| 1. | No person in the Kingdom shall conduct insurance or reinsurance activities or provide insurance related services without obtaining the license from the Saudi Central Bank.
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| 2. | Subject to Paragraph (1) of this Article, the insurance and reinsurance company shall comply with the following:
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| | a. | The company shall be a joint-stock company.
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| | b. | The principal purpose of the company shall be to conduct insurance or reinsurance activities, and the company shall not undertake other activities unless they are necessary or complementary to its principal purpose.
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| 3. | Insurance and reinsurance companies may not submit a request for initial public offering to sell any of its stocks without obtaining the prior approval of the Saudi Central Bank, which shall set the rules for such approval.
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| 4. | Insurance companies shall not directly own insurance brokerage companies or establishments, and reinsurance companies shall not own reinsurance brokerage companies or establishments.
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| 5. | The capital of the insurance or reinsurance company shall only be amended upon approval of the Saudi Central Bank and pursuant to the provisions of the Companies Law. The Implementing Regulation shall determine the minimum paid-up capital for insurance or reinsurance company, which shall not be less than three hundred million Saudi riyals.
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