The Saudi Cabinet, in its session the day before yesterday, chaired by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, approved the Minister of Finance to issue the necessary licenses to both “STC Bank” – under establishment – and the Saudi Digital Bank – under establishment – in accordance with Article 3 of the Banking Control Law .
The Saudi Minister of Finance, Muhammad Al-Jadaan, said that the Cabinet’s approval comes within the objectives of the Financial Sector Development Program, which is part of a huge economic reform plan known as the Kingdom’s Vision 2030.
Minister Al-Jadaan wrote on Twitter that these goals seek to develop a more efficient digital infrastructure while encouraging entrepreneurship and creating job opportunities in the financial sector.
He added: “The Cabinet’s decision comes within the framework of developing the financial sector system and contributing to the support and development of the national economy, by opening the way for new companies to provide financial services.”
And the Saudi Central Bank (Sama), stated in a statement, that the decision of the Council of Ministers will be to transform the Saudi Digital Payments Company (STC Pay) to become a local digital bank to conduct banking business in the Kingdom, with a capital of 2.5 billion riyals (STC Bank). From companies and investors to establish a local digital bank to conduct banking business in the Kingdom, with a capital of 1.5 billion riyals (the Saudi Digital Bank).
STC stated, in a statement on the Saudi Stock Exchange (Tadawul), that the approval of granting the license requires the completion of all legal requirements determined by the Saudi Central Bank and the competent authorities, so that the company pumps an amount of 802 million Saudi riyals to retain 85% of the capital of the company. “stc pay”.