By: Ahmed El Shamsy
Manama – Mubasher Exclusive: Fawaz Ghazal, the CEO of FLOOSS, an Islamic digital financing platform, said the company’s loan volume has reached around $150 million, noting that FLOOSS uses AI and digital data to make financing decisions within less than six minutes without resorting to human review for every request.
Speaking to Mubasher.info on the sidelines of Fintech Forward 2026 in Bahrain, Ghazal said the idea of FLOOSS started in 2022 with an objective to provide fast, small funding compliant with Islamic Sharia principles and addresses individuals’ urgent needs, rather than waiting for a week or longer to obtain a loan.
He explained that the platform began its operations in Bahrain and subsequently obtained a license to operate in Saudi Arabia. It also targets expansion into other Gulf markets, including the UAE, while exploring opportunities in Egypt, which Ghazal described as a large and promising market despite the fluctuations related to exchange rate in addition to digital infrastructure requirements.
The CEO noted that FLOOSS offers financing ranging from BHD 100 to BHD 3,000 in Bahrain with no guarantees required from customers, adding that the funding value and profit margin are determined based on risk assessment for each client. The company continues to updates its credit models based on economic and market variables.
How did the idea behind FLOOSS come about?
The idea behind FLOOSS started in 2022. At that time, Tariq Alsaffar and I were working at a company focused on e-wallets, and we noticed that a large number of individuals needed small, fast loans. However, obtaining such financing could take around a week.
We, then, observed that the market was not providing the needed solution at the desired time. This gap was not limited to the Gulf market.
We, therefore, decided to establish FLOOSS to provide small financing facilities that comply with Islamic Sharia principles and allow individuals to access financing whenever they need it.
Someone might need an emergency funding to cover a hospital bill, repair a car, or deal with an unexpected expense. In such cases, they can apply through the platform, receive approval, and get the amount transferred into their bank account within minutes.
We started step by step, built trust with major organizations in Bahrain, and then began expanding into other Gulf markets.
Which markets are you currently operating in, and what are your expansion plans?
We started in Bahrain, where our operations team is based. We, subsequently, obtained a license to operate in Saudi Arabia, which represents a significant market for us.
We also plan to expand into the UAE in the coming phase while exploring other markets that could suit our Islamic financing business model.
We view Egypt as a large and promising market. However, there are issues that require to be studied, particularly fluctuations of the Egyptian Pound against the US dollar.
Our concern is not towards the Egyptian market itself, but regarding challenges about how to manage currency risk in the financing model. Meanwhile, there are potential solutions that could be explored, including structuring financing in a way that reflects the local currency and repayment flows.
Have you already begun exploring entry into Egypt?
Yes, we have held discussions with entities in Egypt, including Aman, and have spoken with relevant parties to understand the regulatory requirements.
Some of the issues we have examined include Know Your Customer (KYC) requirements and the digital infrastructure needed to complete procedures electronically. There have been challenges in this area because some procedures require physical signatures on paper documents, which affects the speed and convenience of the customer experience.
However, we continue to monitor developments in the Egyptian market and plan a visit in the coming period to meet relevant entities and further explore opportunities.
We believe Egypt is a large market in terms of its customer base and potential opportunities, making it one of the markets we are interested in for the next stage of our expansion.
How long does it take a customer to obtain financing through FLOOSS?
A customer can submit an application and receive financing in less than six minutes, with the funds transferred to their bank account.
Our model relies on automation, AI, and digital data rather than requiring an employee to manually review every application.
We have a dedicated data team that builds customer profiles using available information. We then assess whether the customer’s profile meets our credit criteria and whether the associated risk falls within the level we are prepared to accept.
The financing decision is made automatically using the available data and digital infrastructure in each market.
In Bahrain, we use information from the credit bureau, customer verification processes, and other digitally available data to assess creditworthiness and the risk associated with each application.
Saudi Arabia also has a similar digital infrastructure that supports this model, making it easier to develop digital financing services.
How do you balance fast financing decisions and lowering credit risk?
This is one of the most important challenges in our business and a key differentiator in our model.
When a financing company first enters the market, it does not have enough information about customer behavior. It, therefore, needs to collect and analyze data before adjusting its algorithms based on the results.
We use methods such as A/B testing and continue to develop and improve our credit models.
We do not rely on a fixed credit model. Instead, we shape it to meet market, economic, and regional changes, while taking into account the industries in which customers work.
For example, the risk associated with an employee in the tourism sector may differ from that of an employee in the industrial segment. We need to understand these differences and incorporate them into our credit assessments.
Our objective is to make fast financing decisions while maintaining an acceptable level of risk.
Who are your target customers?
Our core customer segment is people between 25 and 40 years old, and this age group represents a significant proportion of our users.
We target individuals whose incomes fit the small credit lines we provide, rather than high-income customers who may not need this type of product.
A customer might need additional funds to cover an unexpected, emergency expense before payday or to meet a financial need that lasts for a week, a month, or two months.
Our role is to provide fast financing that helps them deal with that need.
How much financing has FLOOSS provided so far, and how do you assess market performance?
Our loan volume is currently around $150 million, which is a substantial figure for a relatively small market such as Bahrain.
The Bahraini market has demonstrated resilience this year despite the challenges and regional circumstances.
We observed that the economy remained strong and employees continued to receive their salaries on time. The market was not affected to the extent some people had expected.
I believe that the market’s resilience during regional events, including the Iranian attacks on Bahrain, was notable. It even surprised some investors who had anticipated a more severe impact.
The figures we see reflect continued activity in the market.
What is the size of the financing facilities you offer, and how do you determine your profit margins?
In Bahrain, we offer small financing facilities ranging from BHD 100 to BHD 3,000.
The profit margin depends on our risk assessment for each customer. The lower the risk is, the lower the margin will be, and vice versa.
We aim to ensure that the return is appropriate for the level of risk the company takes on when providing financing.
What default rates have you recorded in small-ticket financing?
Our assessment showed that default rates were significantly lower than our initial expectations, reaching around half of the level we had anticipated.
We believe that among the reasons is the nature of small loans and customer behavior.
We are not providing financing worth BHD 100,000. Instead, we offer smaller amounts ranging from BHD 100 to BHD 3,000.
Customers may be keen to repay these small loans because a default could affect their credit records and their ability to obtain larger financing in the future, such as housing and car financing, or personal loans from banks.
Our services are provided through mobile phones, and we do not require guarantees.
Does financing risk differ between Bahraini nationals and expatriates?
Yes, risk can differ depending on the customer’s circumstances and profile.
In some cases, nationals may present lower risk because of their stability in the local market and the nature of their jobs, particularly if they work in the government or in sectors such as the military, police, and ministries.
However, we do not assess our decisions based on the nationality alone. We study the available data, repayment capacity, and the risk associated with each individual case.
What is the outlook for financing at the point of need or point of sale (POS)?
I believe point-of-need financing represents a significant opportunity in the region, and more financing companies will move toward this model.
The idea is to provide financing at the place and time a customer needs it, rather than requiring them to submit a separate loan application and then return to make the purchase or pay for a service.
For example, someone may need financing to cover a hospital bill. Through this model, they can apply through an app for financing linked to that service.
We are working with several sectors, including e-commerce, retailers, schools, universities, and hospitals, to provide financing at the point where it is actually needed.
We are also exploring other ideas to develop financial services and help customers make better financial decisions, including potential opportunities related to Sukuk, gold, and equity funds, subject to the relevant products and regulatory requirements.
What are FLOOSS’s priorities for the coming years?
We currently focus on expanding across the Gulf markets, particularly Saudi Arabia and the UAE, while exploring opportunities in other markets such as Egypt and Oman.
The requirements for entering each market differ according to its regulatory framework, digital infrastructure, and the availability of data needed to assess customers.
We believe that building a fast digital financing model that complies with Islamic Sharia principles while managing risk effectively will remain at the heart of our strategy in the next stage.
