REG - EFG-Hermes Holdings - valU Partnership to Offer Consumer Finance in KSA

EFG Holding SAEAnnouncement

06/06/2022 08:16

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RNS Number : 8068N  EFG-Hermes Holdings SAE  06 June 2022

JOINT PRESS RELEASE
FAS LABS AND VALU PARTNER TO OFFER DIGITAL CONSUMER FINANCE SOLUTIONS TO CUSTOMERS IN SAUDI ARABIA

Strategic partnership to leverage valU's existing platform, technological
capabilities, and proven track record through jointly owned FAS Finance

·   FAS Labs and valU to own 65% and 35% of FAS Finance respectively,
supporting valU's entry into KSA

·   valU's leading Buy-Now, Pay-Later (BNPL) lifestyle-enabling fintech
platform to expedite FAS Finance's ability to build and scale an integrated
shopping platform

·   FAS Finance will offer its products and services under valU's brand
name

(Riyadh and Cairo - 6(th) of June 2022) FAS Labs, owned by Fawaz Abdulaziz
Alhokair Co. ("Alhokair"), the leading franchise retailer in Saudi Arabia, and
Arabian Centres Company ("ACC"), the leading owner, developer, and operator of
lifestyle shopping centers in Saudi Arabia, have entered into a strategic
partnership with valU for Consumer Finance S.A.E. ("valU") on the 5(th) of
June 2022. The agreement will accelerate the geographical expansion of the
MENA region's leading Buy-Now, Pay-Later (BNPL) lifestyle-enabling fintech
platform, providing digital consumer finance solutions in Saudi Arabia through
FAS Finance.

The partnership agreement will result in FAS Finance being 65% owned by FAS
Labs and 35% by valU. FAS Labs was recently established to lead the joint
digital initiatives of Alhokair and ACC, offering Saudi customers a range of
accessible and customizable digital consumer finance solutions, to build and
scale a fully integrated shopping platform that engages consumers throughout
the entire purchase journey, from pre-purchase to post-purchase.

valU's existing platform, technological capabilities, and proven track record
will expedite FAS Finance's ability to develop and scale a fully integrated
shopping platform leveraging accessible digital financing solutions. In Saudi
Arabia, the solutions will be available across Alhokair's expansive retail
network of more than 1,000 stores, as well as online on Vogacloset and the
monobrand websites, including 14 in Saudi Arabia. It will also extend to other
vendors, retail networks, and merchants to include and cover the entire Saudi
market.

Commenting on the partnership, Mohamad Mourad, Managing Director of ACC and
interim Chief Executive Officer of Alhokair, said: "Arabian Centres and
Alhokair share a pioneering history and a strong team with longstanding
partnerships contributing to a robust retail footprint in Saudi Arabia.

The launch of FAS Finance and the strategic partnership with valU are
perfectly aligned with our commitment to drive a robust omnichannel
experience. Through the integration of innovative payment solutions, we offer
greater affordability and value for our customers, all available through one
digital platform. In addition, our tenants have access to added value and
benefits through this cohesive purchase platform.

This significant milestone is indicative of ACC and Alhokair's commitment to
provide Saudi consumers with an integrated, forward-thinking lifestyle
experience and be the partner of choice for local and international brands."

The solutions will also be offered to ACC's tenants, located across 21
shopping malls in 11 major cities in the Kingdom. ACC will utilize FAS Finance
solutions to offer visitors and tenants unmatched digital financing solutions
across all their shopping malls.

For valU, the strategic partnership marks an important milestone, supporting
its strategy to expand its customer base by entering new markets. Saudi Arabia
will be the first market that valU enters outside of Egypt, building on the
robust growth in its home market.

"We are honored to be partnering with Alhokair and ACC as part of our strategy
to expand our product offering in new markets," said Karim Awad, Group CEO of
EFG Hermes Holding. "Saudi Arabia is the largest GCC country with a growing
population and a strong economy, offering immense opportunity for valU to
cater to a rising consumer need for digital access to finance. EFG Hermes has
been in the Saudi Arabian market since 2007 offering brokerage, research, and
advisory services, this is a market we are committed to acting as catalysts
for wider change within our industry. We are proud to have grown a strong
brand like valU that offers finance solutions that directly feed into
elevating consumers' lifestyles. We believe that the partnerships we have
forged and continue to initiate change and actively contribute to the future
prosperity of both business and society," concluded Awad.

FAS Labs obtained preliminary approval to establish FAS Finance as a
Shariah-compliant digital consumer finance company from the Saudi Central Bank
in January 2022. The final approval and the change in ownership of FAS Finance
(previously wholly-owned by FAS Labs) remain subject to final approvals by the
regulatory authorities: Saudi Central Bank, Ministry of Commerce, Ministry of
Investment, and General Authority for Competition.

"We are delighted to enter this strategic partnership. valU has retained its
position as the market leader in BNPL solutions in the MENA region and
Alhokair choosing us further cements this. valU's launch in KSA comes as a
natural progression of our strong partnership with Alhokair and is our first
move outside of Egypt with other similar moves to follow soon. We will also be
utilizing our extensive network that we have built with valU for brands that
have presence in the Saudi market and extending our services to include them"
said Walid Hassouna, CEO of the Non-Bank Financial Institutions (NBFI)
platform at EFG Hermes Holding and CEO of valU.

"We are thrilled to be issuing cash loans for the first time which will be
complementing our BNPL solution offering. With valU being a platform through
which consumers can seamlessly access financing solutions across various
sectors, we serve as a conduit enhancing affordability. We pride ourselves in
creating solutions that help our clients enrich their lifestyle every day,
from shopping to education to sports to entertainment to travel and more,"
concluded Hassouna.

-Ends-

NOTES TO EDITORS
About Fawaz Alhokair

Fawaz A. Alhokair & Co (known as "Alhokair") was formed in 1990 by Fawaz,
Salman and Abdulmajeed Alhokair. The company has since become the leading
franchise retailer in the KSA and the only listed business of its type in the
Middle East. Since the opening of its first store in 1991, Alhokair has grown
considerably and now trades in circa 1,684 stores across 100 shopping malls in
11 countries, with a retail platform operating on a total GLA of more than
470,000m2. All of this is managed by a workforce numbering more than 10,500.
Alhokair currently represents around 85 brands, spanning from womenswear,
menswear, kids and baby, department stores, shoes and accessories, cosmetics
in addition to operating a series of restaurants and coffee shops. For more
information, please visit www.fahretail.com

About Arabian Centres Company

Arabian Centres is the leading owner, operator, and developer of contemporary
lifestyle centres in Saudi Arabia. For over a decade, the Company has provided
customers with a complete range of high-quality lifestyle centres up to
international standards, located in the most attractive areas of the country
to satisfy all shopping needs and market requirements. As of 31 December 2020,
Arabian Centres operates a portfolio of 21 assets strategically located in 10
major Saudi cities. The Company's developments include several iconic
lifestyle centres, such as Mall of Arabia Jeddah, Mall of Dhahran, and Nakheel
Mall Riyadh - which was recognized at the Arab Luxury World Forum in 2017 as
being consumers' favourite shopping mall in Riyadh. The Company's lifestyle
centres have more than 4,100 stores and hosted approximately 111 million
visitors in FY2020. For more information about Arabian Centres Company, please
visit www.arabiancentres.com

About EFG Hermes Holding

With a current footprint spanning 13 countries across four continents, EFG
Hermes Holding (EGX: HRHO.CA - LSE: EFGD) has grown over 38 years of success
to transform from a pure-play investment bank in MENA into an impact-driven
universal bank in Egypt with the leading investment bank franchise in Frontier
Emerging Markets (FEM). Drawing on our proven track-record and a diverse team
of talented employees, we provide a wide spectrum of financial services that
include advisory, asset management, securities brokerage, research and private
equity to the entire FEM region. In our home country, we have the
fastest-growing non-bank financial institutions (NBFI) platform with
operations covering microfinance, leasing, factoring, Buy-Now Pay-Later
(BNPL), digital payment solutions, mortgage finance and insurance.

And most recently the acquisition of majority stake in aiBANK allowed the firm
to offer commercial banking products and services.

Through its three verticals, the Investment Bank, Non-Bank Financial
Institutions (NBFI) and Commercial Bank, the group is perfectly positioned to
consistently bring disruptive financial products and services to the market
space, offering a holistic portfolio that best serves its growing base of
individual clients and businesses of all sizes.

Proudly present in: Egypt | United Arab Emirates | Saudi Arabia | Kuwait |
Oman | Jordan | Pakistan | UK | Kenya | USA | Bangladesh | Nigeria | Vietnam

Learn more about us at www.efghermes.com & stay connected with us.

About valU

A subsidiary of EFG Hermes Holding established in 2017, valU is the leading
Buy-Now, Pay-Later (BNPL) lifestyle enabling fintech platform offering
convenient and customizable financing plans up to 60 months. With more than
5,000 points of sale and over 330 websites, valU offers access to a wide
network of retail and e-commerce providers across a diverse array of
categories including home appliances, electronics, home finishing, furniture,
residential solar solutions, healthcare, education, travel, and fashion, among
others. As the first platform of its kind in the MENA region, valU customers
can receive instant credit decisions through their devices and gain access to
the ever-growing platform's partners.

For further information, please contact:

The EFG Hermes Holding Public Relations Team

PublicRelations@efg-hermes.com

May El Gammal

Group Chief Marketing & Communications Officer of EFG Hermes Holding

melgammal@efg-hermes.com

Note on Forward-Looking Statements

In this press release, EFG Hermes Holding may make forward looking statements,
including, for example, statements about management's expectations, strategic
objectives, growth opportunities and business prospects. These forward-looking
statements are not historical facts but instead represent only EFG Hermes
Holding's belief regarding future events, many of which, by their nature are
inherently uncertain and are beyond management's control and include among
others, financial market volatility; actions and initiatives taken by current
and potential competitors; general economic conditions and the effect of
current, pending and future legislation, regulations and regulatory actions.
Accordingly, the readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date on which they are
made.

 

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