Regulatory Alerts2025-12-22
Circular on the Guide to Financial Institutions Services Fees and Amendment of Regulatory Articles Related to Administrative Fees
The Saudi Central Bank (SAMA) issued this circular to implement its updated Guide to Financial Institutions Services Fees and amend three key regulatory provisions governing administrative fee caps for consumer financing. The amended Article 9, Rule 1, and Paragraph (1,1) of Article 11 mandate that financing entities comply with SAMA's fee instructions, restrict administrative fee deductions to post-contract signing (with an exception for pre-approval real estate valuation costs), and cap total administrative fees at SAR 2,500 or 0.5% of the financing amount, whichever is lower, excluding government taxes. Financial institutions under SAMA's supervision must adhere to the guide and implement these amendments within 60 days of publication on SAMA's website.