Article 6 of the Saudi Central Bank Law

This article sets limits on the Central Bank's activity, prohibiting four kinds of acts, with specific exceptions:

1. Trade: it may not engage in trade, take part in commercial activities, or have an interest in any commercial, industrial or agricultural project. The exception: what is necessary to achieve its objectives.
2. Real estate: it may not buy or own it, except what it needs to carry out its work, or for the purpose of diversifying its foreign investments.
3. Financing the government: it may not finance or lend to the government, and the text mentions no exception to this prohibition.
4. Financing persons: it may not finance or lend to any natural or legal person. The exception: financial institutions, subject to three combined restrictions:
   • The purpose must be managing liquidity or addressing crises.
   • It must be by decision of the Governor.
   • It must be under controls set by the Board.

The practical effect of item 4 is that individuals and companies do not borrow directly from the Central Bank; it is not a commercial bank. Financial institutions, which under Article 1 are those subject to the Bank's supervision, oversight and regulation, are the only ones excepted, and subject to the restrictions above.

It is preceded by Article 5, which allows the Bank to charge a fee for licenses, approvals, services and supervision costs. It is followed by Article 7, which gives the Bank's assets, revenues and property immunity, so they may not be searched, attached, confiscated or expropriated, and are not subject to bankruptcy procedures.