecast strong growth opportunities in the Saudi capital sector and provide a conducive environment for TeamSec.
“TeamSec’s decision to expand into Saudi was driven by the Kingdom’s dynamic and rapidly growing financial sector, particularly in areas like structured finance and securitization,” he illustrated.
With a focus on spurring localized innovation in fintech, TeamSec ultimately contributes to the Kingdom’s vision of becoming a digitally empowered nation and the grand objectives of growing a thriving digital economy.
Get in touch with our team members to jumpstart your market entry in Saudi Arabia