United International Holding Co. has entered into a memorandum of understanding (MoU) with Fintech firm NowPay Corp. to establish a specialized wage processing company in Saudi Arabia, according to a company announcement.
The non-binding agreement, effective for two months with an option to extend, outlines the creation of a fintech-driven wage processing firm, per the announcement.
The project is expected to involve an investment of SAR 75 million, pending regulatory approvals.
United International will hold a 75% ownership stake, while NowPay Corp. will control the remaining 25%.
The firm said the financial implications of the initiative beyond the initial investment are yet to be determined.
The company also noted that there are no related parties involved in the agreement and committed to disclosing any material developments as they arise.
NowPay specializes in providing wage processing solutions via fintech platforms aimed at enhancing employees’ financial well-being by enabling better budget management.
The collaboration aligns with Saudi Arabia’s broader efforts to integrate financial technology solutions into the labor market, addressing evolving demands for streamlined payroll systems.
The planned joint venture signals United International’s commitment to diversifying its portfolio through technology-driven solutions.
It also reflects the increasing emphasis on fintech in the region, as companies look to modernize financial services and improve operational efficiency.
The project will proceed once regulatory approvals are secured, underscoring the necessity of compliance with Saudi Arabia’s financial and labor market regulations.
With this venture, both firms aim to capitalize on the growing demand for fintech solutions in the Kingdom’s workforce ecosystem.
Further updates on the initiative will be provided by United International as the project progresses, according to the announcement.