Saudi Arabia: lending & credit regulation

Regulated

Lending & consumer credit regulated by SAMA under Finance Companies Control Law; strict consumer protection

Lead regulator:: Saudi Central Bank (SAMA)
Key law:: Finance Companies Control Law and its Implementing Regulations
Last updated:: 2026-07-12

The Saudi Central Bank (SAMA) is the primary regulator for all lending and consumer credit activities, including banks, finance companies, and debt-based crowdfunding platforms. The regulatory framework is anchored by the Finance Companies Control Law and its Implementing Regulations, which mandate licensing for all entities engaging in financial activities.

Recent regulatory direction emphasizes strict consumer protection, including the prohibition of promissory notes for credit cards, mandatory income verification, and standardized contract templates. SAMA enforces rigorous capital, risk management, and transparency requirements, such as standardized APR calculations and administrative fee caps.

The sector is highly structured, with specific rules governing real estate financing, vehicle leasing, and debt portfolio transfers. SAMA actively coordinates with the Saudi Credit Bureau (SIMAH) and the Capital Market Authority (CMA) to ensure data sharing and market stability.

Who regulates

Saudi Central Bank (SAMA)
Primary supervisor for banks, finance companies, and debt-based crowdfunding; issues circulars on lending practices, capital, and consumer protection.
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Capital Market Authority (CMA)
Regulates financing investment funds and debt-based crowdfunding platforms in coordination with SAMA.
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Core laws & rules

Finance Companies Control Law and Implementing Regulations (2007 (with amendments))
The primary legal framework governing the establishment, operation, and supervision of finance companies and other non-bank financial institutions in Saudi Arabia. It mandates licensing, capital requirements, and adherence to prudential standards.
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Banking Control Law (2007)
Governs the activities of banks and deposit-taking finance companies, including capital adequacy, risk management, and consumer protection standards.
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Licensing & registration

Finance Company License
Required for all legal entities conducting financial activities, including consumer finance, real estate finance, and vehicle leasing. Entities must align with SAMA's prudential and governance standards.
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Deposit-Taking Finance Company (DTFC) License
A specific license for finance companies authorized to accept term deposits, subject to comprehensive prudential, governance, and operational standards. Capital: SAR 1 billion
Debt-Based Crowdfunding License
Required for platforms facilitating debt-based crowdfunding, subject to specific rules on collection accounts, risk management, and operational alignment.
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Restrictions & warnings

Prohibition on requesting promissory notes or commercial paper from individual consumers for credit card financing products.
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Mandatory use of standardized contract templates for vehicle financing leases and real estate mortgages, with no deviations permitted.
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Administrative fees for consumer financing are capped, with specific rules on calculation and disclosure, including the inclusion of contract registration fees within the cap.
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Strict requirements for income verification and due diligence prior to granting finance, including authentication of supporting documents.
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Direction of travel

SAMA continues to enhance consumer protection and transparency, with recent directives focusing on fee standardization, data sharing with SIMAH, and digital certification of products.
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Regulatory focus remains on risk management, including the management of problem loans, credit risk classification, and the integration of bankruptcy risks into credit assessments.
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Sources

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This guide is compiled automatically from 56 primary-source documents published by Saudi Arabia's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.