Arab Finance: The Financial Regulatory Authority (FRA) has extended the suspension of applications for the establishment and licensing of new consumer finance and microfinance companies for another year, until October 11, 2027.
The extension also involves applications from non-governmental organizations (NGOs) and civil society foundations seeking licenses to conduct microfinance activities.
Subject to potential further renewal, the suspension aims to safeguard the financial stability of the non-banking financial sector, taking into account market needs, the scale of existing operations, and the quality of services provided to clients.
The FRA recently granted approval to 10 companies to conduct various non-banking financial activities using fintech services. This decision supports the FRA’s ongoing efforts to expand the user base for such services, drive digital transformation, and foster financial, investment, and insurance inclusion.
