In force Last amended 28/7/1443 AH
Saudi Central Bank Law
نظام البنك المركزي السعودي
Establishes the Saudi Central Bank (SAMA), its objectives, powers, governance and relationship with the government. It concerns banks, financial institutions and the wider financial sector.
- Articles
- 27
- In force
- 27
- Amended
- 4
- Issued
- 11/4/1442 AH
Issued by: مرسوم ملكي رقم (م/36) وتاريخ 1442/4/11هـ · قرار مجلس الوزراء رقم (229) وتاريخ 1442/4/9هـ
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Central Bank Law by topic
The Central Bank's Legal Personality and Objectives3 articlesFunctions and Powers of the Central Bank2 articlesMonetary Policy and the Foreign Exchange Market3 articlesActivities Prohibited to the Bank and Immunity of Its Assets3 articlesThe Central Bank Board5 articlesThe Governor, Deputy Governors and Bank Staff2 articlesConflicts of Interest and Confidentiality at the Central Bank2 articlesAuditing the Bank's Accounts and Annual Report2 articlesThe Bank's Relationship with the Government and International Bodies3 articlesCentral Bank Contracts and Procurement3 articles
Articles of the Saudi Central Bank Law
الفصل الأول: التعريفات وأحكام عامةArticles 1–7
- Article 1This article defines the terms of the Saudi Central Bank Law: the Bank, the Law, the Board, the Governor, and a financial institution as any person subject to the Bank's supervision, oversight and regulation.
- Article 2The Central Bank has legal personality and financial and administrative independence and is organizationally linked to the King; its head office is in Riyadh, and it may set up branches and cash centers inside the Kingdom and offices and agents abroad.
- Article 3The article sets the Saudi Central Bank's three objectives: maintaining monetary stability, supporting the stability of the financial sector and enhancing confidence in it, and supporting economic growth.
- Article 4The article lists 18 tasks of the Central Bank, including issuing currency, supervising financial institutions, monetary policy, managing reserves, payment systems, fintech platforms, and customer protection.
- Article 5The Central Bank may charge a fee for licenses, approvals, services, operations it performs, and the cost of supervising financial institutions, under controls the Board approves.
- Article 6The article prohibits the Central Bank from trading, owning real estate except for its needs or to diversify foreign investments, financing the government, and lending to anyone except financial institutions on conditions.
- Article 7The Central Bank's assets, revenues and property have immunity: they may not be searched, attached, seized, confiscated or expropriated, and are not subject to bankruptcy procedures.
الفصل الثاني: الإدارة مجلس الإدارةArticles 8–16
- Article 8The Central Bank's board consists of the Governor as chair, his two deputies, and five non-government members appointed by Royal Order for seven renewable years, with remuneration set by Royal Order.
- Article 9The article requires the five non-government board members to be Saudi, experienced, without a conviction for a crime of dishonor or bankruptcy, and not to hold a post in a public body or financial institution.
- Article 10The Central Bank's board supervises its work and good management, sets regulations and policies, approves strategies, the budget and auditors, forms committees, and may delegate some powers to the Governor.
- Article 11The Central Bank's board meets every 3 months and when needed; a meeting is valid with a majority including the chair or assigned deputy, decisions are by majority of those present, and the chair has the casting vote.
- Article 12The Governor asks the King to appoint a successor to a board member on death, loss of a membership condition, a request to be relieved, missing 3 consecutive meetings without excuse, inability to perform duties, or serious breach.
- Article 13يكون للبنك محافظ متفرغ بمرتبة وزير يعين وتحدد مزاياه بأمر ملكي. والمحافظ هو المسؤول التنفيذي عن إدارة البنك، ويتولى تنفيذ سياساته ومهماته…
- Article 14The Governor has two full-time deputies who assist him; the Board sets their duties on his recommendation, they do not take part in deliberating or voting on decisions, they are appointed at the excellent grade, and one stands in for the Governor in his absence.
- Article 15Bank employees are not subject to any liability or claim for performing their duties under the Law, except in cases of bad faith or serious breach.
- Article 16A Central Bank board member must disclose any direct or indirect conflicting interest and an employee any direct one, and both are barred from taking part in the decision concerning it.
الفصل الثالث: السياسة النقديةArticles 17–17
الفصل الرابع: مراجع الحسابات الخارجيArticles 18–18
الفصل الخامس: العلاقة مع الحكومة والعلاقات الخارجيةArticles 19–21
- Article 19On behalf of the government and at the request of the Minister of Finance or his delegate, the Central Bank opens and settles current accounts, records revenues, holds deposits and supervises the payment of appropriations.
- Article 20The Central Bank may enter agreements on monetary, regulatory and supervisory policy, conclude agreements with foreign central banks and supervisors, exchange information, and open accounts abroad.
- Article 21In dealing with foreign supervisory bodies and relevant international organizations, the Central Bank attends to developing relations, coordinating visits and meetings, and following the reports and information they issue.
الفصل السادس: أحكام ختاميةArticles 22–27
- Article 22The Central Bank may conclude contracts in Arabic or other languages, its procurement is outside the government tenders law and subject to Board regulations, and its contracts may exceptionally be subject to foreign law, courts or arbitration.
- Article 23Central Bank Board members, employees, external auditors and agents are prohibited from disclosing any information about the affairs of the Bank or financial institutions, during their work and after leaving it.
- Article 24The article prohibits interfering in any way in the running of the Central Bank's business, touching its policies, imposing oversight on it, or auditing its accounts or the contracts and agreements it concludes.
- Article 25The Central Bank submits to the King a report on the latest financial and economic developments and its external auditors' report for the past fiscal year, gives the Minister of Finance a copy, and publishes a copy at an appropriate time and by appropriate means.
- Article 26The Saudi Central Bank Law replaces the Saudi Arabian Monetary Agency Law issued by Royal Decree No. 23 dated 23/5/1377 AH and repeals any provisions that conflict with it.
- Article 27The article provides that the Saudi Central Bank Law takes effect 90 days after the date of its publication in the Official Gazette.