FAS Labs Limited Co., a unit owned by Saudi retail firm Arabian Centers, will set up a digital consumer microfinance company. It will be called FAS Finance and will have a capital base of $14.65 million.
According to a bourse filing, FAS Labs Limited Co. has obtained preliminary approval from the central bank. The new unit will leverage the latest technology to offer microfinance solutions and products across 23 centers in 11 Saudi cities, parent company Arabian Centers said.
It can only start providing financial services once full incorporation is complete, the operator added.
The Shariah-compliant company will be fully owned by FAS Labs and regulated by the Finance Companies Control Law and its implementing regulations.
The move comes as Arabian Centres aims diversify its income sources and enhance profitability.
FAS Labs, equally owned by Arabian Centres and Fawaz Abdulaziz Alhokair, has been recently established to manage joint digital projects for the retail giants.