UAE: Gulf Finance Corporation in Saudi Arabia, a wholly-owned subsidiary of SHUAA Capital and a provider of Sharia-compliant finance to small and medium sized enterprises (SMEs) in Saudi Arabia, announced today that is has obtained a new operating license from the Saudi Arabian Monetary Agency (SAMA).
As part of the new licensing process, Gulf Finance Corporation has been changed from an installment company previously regulated by the Ministry of Commerce, to a private closed joint stock company regulated by SAMA and follows its laws and regulations. The Company has also changed its name from Gulf Installments Company to “Gulf Finance Corporation PJSC”.
“As one of the first non-bank lenders operating in the GCC, we see tremendous potential in the Saudi Arabian SME market,” HH Sheikh Maktoum bin Hasher Al Maktoum, Executive Chairman of SHUAA Capital and Chairman of Gulf Finance Corporation in Saudi Arabia, said.
“Our Sharia-compliant products and services see a strong demand from SMEs in KSA. We would like to take this opportunity to thank SAMA for granting us this licensing, which will enable Gulf Finance Corporation to better serve the Kingdom’s SME sector by providing access to a wider range of products to finance its growth.”
In order to qualify for the license, Gulf Finance Corporation had to commit a minimum capital of SAR 100 million. The license will allow the Company to continue operations in Saudi Arabia, providing Sharia compliant financing products such as; Ijara for Finance Lease, Ijara for Financing Production Assets, and Ijara for Financing SMEs.
“We hope to address this gap in financing and provide solutions to SMEs to fund their expansion into new markets, benefiting from our capabilities to finance cross-border deals between KSA and the UAE,” Sheikh Maktoum, added.
Gulf Finance Corporation in Saudi Arabia was launched in November 2012 and provided Sharia-compliant lease and installment facilities to small businesses in the Kingdom. It is the sister company of Gulf Finance Corporation in UAE which is headquartered in Dubai and has been providing SME funding solutions to businesses in the Emirates since 1997. Gulf Finance Corporation in Saudi Arabia currently has offices in Jeddah and Riyadh and is expanding operations in the Eastern province.