Article 9 of the Saudi Central Bank Law
المادة 9 من نظام البنك المركزي السعودي · الفصل الثاني: الإدارة مجلس الإدارة
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
يجب أن يتوافر في العضو من الأعضاء المنصوص عليهم في الفقرة الفرعية (ج) من الفقرة (1) من المادة (الثامنة) من النظام الشروط الآتية:
1- أن يكون سعودي الجنسية.
2- أن يكون من ذوي الكفاية والخبرة ذات العلاقة بعمل البنك.
3- ألا يكون قد سبق الحكم عليه في جريمة مخلة بالشرف أو الأمانة، ما لم يكن قد رد إليه اعتباره.
4- ألا يكون قد أشهر إفلاسه، أو إعساره، أو امتنع عن الوفاء بديونه.
5- ألا يكون شاغلاً لأي منصب أو وظيفة في جهة عامة أو لدى أي من المؤسسات المالية، أو أن يكون من مراجعي حساباتها.
6- ألا يكون مالكاً أو وكيلاً لمكتب مراجع حسابات خارجي.
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 9 explained in plain English
This article sets the conditions for membership of the Central Bank's board. They apply to the members referred to in paragraph 1(c) of Article 8, that is, the five members who are not government employees, who are nominated by agreement between the Governor and the Minister of Finance and appointed by Royal Order for 7 renewable years. There are six conditions:
- Saudi nationality.
- Competence and experience related to the Bank's work.
- Not having been sentenced for a crime involving dishonor or breach of trust, unless his standing has been restored.
- Not having been declared bankrupt or insolvent, or refused to pay his debts.
- Not holding a position or job in a public body or with any financial institution, and not being one of its auditors.
- Not being the owner or agent of an external audit firm.
Conditions 5 and 6 aim to prevent conflicts of interest: under Article 1, a financial institution is any person subject to the Bank's supervision, oversight and regulation, so a member cannot be an overseer on the Board and also tied to a body subject to oversight. Condition 5 is also consistent with Article 8 describing these members as non-government employees.
Note that condition 3 falls away once standing is restored. As for condition 4, the text states no period or exception for it.
It is followed by Article 10, which sets out the Board's powers, including supervising the Bank's work, approving its strategies and budget, and appointing its external auditors.
Practical example
An economist in Riyadh is nominated for membership of the Central Bank's board while working part-time as an adviser at a commercial bank. Under condition 5, a member may not hold a position with any financial institution, so his current job prevents him from membership.
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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Frequently asked questions about Article 9 of the Saudi Central Bank Law
What are the conditions for membership of the Saudi Central Bank's board of directors?
Saudi nationality, competence and experience, no sentence for a crime of dishonor or breach of trust unless standing was restored, no bankruptcy or insolvency, no position in a public body or financial institution, and not owning or acting as agent of an external audit firm.
Can an employee of a commercial bank be a member of the Central Bank's board?
No. A member must not hold any position or job with any financial institution.
Do these conditions apply to the Governor and his deputies?
The article says they are the conditions for the members referred to in paragraph 1(c) of Article 8, that is, the five who are not government employees.
Articles this article refers to
More articles on The Central Bank Board
- Article 8
The 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.
1- يكون للبنك مجلس إدارة يشكل على النحو الآتي: أ - المحافظ رئيساً للمجلس. ب- نائبا المحافظ عضوين ج - خمسة من غير موظفي الحكومة أعضاء. 1مكرر- يكلف المحافظ أحد ال
- Article 10
The 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.
1- يتولى المجلس الإشراف على أعمال البنك، ويكون المسؤول بشكل عام عن حسن سير الإدارة، وله الاختصاصات كافة اللازمة لتحقيق ذلك وفقاً لأهداف البنك، وللمجلس أن يضع ما
- Article 11
The 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.
1- ينعقد المجلس بدعوة من رئيسه مرة كل (ثلاثة) أشهر، وكلما دعت الحاجة إلى ذلك بدعوة من رئيس المجلس أو بطلب من (ثلاثة) أعضاء على الأقل. 2- لا يكون الاجتماع صحيحاً
- Article 12
The 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.
يرفع المحافظ إلى الملك طلب تعيين خلـفٍ لأي مـن أعضاء المجلـس - وفقاً للفقـرة (2) من المـادة الثامنـة من النظـام - في أي من الحالات الآتية: 1- وفاة العضو. 2- إذا
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.