In the Middle East, where debt collection is still mired in outdated, aggressive practices, ClearGrid is emerging as a transformative force. The Dubai-based startup, which recently secured $10 million in funding, is disrupting the traditional debt recovery landscape with a cutting-edge, AI-driven platform.
While consumer lending is booming across the region, traditional collection methods are proving ineffective, costly, and damaging to borrower-lender relationships. ClearGrid’s platform promises to modernize debt collection, making it more efficient, ethical, and effective, in the Middle Eastern consumer lending market is already worth $500 billion. By using AI to automate the collections process, ClearGrid not only accelerates repayment times but also encourages a more compassionate approach to helping borrowers resolve their debt.
Key Takeaways
- ClearGrid raises $10 million in seed funding to disrupt the $500B MENA debt collection market.
- The AI-powered platform automates 95% of the collections process, reducing recovery time and costs.
- ClearGrid’s approach has increased borrower engagement by 60%, significantly improving recovery rates.
- The company currently engages with over 130,000 borrower accounts monthly.
- ClearGrid achieved profitability in the UAE within its first year of operation and aims to expand to Saudi Arabia by 2025.
Why it matters
As MENA’s $500 billion consumer lending market grows amid tightening regulations, ClearGrid’s tech-driven approach solves a critical industry paradox: how to recover more debt while treating borrowers fairly. Their success demonstrates that ethical collections can be good business. By replacing outdated, aggressive tactics with data-driven, personalized outreach, the platform not only helps lenders recover more capital but also ensures a better, more respectful experience for borrowers.
Tackling MENA’s Debt Collection Challenges with AI
The MENA region has seen a dramatic rise in consumer lending, driven by popular services like buy-now, pay-later (BNPL) platforms. But as lending increases, so does the risk of unpaid debts. Traditional debt collection methods, relying on manual efforts and harsh tactics, have struggled to keep pace with the rapid digital transformation of the financial sector.
ClearGrid’s founders, Mohammad Al Zaben, Khalid Bin Bader Al Saud, and Mohammad Al Khalili, recognized the inefficiencies and negative impacts of these traditional practices and sought to build a better alternative. “Collections should be an extension of good lending—not an afterthought,” said Mohammad Al Zaben. “At ClearGrid, we’re reimagining debt resolution from the ground up, giving lenders the intelligence and tools they need to recover capital effectively while creating better outcomes for borrowers.”
Launched in 2023, ClearGrid’s AI-powered platform automates the entire debt collection process. It integrates directly with lenders’ systems, scoring repayment likelihood, predicting customer behavior, and personalizing outreach through various channels. Unlike the confrontational methods of the past, ClearGrid’s platform offers flexible repayment plans, reducing stress for borrowers while improving outcomes for lenders. The result? A more efficient, human-centered approach that benefits both parties.
Technology that Humanizes Collections
ClearGrid’s origin story reflects the region’s rapid fintech evolution. After selling his foodtech startup Munch:On to Careem in 2022, CEO Mohammad Al Zaben found himself reflecting on the challenges of collecting payments. He quickly realized that the debt collection system was stuck in the past—relying on outdated models with manual outreach and poor borrower experiences. This realization led to the creation of ClearGrid, an AI-driven solution that is faster, smarter, and fundamentally transforms the collection experience.
ClearGrid’s AI-powered approach not only helps lenders achieve better recovery rates but also offers tailored solutions that create a more humane experience for borrowers. “Our use of AI enables us to take a much more human approach to debt collection, with each customer treated as an individual,” Al Zaben told Forbes. “We can be an ally to help people get out of debt.”
Co-Founder & Chairman Khalid Bin Bader Al Saud adds “Financial systems must evolve with the digital world. Debt resolution should be a bridge to stability, not a roadblock. At ClearGrid, we’re redefining collections with a data-driven, technology-first approach that strengthens trust, ensuring credit fuels growth not distress. This is just the first step in building the infrastructure for the future of debt resolution.”
The results have been nothing short of impressive. The AI-powered system delivered:
- 95% automation rate, including AI voice agents handling hundreds of thousands of calls daily
- 30-50% higher recovery rates compared to traditional methods
- 60% higher borrower engagement
- 4.8/5 customer satisfaction scores
“At a time when lending is booming, regulations are tightening, and AI is reshaping industries, we see this as an opportunity to help lenders recover debt while building trust with borrowers,” the CEO said.
Investor Confidence & Market Traction
The $10 million funding round attracted top-tier investors who recognize the platform’s transformative potential. tackThe funding rounds were co-led by MENA-focused venture capital firms including Raed Ventures, Beco Capital, and Nuwa Capital. Additional investors include Aramco’s Waed Ventures, KBW Ventures, and several prominent angels like Anu Hariharan (Avra founder), Amjad Masad (Replit CEO), and Justin Kan (Twitch co-founder).
“ClearGrid is tackling a critical pain point in the MENA debt collection industry with a truly innovative approach,” Omar Majdouie, Founding Partner at Raed Ventures, said. “Their AI-powered platform not only drives significant operational efficiencies for lenders but also fosters a more positive and sustainable relationship with borrowers. This balance is essential for the healthy growth of the region’s digital lending landscape … to modernize collections and drive financial inclusion across the region.”
Khaled Talhouni, Founding Partner at Nuwa Capital, said: “We invest in founders who see inefficiencies as opportunities for reinvention. Khalid, Mohammad, and Mohammed are doing exactly that with ClearGrid—turning debt resolution from a fragmented, outdated process into a unique commercial opportunity. By leveraging AI and automation, they are not just improving collections but fundamentally reshaping how lenders engage with borrowers, setting a new standard for the industry.”
Since its 2024 launch, ClearGrid has:
- Enabled a BNPL provider to automate 95% of early-stage collections
- Managed hundreds of millions in debt portfolios
- Secured 10+ enterprise clients including major banks and BNPL providers
- Achieved profitability in UAE operations
- Helped a leading UAE bank increase recovery rates by 30%
What’s next?
ClearGrid’s ambitious roadmap includes:
- Market Expansion: Entering Saudi Arabia in 2025, the region’s largest economy
- Product Development: Building early risk detection and credit orchestration tools
- Technology Investment: Doubling the engineering team to enhance AI capabilities
- Scale Operations: 10x growth from current 130,000 monthly managed accounts
“We’re building purpose-built tools and finding ways to make lenders better at what they do while also creating an opportunity for consumers to get out of debt,” said Al Zaben. The company aims to build what Al Zaben calls the “definitive credit orchestration infrastructure for the region.”
With 30% month-over-month revenue growth in the UAE and strong investor backing, ClearGrid is positioned to transform not just collections, but the entire credit lifecycle. As the MENA financial ecosystem matures, the startup’s balanced approach — combining financial recovery with borrower dignity — offers a model for ethical, effective debt resolution in the digital age.
