SAMA to Establish Saudi Payments Company

As the Saudi Arabian Monetary Authority (SAMA) commits to its legislative role in the payments issue and the relevant technical systems, the cabinet approved on Tuesday its request to establish a Saudi shareholder company concerned in the national payment systems.

SAMA would fully own the anticipated shareholder company -- the new company's role is to possess all national payments systems and operate them as well as prepare the infrastructure and the operational environment for all national payment systems.

SAMA Governor Ahmed al-Kholifey has affirmed that establishing an independent company for national payments goes in tandem with the strategy of SAMA towards moving into a non-cash community and increasing financial comprehensiveness to a higher level.

The Dubai Financial Services Authority (DFSA) and SAMA signed a Memorandum of Understanding (MoU) to strengthen mutual cooperation in their supervision of banking and insurance. The MoU will facilitate the exchange of information and oversight of institutions supervised by the respective authorities.

Saeb Eigner, Chairman of the DFSA, said: “This MoU will enhance our cooperation with the Saudi Arabian Monetary Authority and help to promote transparent financial services business in our respective jurisdictions.”