Article 25 of the Saudi Council of Ministers Law

This article places an important financial control on government borrowing, requiring two conditions together for the Government to contract any loan:

1. The approval of the Council of Ministers.
2. The issuance of a royal decree to that effect.

The wording "may not ... except after" means both conditions precede contracting the loan, so a loan cannot be contracted and approval sought afterward. The two conditions also apply together: the Council's approval is not enough without a royal decree.

The text speaks of "the Government" generally and does not specify the type, amount or source of the loan, so by its apparent wording the provision covers the contracting of loans without distinction. The article does not set out the procedures for putting a loan before the Council, so these should not be assumed.

This article comes among the Law's financial provisions: before it is Article 24, which gives the Council, as the direct executive authority, full control over execution and administration, and after it Article 26, which provides that the Council studies the State budget and votes on it chapter by chapter and it is issued by royal decree. Both the loan and the budget thus pass through the Council and are issued by royal decree.

The importance of the article is that it makes public borrowing a decision at the highest level, because of its effect on the State's finances.