Dubai, UAE – September 2024 – UAE-based Fils, an ESG-focused fintech that leverages blockchain technology, has partnered with Saudi Arabian tech platform Madkhol to offset the carbon footprint of Saudi capital market fintechs. The partnership, officially signed during the prestigious 24 Fintech event, marks a significant milestone for both companies and the region’s commitment to sustainable finance.
Through this collaboration, Madkhol will integrate Fils’ advanced sustainability stack into its robo-advisory platform, enabling its customers to seamlessly invest in carbon credits and actively offset their carbon footprint. By embedding this solution, Madkhol is setting a new benchmark for capital market fintechs in Saudi Arabia and beyond, allowing users to incorporate climate action directly into their investment portfolios.
Capital Markets as Drivers of Sustainability
Globally, capital markets are playing an increasingly pivotal role in driving both economic growth and sustainability initiatives. Industry estimates suggest that the world requires $9.2 trillion annually to meet sustainability and climate goals. Sustainable investments, which reached over $35 trillion in assets in 2020, are a vital component of this shift.
Saudi Arabia, through its ambitious Vision 2030 agenda, is at the forefront of this movement. The kingdom’s Voluntary Carbon Market (VCM) initiative, spearheaded by the Public Investment Fund (PIF) and the Saudi Tadawul Group, aims to establish one of the region’s largest carbon trading platforms. The inaugural auction of carbon credits under the VCM saw a record 1.4 million tons of carbon credits sold, highlighting the rapid growth of this market.
The Fils-Madkhol partnership is strategically aligned with Saudi Arabia’s VCM initiative, providing users with a transparent and trustworthy platform to participate in the carbon credit market. This collaboration sets a new standard for ESG investments in the region, underscoring the importance of integrating sustainability into financial decisions.
Leadership Remarks
Commenting on the partnership, Nameer Khan, CEO of Fils, said, “Our collaboration with Madkhol comes at a critical time as sustainable finance becomes a cornerstone of capital markets, with Saudi Arabia’s VCM initiative paving the way. Together, we’re empowering users to make investments that not only deliver returns but also contribute to a sustainable future. This partnership reflects Fils’ dedication to transparency, trust, and delivering credible solutions in the sustainability space.”
Khan emphasized the global challenge of reaching $9.2 trillion in annual climate investments and highlighted the role of capital markets in driving this transformation. “Fils’ integrity-driven platform ensures businesses and investors can confidently participate in carbon markets, fostering a more sustainable world,” he added.
Saad bin Atyan, CEO of Madkhol, shared his enthusiasm for the partnership: “At Madkhol, we are committed to offering innovative and responsible investment solutions. Integrating carbon credit investments through Fils allows our customers to practically offset their emissions, marking a new era of sustainable fintech in Saudi Arabia. Signing this agreement at 24 Fintech underlines our dedication to pioneering ESG-driven growth in the region.”
Empowering Sustainable Investments
Through Fils’ API-driven sustainability stack, Madkhol customers will gain access to a variety of carbon credit projects, complete with transparent reporting to ensure investments align with environmental goals. This integration not only supports Saudi Arabia’s Vision 2030 sustainability objectives but also helps companies reduce carbon emissions across the capital market sector.
Ahson Saeed, Partner – Strategy & Commercials at Fils, highlighted the broader vision behind the collaboration: “At Fils, we believe that the future of finance lies in responsible, impactful investments. This partnership with Madkhol reflects that belief, merging cutting-edge technology with a strong commitment to sustainability. By embedding carbon credit investments into everyday financial decisions, we are empowering investors to take meaningful steps toward a greener future.”
Fils at the Forefront of Sustainable Finance
Fils currently supports a network of over 105 banks, 1.5 million merchants, and 4 million wallets. Leveraging blockchain and fintech innovations, Fils provides businesses with the tools needed to integrate climate-positive solutions, building trust through transparency and integrity. The company is at the forefront of transforming the financial landscape to foster sustainability, helping shape the future of ESG investments in the region.
This partnership between Fils and Madkhol marks a crucial step forward in the journey towards sustainable finance, positioning both companies as leaders in the rapidly evolving ESG landscape in Saudi Arabia and the broader MENA region.
