Contribution of Investment Funds in the Finance Sector Indirectly
| No: 391000057611 | Date(g): 5/2/2018 | Date(h): 20/5/1439 | Status: In-Force |
Effective from 2018-02-05 - Feb 04 2018
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Based on the powers granted to the Central Bank under the Financing Companies Control Law issued by Royal Decree No. M/51 dated 1433/8/13 AH, and in line with the Central Bank’s contribution to economic development by enhancing the role of financing 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 Financing Companies Control Law and its executive regulations, we inform you of the activities that financing 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 financing companies, with the credit decision made by the financing companies. |