The Saudi Credit Bureau (SIMAH)

The Saudi Credit Bureau (SIMAH), is the first licensed credit information company to provide credit information on individuals and businesses in the Kingdom of Saudi Arabia. The company has a database fed by approximately 330 sources of credit data, forming a network of information that covers all sectors of the Kingdom under the name "FINDATA," which is subject to the supervision and oversight of the Saudi Central Bank. The company's main headquarters is located in Riyadh, the capital city.

The Saudi Credit Bureau was established in 2002 as a limited liability company. At that time, it was owned by ten Saudi banks (currently nine banks). Its purpose was to be a licensed entity responsible for collecting credit information about individuals and businesses from relevant banks and exchanging that information among them. The idea of establishing an independent credit information institution in Saudi Arabia emerged in 1998 when a specialized team collaborated with the International Finance Corporation (IFC), a member of the World Bank Group, to develop initial concepts, requirements, and optimal technological solutions. This was done under the supervision and support of the Saudi Arabian Monetary Authority (SAMA), the central bank of Saudi Arabia.

In 2004, the company commenced its operations in the Saudi market by assessing the creditworthiness of individuals and institutions. This aimed to mitigate credit risks in the banking sector in the Kingdom, thereby contributing to financial stability. In 2014, the Ministry of Commerce decided to convert the company into a closed joint-stock company.

The company gathers credit information about consumers and provides an efficient financial infrastructure that can be relied upon to ensure sustainable economic growth and increase the confidence of lenders and investors. It also works on providing credit information that gives a clear picture of the borrower, which helps improve the ability to analyze credit risks and assess the financial viability of the borrower.
Additionally, the company collects and analyzes demographic, financial, and non-financial information available in credit reports. This helps credit providers and relevant entities to understand credit customer behavior through the use of statistical models that incorporate variables and data from credit reports, supporting credit decisions. The company also assists in reducing non-performing loans and increasing collection rates. Additionally, it facilitates access to financing at a cost that accurately reflects the risk pricing while reducing information asymmetry. This supports monetary policies and their tools, as well as stimulates economic growth by improving credit quality and expanding access to credit.

SIMAH has launched several products to help achieve its goals. Among them is the "SIMATI" system, which was launched in 2004 as the first system dedicated to storing credit information about individuals. In 2018, it was registered as a trademark of the Saudi Credit Bureau. Another product is the National Data Pooling (NDP), launched by SIMAH in 2006, which became the first banking database that enables banks to complete the second capital adequacy standard. It provides a unified standard for Probability of Default (PD) and Loss Given Default (LGD) calculations. Additionally, the "SIMAT" system was launched in 2009 to store credit information about the business sector, providing accurate and organized credit reports on companies and institutions in Saudi Arabia. In 2017, the "MOARIF" project was launched as the local operating unit for legal entity identifiers, granting all institutions and companies a unique code and globally recognized identity.

SIMAH offers value-added services, including SIMAH Alerts, which provide integrated solutions for analyzing customer credit behavior based on SIMAH credit reports. It also includes TAQEEM Evaluation, which assesses small and medium-sized enterprises (SMEs) based on a dedicated database specific to the Saudi market. SIMAH 360 is another service that provides the necessary analytical tools for making financing decisions. The Pre-approval Service measures the creditworthiness of potential customers, while SIMAH provides assessments for individuals and comparative credit performance reports.

MOLIM is SIMAH's credit report and assessment product, launched in 2022. It provides historical and current credit behavior information, both positive and negative. The MOLIM report provides a detailed summary of individuals' credit history, including loans, mortgages, credit cards, and more. The MOLIM report is a tool for measuring an individual's credit behavior and predicting their ability to fulfill obligations before initiating a credit relationship.