Article 14 of the Saudi Insurance Control Law

This article imposes a financial guarantee on insurance and reinsurance companies subject to the law: the statutory deposit. Its provisions are:

• Where it is placed: with a local bank.
• Nature of the deposit: it is made to the order of the Saudi Arabian Monetary Agency, as the text names it, meaning the supervisory authority controls it, not the company alone.
• Controls: set by the Implementing Regulations.

The article does not state the amount of the deposit, its duration or the cases in which it may be dealt with; all of that is left to the Implementing Regulations and cannot be inferred from this text.

The practical value of the deposit is that it is a sum held at the disposal of the supervisory authority, which supports confidence in the company's ability to meet its obligations.

This article is part of a group of financial provisions. Before it is Article 13, which requires companies to file their zakat or tax returns and pay what is due, and after it is Article 15, which requires allocating at least 20% of annual profits to a statutory reserve until the reserve reaches 100% of paid-up capital. Anyone who needs the details of the deposit should consult the Implementing Regulations or a lawyer specialized in insurance and financial-sector matters.