| Element List | Explanation |
|---|---|
| Announcement Detail | Fawaz Abdulaziz Alhokair Co. (“Alhokair”) announces that “FAS Labs” Limited Co. has obtained the Saudi Central Bank’s preliminary approval on 24/06/1443H corresponding to 27/01/2022G to establish a Closed Joint-Stock digital consumer microfinance company (Shariaa Compliant) under the name of “FAS Finance” to be fully owned by “FAS Labs” and will have a capital of SAR 55 million, regulated by the Finance Companies Control Law and its Implementing Regulations. |
This preliminary approval to FAS Labs 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. The approval also stipulates that FAS Finance shall meet all incorporation requirements within a period of 6 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 Alhokair’s expansive retail network in excess of 1,000 stores across the Kingdom, and for Arabian Centre Co.’s tenants, who are located across 22 shopping malls 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 Alhokair’s strategy to become the leading lifestyle retailer in Saudi Arabia and the partner of choice for local and international brands. The Company aims 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.
It is worth mentioning that “FAS Labs”, a Limited Liability Company equally and jointly owned by both Alhokair and Arabian Centres Co., which has been recently established for the purpose of leading joint digital initiatives for both companies, will be accounted for in Alhokair’s financial statements as a Joint Venture of Alhokair and will be recognized as an investment under the equity method starting from Q3-FY2022.
Any material developments, including once FAS Labs receives the Final License from the Saudi Central Bank, will be announced in due course.
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.