Saudi Arabia: SAMA Mulling 3 Requests for Consumer Microfinance Licenses

SourceAl Bawaba
SectorFinancial Markets
CountrySaudi Arabia

SAMA granted the first consumer microfinance license earlier this January to “Tamam” company, and is preparing to attract more actors in this sector after canceling the installments sale system. During an interview with Asharq News, Al-Otaibi stressed that the bank aims, through consumer microfinance licenses, to attract a new segment of investors who are medium-capitals. He added that the bank also aims to support economic growth opportunities and enhance financial inclusion by providing more financing products, in line with SAMA’s strategy to activate electronic channels in financing products, especially as most microfinance companies use financial technology. “One of the reasons for licensing these type of companies with fewer requirements than the regular financing companies is to address the unfair practices that may occur after canceling the installment sale system,” he said. HIGHLIGHTS • SAMA granted the first consumer microfinance license earlier this January to ‘Tamam’ company, and is preparing to attract more actors in this sector after canceling the installments sale system. • Applicants from the Kingdom urged to obtain small consumer funding from companies licensed by SAMA to protect themselves and preserve their rights.   Al-Otaibi called on applicants from the Kingdom to obtain small consumer funding from companies licensed by SAMA to protect themselves and...read more...