Saudi Arabia issues regulations for microfinance

The Saudi Arabian Monetary Authorities has issued regulations governing microfinance companies.

SAMA hopes the regulatory framework will attract a new segment of investors and companies with medium capital, the authority said on its website on Dec 10.

Minimum paid-up capital for a microfinance company operating in Saudi Arabia is set at 20 million riyals ($5.33 million).

Total amount of finance granted to each borrower cannot exceed 50,000 riyals ($13,333).

The new rules are part of SAMA’s efforts towards financial inclusion by providing more financing products to meet consumer needs.

The rules, first released in October, can be downloaded in English from the SAMA website here, and the new regulations in Arabic, can be accessed from here.

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