The Saudi Central Bank (SAMA) has issued a license to Fuel Finance Company, which specialises in consumer microfinance.

The step is part of the central bank’s role in enhancing and enabling the finance sector by supporting the introduction of new financial activities, it said in a statement.

Furthermore, the move will attract a new segment of investors and mid-cap companies that can bring added value to the sector.

These contributions will ensure the efficiency of investors and companies by maintaining full adherence to regulatory requirements issued by SAMA related to corporate governance, risk management, compliance, and consumer protection.

Additionally, the step aligns with the central bank’s role in promoting financial stability and supporting economic growth to attain the goals of Saudi Vision 2030.

Last month, SAMA licensed Forusand and Tameed, the two finance companies specialised in debt-based crowdfunding, state-owned SPA news agency reported. The licenses were granted to the two fintechs after successfully testing their solutions in SAMA’s regulatory sandbox, an experimental environment dedicated to the kingdom’s innovative financial products and services.

(Editing by Seban Scaria seban.scaria@lseg.com)