Tasheel's Managing Director: 3 exceptional factors affected revenue growth... and we aim to launch new products

Mohamed Galal, Managing Director of United International Holding Company - Tasheel

Mohamed Galal, Managing Director of United International Holding Company (Tasheel), said that the slowdown in the company's revenue growth during the second quarter of 2026 is due to three exceptional factors: a one-week service outage due to a glitch in Amazon Web Services (AWS) servers, a reduction in administrative fees on loans from 1% to 0.5%, and the cancellation of the promissory note requirement when issuing credit cards as a precautionary measure to limit credit risks.

Galal explained, in an interview with CNBC Arabia, that the company recorded a 6.5% growth in total revenue in the second quarter of 2026, which was below expectations, while gross profit increased by 7%, the financing portfolio jumped 13% to SAR 3.2 billion compared to SAR 2.8 billion in the same period last year, and the customer base grew by 21%.

He added that the company offers three main products: commodity financing (Tawarruq), the 'Basiita' product which combines the 'buy now, pay later' model with installment financing, and credit card services.

He noted that the 24% increase in operating expenses was planned in advance and is part of a strategy aimed at boosting future growth, stressing that the company preferred to continue investing in attracting talent, developing technical infrastructure, and increasing marketing spending, rather than cutting expenses to improve short-term profits.

Regarding asset quality, Galal clarified that the cost of risk decreased to 5.1% compared to 5.2% last year, indicating that the financing portfolio undergoes an annual review by an independent party to ensure provisioning according to sector standards.

He affirmed that the company's financial position supports its expansion plans, with total loans of about SAR 1.7 billion versus a financing portfolio of SAR 3.2 billion, focusing on strengthening equity to increase the ability to expand credit in the future.

He revealed that the company aims to launch new financing products for individuals within the next 18 months, noting that entering the SME financing sector requires a license from the central bank, which the company does not currently have, so its focus is on the individual financing market.

He added that artificial intelligence technologies will contribute to restructuring operating spending and raising operational efficiency in the future, while emphasizing that the company follows a policy aimed at absorbing interest rate fluctuations and not passing on the full rise in financing costs to customers, thus maintaining its price competitiveness and market share. According to Argaam data, United International Holding Company (Tasheel)'s profits fell to SAR 112.6 million by the end of the first half of 2026, a decrease of 5% compared to profits of SAR 118.3 million during the same period last year, and second-quarter profits were SAR 48.2 million (-20%).

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