Region

Jurisdiction

Regulator

2021-11-23

Using the fair value or revaluation model option to measure property and investment properties

The Saudi Central Bank mandates that local banks and financial institutions listed on the Saudi Financial Market (Tadawul) apply the fair value or revaluation model option to measure property and investment properties. This requirement, aligned with Capital Market Authority Circular No. CMA/7/5/61, applies to all financial periods commencing in 2022 or thereafter. Institutions must implement these measurement options and comply with all associated reporting and disclosure requirements effective immediately upon issuance of the circular.

Saudi Arabia

Saudi Central Bank

Saudi Central Bank
SAMA
Saudi Central Bank

Reference No.: 43034916
Date: 1443/04/18
Attachments: None

Circular

To Whom It May Concern, Dear Sir/Madam,

Subject: Using the fair value or revaluation model option to measure property and investment properties.

Reference is made to Capital Market Authority Circular No. (CMA/7/5/61) dated 2020/01/02, regarding allowing listed companies to use the fair value or revaluation model option to measure property and investment properties for financial periods beginning in 2022 or thereafter, along with related requirements.

We wish to confirm that local banks and financial institutions in the Saudi Financial Market (Tadawul) are required to use the fair value or revaluation model option to measure property and investment properties for financial periods beginning in 2022 or thereafter, along with the related requirements.

For your information and action.
Yours sincerely,

Dr. Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision

Capital Market Authority
Saudi Central Bank
SAMA
Saudi Central Bank

Distribution Scope:

Local banks and financial institutions.

Note:
Reference No.: 43034916
Date: 1443/04/18
Attachments: None