The Saudi Central Bank has released the “Implementing Regulations for the Law of Payments and Payment Services” to enhance Saudi Arabia’s payment infrastructure.
SAMA is able to safeguard and stabilize the financial industry thanks to the new regulatory and supervisory frameworks, which also make it more compatible with other relevant international standards and principles, such as the Principles for Financial Market Infrastructures (PFMI).
According to SAMA, the new regulations’ implementation should improve the region’s innovation climate, attract more investors, and promote the development of payment goods and services in line with Saudi Vision 2030.
The proposed implementing regulations were previously released by SAMA, and the public and stakeholders were invited to share their opinions. Regarding the final version’s appropriateness in light of the Law’s objectives, pertinent opinions and suggestions were taken into account. The Payment Service Provider Regulations have been replaced by the Implementing Regulations for the Law of Payments and Payment Services.
The Saudi Central Bank forecasts financial expansion in 2022
The Annual Performance Report of the Saudi Finance Companies Sector 2022 has also been released by the Saudi Central Bank. The study from the central bank describes the sector’s major advancements and monetary outcomes in 2022. The sector of Saudi finance companies rose by 10.8% in 2022, according to the research.
The bulk of other variables in the finance businesses sector expanded at varied rates in 2022, the report claims. The total assets climbed by 6.5% to SAR 57.02 billion, the paid-up share capital increased by 0.6% to SAR 14.64 billion, and the net income increased by 3.3% to SAR 1.86 billion.
Regarding the classification of loan portfolios, the retail sector had the highest proportion (76%) followed by the micro, small, and medium-sized enterprise (MSME) sector (21%), and finally the corporate sector (3%).
The performance report from the Saudi Central Bank also states that 5,223 of the 6,062 personnel working for Saudi Arabian financial institutions are Saudi citizens, representing a “Saudization rate” of 86.1%.
