SAMA seeks public feedback on financing regulations update

Logo of Saudi Central Bank (SAMA)

The Saudi Central Bank (SAMA) seeks public opinion on the draft rules for the "Executive Regulations of the financing companies control system”, through the Public Consultation Platform “Istitlaa”, over a period of 30 days.

The feedback will be reviewed after the deadline to finalize the regulations. This initiative aligns with SAMA’s role in overseeing and regulating the financing sector, supporting its stability and growth by increasing the total financing a company can provide.

The update includes support for companies applying for licenses by reducing the required bank guarantee amount when submitting applications. It also reviews the relevant provisions of related parties and clarifies conditions for the expiration of a financing company’s license.

Key elements of the update include regulating requirements for financing activities, enabling financing companies to increase liquidity and contribute to gross domestic product (GDP), reviewing the relevant provisions of related parties, acquisitions, public offerings, and conditions for founders and board members, and reducing the minimum bank guarantee required for licensing from 100% to 20% of the minimum capital.