The Saudi Arabian Monetary Authority (SAMA) announces the adoption of the updated rules for practicing microfinance activity, which are applied to regulate the work of companies licensed to engage in microfinance activity in the Kingdom, in accordance with the powers granted to the institution under the finance companies control system and its implementing regulations.

                SAMA indicated that the recent update contributes to raising the efficiency of companies operating in this activity by adhering to the requirements issued by the institution related to information security, corporate governance, internal organization, attribution, risk management, compliance and internal review according to the nature and size of the company's activity and the type of its operations.

                The recent update also included raising the amount of funding granted to the beneficiary of the microfinance from 50 thousand riyals to 100 thousand riyals, which gives companies operating in this activity more space to finance projects of economic viability. SAMA explained that raising the amount of funding will enable small business owners, craftsmen and those of similar status to obtain more cash to develop and expand their businesses.

                In conclusion, SAMA invites interested legal entities and businessmen who support small projects and companies wishing to invest in this vital activity to review the updated rules for practicing microfinance activity by visiting its website via the following link:

 http: //www.sama. gov.sa/en-sa/Laws/Pages/FinanceRulesAndRegulations.aspx