Egypt’s valU braces for competition in Saudi Arabia, eyes sizeable market share: CEO

Logo of valU for Consumer Finance (valU)

Egypt-based valU for Consumer Finance (valU) looks forward to competing with the Saudi market's current and potential players, Al Arabiya TV reported, citing CEO Walid Hassouna.

The unique business model of valU will, when unveiled, pinpoint how to grab a significant market share in Saudi Arabia, as it will address areas untapped by the other competitors, he added.

Before year-end, valU will launch operations in the Saudi market after obtaining the Saudi Central Bank’s (SAMA) license, which will allow the company to disburse loans.

EFG Hermes' consumer finance platform valU dominates 30% of the Egyptian financing market and became the first shop-on-installments firm, Hassouna noted, adding that the value of the FAS Labs’ acquisition deal is undisclosed, but it will be close to the company’s book value.

On June 5, FAS Labs, which is equally owned by Arabian Centres Co. and Fawaz Abdulaziz Alhokair Co., signed an agreement with valU to sell its 35% stake in FAS Finance to valU. Accordingly, FAS Labs will hold 65% of FAS Finance's capital, which stands at SAR 55 million, while the remaining 35% will be held by valU, according to data available with Argaam.