In the name of God, the Most Gracious, the Most Merciful
Number: 23
Date: 23 Jumada al‑Awwal 1377 AH
By the grace of God,
We, Saud bin Abdulaziz Al Saud,
King of the Kingdom of Saudi Arabia,
After reviewing Royal Decree No. 30/4/1/1047, dated 25 Rajab 1377 AH,
and Royal Decree No. 17/9/2/8762, dated 27 Ramadan 1374 AH,
and Council of Ministers Resolution No. 103, dated 20 Jumada al‑Awwal 1377 AH,
and based on the submission presented to us by the Prime Minister and the Minister of Finance and National Economy,
We hereby decree the following:
Article One — Purposes of SAMA
The purposes of the Saudi Arabian Monetary Agency shall be:
- a. Issuing and supporting the Saudi currency and strengthening its value inside and outside the Kingdom.
- b. Acting as the banker of the government.
- c. Supervising commercial banks and currency‑exchange dealers.
Article Two — Prohibitions and Financial Rules
- SAMA may neither pay nor receive interest; it may only impose service fees for services rendered to the public or the government, to cover its expenses. These fees shall be issued in a regulation approved by the Board of Directors and endorsed by the Minister of Finance.
- SAMA shall not have capital, and must return all its capital to the government.
Article Three — Functions Related to Currency and Bank Supervision
SAMA’s functions in relation to currency operations and supervision of commercial banks shall include:
- a. Stabilizing and supporting the internal and external value of the currency and strengthening the currency cover.
- b. Safeguarding and managing reserve funds allocated for monetary purposes, which may only be used for monetary operations.
- c. Minting, printing, and issuing Saudi currency, and all related operations, in accordance with the Saudi Currency Law No. 24 dated 13 Jumada al‑Awwal 1377 AH.
- d. Supervising commercial banks and currency‑exchange dealers, and issuing instructions as necessary.
Commercial banks operating in the Kingdom must submit monthly financial statements to SAMA, using forms prepared by the Agency, and must provide any additional data requested, provided such data does not disclose private customer accounts.
- e. Requiring commercial banks to maintain a permanent reserve with SAMA, at a percentage of their deposits determined by the Minister of Finance upon SAMA’s recommendation.
Article Four — Government Banking Operations
SAMA shall act as the government’s banker, receiving all government revenues and disbursing payments in accordance with instructions issued by the government through the Minister of Finance.
Article Five — Research Department
SAMA shall establish a Research Department responsible for collecting and analyzing all information necessary to assist the government and the Agency in formulating and implementing financial and economic policy.
Article Six — Prohibited Activities
SAMA is prohibited from:
- a. Engaging in any activity contrary to Islamic law, including paying or receiving interest.
- b. Accepting private deposits.
- c. Lending to the government, private entities, or individuals.
- d. Engaging in commerce, participating in commercial enterprises, or holding interests in commercial, industrial, or agricultural projects.
- e. Purchasing or owning real estate except what is necessary for its operations.
Article Seven — Board of Directors
SAMA shall have a Board of Directors responsible for supervising its operations and ensuring administrative efficiency. The Board shall have all necessary powers to achieve these objectives and may issue regulations and instructions as needed. It may also propose amendments to this system through the Minister of Finance.
Article Eight — Legal Status
SAMA is a permanent institution with no fixed duration. It is empowered to undertake all actions necessary for its operations, including contracting, owning property, and entering into obligations.
Article Nine — Composition of the Board
The Board shall consist of:
- A Governor (Chairman)
- A Deputy Governor
- Three members with expertise in financial and commercial affairs, not employed by the government
The Governor and Board members shall be appointed by Royal Decree for a five‑year term, based on the Minister of Finance’s recommendation and Cabinet approval.
Board decisions shall be issued by majority vote, with the Chairman’s vote prevailing in case of a tie. Decisions shall be communicated to the Minister of Finance upon issuance.
Article Ten — Governor’s Authority
The Governor manages SAMA’s affairs and represents it before the courts.
The Deputy Governor is appointed by Royal Decree and acts in the Governor’s place during his absence.
The salaries of the Governor, Deputy Governor, and Board members shall be determined by Cabinet decision.
All other employees shall be appointed, promoted, or dismissed by the Governor in accordance with regulations approved by the Board.
Article Eleven — Reporting Requirements
SAMA shall provide the government, through the Minister of Finance, with copies of its bi‑monthly and annual statements published in the Official Gazette, in accordance with Article Eleven of Royal Decree No. 24 dated 23 Jumada al‑Awwal 1377 AH.
Article Twelve — Penalties
Any bank or currency‑exchange dealer who refuses to provide information required under Article Three (d), or fails to maintain the required reserve under Article Three (e), shall be subject to a fine not exceeding 10,000 Saudi riyals.
In case of repeated violations, the government may suspend or close the offending establishment.
Article Thirteen — Repeal of Previous Regulations
This system replaces the previous SAMA regulations and all amendments thereto, and any provision contrary to this system is hereby repealed.
Article Fourteen — Implementation
The Prime Minister and the Minister of Finance and National Economy shall implement this system.
Umm al‑Qura