45 billion riyals in the assets of finance companies, an increase of 18%

The total assets of finance companies at the end of 2020 amounted to about 45.5 billion riyals, recording an increase of 18.4%, compared to about 38.4 billion riyals in 2019.

According to a report issued by the Saudi Central Bank (SAMA), the total number of finance company employees reached 5527 by the end of 2020, compared to 5,498 at the end of 2019, of whom Saudi employees formed 82.7%, and the number of licensed finance companies reached 42 by the end of 2020, six of which are licensed to practice Real estate finance, one real estate refinancing company, and a microfinance company, and the number of contract registration companies increased to two.

The first license was granted to practice debt collection for financing agencies, while the number of companies licensed to engage in other financing activities reached 30 finance companies.

The total capital of the sector companies amounted to about 14.6 billion riyals, while the total financing portfolio amounted to 54.1 billion riyals at the end of 2020, compared to about 49.3 billion riyals in the previous year, of which real estate financing constituted about 43.5% of the total portfolio.

The Saudi Central Bank (SAMA) is responsible for supervising and controlling the finance sector and taking the necessary measures to maintain the sector’s integrity and stability and protect the rights of its related parties. The rules for licensing activities supporting the financing activity also included the controls for allowing finance companies to accept term deposits, the controls for registration procedures in the contracts register, the data required for registration, and the provisions and procedures for viewing the contract register for third parties.

About the author

Leave a Reply

Your email address will not be published. Required fields are marked *