Financial news

The Saudi Central Bank (SAMA) has issued the ‘Implementing Regulations for the Law of Payments and Payment Services’ to enhance the efficiency of the payment systems infrastructure in Saudi Arabia.

The new regulatory and supervisory frameworks enable SAMA to protect and stabilise the financial sector, as well as enhance compatibility with comparable international principles and standards, including the Principles for Financial Market Infrastructures (PFMI).

SAMA expects that implementing the new regulations should create a more attractive environment for investors, enhance innovation in the region and further encourage the introduction of payment products and services, in line with the Saudi Vision 2030.

SAMA had previously published the draft implementing regulations, asking stakeholders and the public to provide views and comments. Relevant views and comments were considered for their appropriateness in the final version in alignment with the Law objectives. The Implementing Regulations for the Law of Payments and Payment Services has superseded the Payment Service Provider Regulations.

Saudi Central Bank reveals finance growth in 2022

The Saudi Central Bank has also issued its Annual Performance Report of the Saudi Finance Companies Sector 2022. The central bank’s report outlines the sector’s key developments and financial results in 2022. The report revealed that the Saudi finance company sector grew by 10.8 per cent in 2022.

According to the report, the majority of other indicators in the finance companies sector also grew at varying rates in 2022. The paid-up share capital increased by 0.6 per cent to SAR 14.64billion, net income by 3.3 per cent to SAR 1.86billion, and total assets by 6.5 per cent to SAR 57.02billion.

Regarding loan portfolio classification, the retail sector accounted for the largest share of 76 per cent, followed by the micro, small and medium enterprise (MSME) sector at 21 per cent and then the corporate sector accounting for three per cent of the share.

The Saudi Central Bank’s performance report also reveals that there, out of 6,062 employees working for finance companies in Saudi Arabia, 5,223 are from the country, a ‘Saudization rate’ of 86.1 per cent.