eXtra seeks to set up Shariah-compliant finance company

United Electronics Company (eXtra) announces that it has obtained the Saudi Arabian Monetary Authority preliminary approval to establish a ‘Shariaa Compliant’ Closed Joint Stock Consumer Finance Company regulated by the Finance Companies Control Law and its Implementing Regulations.

United Electronics Company (eXtra) announces that it has obtained the Saudi Arabian Monetary Authority preliminary approval on Nov. 20, 2018 to establish a “Shariaa Compliant” Closed Joint Stock Consumer Finance Company regulated by the Finance Companies Control Law and its Implementing Regulations.

This Preliminary approval, does not constitute a final license to start providing financial services, and is subject to completion of the incorporation of the new Company according to Companies Law. The approval stipulates, that the Company shall meet all incorporation requirements such as hiring the required staff and developing the Infrastructure needed to secure the final license within a period of Six months from the approval date.

On the 26th of July 2018, United Electronics Company (eXtra) submitted a request to Saudi Arabian Monetary Authority, seeking license to establish a new Company providing “Shariaa Compliant” Consumer Financial Services in the Kingdom of Saudi Arabia. The New Company will be a fully owned subsidiary by (eXtra) having a capital of Saudi Riyal 150 million.

Further announcements shall be made to explain the financial impact of incorporating the new Company, and also once the Final License is secured from The Saudi Arabian Monetary Authority. 

United Electronics Company (eXtra) is the leading Consumer Electronics Retailers in the Kingdom providing a wide variety of Services including Installment Sales.

United Electronics Company (eXtra) is the first retailer in the Kingdom being granted such a preliminary approval, to provide Consumer Finance Services in the Kingdom.  This approval will enable the Company to diversify and strengthen its reach to a wider customer base and also to provide customers with wide range of “Shariaa Compliant” consumer finance solutions.  This is in continuation of the Company’s strategy to diversify its sources of income and enhance profitability through providing the best value to its customers.