Article 2 of the Saudi Central Bank Law

المادة 2 من نظام البنك المركزي السعودي · الفصل الأول: التعريفات وأحكام عامة

The 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.

Official text (Arabic)

This article has not been amended since the law was issued.

يتمتع البنك بالشخصية الاعتبارية والاستقلال المالي والإداري، ويرتبط تنظيمياً بالملك، ويكون مقره الرئيس في مدينة الرياض، وله أن ينشئ فروعاً أو مراكز نقد داخل المملكة، وله – أيضاً - افتتاح مكاتب أو تعيين وكلاء ومراسلين له خارج المملكة.

This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers

Article 2 explained in plain English

This article sets the legal status of the Saudi Central Bank and its physical organization:

Legal personality: the Bank is a legal entity in its own right, with rights and obligations in its own name.
Financial and administrative independence: the Bank has its own independent finances and manages its own affairs within the limits of the Law.
Organizational link to the King: the Bank is linked organizationally directly to the King.
Head office: the city of Riyadh.
Inside the Kingdom: it may set up branches or cash centers.
Outside the Kingdom: it may open offices or appoint agents and correspondents.

Note that setting up branches and offices is optional ("it may"); the Law does not require the Bank to have a particular number of them.

It is preceded by Article 1, which defines "the Bank" as the Saudi Central Bank, "the Board" as its board of directors, "the Governor" as its governor, and "financial institution" as any person subject to the Bank's supervision, oversight and regulation. It is followed by Article 3, which sets the Bank's objectives: maintaining monetary stability, supporting the stability of the financial sector and enhancing confidence in it, and supporting economic growth. The independence this article provides is the framework in which the Bank works to achieve those objectives.

Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.

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