The Saudi Finance Company was founded in the 1990s because its founders saw a need for a financial supporter to help the Saudi market and society get started and to help them through financial setbacks and crises.
Further, the company specialises in financing per Islamic Sharia because Saudi society is very particular about following the rules of the religion.
Saudi Finance Company Services
Abdullah Ibrahim Al Khareef Sons Corporation originally owned the corporation, which had ten million Saudi riyals in capital upon its creation. Nevertheless, in 2011, when the company’s capital hit 200 million Saudi riyals, Abu Dhabi Islamic Bank acquired a 51 per cent stake.
Ever since its inception, the company has endeavoured to fulfil the demands of the Saudi market, which have grown dramatically. This is primarily because the company’s products adhere to the guidelines of Islamic Sharia. Concurrently, the business community in the Kingdom has expanded, which is a logical outcome of the stability and growth that the Saudi government and people have fostered.
Moreover, the company has offered a variety of financing options since its founding for people, businesses, and small and medium-sized organisations. Examples include financing the tawarruq system using guarantors or a mortgage guarantee, financing goods for a year, and financing fleets of cars using a licence guarantee.
Key Features and Benefits
Individual finance consisted of lending money for a duration ranging from one to five years. Up to 500,000 Saudi riyals, the financing firm did not require the presence of a guarantee. A yearly profit rate of less than 18% occurred by adding a profit margin of no more than 10% to the amounts awarded.
For instance, and not limited to, when financing a person, the applicant must first complete the financing application and provide a pay statement and bank statement covering the previous three months.
If the needed sum is 100,000 Saudi riyals, the qualifying term is five years, the profit margin is (9.95%), the yearly profit rate is (17.17%), and the monthly deduction amount is 2,496 Saudi riyals. It is worth mentioning that each financing case goes over uniquely, based on the lending amount, payback time, and client credit rating.
In contrast, the bank statement term for corporations and institutions is one year or more, and they also need to submit a financing application, a copy of the commercial registry, and audited financial records for the previous three years.
For instance, the monthly withdrawal rate will be 15,417 Saudi riyals if the loan amount is 500,000 and the payback period is four years. In contrast, the monthly deduction rate is 14,667 riyals if the loan amount is 550 thousand riyals and the payback period is five years.
A Legacy of Growth
The organisation operates 17 branches across the Kingdom. The first one opened in 1991 in Riyadh, followed by a second one in the Qassim region ten years later, which welcomed borrowers in 2001. The third branch opened in the Khobar region the following year, in 2002. Subsequently, branch and sales outlet opening activities persisted, including every area in the Kingdom.
Even though Saudi investors have access to various forms of funding, the Saudi Finance Company aims to be the best and top option for customers and owners of medium-sized and small businesses with its suite of financing solutions.
Building bridges of trust with both workers and customers is one of the things the company is focussing on to enhance its position with investors. This is because the company’s leaders believe that trust is the foundation of all human transactions. The company also pledges to give the best quality of services to both itself and its staff by creating new services and educating staff members on how to provide them in the best possible way—as the Holy Prophet did when he urged excellence in work.
The Pillars of Success
The Saudi Finance Company operates under a set of values, one of which is balance. The company views balance as the key to happiness, as it will act as a mediator between customers and the economy to resolve conflicts and offer the necessary financing solutions. Internally, the company upholds this principle concerning its workers by striking a balance between their rights and responsibilities.
By incorporating the idea of sustainability into all aspects of its operations, the Saudi Finance Company is dedicated to the Kingdom’s Vision 2030 of improving the quality of life. This has a positive impact on the business environment, as the company is interested in providing people with enough funding to enable them to contribute positively to Saudi society.
In its various branches, it is eager to employ environmentally friendly renewable energy sources that maintain environmental sustainability and align with the vision’s objectives. It also endeavours to economically empower small and medium-sized businesses and institutions, enabling them to eventually join the Saudi success story that will permeate every facet of life in the Kingdom.
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