Gulf Finance Corporation in Saudi Arabia, a wholly-owned subsidiary of SHUAA Capital and a provider of Shariah-compliant finance to small and medium enterprises (SMEs) in Saudi Arabia, announced Tuesday that it has obtained a new operating license from the Saudi Arabian Monetary Agency (SAMA).

As part of the new licensing process, Gulf Finance Corporation has been changed from an installment company previously regulated by the Ministry of Commerce and Industry, to a private closed joint stock company regulated by SAMA and follows its laws and regulations. The company has also changed its name from Gulf Installments Company to Gulf Finance Corporation PJSC.

“As one of the first non-bank lenders operating in the GCC, we see tremendous potential in the Saudi Arabian SME market,” said Sheikh Maktoum bin Hasher Al-Maktoum, executive chairman of SHUAA Capital and chairman of Gulf Finance Corporation in Saudi Arabia. “Our Shariah-compliant products and services see a strong demand from SMEs in the Kingdom. We would like to take this opportunity to thank SAMA for granting us this licensing, which will enable Gulf Finance Cor-poration to better serve the Kingdom’s SME sector by providing access to a wider range of products to finance its growth.”

In order to qualify for the license, Gulf Finance Corporation had to commit a minimum capital of SR 100 million. The license will allow the company to continue operations in Saudi Arabia, providing Shariah-compliant financing products such as ijara for finance lease, ijara for financing production assets, and ijara for financing SMEs.

Gulf Finance Corporation in Saudi Arabia was launched in November 2012 and provided Shariah-compliant lease and installment facilities to small businesses in the Kingdom.