PHOTO
Saudi mall operator Arabian Centres Company (ACC) has announced that one of its subsidiaries, FAS Labs, has obtained the preliminary approval from the central bank to set up a consumer microfinance company.
FAS Finance, fully owned by FAS Labs, will operate as a digital consumer microfinance firm with a capital of 55 million riyals ($14.7 million), Arabian Centres told the Saudi Stock Exchange (Tadawul) on Monday.
The new business will offer customers a variety of microfinance solutions, as part of Arabian Centres’ strategy to diversify sources of income and boost profitability.
“[The microfinance offerings] will be available at launch on the expansive retail network of ACC’s tenants, who are located across 23 centres in 11 major Saudi cities,” the statement said.
The preliminary approval for the new entity was granted by the Saudi Central Bank on January 24. However, it does not constitute a final license yet, and FAS Finance is still required to meet all incorporation requirements within a period of six months.
(Writing by Cleofe Maceda; editing by Daniel Luiz)
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2022
