Dr. Muhammad Farid Saleh, Chairman of the Board of Directors of the Financial Supervisory Authority, issued 5 decisions to establish a new consumer finance company, and to license companies to engage in consumer finance activity, and the demand for licensing this activity comes in light of the remarkable growth witnessed during the last period.
The Chairman of the Financial Supervisory Authority approved Resolution No. 1578 of 2022 establishing an Aman Consumer Finance Company subject to the provisions of Law No. 18 of 2020 and the decisions of the Authority’s Board of Directors issued in this regard. He also approved Resolutions No. 1574 and 1582 granting a license to two Pharos consumer finance companies to engage in business activity. Consumer finance, pursuant to the provisions of Law No. 18 of 2020, registration in the consumer finance activity registry under No. 37 of 2022, and licensing Alkan Finance for Financial Services to engage in factoring and consumer finance activities.
Dr. Mohamed Farid also agreed to license Fine Stone Investments to practice the activity of providers of consumer finance added to its purpose in accordance with the provisions of Law No. 18 of 2020.
Consumer finance activity continued to grow during 2022, and the total number of clients of consumer finance companies known as installment companies reached 383.9 thousand clients, with a total financing value of 4 billion pounds.
It is noteworthy that what is meant by consumer financing is all forms of financing that tend to enable the borrower to purchase a durable commodity for the purpose of consumption and pay its price over an extended period of time. By commercial payment cards or payment systems, and based on its contract with a network of sellers and providers of consumer goods and services.
Consumer finance achieves multiple benefits as it contributes to increasing the demand for consumer assets and equipment that they produce in a manner that improves production efficiency and profitability, and on the part of consumers, it helps improve their living standards and their ability to purchase products that they cannot afford to pay immediately, as well as to better plan their spending, and at the level of The national economy, consumer financing mechanisms help to increase domestic demand and thus increase investment, employment and economic growth, pushing the family sector to better use of resources and to increase its ability to plan and save.
Consumer finance covers all goods and services except for goods and services subject to the laws of real estate finance, financial leasing, factoring, microfinance, or the purchase of real estate through real estate developers. Electrical and electronic.