Saudi Central Bank issues updated implementing regulation for finance companies and repeals microfinance rules

The Saudi Central Bank (SAMA) issued an updated Implementing Regulation of the Finance Companies Control Law, revising the regulatory requirements for finance companies to conduct financing activities and updating related licensing provisions. The changes include updates to the aggregate finance amount offered by a finance company, revised bank guarantee requirements to be submitted with license applications, amendments to provisions on related parties, and measures for handling cases where finance company licenses expire. The update also repeals the Rules Regulating Consumer Microfinance Companies and the Rules of Engaging in Microfinance Activity, and amends the Rules of Licensing Finance Support Activities. SAMA said the final version incorporates feedback received on a previously published draft, and the updated regulation and amended licensing rules have been made available on its website.