Saudi Arabia has established a sound regulatory and financial infrastructure
based on financial standards and payment systems equivalent to those in major
industrial countries. This has resulted in a strong banking sector that
benefits from management expertise and the most sophisticated technologies. The
sector offers diverse financial services to the growing commercial sector. The
reliability of this financial infrastructure and the size of the Saudi market
make the Kingdom an attractive investment destination.
The Kingdom?s financial system consists of the central bank (SAMA, the Saudi
Arabian Monetary Agency), the commercial banks, the specialized credit
institutions and the stock market. Banking is regulated under the Banking
Control Law issued by Royal Decree in 1966. The Council of Ministers issues
licenses for the establishment of banks, based on recommendations from the
Minister of Finance and National Economy after review by the central bank.
The government stake in commercial banks is less than 10%. Sufficient liquidity
enables financing at equitable rates. Foreigners can invest in the stock market
through investment funds. The Saudi stock market is the largest in the region.
The Saudi Riyal has a strong record of stability and inflation rates in Saudi
Arabia are very low. The Kingdom is signing bilateral agreements with an
increasing number of countries to provide relief from double-taxation.
For further information, please Contact
Us.