Registration of Financial Leases Contracts

In the Name of Allah, the Most Gracious, the Most Merciful Saudi Arabian Monetary Authority Head Office

General Directorate of Supervision for Financing Companies

Ref. No.: ............................................................
Date: ..........................................................
Attachments: ........................................................

Ref. No.: 63911 / 99
Date: 1440/10/24
Attachments: None

Circular

Dear Sirs,
Peace, mercy, and blessings of God be upon you, Subject: Registration of Financial Lease Contracts

Based on the powers granted to the Saudi Arabian Monetary Authority under the related systems, regulations, and instructions, and the powers granted to the Authority under the Banking Control System issued by Royal Decree No. (M/5) dated 22/2/1386H, the Financing Companies Control System issued by Royal Decree No. (M/51) dated 13/8/1433H, and the Financial Leasing System issued by Royal Decree No. (M/48) dated 13/8/1433H, which stipulated in its first paragraph of Article Eighteen that "Subject to the provisions of the Companies System, one or more joint stock companies shall be established with a license from the Authority, with the purpose of contract registration," and based on the second paragraph of Article Fifteen of the Executive Regulations of the Financial Leasing System issued by Governor's Decision No. 1/M.Sh. dated 14/4/1434H, which stipulated that "The lessor is obligated to register the contract and any amendments thereto in the contracts register within ten business days from the date of concluding or amending the contract, and all transactions affecting the contractual rights of both the lessor and the lessee shall be recorded in the register."

The Authority hereby emphasizes to all licensed banks/financial institutions and financing companies the necessity to commence the registration of financial lease contracts with the Saudi Company for the Registration of Financial Lease Contracts (SAJAL), effective from Monday, 1440/10/28H corresponding to July 1, 2019.

Yours sincerely,

Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision

Distribution Scope:

• Banks and financial institutions operating in the Kingdom
• Financing companies operating in the Kingdom
• The Saudi Company for the Registration of Financial Lease Contracts

P.O. Box 2992, Riyadh 11169, Phone: +966 11 4662020, Fax: +966 11 4662488