Arabian Centres-Fawaz Alhokair-owned FAS Labs gets SAMA nod to set up microfinance firm

Logo of Arabian Centres Co.

Arabian Centres Co. (ACC) and Fawaz Abdulaziz Alhokair Co.’s subsidiary, FAS Labs, obtained, on Jan. 27, the Saudi Central Bank’s (SAMA) initial approval on setting up FAS Finance - a closed joint-stock digital consumer microfinance company (Shariah-compliant) - to be fully-owned by FAS Labs and with a capital of SAR 55 million, regulated by the Finance Companies Control Law and its Implementing Regulations.

The preliminary approval does not constitute a final license to start providing financial services and is subject to completion of the incorporation of FAS Finance according to the Companies Law, ACC and Fawaz Alhokair said in bourse statements.

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The approval also stipulates that FAS Finance shall meet all incorporation requirements within a period of six months from the approval date to secure the final license.

FAS Finance aims to offer its customers a variety of microfinance solutions based on latest available technologies. Such products will be available at launch on the expansive retail network of ACC’s tenants, who are located across 23 centers in 11 major Saudi cities. In addition, the offering will also be linked to the new FAS Labs Loyalty Program.

The launch of FAS Finance is aligned with ACC and Fawaz Alhokair’s strategies to provide a lifestyle experience through their centers in Saudi Arabia. Both companies aim to achieve this by creating an experiential omnichannel shopping experience for customers, while diversifying sources of income and enhancing profitability, which in turn will create long-term sustainable value for shareholders and stakeholders.

FAS Labs is a limited liability company that is equally-owned by ACC and Fawaz Alhokair. It was recently established for the purpose of leading joint digital initiatives for both companies, including providing the shoppers with a specialized and advanced loyalty program and simplified and innovative consumer financing solutions.

Both listed firms will consolidate their investment in FAS Labs into the financial statements under equity accounted investments starting from Q3 ending Dec. 31, 2022.

Any developments, including the final license once granted to FAS Finance by SAMA, will be announced in due course.