Amendment of Article (8) of the Implementing Regulation of the Finance Companies Control Law
| No: 44051055 | Date(g): 11/1/2023 | Date(h): 19/6/1444 | Status: In-Force |
| Versions (24 versions) |
Translated Document
Effective from 2023-01-11 - Jan 10 2023
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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/BSI) 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. | (200,000,000) two hundred million Saudi riyals for Finance Company carrying out real estate finance activity. | |||
| 2. | (100,000,000) one hundred million Saudi riyals for Finance Company carrying out one or more finance activity other than real estate finance. | |||
| 3. | (10,000,000) ten million Saudi riyals for Finance Company carrying out only microfinance activity. | |||
| 4. | (50,000,000) fifty million Saudi riyals for Finance Company carrying out only small and medium enterprise finance activity. | |||
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."