Latest news with #SR75
Arabian Post
21-06-2025
- Business
- Arabian Post
Saudi Bank Unveils New Credit‑Card Rules to Drive Transparency
Arabian Post Staff -Dubai The Saudi Central Bank has introduced sweeping reforms in the rules governing credit-card issuance and operation, aiming to reduce consumer costs, bolster transparency and align with global standards. The changes include mandatory fee notifications, reduced cash withdrawal charges, capped international transaction fees and improved disclosures. SAMA will implement these updates within 30 to 90 days. Key changes include a requirement for issuers to send SMS alerts before any fee or term modification, allowing cardholders a 14-day window to cancel agreements without penalty under the updated terms. E-wallet top-ups using credit cards will now incur no charges, a move intended to incentivise digital payments. ADVERTISEMENT Cash withdrawals of SR2,500 or less will carry a maximum fee of 3% of the transaction value; those of SR2,500 or more are capped at SR75. Previously, cash advance fees applied sharply until SR5,000 with a flat SR75, and beyond that 3%, up to SR300—making the new cap notably more favourable for larger withdrawals. International purchases will now attract a clear 2% fee of the transaction amount. A notable enhancement allows customers to deposit amounts beyond their credit limit and withdraw them at any point without additional charges, enhancing flexibility and consumer agency. Account statements must now be issued via SMS at least 25 days before payment, detailing balances, due dates and fees. Immediate notifications must follow any credit-card transaction, including details such as merchant, amount and remaining limit. Issuers are also required to provide pre‑transaction tools for estimating international charges and reward benefits. Repayment provisions maintain consumer safeguards: a 25-day minimum grace period is mandated before term costs apply. The rules prohibit levying additional fees for full balance payments and outlining clear terms for minimum payments and their implications. These reforms are underpinned by standardised disclosure templates for fees and benefits, inclusive of promotional terms—a step towards consistency across the market. Issuers must emphasise APR, term costs and expiration timelines for rewards or promotions, with SMS reminders 14 days in advance. SAMA's emphasis on mandatory due diligence and creditworthiness checks prior to card issuance is reinforced under the new framework. Criteria now include explicit customer consent via authenticated channels, formal credit record assessments and eligibility conditions aligned with industry best practices. Procedures for supplementary cards, default reporting and dispute resolution have also been clarified. For example, the minimum repayment remains 5% of the due balance, and any default procedures must include consumer advisory services before legal or collection measures begin. SMS has been designated the primary channel for disclosures, with issuers obliged to inform customers of account activity, fee changes and promotional developments. Financial institutions must adhere to SAMA‑specified notification templates to promote uniformity and clarity. According to a senior official within SAMA, the goal is to 'establish minimum requirements to promote disclosure, transparency and fair practices, as well as to limit credit risk.' Industry reaction has been generally positive. Analysts from regional banks suggest the rules will 'enhance consumer protection while supporting digital payment growth.' Critics, however, note potential implementation challenges—particularly in updating existing systems to align with stricter notification and compliance requirements. The timing reflects SAMA's broader strategy to modernise the financial sector and accelerate digital payments as part of Saudi Vision 2030. A 2020 directive mandated real‑time notifications for debit card and e-wallet transactions, laying foundational infrastructure for today's enhanced SMS regime. Collaboration with global payment networks—such as Visa, MasterCard and American Express—has helped shape caps on international and cash advance fees. Banks and fintech firms are now preparing compliance roadmaps. One major lender has initiated system-wide updates to include the new SMS templates, fee calculators and balance‑flexibility features. Industry trade bodies are urging transparency in implementation timelines to ensure consumers are well informed ahead of the rollout. As SAMA positions Saudi Arabia's credit‑card framework at par with international best practice, key areas to monitor include transparency in third‑party charges, enforcement mechanisms for non-compliant issuers, and feedback from consumer‑protection advocates.
Saudi Gazette
20-06-2025
- Business
- Saudi Gazette
New SAMA rules limit credit card fees: 3% cash withdrawal, 2% foreign purchases, free e-wallet top-ups
Saudi Gazette report RIYADH — The Saudi Central Bank (SAMA) announced on Thursday updated rules for the issuance and operation of credit cards, aimed at lowering costs for customers and increasing levels of disclosure and transparency. The new regulations will take effect within 30 to 90 days. Among the key updates, credit card issuers must notify customers of any changes in fees via SMS, with customers allowed to terminate their agreement within 14 days of receiving the notice. E-wallet top-ups via credit cards are now free of charge. For cash withdrawals below SR2,500, fees are capped at 3% of the transaction amount. For withdrawals of SR2,500 or more, fees are limited to a maximum of SR75. International purchases will now carry a 2% fee of the transaction value. Customers are also permitted to deposit additional amounts above their credit limit and withdraw them at any time without incurring charges. SAMA worked with global payment companies to assess and reduce associated transaction costs, as part of its mission to enhance Saudi Arabia's digital payment ecosystem and provide a diverse array of payment options for customers and visitors. Transparency measures now require issuers to notify customers immediately of any financial transactions and to send account statements via SMS. Issuers must also provide tools for customers to estimate rewards and international charges before making a purchase. Regarding repayment, customers may pay off their full outstanding balance without incurring late fees, with a mandatory grace period of at least 25 days. The regulations also unify disclosure templates for all fees, charges, and benefits within credit card agreements, promoting greater clarity for consumers. Previously, cash withdrawals carried fees of SR75 for transactions up to SR5,000 and 3% of the transaction amount for amounts over SR5,000, with a maximum fee of SR300. The new cap of SR75 for larger transactions offers more favorable terms. International transactions are now subject to a clear 2% fee, and additional charges include SR25 for invalid transaction disputes and account statement requests.
Arab News
20-03-2025
- Business
- Arab News
Tadawul approves Merrill Lynch Kingdom of Saudi Arabia as market maker for 20 listed securities
RIYADH: Saudi Exchange has approved Merrill Lynch Kingdom of Saudi Arabia to act as market maker for 20 listed securities across the main trading platform and the parallel index. This decision allows the company to enhance market liquidity and improve price efficiency in accordance with regulations and procedures. Among the securities listed on the main index, Merrill Lynch Kingdom of Saudi Arabia will act as a market maker for Naseej International Trading Co., ensuring a minimum presence of orders at 70 percent, maintaining a size of SR75,000 ($19,995), and adhering to a maximum spread of 0.75 percent, with a minimum value traded of 5 percent. Similarly, it will provide services for the National Co. for Glass Industries under the same trading obligations as Naseej International Trading Co. The National Co. for Learning and Education will have a minimum order presence of 70 percent, a minimum size of SR50,000, a maximum spread of 0.75 percent, and a minimum value traded of 5 percent. Meanwhile, Al Hassan Ghazi Ibrahim Shaker Co. will adhere to the same market-making requirements as Naseej International Trading Co. and the National Co. for Glass Industries. Sustained Infrastructure Holding Co. and Theeb Rent a Car Co. will also be covered under similar obligations, ensuring a minimum presence of orders at 70 percent, a minimum size of SR75,000, a maximum spread of 0.75 percent, and a minimum value traded of 5 percent. Saudia Dairy and Foodstuff Co. will have a minimum order presence of 80 percent, a minimum size of SR75,000, a maximum spread of 0.65 percent, and a minimum value traded of 5 percent. Dallah Healthcare Co. will operate under the same market-making conditions as Naseej International Trading Co., while Gulf Insurance Group will have a minimum order presence of 60 percent, a minimum size of SR50,000, a maximum spread of 1 percent, and a minimum value traded of 5 percent. Aldawaa Medical Services Co. will be subject to a minimum order presence of 80 percent, a minimum size of SR75,000, a maximum spread of 0.65 percent, and a minimum value traded of 5 percent. Meanwhile, Tourism Enterprise Co. will ensure a minimum order presence of 50 percent, a minimum size of SR250,000, and a maximum spread of 3 percent, with no specified minimum value traded. On Nomu, Merrill Lynch Kingdom of Saudi Arabia was approved as a market maker for Atlas Elevators General Trading and Contracting Co., Riyadh Steel Co., Sure Global Tech Co., and Ladun Investment Co. Additionally, the firm will provide market-making services for MOBI Industry Co., Molan Steel Co., and Fesh Fash Snack Food Production, as well as Yaqeen Capital Co. and Lana Medical Co. For each of these securities, the firm will ensure a minimum presence of orders at 50 percent, maintain a minimum size of SR50,000, and adhere to a maximum spread of 5 percent, with no minimum value traded requirement. Merrill Lynch Kingdom of Saudi Arabia's participation in market making is expected to contribute to greater liquidity and a more efficient trading environment, reinforcing the development of the country's capital market. This move aligns with the Kingdom's ongoing efforts to attract global financial institutions and strengthen its capital markets by promoting transparency, efficiency, and investor confidence.
Arab News
18-03-2025
- Business
- Arab News
Tabuk entrepreneurs, freelancers receive $61.2m from Social Development Bank in 2024
JEDDAH: Entrepreneurs and freelancers in Tabuk received over SR230 million ($61.2 million) in funding from the Social Development Bank in 2024, boosting established businesses and independent work in the region. The government-owned financial institution announced that in 2024 it provided over SR75 million in financing to more than 200 businesses in the northwestern region and helped 4,000 freelancers with funding, totaling over SR155 million, according to the Saudi Press Agency. SDB's Regional Director Hamed Al-Anzi highlighted that this support is part of the bank's efforts to enhance entrepreneurship and help individuals achieve financial independence through their own businesses. The support aligns with Saudi Arabia's Vision 2030 objectives, which includes raising the contribution of small and medium enterprises to 35 percent of the gross domestic product by the end of the decade. Speaking during a discussion panel at the 'Diwaniya of the Chamber' event organized by the Tabuk Chamber of Commerce, Al-Anzi emphasized that SDB is working to offer a range of financial products targeting youth of both genders who wish to launch their own businesses, as well as specialized programs to support SMEs, which, he said, play a vital role in the development of the national economy. He also emphasized that SDB and the National Entrepreneurship Institute, known as Riyadah, are partnering to empower young entrepreneurs to launch their businesses, creating job opportunities for the local community. The regional director further encouraged aspiring business owners to make use of the digital platforms provided by supporting entities, which offer easy access to financing, training programs, and specialized consultations. The session, attended by several regional businesspeople, concluded with a discussion on the challenges of freelancing and the requirements for starting new companies, highlighting the positive impact these initiatives have on Tabuk's growing economy. Supporting freelancers is crucial for the nation's economy. In 2023, independent workers contributed SR72.5 billion to the GDP, representing 2 percent of the country's total economic output. As freelancing continues to grow, with over 2.25 million individuals registered on freelance platforms as of September, it plays an increasingly vital role in diversifying income sources and strengthening the national economy.
Arab News
10-03-2025
- Business
- Arab News
Tadawul approves Morgan Stanley Saudi Arabia as market maker for 8 listed securities
RIYADH: Tadawul has approved Morgan Stanley Saudi Arabia to serve as a market maker for eight securities on the main trading platform and the parallel index, Nomu. The decision allows the financial services company to enhance market liquidity and improve price efficiency in accordance with regulations and procedures. Among the securities listed on the main index, the firm will act as a market maker for Arabian Internet and Communications Services Co., where it will ensure a minimum presence of orders at 80 percent, maintain a size of SR150,000 ($39,982), and adhere to a maximum spread of 0.65 percent, with the lowest value traded of 5 percent. Similarly, it will provide services for Electrical Industries Co., ensuring an 80 percent minimum presence of orders, a minimum size of SR75,000, a maximum spread of 0.65 percent, and a value traded of 5 percent. Elm Co. is also among the approved securities, with Morgan Stanley Saudi Arabia committing to the same trading obligations as Electrical Industries Co. Meanwhile, the Co. for Cooperative Insurance will have a minimum order presence of 80 percent, a minimum size of SR150,000, a maximum spread of 0.65 percent, and a value traded of 5 percent. On Nomu, Morgan Stanley Saudi Arabia was approved as a market maker for National Environmental Recycling Co., International Human Resources Co., Almuneef Co. for Trade, Industry, Agriculture, and Contracting, as well as Aqaseem Factory for Chemicals and Plastics Co. In each of these cases, it will ensure a minimum presence of orders at 50 percent, maintain a minimum size of SR50,000, and adhere to a maximum spread of five percent, with no minimum value traded requirement. Morgan Stanley Saudi Arabia's participation in market making is expected to contribute to greater liquidity and a more efficient trading environment, reinforcing the development of the country's capital market. In November, the investment bank was granted approval to establish its regional headquarters in the Kingdom, as the nation continues to attract international investment. This move aligns with Saudi Arabia's regional headquarters program, which offers businesses various incentives, including a 30-year exemption from corporate income tax and withholding tax on headquarters activities, as well as access to discounts and support services. Morgan Stanley first entered the Saudi market in 2007, launching an equity trading business in Riyadh, followed by the establishment of an equity fund in 2009.
