Saudi Laws Update

 SAMA issues rules for buy now, pay later companies  SAMA said that developing these rules will aid the sector’s growth and sustainability while safeguarding users’ rights. Shutterstock ARAB NEWS December 17, 2023 RIYADH: Saudi Arabia’s financial technology sector is bracing for growth with its apex bank issuing rules for buy now, pay later companies, according to a statement.  The Saudi Central Bank, also known as SAMA, on Dec. 17 issued guidelines aimed at regulating the licensing and setting minimum standards for the BNPL companies.  SAMA said that developing these rules will aid the sector’s growth and sustainability while safeguarding users’ rights.  It defines BNPL activity as financing allowing a consumer to purchase goods or services without a term cost payable by the consumer.  SAMA outlined provisions related to licensing requirements, regulation of internal policies and procedures, information security standards and measures to combat financial c...

 Saudi Ministry of Commerce outlines strategic roadmap for 2024  The directive emphasizes that entities must strategically invest in high-potential sectors and capitalize on regional diversification opportunities.  ARAB NEWS December 27, 2023 RIYADH: Saudi Arabia’s Ministry of Commerce has set up a strategic roadmap for its chambers of commerce in 2024.   The directive emphasizes that entities must strategically invest in high-potential sectors and capitalize on regional diversification opportunities.  In a meeting held in Riyadh, attended by chamber heads, the Minister of Commerce Majid bin Abdullah Al-Qasabi discussed the pivotal role of chambers of commerce in achieving the objectives outlined in the Saudi Vision 2030, according to the Saudi Press Agency.  The discussions also encompassed Riyadh’s hosting of Expo 2030 and the active involvement of the chambers in advancing the commercial system.   Furthermore, the meeting emphasized the si...

 SAMA invites feedback on draft amendments to financial institutions regulaions December 27, 2023 RIYADH — The Saudi Central Bank (SAMA) has issued a press release announcing that it is seeking public consultation on draft amendments to the "key principles of governance in financial institutions under the control and supervision of the Saudi Central Bank". SAMA invites stakeholders to provide suggestions and observations on the draft by visiting the Public Consultation Platform of the National Competitiveness Center. According to the release, key principles were amended with aim of keeping abreast of the latest regulatory changes and updates in the new Companies Law and its Implementing Regulations that impact the key principles, taking into consideration the nature of the financial sector in the Kingdom and international standards and practices. SAMA said suggestions and observations on the draft will be received within 15 days of this announcement and their relevance will b...

 SOCPA refers membership applicants with forged certificates to Public Prosecution   December 27, 2023 The Saudi Organization for Chartered and Professional Accountants rejected applications of some people after detecting that the certificates submitted by them are forged ones.  The Saudi Organization for Chartered and Professional Accountants rejected applications of some people after detecting that the certificates submitted by them are forged ones.   Okaz/Saudi Gazette JEDDAH — The Saudi Organization for Chartered and Professional Accountants (SOCPA) has referred a number of people, who applied for its membership by submitting forged certificates, to the Public Prosecution. The organization rejected their applications after detecting that the certificates submitted by them are forged ones. The SOCPA reiterated its keenness to ensure integrity and credibility of the documents and information received by it. The organization also affirmed its continued eff...

 Fines for 3 types of income tax related violations for foreign firms December 27, 2023 - Okaz/Saudi Gazette RIYADH — The Zakat, Tax and Customs Authority will slap fines on foreign firms for violations related to income tax. Fines will be imposed on foreign firms that make delay in submitting returns or in making payment of taxes or getting registered in the system. The authority explained this in the user guide for the mechanism for the payment of income tax on foreign establishments. “In the event of fines or penalties, a payment invoice will be generated containing the invoice number and the amount due, and the taxpayer will be able to make payments via electronic banking services, or through an ATM.” The authority allowed the payment of tax or fines via Mada cards for amounts of SR20,000 or less. It indicated that by paying the bill through the SADAD system, a zakat certificate will be issued automatically if there were no other financial obligations, and paying the bill is co...

 Mudad: All services of employer will be stopped in the event of three-month salary delay December 24, 2023 - Okaz/Saudi Gazette The Mudad has reduced the period for companies and establishments to justify the reason for the delay in disbursing workers’ salaries from 30 days to 10 days The Mudad has reduced the period for companies and establishments to justify the reason for the delay in disbursing workers’ salaries from 30 days to 10 days RIYADH — The Ministry of Human Resources and Social Development (MHRSD) revealed that all the services of the employer will be stopped and the employee will be allowed to transfer service to another employer without his consent in the event of the delay in disbursing salaries for three consecutive months. This penalty will be enforced even if the employee’s work permit is valid, according to the Mudad platform, affiliated to the ministry. The ministry noted that all the services except the service of issuing and renewing work permits will be sto...

 The Ministry of Human Resources and Social Development stated that as of Sunday 50 percent Saudization came into force in procurement professions. Follow Saudigazette on Google News Account Saudi Gazette report RIYADH — The Ministry of Human Resources and Social Development (MHRSD) announced that Saudization of sales, purchase, and project management professions comes into force effective from Sunday, Dec. 24. This is after the end of the grace period granted by the ministry earlier. The percentage of Saudization to be implemented varies in each one of these three vital sectors. According to the ministry, the localization of sales professions is at a rate of 15 percent for establishments that employ five or more workers in sales jobs. The sales professions that come under Saudization include wholesale sales manager, retail sales manager, sales specialist, information and communications technology equipment sales specialist, and sales representative. The ministry stated that as of ...