Contribution of Investment Funds in the Finance Sector Indirectly
| No: 391000057611 | Date(g): 5/2/2018 | Date(h): 20/5/1439 | Status: In-Force |
Translated Document
Based on the powers vested to SAMA under the Finance Companies Control Law issued by Royal Decree No. M/51 dated 13/8/1433 H. In line with SAMA’s contribution to economic development by enhancing the role of finance companies in supporting the national economy and diversifying liquidity sources for financing companies to achieve the objectives of Saudi Vision 2030.
In coordination with the Capital Market Authority and without prejudice to the Finance Companies Control Law and its Implementing regulations, we inform you of the activities that finance companies can engage in with individuals licensed by the Capital Market Authority:
| First: | The possibility of selling financing portfolios to investment funds. |
| Second: | The possibility of entering into Loan Participation Agreements with investment funds for joint financing. |
| Third: | The possibility for investment funds to invest amounts with finance companies, so that the credit decision is made by the finance companies. |