United Company for Financial Services, a wholly-owned subsidiary of retailer United Electronics Company (eXtra), has secured preliminary permission from the Saudi central bank to provide credit card financing service in the country.
The approval was granted by the Saudi Arabian Monetary Authority (SAMA) under the Finance Companies Control Law and its Implementing Regulations, eXtra said in a filing with the Saudi stock exchange (Tadawul).
The United Company for Financial Services filed an application before the SAMA in May this year to obtain a licence to roll out credit card services in the country.
However, the company has to complete all regulatory as well as technical procedures to obtain a final licence to start providing the service.
United Company for Financial Services said that it will inform the market once it secures the final approval.
In the second quarter of this year, the United Company for Financial Services launched its Shariaa- compliant consumer finance operations after obtaining the go-ahead from SAMA.
United Company for Financial Services in a statement said: “This approval will enable the Company to extend its reach to a wider customer base across the retail sector, in addition to providing a wide range of (Shariaa Compliant) consumer finance solutions through its financing arm.”