The Saudi Central Bank announced the issuance of decisions to amend some articles of the executive regulations of the financing systems in force in the Kingdom.
The decisions included the approval of His Excellency the Minister of Finance to cancel Article (fourth) of the executive regulations of the real estate finance system, and according to this decision, real estate finance companies were allowed to practice financing activities without stipulating the prohibition of combining real estate finance activity with any other financing activity, and the Saudi Central Bank has the right to restrict the license on special terms.
The decisions included the amendment of Article (16) of the Executive Regulations of the Finance Companies Control System, after the expiry of the period set for providing public views on the draft amendment through the “Estisalah” platform of the National Competitiveness Center.
And the Saudi Central Bank indicated that under this amendment, finance companies were allowed to practice financing activities without stipulating the prohibition of combining any of them, and the Saudi Central Bank has the right to restrict the license under special conditions.
These decisions come in line with the Saudi Central Bank's continuous efforts to review the executive regulations of the financing systems, in order to ensure their suitability and contribution to the safety and development of the financing sector, and to enhance competition.
The Saudi Central Bank stated that the executive regulations for the real estate finance system after the cancellation of Article (fourth) of it, and the executive regulations for the finance companies control system after the amendment of Article (16) of them, can be found by visiting the bank’s website.