The Saudi Financing Solutions Company “Tasheel” announced a remarkable leap in its financial performance for 2023, as its net profits recorded a growth of 23% to reach SAR 273.6 million, compared to profits of SAR 222.4 million in the previous year 2022. This strong performance reflects the success of the company’s strategies and the strength of the consumer finance sector in the Kingdom of Saudi Arabia.
According to the financial data published by the company on the Saudi Stock Exchange (Tadawul), the primary driver behind this growth in net profit is the significant increase in the company's revenues. Tasheel's revenues grew by 23.4% during the year, which was directly reflected in gross profit, including net income from Sharia-compliant financing contracts, which also recorded an increase of 23.7%.
Economic context and Vision 2030
This growth in Tasheel’s profits comes within a positive economic context in Saudi Arabia, driven by Vision 2030 initiatives aimed at diversifying the economy and strengthening the role of the private sector, particularly the financial sector. The non-banking financial sector, in which Tasheel operates, has witnessed significant development thanks to the supportive regulatory environment provided by the Saudi Central Bank (SAMA) and the increasing demand for innovative financing solutions from individuals and small and medium-sized enterprises (SMEs).
The importance of the results and their impact on the market
These strong financial results are a positive indicator not only for Tasheel and its shareholders, but also for the Saudi financial sector as a whole. They reflect growing consumer confidence and purchasing power, which stimulates spending and supports economic growth. Furthermore, the success of Sharia-compliant finance companies reinforces the Kingdom's position as a leading global hub for Islamic finance.
Domestically, these profits contribute to strengthening investor confidence in the company's shares listed on Tadawul, highlighting its ability to adapt to market demands and achieve sustainable growth. Tasheel is expected to continue its expansion strategy, leveraging digital transformation in the provision of financial services to meet the needs of its growing customer base, which bodes well for the company's future given the ongoing major development projects in the Kingdom.
