1 Legal status and principal activities
Legal status and principal activities
Finance House P.J.S.C (“the Company”) is a public joint stock company incorporated in Abu Dhabi, United Arab Emirates (UAE) in accordance with the provisions of the UAE. The Company was established on 13 March 2004 and commenced its operations on 18 July 2004.
The Company was initially registered in compliance with relevant UAE Federal Law No. (2) of 2015, as amended. As of 2 January 2022, the Company is subject to compliance with UAE Federal Law No. (32) of 2021, which replaces UAE Federal Law No. (2) of 2015, as amended. The consolidated financial statements have been prepared in accordance with the requirements of the applicable laws and regulations, including UAE Federal Law No. (32) of 2021, the Decretal Federal Law No. 14 of 2018 regarding the Central Bank and Organization of Financial Institution and Activities and under authority of resolutions of the Board of Directors of the UAE Central Bank relating to Finance Companies. The Company’s management is currently in the process of amending the statutory documents, to reflect the changes required due to application of the UAE Federal law No. (32) of 2021.
The registered head office of the Company is at P.O. Box 7878, Abu Dhabi, UAE.
The Company performs its activities through its head office in Abu Dhabi and its Abu Dhabi, Dubai, and Sharjah branches. The principal activities of the Company consist of investments, consumer and commercial financing and other related services.
The Company is listed on the Abu Dhabi Securities Exchange (Ticker: FH).
On 24 October 2018, management of Islamic Finance House (“the Subsidiary”) submitted an adjustment plan for restructuring the subsidiary to the Central Bank of the UAE (CBUAE). The adjustment plan was approved by the Board of Directors on the 6 of February 2019 and by CBUAE on 10 October 2019. The purpose of the plan was to adjust the activities of the subsidiary to meet the requirements of the newly issued regulations for finance companies. On 12 October 2020, CBUAE licensed Finance House L.L.C. to conduct financing business specified in Article (10) of the Finance Companies Regulation. During the year, the Company transferred all operations related to financing license to Finance House L.L.C. and surrendered its financing company license to CBUAE.
These consolidated financial statements comprise the Company and its subsidiaries listed in note 8 (together referred as “the Group”).
