Based on the role of the Saudi Arabian Monetary Authority (SAMA), SAMA has issued controls and instructions that regulate the practice of a person of a natural or corporate character (the trader) financing the goods of his facilities or services to his customers. Through financing bodies licensed by the SAMA, with the verification of these bodies That the merchant is legally authorized to carry out his activity, that he is an owner or is able to own what he wants to finance, and that the merchant does not re-own the sold commodity to the customer.  The controls issued by SAMA permitted the financing agencies to assign its services or part of it to the merchant or to another party according to the relevant rules, noting that these controls do not include real estate financing.

                SAMA clarifies in this regard that any person practice financing or use what indicates his practice of financing activity without obtaining a license from SAMA is considered a violation of the provisions of the finance companies control system and exposes him to the statutory penalties that reach imprisonment for a period of two years or a fine of (five hundred thousand riyals) or both.  SAMA and other relevant bodies work in permanent cooperation and coordination to control violators.

                From the standpoint of SAMA's constant endeavor to regulate and develop the financial sector, increase competitiveness, and enhance the level of financial inclusion for all segments of society, SAMA decided to reduce some of the requirements for obtaining a license to practice financing activities. SAMA aims at enabling new financing companies, under the supervision of the institution, to meet the consumers' need for services and financial products easily, and achieve the goals of financing systems by preserving the rights of customers, fair dealings, and without prejudice to the integrity of the financial system and sector in the Kingdom.

                Accordingly, SAMA has published on its website to the public the new regulations for consumer finance companies. In this regard, SAMA invites the public and those interested - to enhance the principle of transparency and participation - to express their observations and opinions on this project, within (30) days from the date of this statement, by e-mail (Finance@sama.gov.sa). The rules can be found through the following link: http://www.sama.gov.sa/ar-sa/Laws/Pages/Finance.aspx