SAMA licenses eXtra’s Tas’heel to begin credit cards finance activity

Logo of United Company for Financial Services (Tas’heel)

United Electronics Co.’s (eXtra) 100%-owned subsidiary, United Company for Financial Services (Tas’heel), obtained on May 25, 2021, a license from the Saudi Central Bank (SAMA) to commence credit cards finance activity under the Finance Companies Control Law and its executive regulations, according to a bourse filing.

The relevant financial impact is expected to show after the activity commencement in H2 2021.

Tas’heel launched its Sharia-complaint consumer finance operations in the Kingdom during Q2 2019 after receiving the final approval from SAMA.

It turned to profit after 12 months of commencing operations, and its consumer finance portfolio stood at SAR 862 million by end of Q1 2021. Tas’heel reported a net profit of SAR 20 million for Q1 2021.

The approval comes in line with the company’s strategy to offer a complete set of solutions in Sharia-compliant consumer finance, to reach to a wider customer base in the non-banking financing sector.