Fsdp Quarterly Newsletter Q1 2023 · Page 6

 
6  | 
Saudi Central Bank Announces Licensing First Foreign 
Insurance Company Branch in Saudi Arabia 
The Saudi Central Bank (SAMA) announces the licensing of 
Cigna Worldwide Insurance Company; the first foreign 
health insurance company branch in Saudi Arabia. 
The licensing of new foreign branch aims to fulfill the 
objectives of the "Rules for Licensing and Supervision of 
Branches of Foreign Insurance and/ or Reinsurance 
Companies in Saudi Arabia".  It also comes as part of 
SAMA's role in supporting financial stability and 
contributing to the national economic growth towards 
achieving the objectives of Saudi Vision 2030. 
SAMA stated that this falls under SAMA's initiatives to 
encourage foreign direct investments to increase 
competitiveness of the sector and utilize potentials of the 
Saudi economy. Additionally, enabling new international 
entrants will enhance the quality of provided services, 
increase diversification of investors and introduce unique 
business models to the market. 
The Capital Market Authority Approves the Amended 
Prudential Rules 
The Capital Market Authority's (CMA) Board issued its 
resolution approving the amendments to the Prudential 
Rules (Amended Rules), which shall be effective on 
01/04/2023. The Amended Rules aim to enhance the 
stability of the capital market institutions to further 
boost the confidence of the capital market participants 
and create an attractive investment environment to 
support national economy growth.  
Also, amending the Prudential Rules comes as part of the 
CMA's keenness, since its inception, on continuously 
regulating and developing the entities, subject to the 
CMA's control, which carry out any of the securities 
business, 
enhancing 
the 
control 
procedures 
and 
prudential level of such entities, in addition to raising the 
efficiency of the resources management of such 
institutions to provide optimum services to their 
customers in accordance with the best international 
practices. 
The main elements of the Amended Rules are updating 
the prudential requirements for carrying out any of the 
securities business, including updating the requirements 
of credit, market, operational and concentration risks. 
The 
main 
elements 
also 
include 
updating 
the 
methodology used to calculate the minimum limit of 
capital adequacy, and facilitating the prudential 
requirements for investment management, arrangement, 
and advisory activities to be based on expenses, which is 
in line with the nature of such activities. 
The 
“Capital 
Market 
Authority” 
Approves 
the
Implementing Regulations of the New Companies Law 
for Listed Joint Stock Companies 
The Capital Market Authority's Board approved the 
Implementing Regulations of the New Companies Law for 
Listed 
Joint 
Stock 
Companies 
“Implementing
Regulations", to be effective on 19/01/2023. 
The approval of the Implementing Regulations comes in 
implementation of the New Companies Law (the “Law") 
and based on the authority the Law granted to the CMA 
to regulate the matters and subjects stipulated in the 
Law related to joint stock companies listed on the 
Exchange, and come as part of the CMA's objectives to 
regulate and develop the Capital Market and contribute 
to achieving the CMA's strategic objectives by enhancing 
confidence and raising the level of governance in the 
capital market, and aim to stipulate the necessary rules 
to implement the provisions of the Law and contribute to 
realizing its goals.