Article 9 of the Saudi Insurance Control Law

This article subjects expansion and restructuring decisions in insurance companies to prior supervision. An insurance or reinsurance company may not do any of the following except with written approval from the Saudi Arabian Monetary Agency, as the text names it:

• Opening any branches or offices, inside or outside the Kingdom.
• Agreeing to a merger.
• Acquiring or taking control of any insurance or banking business.
• Owning shares in another insurance or reinsurance company.

Two things should be noted: first, the approval must be in writing, so oral or implied approval is not enough on the apparent text. Second, the prohibition on merging falls on the stage of "agreeing" itself, not only on carrying it out.

This article is linked to Article 8, which gives the right to inspect the company's records and accounts at its premises, and to Article 10, which requires the general assembly to appoint auditors annually and to publish the financial statements within 3 months of the end of the financial year; supervision of major decisions is thus paired with financial transparency. The article does not set the conditions for approval or its duration. Anyone planning a merger or acquisition deal in the sector should consult a lawyer who specializes in insurance and financial sector matters.