Article 40 of the Saudi Finance Companies Control Law
المادة 40 من نظام مراقبة شركات التمويل
The article provides that the Law takes effect ninety days after the date of its publication in the Official Gazette.
Official text (Arabic)
This article has not been amended since the law was issued.
يعمل بهذا النظام بعد مضي تسعين يومًا من تاريخ نشره في الجريدة الرسمية.
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 40 explained in plain English
This article sets when the Law begins to apply: it takes effect after ninety days from the date of its publication in the Official Gazette.
This means there is a period between the Law's publication and the start of its application, ninety days, which allows the entities concerned to prepare to apply its provisions.
This article is linked to Article 39, which requires the Governor to issue the regulations within ninety days of the date the Law is issued, with the regulations applying after the Law takes effect. So there are two different dates:
- The date of issue: the period for issuing the regulations is counted from it.
- The date of publication in the Official Gazette: the ninety days before the Law takes effect are counted from it.
The article does not state the actual date of publication or of taking effect, so it must be checked in what was published in the Official Gazette. Anyone who wants to know when the Law began to apply must count the ninety days from the date of publication, not from the date of issue.
If you need to know whether the Law applies to an event that occurred at a particular time, you are advised to consult a lawyer specialized in banking and finance.
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 40 of the Saudi Finance Companies Control Law
When did the Finance Companies Control Law take effect?
After ninety days from the date of its publication in the Official Gazette.
What is the difference between the date the Law was issued and the date it took effect?
The period for issuing the regulations is counted from the date the Law was issued under Article 39, whereas the Law takes effect ninety days after its publication in the Official Gazette.
More articles on Definitions and Scope of the Finance Law
- Article 1
The article defines the key terms in the Finance Companies Control Law, such as finance company, beneficiary, consumer, license and finance.
يقصد بالألفاظ والعبارات الآتية - أينما وردت في هذا النظام - المعاني المبينة أمام كل منها، ما لم يقتضِ السياق خلاف ذلك: النظام : نظام مراقبة شركات التمويل. اللائ
- Article 2
The article defines the scope of the Law: it applies to finance companies licensed under its provisions.
يسري هذا النظام على شركات التمويل التي يرخص لها وفقاً لأحكامه.
- Article 3
The article requires licensed finance companies to carry on finance in a way that does not conflict with Islamic Sharia, according to Sharia committees they choose, and without undermining the soundness of the financial system and fairness of dealings.
تزاول الشركات - المرخص لها بموجب هذا النظام - أعمال التمويل بما لا يتعارض مع أحكام الشريعة الإسلامية، بناءً على ما تقرره لجان شرعية تختار أعضاءها تلك الشركات، و
- Article 36
The article gives companies and entities that carried on finance in the Kingdom before the Law took effect a two-year period to regularize their status in line with its provisions.
تمنح الشركات والمؤسسات العاملة التي تزاول نشاط التمويل في المملكة قبل سريان هذا النظام مهلة سنتين لتسوية أوضاعها وفق أحكام هذا النظام.
- Article 37
The article makes the Zakat and Income Authority the body that issues the criteria needed to calculate the zakat base of finance companies.
تصدر مصلحة الزكاة والدخل المعايير اللازمة لاحتساب الوعاء الزكوي لشركات التمويل.
- Article 38
The article provides that the Finance Companies Control Law repeals any provisions that conflict with it.
يلغي هذا النظام كل ما يتعارض معه من أحكام.
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.