The Saudi Central bank (SAMA) announced the amendment of article (8) of the Implementing Regulation of the Finance Companies Control Law. The amendment of this article followed a public consultation announced earlier on the Public Consultation Platform. This initiative comes as part of SAMA’s continuous efforts to develop SMEs sector and attract a new segment of investors to establish finance companies specialized in financing SMEs. SAMA clarified that a sub-article numbered (4) was added to article (8) of the Implementing Regulation of the Finance Companies Control Law stipulating that the minimum paid-up capital for a finance company exclusively specialized in providing finance for Small and Medium Enterprise shall not be less than (50,000,000) fifty million Saudi riyals. The amended version of the Implementing Regulation of the Finance Companies Control Law is available at SAMA’s website: (https://www.sama.gov.sa/en-us/lawsregulations/ pages/financelaws.aspx)
Source: IBP