Saudi Arabian Monetary Authority (SAMA) announced the beginning of the work on the implementation of the new organizational arrangement for the practice of selling by installments in a step that shall contribute to regulating the financing market in the Kingdom; in addition, to avoid disparities in regulatory requirements. This should help to protect the financial system, regulate fair and responsible finance, reduce unfair transactions and protect consumers.

The joint statement by SAMA and the ministry of commerce clarified that in accordance with the new regulatory arrangements, the ministry of commerce will not issue new licenses for the practice of selling in installment, in accordance with the system of sale by installments issued by Royal Decree No. (M/13) dated 04 / 03 / 1426 H. Provided that SAMA shall work on regulating the practice in this sector. Noting that the work on these regulatory provisions must be completed within 90 days from the date of the issuance of the supreme directive. However, already licensed institutions shall be able to practice their activity until the expiration date of their licenses.

Nevertheless, ministry of commerce and investment, SAMA and other concerned parties will incessantly cooperate and coordinate to control persons of natural or moral character who are involved in the this field in case of violation of paragraph (3) (IV) of the control system of finance companies.

The ministry of commerce and investment and SAMA emphasize on consumers demanding a finance to apply at the licensed banks and companies; they also asserts that licensed entities should not engage in any activities beyond the limits of the issued licensed.