Finance company licence

The legal basis after the 2025 changes

The Finance Companies Control Law (Royal Decree M/51, 1433H) was amended by Royal Decree M/272 dated 10 June 2024; the amended article texts are published in Arabic only on the SAMA Rulebook. A new Implementing Regulation followed: Governor's Decision 179/MFC of 23 October 2025, issued by circular 472038006 on 22 December 2025. The same circular folded the separate microfinance and consumer microfinance rules into the Regulation, and the 2013 Regulation is marked no longer applicable. Anything written before December 2025 about capital tiers should be checked against the new text.

Article 10 of the Law lists the finance activities: real estate finance, production asset finance, SME finance, finance lease, credit card finance, consumer finance, microfinance, and any other activity SAMA approves. BNPL and debt-based crowdfunding are licensed as finance activities with their own rules, and finance support activities such as aggregation are licensed under Article 10(2).

Minimum capital and fees by activity

Amended FCCL Implementing Regulation (Governor's Decision 179/MFC), Art 8 (capital), Art 24 (fees) and Art 58 (financing caps). Standard renewal fee SAR 100,000 and amendment fee SAR 50,000; BNPL and debt crowdfunding SAR 2,000. A company doing several of the lower-tier activities meets the highest single requirement. SAMA may set higher or lower capital, and capital must be paid in full at incorporation.

Borrower limits for microfinance

Consumer microfinance is for consumption only. It cannot fund vehicles or commercial or professional purposes. The aggregate cap is SAR 60,000 per borrower, or SAR 30,000 for a company doing consumer microfinance through financial technology only (Article 9). Microfinance for the productive activity of small business owners, craftsmen and micro-enterprises is capped at SAR 200,000 per borrower, which SAMA may raise. A large exposure is any exposure of 5% or more of paid-up capital and reserves.

The fintech-only consumer microfinance tier is the lowest-capital route into consumer microfinance, at SAR 10 million of capital and a SAR 10,000 fee. The trade-off is the lower SAR 30,000 borrower cap and the 4 times financing cap, which limit how far the book can grow on a given capital base.

Legal form

The original Law required finance companies to be joint stock companies. The 2025 Regulation refers to "articles of incorporation or articles of association, as the case may be" and to managers of a "non-joint stock finance company", which on our reading suggests that some finance companies may now take another form, such as an LLC. That reading needs confirming against the Arabic text of the amended Law before you incorporate. The BNPL and debt crowdfunding rules still define those companies as joint stock companies. See incorporation.

People, Saudization and senior roles

Article 40 of the Regulation sets Saudization at 50% at commencement across all levels, rising by 5% a year until it reaches 75%. Non-Saudis in control departments need SAMA's non-objection. Founders and their nominees must pass fit and proper checks, and founders' shares cannot be transferred without SAMA's approval (Article 8 of the Law).

Senior management, as the Regulation defines it, includes the CEO or general manager and deputies, the CFO, heads of major departments, and the risk, internal audit and compliance officers. The compliance officer is appointed with SAMA's non-objection. Appendix 4 of the Requirements for Appointments to Senior Positions lists the finance company roles that need non-objection, and Article 4 reserves the Chief Compliance Officer and AML/CTF Director roles for Saudi nationals. SAMA says the English version of those requirements is not the latest, so plan appointments from the Arabic text.

How the application runs

1. Submit the file

   Send SAMA's form and documents to NBFI-LIC@SAMA.GOV.SA: draft articles, organisation structure, founder list with fit and proper forms (including every 5%-plus owner of a corporate founder), forms for board members and managers, a feasibility study, a five-year business plan, a bank guarantee of 20% of minimum capital, and draft third-party contracts.

2. Answer questions

   Additional information is due within 30 working days of SAMA's request.

3. Initial approval

   SAMA gives initial approval or a reasoned rejection within 60 working days of the completeness notice.

4. Incorporate and get ready

   Complete commercial registration and articles within six months of initial approval, then reach operational readiness within 12 months of the CR.

5. LEI, visit and licence

   Obtain an LEI, pay up capital in full, host SAMA's licensing visit and receive the licence. The licence lasts five years; renewal is due at least six months before expiry with an updated five-year plan.

Debt-based crowdfunding

SAMA's Rules for Engaging in Debt-Based Crowdfunding (1 December 2021) license platforms that let participants fund loans to businesses. The company must be a joint stock company with SAR 5 million of capital, and management must be permanent residents of Saudi Arabia. Saudization follows the same 50% rising to 75% path.

Article 26 sets the limits. Platforms lend to business borrowers registered in Saudi Arabia only, with no consumer lending, up to SAR 7.5 million per MSME beneficiary subject to exceptions. Each participant can fund up to 25% of a deal and hold up to SAR 250,000 in total, unless they are eligible participants with net assets of SAR 3 million or more, or income of SAR 600,000 or more over two years. If the platform invests itself, it takes 5% to 25% of a deal, capped at 8 times its capital. Fundraising windows last 60 days and repayment periods up to 60 months. Equity crowdfunding is a CMA activity; see CMA licences.

Ongoing obligations

• Capital adequacy and liquidity under SAMA rules, plus credit-risk classification and provisioning
• Audit and risk and credit committees, and risk management, compliance and internal audit functions
• Quarterly risk reports, audited annual and quarterly financial statements, and prudential data returns
• Shariah governance instructions, Responsible Lending Principles, APR rules and the Financial Consumer Protection Principles
• AML/CTF, the Cyber Security Framework, Business Continuity Management, IT governance and the Counter-Fraud Fundamental Requirements (April 2025)
• SAMA non-objection before offering shares in the capital market, and notice to SAMA before any investment round (circular 472056382, 18 May 2026)

Common questions