Amendment to Article 8 of the Implementing Regulation of the Finance Companies Control Law

Translated Document

The Implementing Regulation of the Finance Companies Control Law has been updated, please refer to the updated Implementing Regulation of the Finance Companies Control Law . Based on the powers granted to SAMA under the Finance Companies Control Law issued by Royal Decree No. M/51 dated 13/8/1433H. We inform you that the Governor's Decision No. (126/M SH T) dated 8/6/1444H, which includes the amendment of
Article (8) of the Implementing Regulations of the Finance Companies Control Law
to read as follows:
"Subject to the provisions of the Companies Law , the minimum paid up capital of the Finance Company is as follows:

1.
For Finance Company carrying out real estate Finance Activity: (200,000,000) two hundred million Saudi riyals.

2.
For Finance Company carrying out one Finance Activity or more other than real estate Finance: (100,000,000) one hundred million Saudi riyals.

3.
For Finance Company carrying out only microfinance activity: (10,000,000) ten million Saudi riyals.

4.
For Finance Company carrying out only small and medium enterprise finance activity: (50,000,000) fifty million Saudi riyals.

SAMA may stipulate higher or lower minimum capital based on the prevailing market conditions, or if, as deemed by SAMA, the proposed business model of the Finance Company, scope and nature of proposed activities, or their geographic reach so requires, taking into consideration the magnitude and the nature of risks associated with such activities. The capital must be paid up in full at the establishment of the Finance Company."

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