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Saudi Arabia Issues Draft Resolution on Implementing Payment Service

Saudi Central Bank (SAMA)
Saudi Central Bank (SAMA)
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Saudi Arabia Issues Draft Resolution on Implementing Payment Service

Saudi Central Bank (SAMA)
Saudi Central Bank (SAMA)

The Saudi Central Bank (SAMA) announced opening a public consultation on the draft implementing regulation of payments and payment services law.

In the interest of transparency and broader participation, SAMA invites stakeholders and the public to provide suggestions and observations on the draft by visiting the Public Consultation Platform (Istitlaa) affiliated with the National Competitiveness Center.

According to the new project, which Asharq Al-Awsat reviewed, SAMA will monitor the payment service providers and their system operators to assess their commitment, including monitoring and examining suspected system violations and regulations and any instructions decisions and circulars.

The Central Bank encourages fair competition in the sector between licensees to serve members and users of payment services.

Under the executive regulations for the payment system and its services, SAMA may exercise its supervisory functions by conducting inspection visits to the licensee's headquarters, branches, and agents.

Licensees must submit periodic statements and reports and quarterly financial statements and include any information specified by the Central Bank, noting that an external auditor will review them.

Under the new project, the licensee is obligated to submit the audited annual financial statements within the first two months of the end of the fiscal year.

The Central Bank may amend a request to complete the list and contents of the reports required to be submitted and appoint an external auditor to review a specified scope of its operations and submit a direct report.

The regulation will include terms to protect customers and encourage competition so that service providers adhere to the principles of financial inclusion issued by the Central Bank.

Principles of justice and transparency must be verified to ensure participation in the systems.

The Central Bank shall encourage fair competition in the sector between licensees to serve members and users of payment services.

The regulatory function is part of SAMA's oversight role under the authority vested in SAMA, as mentioned in Articles 7 and 18 of the payments and payment services law.

The Implementing regulation aims at reinforcing commitment to relevant international principles and standards, enabling SAMA to exercise its powers.

In addition, the regulation would help contribute to the growth of the sector and attract new investors for achieving one of the Vision 2030 objectives of the Financial Sector Development Program (FSDP).

Contributors are expected to provide their input on the draft within 20 days from this publication to enable SAMA to assess its relevance in finalizing the text. The draft is available on the Public Consultation Platform.

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Eurasian Development Bank Reveals Partnerships with the Gulf to Develop Energy Projects

Chairman of the Management Board at the Eurasian Development Bank (EDB) Nikolai Podguzov. Asharq Al-Awsat
Chairman of the Management Board at the Eurasian Development Bank (EDB) Nikolai Podguzov. Asharq Al-Awsat
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Eurasian Development Bank Reveals Partnerships with the Gulf to Develop Energy Projects

Chairman of the Management Board at the Eurasian Development Bank (EDB) Nikolai Podguzov. Asharq Al-Awsat
Chairman of the Management Board at the Eurasian Development Bank (EDB) Nikolai Podguzov. Asharq Al-Awsat

Chairman of the Management Board at the Eurasian Development Bank (EDB) Nikolai Podguzov revealed plans to cooperate with GCC countries, including Saudi Arabia, to develop energy infrastructure.

Podguzov told Asharq Al-Awsat that the bank, which is the international financial organization that operates in Central Asia and in Eurasia, works on implementing a working plan based on three strategies.

“Every year we execute around 30-40 new projects and set up agreements,” he said.

“The investments of the bank are growing at least 20% each year,” Podguzov revealed. “We are quite a fast developing bank. Uzbekistan has just joined the bank this year.”

Regarding the size of loans and investments handled by EDB, Podguzov explained that the bank's average investment ranges between $100 million and $400 million. He added however, that the bank is capable of syndicating larger loans that can reach up to $1 billion or more, while the average annual investment volume is around $2.53 billion.

Regarding the bank's work plans for the coming year, Podguzov explained that the Eurasian Development Bank is simultaneously working to strengthen its relations with the GCC countries and the Islamic Development Bank.

“We improve connectivity, transport infrastructure and logistics. We improve access to water for regions in Central Asia. We develop energy infrastructure in our member states,” he told Asharq Al-Awsat.

“We take care of food safety and food safety infrastructure, which provides access to food and provides food security for our member states. And I think in this field we can set up very good economic ties and cooperation between GCC countries and Central Asia.”

“I know that such countries like Saudi Arabia, Emirates, Oman are quite interested in the topics of our strategy,” he said.

“We mainly do non-sovereign finance ... which is very convenient for our potential partners,” he added.

Podguzov said there is a partnership with Masdar which “is a world leader in bringing renewable energy technologies into the world. They are quite active in Central Asia, in Kazakhstan in particular.”

“That is why, for example, we are very much interested in cooperation with Masdar company. This is one of examples. I think logistics and logistics project also could be of interest for Saudi Arabia. A lot of infrastructure could be developed together with the help of Eurasian Development Bank.”

“I believe that it's also very important to build economic bridge between GCC countries and Central Asia. And I think the bank can do a lot in this field and finally we can bring together economic interests of Central Asian and GCC countries.”