Kingdom of Saudi Arabia issues ‘keenly anticipated’ finance laws

The Kingdom of Saudi Arabia (KSD) has issued five finance laws, which — according to the head of Al Tamimi’s Corporate and Commercial Department in Riyadh — have been keenly anticipated for some time.

Hesham Al Homoud said the firm expects the laws — the Execution/Enforcement Law, the Finance Lease Law, the Real Estate Mortgage Law, the Real Estate Finance Law and the Law on Supervision of Finance Companies — to have a significant impact on the finance industry in the KSD, both in terms of regulation and the way in which banks and other finance providers conduct business there.

Copies of the laws have not yet been published. However, the minister of finance has announced that they will take effect 90 days after the Royal Decree, which was issued on 1 July 2012 — although the earlier drafts of the laws indicated that they were to come into effect after 90 days from the date of publication in the Official Gazette.

The minister of finance has also announced that the implementing regulations of the finance laws are to be drafted by the Saudi Arabian Monetary Agency (the KSA Central Bank).