The Saudi Arabian Monetary Authority (SAMA) announced on Sunday launching work for implementing a new structural arrangement for sales by installments.
This step is predicted to contribute to regulating the financing market in the Kingdom and reduce disparities in regulatory requirements. It will also help protect the financial system, regulate fair and responsible finance, reduce unfair transactions and protect consumers.
In a joint statement, SAMA and the Saudi Ministry of Commerce and Investment clarified that in accordance with the new regulatory arrangements, the ministry will not issue new licenses for the practice of selling in installment, in accordance with the system of sale by installments issued by virtue of a royal decree.
Noting that the work on these regulatory provisions must be completed within 90 days from the date of the issuance of the supreme directive, SAMA shall work on regulating the practice in this sector.
Licensed institutions, however, will be able to practice their activity until their license expires.
Nevertheless, both the ministry, SAMA and other concerned parties will incessantly cooperate and coordinate to control persons of natural or moral character who are involved in the field in case of violation of the control system of finance companies.
The ministry and SAMA also emphasized on consumers demanding finance to refer to licensed banks and companies.
The two authorities also warned licensed entities not to engage in any activities beyond the limits of obtained licenses.
