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  • Licenses

    • Article (2)

      A natural or juridical person shall not provide credit information services before obtaining a license from SAMA pursuant to the provisions of Law and its Implementing Regulations.

    • Article (3)

      The company licensed to provide credit information services shall:

       1.be a joint stock company with its head office in Saudi Arabia; 
       2.have a paid up capital not be less than SR50 million;
       3.obtain SAMA approval on the Articles of Association and by-laws; 
       4.obtain SAMA approval on the computer system used in provision of the credit information services; 
       5.have competent human resources as well as sufficient financial and operational resources to provide services efficiently according to the Law and its Implementing Regulations; and 
       6.comply with the instructions and business rules issued by SAMA. 

    • Article (4)

      Founders of the company willing to offer credit information services must complete the licensing application form and submit it along with the following:

       1.a statement of the founders' names, addresses, and percentage in share capital of each founding shareholder;
       2.company's Articles of Incorporation and By-Laws;
       3.a bank certificate from a licensed bank in Saudi Arabia attesting that the paid-up capital has been placed in full;
       4.a copy of the national I.D. or commercial registration of the founding shareholders;
       5.description of the computer system that will be used to collect and store credit information of consumers, including system features and capabilities;
       6.an economic feasibility study;
       7.the company's business plan for the first 3 years since its incorporation, including the nature of works it intends to offer, future expansion plans, projected financial statements, estimated growth rates, annual costs based its expected growth rates, anticipated number of staff, corporate governance, internal controls to be implemented by the company, and any other information that may be required by SAMA;
       8.company's organization structure;
       9.a fee of SR 50,000 for reviewing the licensing application; and
       10.a declaration not to conduct any business other than those stated in the company's articles of association, unless after obtaining SAMA’s approval.

    • Article (5)

      The applicant shall complete all deficiencies in its application and furnish SAMA with any required information within a month from the date of notification of such requirements; otherwise, its application will be revoked. SAMA will only give its decision to approve or reject the application once the company has fulfilled all required information and documents.

    • Article (6)

      The applicant shall finalize the incorporation procedures according to the Companies Regulations, including commercial registration. The Governor's decision to grant the license will be issued thereafter. Nevertheless, the company must not in any case provide its services prior to issuance of the Governor's decision; otherwise the application procedures will be revoked.

    • Article (7)

      The license term is five years, renewable according to the conditions and procedures applicable upon such a renewal. SAMA will charge a one-time off fee upon issuance of the license amounting to 1% of the company's paid up capital, and another fee amounting to 0.5% of the company's paid up capital upon renewal of the license. Renewal application shall be submitted at least 6 months prior to the license expiry date.

    • Article (8)

      The license shall be terminated in the following cases:

       1-automatically upon its expiry date, if not renewed;
       2-dissolution of the company for any cause stipulated in the Companies Law;
       3-issuance of a decision to revoke the license; and
       4-failure of the company to conduct business within 12 months from the issuance date of the license without reasonable justifications acceptable to SAMA.

    • Article (9)

      The Company shall obtain SAMA's written approval before:

       1.opening a branch or an office, or establishing a subsidiary inside or outside Saudi Arabia;
       2.entering into a merger or acquisition deal/transaction with another entity; and
       3.affecting any change on its articles of incorporation or by-laws.

    • Article (10)

      Having identified and investigated a violation, SAMA may take the following actions:

       1.notify the company in writing with any error, deficiency, or negligence from its side, and provides SAMA with an acceptable plan to remedy the situation within at least thirty (30) working days of the notification date;
       2.request from the committee a temporary suspension or termination of the license by a written notification to the company, in case the company fails to comply with the above paragraph; and
       3.instruct the company to inform all relevant parties of the committee’s decision.

    • Article (11)

      With due consideration to the Implementing Regulations, the company must inform SAMA of any change or modification to the information provided to SAMA before or after licensing, within three working days of effecting such a change or modification.