The Saudi Central Bank (SAMA) seeks public consultation on a draft amendment to article (8) of the Implementing Regulation of the Finance Companies Control Law. SAMA invites stakeholders and public to provide suggestions and observations on the draft by visiting the Public Consultation Platform with the National Competitiveness Center.

The proposed amendment comes as an initiative by SAMA to develop the SMEs sector by attracting a new segment of investors to establish finance companies specialized in financing the SMEs. To that end, SAMA proposed to reduce the minimum paid-up capital requirement for a finance company wishing to carry-on finance business for the Small and Medium Enterprise.

SAMA clarified that the draft seeks to amend article (8) of the Implementing Regulation of the Finance Companies Control Law by adding a sub-article (4) stipulating that the minimum paid-up capital for a financing company which is exclusively specialized in providing finance for Small and Medium Enterprise is (50,000,000) fifty million riyals.

Finally, participants are expected to provide their input and observations on the draft within (15) days from this publication. Noting that all input and views will be subject to assessment and consideration for the finalizing of this draft. The draft is available on Public Consultation Platform with the National Competitiveness Center (link).