Insurance

Financial

Insurance services:

  • Only banks and insurance companies licensed by the Saudi Arabian Monetary Agency may provide banking and insurance services within the Kingdom of Saudi Arabia. The Banking Supervision System and the Takaful Insurance Supervision System outline the standards and requirements necessary to obtain these licenses.
  • The Saudi Arabian Monetary Agency has broad powers in granting these licenses.
  • Banks are defined as the legal entities that conduct banking business.
  • According to the system, banks undertake receiving clients’ money in deposit accounts, opening current accounts, issuing documentary letters of credit and guarantee, paying and collecting checks, order bonds, bills of exchange, foreign exchange, and other banking services.
  • The banking supervision system includes provisions on capital adequacy and its commitment to the necessary restrictions
  • Foreign investors are allowed to own 60% of the bank’s capital and 49% of insurance companies, in accordance with the protocols for Saudi Arabia’s accession to the World Trade Organization.
  • According to the insurance companies system, the minimum amount of the insurance company’s capital is 100 million riyals, and for re-insurance 200 million riyals, 20% of the net profits will be kept and added to the statutory reserve until it reaches 100% of the insurance company’s capital.
  • Insurance companies, insurance consultants, agents, brokers and reinsurance companies must obtain the necessary licenses from the Saudi Arabian Monetary Agency before starting business.

Insurance services:

  • Only banks and insurance companies licensed by the Saudi Arabian Monetary Agency may provide banking and insurance services within the Kingdom of Saudi Arabia. The Banking Supervision System and the Takaful Insurance Supervision System outline the standards and requirements necessary to obtain these licenses.
  • The Saudi Arabian Monetary Agency has broad powers in granting these licenses.
  • Banks are defined as the legal entities that conduct banking business.
  • According to the system, banks undertake receiving clients’ money in deposit accounts, opening current accounts, issuing documentary letters of credit and guarantee, paying and collecting checks, order bonds, bills of exchange, foreign exchange, and other banking services.
  • The banking supervision system includes provisions on capital adequacy and its commitment to the necessary restrictions
  • Foreign investors are allowed to own 60% of the bank’s capital and 49% of insurance companies, in accordance with the protocols for Saudi Arabia’s accession to the World Trade Organization.
  • According to the insurance companies system, the minimum amount of the insurance company’s capital is 100 million riyals, and for re-insurance 200 million riyals, 20% of the net profits will be kept and added to the statutory reserve until it reaches 100% of the insurance company’s capital.
  • Insurance companies, insurance consultants, agents, brokers and reinsurance companies must obtain the necessary licenses from the Saudi Arabian Monetary Agency before starting business.