|12 December, 2019

Saudi SAMA presents draft rules for financing support companies

The aim is to regulate licensing provisions for companies and organize its practices

Ahmed Al-Kolifey, Governor of Saudi Arabian Monetary Authority, speaks during annual conference of Saudi Arabia and UAE banks, in Riyadh, Saudi Arabia, November 24, 2019. Image used for illustrative purpose.

Ahmed Al-Kolifey, Governor of Saudi Arabian Monetary Authority, speaks during annual conference of Saudi Arabia and UAE banks, in Riyadh, Saudi Arabia, November 24, 2019. Image used for illustrative purpose.

REUTERS/Ahmed Yosri

Riyadh -  The Saudi Arabian Monetary Authority (SAMA) has launched a draft of the licensing rules for activities in support of the financing activity.

The aim is to regulate licensing provisions for these companies and organize its practices, according to a statement.

The draft rules set the minimum paid-up capital for the company that engages in electronic brokerage activity at SAR 2 million, and for companies that practice the activity of collecting debts of financing agencies at SAR 10 million.

SAMA clarified that it seeks through these rules to achieve several goals, including attracting a new segment of investors and companies with small and medium capitals; support the finance sector by allowing the entry of two new activities, electronic brokerage, and the collection of debts of financing agencies.

Source: Mubasher

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