RIYADH: New rules allowing the sale of goods by installment payments in Saudi Arabia have been welcomed by businesses and financial organizations in the Kingdom.
The Shoura Council on Monday approved regulations authorizing the Saudi Arabian Monetary Authority (SAMA) to start work on implementing the ruling aimed at protecting consumer interests.
Earlier, the Saudi Ministry of Commerce and Investment and SAMA were given the green light to put in place regulatory arrangements on installment sales and licensing.
Existing licenses will be valid until they expire, with new licenses being issued by SAMA. The new regulations were expected to be ready within 90 days, and no installment sale licenses would be issued based on the previous regulations.
Abdallah Suboh, corporate communication manager at Nissan’s Saudi dealership Alissa Auto, on Wednesday told Arab News: “We welcome the new regulation that is supposed to benefit the consumer.”
Zeid Al-Yaeesh, chairman of the General Committee for Financial Companies, an affiliate of SAMA, said the step would protect the market by making available the required data on all clients. The committee would restrict the financing process to licensed entities, ensuring compliance with SAMA’s applied regulations, he added.