Issued on: 24 Muharram 1446
Corresponding to: 31 July 2024
Published in Umm Al-Qura 5043 issued on 16 August 2024.
Category: Council of Ministers Decision
Issued on: 17 Muharram 1446
Corresponding to: 24 July 2024
Published in Umm Al-Qura 5042 issued on 9 August 2024.
The Council of Ministers,
after perusal of the Royal Court File 79088 dated 3 Dhu Al-Qa’dah 1445 [11 May 2024], which includes Minister of Investment Telegram 392 dated 17 Muharram 1444 [15 August 2022], regarding the draft Investment Law,
after perusal of the aforementioned draft law,
after perusal of the Foreign Investment Law, issued by Royal Decree D/1 dated 5 Muharram 1421 [10 April 2000],
after perusal of the System of the Saudi Center for Economic Affairs issued by Council of Ministers Decision 456 dated 11 Sha’ban 1440 [17 April 2019],
after perusal of Council of Ministers Decision 83 dated 30 Muharram 1443 [7 September 2021],
after perusal of the National Investment Strategy approved by Council of Ministers Decision 134 dated 28 Safar 1443 [6 October 2021],
after perusal of Bureau of Experts at the Council of Ministers Minutes 202 dated 26 Jumada Al-Thani 1444 [19 January 2023] and Memorandums 3676 dated 26 Dhu Al-Qa’dah 1444 [15 June 2023], 1622 dated 8 Jumada Al-Awwal 1445 [21 November 2023], 2113 dated 12 Jumada Al-Thani 1445 [25 December 2023], and 3229 dated 7 Ramadan 1445 [17 March 2024],
after perusal of the Council of Economic and Development Affairs Recommendation 2-8/45/R dated 15 Jumada Al-Thani 1445 [28 December 2023],
after considering Shura Council Decision 287/27 dated 27 Shawwal 1445 [6 May 2024],
and after perusal of the General Committee of the Council of Ministers Recommendation 12210 dated 24 Dhu Al-Qa’dah 1445 [1 June 2024],
hereby decides
First
The Investment Law is hereby approved in the form attached.
Second
The law—referred to in Clause First of this decision—does not prejudice any rights acquired by any investor prior to its entry into force, including any licenses or incentives granted to him, until the expiry of the terms of those rights.
Third
As an exception to the provisions of article 1 of the Law—referred to in Clause First of this decision—the competent entity stipulated in article 8 means the Permanent Ministerial Committee for the Examination of Foreign Investment formed in Clause First of Council of Ministers Decision 83 dated 30 Muharram 1443 [8 September 2021].
Fourth
The Ministry of Investment shall prepare the regulations stipulated in article 15 of the law—referred to in Clause First of this decision—after coordination with the relevant entities. The Ministry of Energy shall participate in preparing the provisions related to article 6 and article 17(3) and (4) of the law.
A draft royal decree has been prepared in the form attached.
Fifth
The Ministry of Investment shall exercise its competences stipulated in paragraph 4 of article 7 of the Law—referred to in clause First of this decision—in a manner that does not conflict with article 4 of the System of the Saudi Center for Economic Business, issued by Council of Ministers Decision 456 dated 11 Sha’ban 1440 [17 April 2019]. The Ministry shall agree with the Center regarding the establishment or operation of spatial centers to serve the business sector in a manner consistent with the gracious directive communicated in Royal Court File 35629 dated 19 Jumada Al-Awwal 1444 [13 December 2022].
The Prime Minister
Issued on: 10 Muharram 1446
Corresponding to: 17 July 2024
Published in Umm Al-Qura 5043 issued on 16 August 2024.
The Council of Ministers,
after perusal of the Royal Court File 60731 dated 19 Sha’ban 1445 [29 February 2024], which includes Chairman of the Board of Directors of the Nuclear and Radiological Regulatory Authority Telegram 3098 dated 13 Sha’ban 1445 [23 February 2024], regarding the request to amend paragraph 6 of article 6 of the System of the Nuclear and Radiological Regulatory Authority,
after perusal of the System of the Nuclear and Radiological Control Authority issued by Council of Ministers Decision 334 of 25 Jumada Al-Thani 1439 [13 March 2018],
after perusal of the Bureau of Experts at the Council of Ministers Memorandum 3353 dated 15 Ramadan 1445 [25 March 2024],
after perusal of the Council of Economic and Development Affairs Minutes 1942/45/M dated 16 Shawwal 1445 [24 April 2024],
and after perusal of the General Committee of the Council of Ministers Recommendation 12176 dated 24 Dhu Al-Qa’dah 1445 [31 May 2024],
hereby decides
Article 6(6) of the System of the Nuclear and Radiological Control Authority issued by Council of Ministers Decision 334 dated 25 Jumada Al-Awwal 1439 [13 March 2018], is hereby amended to read as follows: “Approving the structure and organizational guide of the authority.”
The Prime Minister
Issued on: 10 Muharram 1446
Corresponding to: 16 July 2024
Published in Umm Al-Qura 5040 issued on 26 July 2024.
The Council of Ministers,
after perusal of Royal Court File 75444 dated 19 Shawwal 1445 [28 April 2024], which includes the Minister of Foreign Affairs Telegram 135644 dated 2 Jumada Al-Awwal 1445 [15 November 2023], regarding the final signed version of a draft General Cooperation Agreement between the Government of the Kingdom of Saudi Arabia and the Government of the Republic of Sierra Leone, and the final signed version of a draft Memorandum of Understanding regarding Political Consultations between the Ministry of Foreign Affairs of the Kingdom of Saudi Arabia and the Ministry of Foreign Affairs and International Cooperation of the Republic of Sierra Leone,
after perusal of the aforementioned final copies,
after perusal of the Bureau of Experts at the Council of Ministers Memorandum 3080 dated 24 Sha’ban 1445 [5 March 2024],
after considering Shura Council Decision 270/26 dated 14 Shawwal 1445 [23 April 2024],
and after perusal of the General Committee of the Council of Ministers Recommendation 12190 dated 24 Dhu Al-Qa’dah 1445 [1 June 2024],
hereby decides
First
The General Agreement on Cooperation between the Government of the Kingdom of Saudi Arabia and the Government of the Republic of Sierra Leone signed in the city of Riyadh on 26 Rabi Al-Thani 1445, corresponding to 10 November 2023, is hereby approved in the form attached.
Second
The Memorandum of Understanding on Political Consultations between the Ministry of Foreign Affairs of the Kingdom of Saudi Arabia and the Ministry of Foreign Affairs and International Cooperation of the Republic of Sierra Leone signed in the city of Riyadh on 26 Rabi Al-Thani 1445, corresponding to 10 November 2023, is hereby approved in the form attached.
A draft royal decree has been prepared in the form attached.
The Prime Minister
Issued on: 10 Muharram 1446
Corresponding to: 16 July 2024
Published in Umm Al-Qura 5041 issued on 2 August 2024.
Issued on: 3 Muharram 1446
Corresponding to: 9 July 2024
Published in Umm Al-Qura 5041 issued on 2 August 2024.
The Council of Ministers
after perusal of Royal Court File 85921 dated 28 Dhu Al Qa’dah 1445 [5 June 2024], regarding the Strategy of Reforming the Pension Laws in the Kingdom and the Draft Social Insurance Law,
after perusal of the aforementioned draft law,
after perusal of the Civil Pension Law issued by Royal Decree D/41 dated 29 Rajab 1393 [27 August 1973],
after perusal of the Social Insurance Law issued by Royal Decree D/33 dated 3 Ramadan 1421 [29 November 2000],
after perusal of Memorandums 2160 dated 28 Dhu Al-Hijja 1442 [7 August 2021], 1659 dated 23 Dhu Al-Hijja 1443 [22 July 2022], 3421 dated 26 Dhu Al-Hijja 1445 [3 June 2024], and Minutes 212 dated 20 Dhu Al-Hijja 1445 [28 May 2024] prepared by the Bureau of Experts at the Council of Ministers,
after perusal of the Council of Economic and Development Affairs Minutes 1984/45/M dated 16 Shawwal 1445 [25 April 2024],
after considering Shura Council Decision 383/36 dated 26 Dhu Al-Qa’dah 1445 [2 June 2024],
and after perusal of the General Committee of the Council of Ministers Recommendation 13192 dated 24 Dhu Al-Hijja 1445 [1 June 2024],
hereby decides
First
The Social Insurance Law is hereby approved in the form attached.
Second
The provisions of the law referred to in clause First of this decision do not apply to the following two categories:
1. Contributors who have contribution periods prior to the entry into force of the law for which they have not been compensated.
The periods of contribution in the field of the implementation of paragraph 1 of this clause mean the periods of contribution calculated in accordance with the provisions of the Civil Pension Law issued by Royal Decree D/41 dated 29 Rajab 1393 [27 August 1973], or the Social Insurance Law issued by Royal Decree D/33 dated 3 Ramadan 1421 [29 November 2000], or both of them.
This extends to the periods deemed as served in one of these two laws.
2. Owners of pensions due to contributors in accordance with the provisions of the Civil Pension Law or the Social Insurance Law before the entry into force of the law referred to in clause First of this decision.
Third
The application of the law—referred to in clause First of this decision—to those covered by its provisions must be as follows:
1. The contribution percentages of the branch of pensions stipulated in article 15 of the law are applied gradually until they reach 22% of the wage or salary subject to contribution, as follows:
(a) Contributions are determined within twelve months from the effective date of the law at a rate of 18%.
(b) Contributions are determined from the month following the lapse of twelve months from the effective date of the law at a rate of 19%.
(c) Contributions are determined from the month following the lapse of twenty-four months from the effective date of the law at a rate of 20%.
(d) Contributions are determined from the month following the lapse of thirty-six months from the effective date of the law at a rate of 21%.
(e) Contributions are determined from the month following the lapse of forty-eight months from the effective date of the law at a rate of 22%.
2. The employer bears 50% and the contributor bears 50% of the contributions referred to in paragraph 1 of this clause, in respect of compulsory contributions.
3. The provisions stipulated in paragraph 1 of this clause apply to a contribution made on an optional basis, provided that it is borne in full by the contributor.
4. A decision by the Council of Ministers—based on a proposal of the Board of Directors of the General Organization for Social Insurance—determines the date of application of the provisions of the branch of occupational hazards and additional compensation to employees. In the event that the employee dies or is dismissed from work—during the period following the entire into force of the law and preceding the date specified in the aforementioned decision of the Council of Ministers—due to his inability to work definitively and the death or disability resulted from work and during the performance of work, his entitlement is determined in accordance with the provisions of article 21 of the Civil Pension Law, and without prejudice to the proving of his disability by the medical committees of the General Organization for Social Insurance stipulated in article 50 of the law referred to in clause First of this decision.
5. The period of contribution referred to in paragraph 2 of article 16 of the law is 180 months.
6. In the application of the provisions of paragraph 2 of article 44 of the law, contributions to the branch of unemployment insurance are determined on the effective date of the law at a rate of 1.5% of the wage subject to contribution, to be borne by the employer and the contributor at a rate of 50% each.
7. Without prejudice to the provisions of the preceding paragraphs of this clause, the application of the branches of social insurance stipulated in article 3 of the law, referred to in clause First of this decision, must be in stages determined by a decision by the board of directors of the General Organization for Social Insurance.
Fourth
The provisions contained in the Social Insurance Law issued by Royal Decree D/33 dated 3 Ramadan 1421 [29 November 2000], the Civil Pension Law issued by Royal Decree D/41 dated 29 Rajab 1393 [27 August 1973], and the Unemployment Insurance Law issued by Royal Decree D/18 dated 12 Rabi al-Awwal 1435 [13 January 2014] continue to apply to the two categories referred to in clause Second of this decision.
Fifth
As an exception to the provision of clause Fourth of this decision, contributors—with regard to pensions—who have contribution periods prior to the entry into force of the law—referred to in clause First of this decision—who have not been compensated for these periods, have not reached 240 months, and have not reached 50 Hijri years on the effective date of the law, will be treated as follows:
1. The contributor who has not reached the age of twenty-nine Gregorian years on the effective date of the law, has a legal age for entitlement to a pension of sixty-five Gregorian years.
2. The contributor who reaches the age of twenty-nine Gregorian years or more on the effective date of the law, has a legal age for entitlement to a pension in accordance with the following table:
| Age in accordance with the Gregorian calendar on the effective date of the law | Legal age in accordance with the Gregorian calendar for the purpose of obtaining a pension |
| Twenty-nine years and over, and less than thirty years | Sixty-four years and eight months |
| Thirty years and over, and less than thirty-one years | Sixty-four years and four months |
| Thirty-one years and over, and less than thirty-two years | Sixty-four years |
| Thirty-two years and over, and less than thirty-three years | Sixty-three years and eight months |
| Thirty-three years and over, and less than thirty-four years | Sixty-three years and four months |
| Thirty-four years and over, and less than thirty-five years | Sixty-three years |
| Thirty-five years and over, and less than thirty-six years | Sixty-two years and eight months |
| Thirty-six years and over, and less than thirty-seven years | Sixty-two years and four months |
| Thirty-seven years and over, and less than thirty-eight years | Sixty-two years |
| Thirty-eight years and over, and less than thirty-nine years | Sixty-one years and eight months |
| Thirty-nine years and over, and less than forty years | Sixty-one years and four months |
| Forty years and over, and less than forty-one years | Sixty-one years |
| Forty-one years and over, and less than forty-two years | Sixty years and eight months |
| Forty-two years and over, and less than forty-three years | Sixty years and four months |
| Forty-three years and over, and less than forty-four years | Sixty years |
| Forty-four years and over, and less than forty-five years | Fifty-nine years and eight months |
| Forty-five years and over, and less than forty-six years | Fifty-nine years and four months |
| Forty-six years and over, and less than forty-seven years | Fifty-nine years |
| Forty-seven years and over, and less than forty-eight years | Fifty-eight years and eight months |
| Forty-eight years and over, and less than forty-eight years and six months | Fifty-eight years and four months |
3. The contributor whose contribution periods have not reached on the effective date of the law—referred to in clause First of this decision—180 months, is entitled to a pension before reaching the legal age if his contribution periods reach 360 subscription months.
4. The contributor whose contribution periods have reached the effective date of the law—referred to in clause First of this decision—180 months or more, is entitled to obtain a pension before reaching the legal age in accordance with the following table:
| Contribution periods upon entry into force of the law | Eligible contribution periods for pension entitlement |
| From 180 months to 191 months | 348 months |
| From 192 months to 203 months | 336 months |
| From 204 months to 215 months | 324 months |
| From 216 months to 227 months | 312 months |
| From 228 months to 239 months | 300 (months) |
5. Subject to the provisions of paragraphs 1, 2, 3, and 4 of this clause, the contribution periods that have not been compensated for are treated in accordance with the provisions of the Civil Pension Law and Social Insurance Law referred to in clause Fourth of this decision.
For the purposes of applying this clause, the contributor who reaches the age of forty-eight years and six months in accordance with the Gregorian calendar is deemed to have reached the age of fifty Hijri years.
Sixth
As an exception to the provision of clause Fourth of this decision, the application of the provisions of the branch of occupational hazards contained in the Social Insurance Law referred to in clause Fourth of this decision is as follows:
1. Applying the maternity compensation stipulated in articles 41 and 42 of the law—referred to in clause First of this decision—to the contributors subject to the provisions of the branch of occupational hazards of the Social Insurance Law referred to in clause Fourth of this decision, taking into account that the calculation of the eligible contribution period for the entitlement begins from the effective date of the law referred to in clause First of this decision.
2. Cancelling the maximum limit for the amount of lump sum compensation in the cases of total and partial disability stipulated in articles 32 and 36 of the Social Insurance Law referred to in clause Fourth of this decision.
3. The age after which the lump sum compensation mentioned in article 32 of the Social Insurance Law—referred to in clause Fourth of this decision—must be reduced is in accordance with the sameage mentioned in paragraph3 of article 35 of the law referred to in clause First of this decision.
Seventh
The Board of Directors of the General Organization for Social Insurance may develop optional savings programs—in coordination with the relevant entities—for the contributors to whom the provisions of the Civil Pension Law and Social Insurance Law referred to in clause Fourth of this decision apply.
Eighth
The Board of Directors of the General Organization for Social Insurance may add benefits for the contributor whose contribution period exceeds 100% of the salary or the average wages on which the pension is calculated in accordance with the provisions of article 19 of the Civil Pension Law and article 38 of the Social Insurance Law referred to in clause Fourth of this decision.
Ninth
The Board of Directors of the General Organization for Social Insurance may merge the accounts of the branches of the Social Insurance Law and Unemployment Insurance Law and the account of the Civil Pension Law Fund—referred to in clause Fourth of this decision—or some of them as it deems appropriate.
Tenth
Clauses Fifth, Sixth, Seventh, Eighth, and Ninth of this decision are effective from the effective date of the law referred to in clause First of this decision.
A draft royal decree has been prepared with clauses First, Second, Fourth, Fifth, Sixth, Seventh, Eighth, Ninth, and Tenth, and paragraphs1 ,2 ,3 , 4, and 7 of clause Third of this decision, in the form attached to this.
Eleventh
A committee is hereby formed in the Ministry of Human Resources and Social Development, with the participation of the Ministry of Finance, the Ministry of Economy and Planning, and the General Organization for Social Insurance, to review the laws, regulations, orders, royal decrees, and decisions that are affected by the issuance of the law—referred to in clause First of this decision—and the clauses mentioned above, in particular the following:
1. Provisions stipulated in other laws regarding the retirement age.
2. The provisions contained in the Civil Pension Law, the Social Insurance Law, and the Law on the Exchange of Benefits between the Civil and Military Pension Laws, and the Social Insurance Law.
3. Maternity and childbirth leaves provided in the Labour Law issued by Royal Decree D/51 dated 23 Sha’ban 1426 [27 September 2005], and the Executive Regulation for Human Resources in the Civil Service issued by the Minister of Human Resources and Social Development Decision 1550 dated 9 Jumada al-Thani 1440 [14 February 2019].
4. Harmonizing the Civil Pension Law and Social Insurance Law with the provisions stipulated in the preceding clauses and the law referred to in clause First of this decision.
Submitting matters that need to be amended in accordance with the established legal procedures within a period of ninety days from the date of this decision.
The Prime Minister
Issued on: 26 Dhu Al-Hijja 1445
Corresponding to: 2 July 2024
Published in Umm Al-Qura 5038 issued on 13 July 2024.
after perusal of Royal Court File 32546 dated 1 Jumada Al-Awwal 1445 [14 November 2023], which includes Minister of Interior Telegram 117763 dated 28 Rabi Al-Thani 1445 [12 November 2023], regarding the request of the Ministry of Interior to approve the renewal of the term of the National Social Development Program in the Region for Seven Years,
after perusal of the organisational arrangements for the National Social Development Program in the Areas issued by Council of Ministers Decision 88 dated 7 Safar 1440 [18 October 2018],
after perusal of Bureau of Experts at the Council of Ministers Memorandum 2067 dated 22 Sha’ban 1445 [3 March 2024],
after perusal of Council of Economic and Development Affairs Recommendation 4-12/45/R dated 16 Shawwal 1445 [25 April 2024],
and after perusal of the General Committee of the Council of Ministers Recommendation 11710 dated 11 Dhu Al-Qa’dah 1445 [19 May 2024],
hereby decides
The renewal of the National Social Development Program in the Region for Seven Years starting from the end of its term stipulated in article 13 of its organisational arrangements is hereby approved by Council of Ministers Decision 88 dated 7 Safar 1440 [18 October 2018]
The Prime Minister
Issued on: 26 Dhu Al-Hijja 1445
Corresponding to: 2 July 2024
Published in Umm Al-Qura 5038 issued on 13 July 2024.
Issued on: 27 Dhu Al-Qa’dah 1445
Corresponding to: 4 June 2024
Published in Umm Al-Qura 5036 issued on 28 June 2024.
The Council of Ministers,
after perusal, in its session held under the chairmanship of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al-Saud, of Royal Court File 69422 dated 24 Ramadan 1445 [3 April 2024], which includes the Saudi Central Bank Letter 44045330 dated 5 Jumada Al-Thani 1444 [29 December 2022] regarding the amendment of the Law on the Oversight of Financing Companies issued by Royal Decree D/51 dated 13 Sha’ban 1433 [3 July 2012],
after perusal of the Law on the Oversight of Financing Companies issued by Royal Decree D/51 dated 13 Sha’ban 1433 [3 July 2012],
after perusal of the Bureau of Experts at the Council of Ministers Memorandum 2170 dated 15 Rajab 1444 [6 February 2023], Memorandum 1243 dated 14 Rabi Al-Thani 1445 [29 October 2023], Memorandum 2595 dated 18 Rajab 1445 [29 January 2024], Memorandum 3629 dated 19 Shawwal 1445 [28 April 2024], and Minutes 338 dated 22 Dhu Al-Qa’dah 1444 [11 June 2023],
after perusal of the Council of Economic and Development Affairs Recommendation 2-7/45/R dated 29 Jumada Al-Awwal 1445 [12 December 2023],
after consideration of Shura Council Decision 255/24 dated 16 Ramadan 1445 [26 March 2024],
and after perusal of the General Committee of the Council of Ministers Recommendation 11405 dated 4 Dhu Al-Qa’dah 1445 [12 May 2024],
hereby decides
The amendment to the Law on the Oversight of Financing Companies issued by Royal Decree D/51 dated 13 Sha’ban 1433 [3 July 2012] is hereby approved as follows:
1․ The definition of “Financing company” provided in article 1 of the law is hereby amended to have the following text:
Financing company: A company holding a license to practice the activity of financing.
2․ A paragraph numbered 5 is hereby added to article 5(First) of the law with the following text:
That the company takes the form of a joint-stock company, and the bank may license a form other than a joint-stock company if it determines that the proposed business model or the nature of the activity requires this, provided that this does not prejudice the integrity of the financial system and the fairness of transactions.
The sequence of the current paragraph 5 is hereby amended to be paragraph 6.
3․ Article 11(1) and (2) of the law are hereby amended to have the following text:
1․ Practicing an activity other than financing except after obtaining the approval of the bank.
2․ Acquiring an establishment that practices an activity other than financing, whether directly or indirectly, except after obtaining the approval of the bank.
4․ Article 12(1)(d) of the law is hereby amended to have the following text:
That it finances or grants facilities to persons or establishments, if one of the members of the board of directors of the financing company, one of its managers, members of the executive board or their equivalent—as the case may be—or one of its external account auditors, is a guarantor to obtain the financing or facilities.
5․ Article 12(2) of the law is hereby amended to have the following text:
Without prejudice to a public and private right prescribed by the laws, every member of the board of directors of the financing company, every manager of the financing company, every member of its executive board or their equivalent—as the case may be—and every external accounts auditor of a financing company, who obtained financing in violation of any of the provisions provided in paragraphs 1(b), 1(c), or 1(d) of this article, must be deemed as dismissed as specified by the regulation.
6․ The opening of article 16 of the law and paragraphs 1 and 2 of it are hereby amended to have the following text:
The following must be met to be a member of the board of directors of a financing company, to be a manager, or to be a member of its executive board or their equivalent, as the case may be:
1․ That he is not a member of the board of directors of another financing company practicing the same activity, one of its managers, or a member of its executive board or their equivalent, as the case may be.
2․ That he does not simultaneously hold employment in overseeing financing companies or auditing their accounts and membership in the board of directors of the financing company, or that he is one of its managers, or a member of its executive board or their equivalent, as the case may be.
7․ Article 17 of the law is hereby amended to have the following text:
Each of the board of directors of the financing company, its managers, members of its executive board or their equivalent—as the case may be—its general manager, senior executives, and branch managers are responsible—each within the limits of their mandate—for violations by the company of the provisions of the law or its regulation.
8․ Article 18 of the law is hereby amended to have the following text:
Without prejudice to article 12(1)(a) of the law, members of the board of directors of the financing company, its managers, and members of its executive board or their equivalent—as the case may be—are jointly liable for guaranteeing the rights of the company against losses resulting from the provision of financing without guarantee.
9․ Article 19 of the law is hereby amended to have the following text:
Each joint-stock financing company must have an audit committee composed of members who are not executive members of the board of directors. A decision regarding its tasks, the rules for selecting its members, the term of their membership, and its work procedures must be issued by the general meeting of the company based on a proposal from the board of directors.
10․ Article 20 of the law is hereby amended to have the following text:
The chairman and members of the board of directors of a financing company, its managers, members of the executive board or their equivalent—as the case may be—and the employees of the company shall, when making any finance financing contract in regard to which they have the authority to take a decision, disclose in writing the following:
1․ Any relationship any of them has to the contract.
2․ Any relationship of their relatives to the second degree has to the contract.
3․ Any financial interest they have with anyone related to the contract.
The harmed party may, in the event of non-disclosure, file a lawsuit before the competent court requesting the annulment of the contract.
11․ The title of chapter 5 of the law “Supervising Financing Companies” is hereby amended to “Supervision”.
12․ Article 21 of the law is hereby amended to have the following text:
Subject to article 10(2) of the law, the bank shall supervise the work of financing companies, establishments that carry out support activities to the activity of financing, and contract registration companies licensed under the provisions of the Finance Lease Law, and it shall exercise its powers in accordance with the provisions of the law and its regulation.
13․ Article 29 of the law is hereby amended to have the following text:
If a financing company, an establishment that practices support activities to the activity of financing, or a contract registration company commits violations relating to professional misconduct or transactions that expose its shareholders, partners, or creditors to danger, or if the debts of a company or an establishment exceed its assets, the bank shall, by a written decision—in proportion to the scale of the violation—take one or more of the following measures towards the company or establishment:
1․ Warning it.
2․ Requiring it to submit an appropriate program that clarifies the measures it will take to remove the violation and rectify the situation.
3․ Compelling it to suspend some of its operations, or preventing it from distributing profits.
4․ Imposing the fine stipulated in article 34 of the law, as the case may be.
5․ Compelling it to temporarily suspend the violating person—who is not a member of its board of directors, managers, or members of its executive board or their equivalent, as the case may be—from work, or compelling it to dismiss him according to the gravity of the violation.
6․ Temporarily suspending the chairman of its board of directors, any of its members, managers, or members of the executive board or their equivalent, as the case may be.
7․ Appointing one or more advisors to advise it in the management of its business at its expense.
8․ Suspending the authority of its board of directors, managers, or members of its management board or their equivalent—as the case may be—and appointing a manager at the expense of the company to manage its business until the reasons for this cease to exist, at the discretion of the bank.
If the bank considers that the violation requires the cancellation of the licence or the liquidation of the company or establishment, it may file a lawsuit before the competent court. The bank may, in the cases it deems appropriate, suspend the licence until the lawsuit is decided.
14․ Article 36bis is hereby added with the following text:
The bank may exempt one or more financing companies from the scope of application of some of the provisions of chapters 3, 4, and 5 of the law, taking into account the fairness of transactions and the integrity of the financial system.
A draft royal decree has been prepared in the form attached.
Salman bin Abdulaziz Al-Saud
Issued on: 27 Dhu Al-Qa’dah 1445
Corresponding to: 4 June 2024
Published in Umm Al-Qura 5036 issued on 28 June 2024.