Amendment of Article (8) of the Executive Regulation of the Financing Companies Control Law

No: 44051055

Date(g): 11/1/2023 | Date(h): 19/6/1444

Translated Document

Effective from 2023-01-11 - Jan 10 2023
To view other versions open the versions tab on the right

Based on the powers granted to SAMA under the Finance Companies Control Law issued by Royal Decree No. M/51 dated 13/8/1433 AH.

We would like to inform you of the issuance of the decision by His Excellency the Governor, No. (126/BSI) dated 8/6/1444 AH, which includes the amendment of Article (8) of the Executive Regulations of the Finance Companies Control Law to read as follows: "Subject to the provisions of the Companies Law, the minimum paid-up capital for a financing company shall be as follows:

	1.	(200,000,000) Two hundred million Riyals for the financing company that engages in real estate financing activities
	2.	(100,000,000) One hundred million Saudi Riyals for a financing company engaged in one or more financing activities other than real estate financing.
	3.	(10,000,000) Ten million Riyals for the financing company that engages solely in micro-financing activities without any other financing activities.
	4.	(50,000,000) Fifty million Riyals for the financing company that engages solely in financing small and medium-sized enterprises without any other financing activities.

SAMA may raise or lower the minimum capital requirement according to market conditions or if it deems that the proposed business model of the financing company, the nature of its activities, or the proposed geographical scope of its activities warrants such adjustment, taking into account the associated risks and their nature. The capital must be fully paid upon the establishment of the financing company."