Shell: Detailed Analysis of Sahl Finance Stock in Saudi Market 2024-2025

Sahl Finance (commercially known as Shell) was established as a Saudi joint-stock company and is listed on the Saudi financial market (Tadawul) under the symbol 1183. The company operates in the non-banking finance sector and is subject to the supervision of the Saudi Central Bank (SAMA). Shell offers a variety of financing services for individuals and small to medium-sized enterprises, including consumer finance, real estate finance, and installment purchase financing, fully complying with Islamic law and local regulatory standards. The company aims to support financial inclusion and contributes to enhancing the housing and consumption finance ecosystem, in line with the Kingdom's Vision 2030 to develop the financial sector and diversify national income sources. Shell is viewed as a dynamic company that keeps pace with the digital transformation in the financial sector and seeks to meet the growing needs of the Saudi market, focusing on innovative solutions and speed of service.

Shell Finance (Sahl Finance) is subject to the Saudi Companies Law and the regulations of the Capital Market Authority, and it is licensed and directly supervised by the Saudi Central Bank (SAMA). This oversight imposes strict compliance with transparency, corporate governance, and regular financial disclosure. Shell is committed to providing quarterly and annual financial reports, and its results are subject to external review by certified auditors. The company also adheres to anti-money laundering and customer protection standards, implementing regulatory policies for managing credit and operational risks. Additionally, the board of directors has the authority to formulate strategies and monitor executive performance, with its members elected at general shareholder meetings, enhancing transparency and accountability in the company's management.

Shell Finance's stock (1183) is listed in the non-banking financial services sector on the Tadawul. The current price of the stock in the latest session is approximately 18.10 SAR, with a total market value of around 1.81 billion SAR, based on approximately 100 million issued shares. The stock has witnessed an annual increase of +5.36% during 2024, while the cumulative change since the beginning of 2025 has been slight at -0.44%. These figures reflect relative stability in the stock's performance amid fluctuations in the financial sector. The company has not announced any dividends for 2024 and 2025, placing the cash distribution yield at zero. The price-to-earnings (P/E) ratio for the stock is approximately 68 times, which is high compared to the sector average, attributed to limited earnings relative to the current stock price. These indicators highlight the importance of analyzing the company's results and comparing them with peers before making any financial decisions.

Shell Finance's financial data for 2024 showed a net annual profit of 26.5 million SAR, with fourth-quarter profits reaching 10.8 million SAR. The company experienced significant profit growth during the first half of 2025, with profits jumping to 26 million SAR, an increase of 144% compared to the same period last year, and profits for the first nine months of 2025 exceeded 34.3 million SAR. This growth is attributed to the company's expansion in real estate and consumer financing and the improvement of the quality of its financing portfolio. These figures indicate a remarkable development in operational efficiency and risk management, positioning Shell among the fastest-growing companies in the non-banking finance sector. However, there remains a need for continuous monitoring of profitability levels and expansion risks, especially amid economic and regulatory changes.

Shell Finance's stock belongs to the non-banking financial services sector, which has witnessed significant growth in Saudi Arabia in recent years, supported by government programs to enhance financial inclusion and increase real estate and consumer loans. The sector is characterized by the presence of specialized financing companies alongside financing arms of major banks, all of which are under SAMA's supervision. Key trends include digital transformation, facilitating loan approval processes, and increasing focus on youth and family segments. Sector companies face challenges such as heightened competition, changes in interest rates, and financing ratio constraints, but they benefit from stable regulations and growing demand for real estate financing. Shell stands out as one of the players focusing on a real estate financing portfolio, benefiting from housing programs and support from local banks.

Shell Finance faces strong competition from several listed and unlisted financing companies in the Saudi market. Notable competitors include Riyadiya Finance, which offers direct consumer financing products to individuals, Alinma Bank with its financing arms, and the Saudi Real Estate Refinance Company (SRC), which acts as both a partner and competitor, especially regarding real estate portfolios. Competition also includes major banks offering advanced digital financing solutions. These entities compete on service speed, product quality, and acceptable risk levels. Shell's ability to form strategic partnerships, such as selling real estate portfolios and securing major bank facilities, provides it with greater flexibility to face competition and seize market opportunities.

In 2024 and 2025, several significant developments occurred for Shell Finance. In December 2025, the company secured new credit financing of 300 million SAR from Alinma Bank, enhancing its capacity to finance new loans. In November 2025, shareholders elected a new board of directors, which may impact future strategy. In October 2025, the company completed a deal to sell a real estate financing portfolio valued at 73.7 million SAR to the Saudi Real Estate Refinance Company (SRC), aimed at improving liquidity and reducing real estate risks. Shell also renewed and increased credit facilities with local banks to reach 2.2 billion SAR in September 2025. These events reflect the company's direction towards expansion and improving its financial position, with a focus on risk management and diversifying funding sources.

Shell Finance adopts a balanced risk management policy, which includes a thorough analysis of customer creditworthiness and the application of strict standards in granting financing, especially in real estate and consumer financing. The company continuously monitors default rates and updates its regulatory policies in line with the instructions of the Saudi Central Bank. In terms of liquidity, the company seeks to diversify funding sources through bank facilities and selling real estate portfolios to provide immediate liquidity and invest in new opportunities. This strategy reflects Shell's commitment to reducing credit and operational risks while maintaining high financial flexibility that allows it to respond to sudden market or regulatory changes.

The P/E ratio for Shell Finance's stock is approximately 68 times based on 2024 results, which is a high rate compared to the average ratios in the sector, reflecting the market's assessment of the company's future growth. However, this also indicates that the stock is relatively expensive when compared to current earnings. Followers should compare Shell's P/E ratio with other financing companies and the sector's average performance to make an informed decision. Additionally, the absence of cash distributions in 2024 and 2025 makes focusing on long-term growth indicators more critical, as the stock's valuation primarily depends on future earnings expectations and the company's ability to achieve sustainable growth.

Shell Finance has not distributed cash dividends to its shareholders during 2024 and 2025, resulting in a cash distribution yield of zero. The last announced dividends were in 2023. The company's policy of not distributing reflects its intention to retain earnings to support expansion and increase working capital. It is important for stock followers to understand that cash yield is not the only criterion for assessing the stock's attractiveness, as reinvesting profits can benefit the company's growth and market value in the long term, especially in fast-growing sectors. However, some investors may prefer stocks with regular cash yields, necessitating a comparison of Shell's policies with its competitors in the market.

In October 2025, Shell Finance entered into an agreement with the Saudi Real Estate Refinance Company (SRC) to sell a real estate financing portfolio valued at 73.7 million SAR. This move aims to free up cash liquidity and reduce risks associated with fluctuations in the real estate sector. Selling real estate portfolios allows the company to recycle capital and direct it towards other financing products or improve its financial position. These operations enhance the company's liquidity and support its ability to meet the growing demand from new customers. This strategy is common among financing companies seeking to achieve balanced growth between returns and risk.

The overall economic climate, local interest rates, and regulatory changes issued by SAMA and the Capital Market Authority directly affect the performance of financing companies like Shell. Rising interest rates may increase borrowing costs and impact customer demand for financing, while government incentives for the housing sector lead to increased demand for real estate financing. Moreover, regulatory tightening on lending ratios and risk management enhances sector stability, although it may limit rapid growth. Shell closely monitors these developments and adjusts its operational and financial policies to align with the regulatory environment to ensure compliance and sustainability.

In November 2025, Shell Finance elected a new board of directors, which may reflect on the company's strategic directions in the coming years. The board plays a crucial role in determining investment priorities, monitoring the implementation of regulatory policies, and ensuring a balance between growth and adherence to risk standards. The board also oversees the execution of digital transformation plans, the development of financing services, and building strategic partnerships with banks and other financing institutions. This governance enhances shareholder and investor confidence in the company and supports its ability to achieve its operational and financial objectives in a changing competitive environment.

Shell Finance is keeping pace with the growing trend in the Saudi financial sector towards digitization and providing financial services through electronic channels. The company invests in developing digital infrastructure and offering digital financing products that meet the needs of modern customers, especially the youth segment. This includes facilitating financing application processes, simplifying approvals, and utilizing data analytics tools to enhance customer experience. This transformation supports the company's ability to expand rapidly, improve operational efficiency, and attract new customer segments, positively reflecting on revenue growth and strengthening its competitive position.