SAMA says new regulations to facilitate sales by installments in Saudi Arabia

The Saudi Arabian Monetary Authority (SAMA) on Sunday announced measures for implementing a new structural order for sales of commodities on installments.

According to a joint statement issued by the Ministry of Commerce and Investment (MoCI) and SAMA, new licenses will not be issued for practicing selling by installments.

This step is expected 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.

"The step will protect the market by making available the required data on all clients," Zeid Al-Yaeesh, chairman of the General Committee for Financial Companies, an affiliate of SAMA, told Okaz newspaper.

“The committee will restrict the financing process to licensed entities, ensuring compliance with SAMA's applied regulations,” he added.

“Financing companies can merge into a larger entity and obtain a license for a new company,” Al-Yaeesh said, highlighting that the companies, not subject to SAMA, may face suspension until they adjust status.