The Saudi Central Bank (SAMA) has granted initial approval for the establishment of Rifd Integrated Company, a new entity set to provide micro consumer finance services within the Kingdom. The venture is spearheaded by the publicly listed retail giant, Jarir Marketing Company, which is the founding shareholder and majority owner.
This regulatory milestone paves the way for a new player in Saudi Arabia’s burgeoning fintech landscape, signaling increased competition and innovation in the consumer lending space.
A Strategic Saudi-Egyptian Partnership
Rifd Integrated Company is being established with a paid-in capital of SAR 50 million (approximately USD 13.33 million). The ownership structure reflects a significant cross-border collaboration between key Saudi and Egyptian players.
Jarir Marketing Company holds the controlling stake at 49%. It is joined by Egypt’s Aman Holding, a prominent digital financial services company, which owns 41%. The remaining 10% is held by Hamad Bin Abdullah bin Sulaiman Al Manea & Partners Co., a closed Saudi joint-stock company.
Navigating the Regulatory Pathway
While the initial approval from SAMA is a critical step, Jarir has confirmed it is now focused on completing the remaining regulatory procedures required to officially launch the company.
It is important to note that this preliminary green light does not constitute a final license or authorization for Rifd to commence operations. The company must fulfill all of SAMA’s requirements before it can be fully licensed to offer its microfinance services to the public.
The Genesis of Rifd
The formation of Rifd Integrated Company is the culmination of a strategic plan initiated over two years ago. At that time, Jarir announced the signing of a memorandum of understanding with Aman Holding and Hamad Bin Abdullah bin Sulaiman Al Manea & Partners Co. The original agreement outlined the partners’ shared ambition to establish a consumer finance company to serve the Saudi market.
About Jarir Marketing Company
Founded in Riyadh in 1979, Jarir Marketing Company is one of Saudi Arabia’s leading retailers, operating under the brand name “Jarir Bookstore.” It specializes in office and school supplies, children’s toys and educational aids, as well as books and publications. The company has also become a major distributor of consumer IT products, electronics, and smartphones in the region. Jarir is a publicly-traded company listed on the Saudi Stock Exchange (Tadawul).
Source: Entarabi
