Jarir Marketing Company, one of the largest retailers in Saudi Arabia, announced that it has received initial approval from the Saudi Central Bank (SAMA) to establish a new company called Rafd Integrated. The new company will specialize in micro-consumer finance, a strategic move aimed at diversifying the company's revenue streams and leveraging its extensive customer base.
Background and development of the Saudi financial sector
This announcement comes amidst the significant transformations underway in the Kingdom's financial sector, aligned with the goals of Saudi Vision 2030 and the Financial Sector Development Program. The Kingdom aims to enhance financial inclusion, foster innovation in financial services, and support the growth of the financial technology (Fintech) sector. The Saudi Central Bank plays a pivotal role in this transformation by regulating the sector and issuing the necessary licenses to new companies, thus ensuring a safe and reliable competitive environment that serves consumers and strengthens the digital economy.
Partnership and capital details
Jarir clarified in its official statement published on the Saudi Stock Exchange (Tadawul) that this approval was based on a non-binding memorandum of understanding signed with strategic partners: Aman Egypt, a leading company in non-banking financial services, and Hamad Bin Abdullah Bin Sulaiman Al-Manea & Partners. The company indicated that the capital of Rafd Integrated Company will be SAR 50 million, and that work is currently underway to complete all necessary regulatory and legal procedures to officially launch the company's operations.
Strategic importance and expected impact
This move marks a significant step for Jarir, representing an expansion beyond its core retail business. Jarir's entry into the consumer finance market is expected to boost sales by offering flexible and direct financing solutions to its customers, particularly for high-value products such as electronics and office equipment. Domestically, the establishment of the new company will increase competition in the consumer finance sector, benefiting Saudi consumers by providing them with more options and better terms. Regionally, the partnership with Aman Egypt reflects a growing trend towards economic cooperation and the exchange of expertise in the fintech sector among major Arab markets.
