SAMA amends some articles of executive regulations of finance laws

SAMA's logo

The Saudi Central bank (SAMA) announced today, April 19, amending some articles of the executive regulations of the finance laws applicable in Saudi Arabia. 

The amendments included the Minister of Finance’s decision to revoke Article No. 4 of the executive regulation of Real Estate Finance Law, according to SAMA's statement. 

Based on such amendment, real estate finance companies are now allowed to practice financing activities without stipulating the prohibition of combining real estate financing and other forms of financing. SAMA retains the discretion to restrict licensing by certain conditions. 

The central bank also approved the amendment to Article No. 16 of the executive regulation of the Finance Companies Control Law, after the elapse of the period of public consultation on "Istitlaa" platform. 

By virtue of this amendment, finance companies are now allowed to practice financing activities without stipulating the prohibition of combining any of the financing activities. SAMA retains the discretion to restrict its licensing by certain conditions, the statement added. 

These amendments reflect SAMA's on-going efforts to review the executive regulations of finance laws to ensure efficacy and integrity of the financial sector to operate in a competitive environment.