Fsdp Quarterly Newsletter Q4 2023 Vf · Page 5

 
5  | 
Financial Sector Development Highlights 
SAMA Governor Honors Two Insurance Companies for 
Smooth Merger 
H.E. Mr. Ayman Al-Sayari, Governor of the Saudi Central 
Bank (SAMA), honored Chairmen of the Boards of “Arabian 
Shield Insurance” and “Alinma Tokio Marine” on 
Wednesday, November 1, 2023, following a merger of 
both companies. This marks the sixth merger within the 
Saudi insurance sector. Consolidation in the Saudi 
insurance industry reflects the ongoing efforts of SAMA in 
regulating and supervising the insurance sector. Which 
have been in place since the issuance of the insurance 
companies’ supervision regulations in 2003. They 
contribute significantly to the development of the sector. 
Al-Sayari stated that these mergers play a vital role in 
advancing the sector's growth and enhancing its financial 
stability, empowering it to effectively mitigate risks with 
a diverse array of innovative insurance offerings.  He 
added that mergers are important elements in achieving 
objectives of Saudi Vision 2030 and the Financial Sector 
Development Program (FSDP) as they help promote 
financial sustainability and support the growth of the 
private sector. The Governor also noted that mergers and 
acquisitions will enable companies to create efficient and 
resilient entities that can innovate and meet the 
expectations 
of 
their 
stakeholders 
and 
market 
participants. 
SAMA signs Cooperation Agreement with MAS in Fintech 
and Innovation 
The Saudi Central Bank signed a cooperation agreement 
with the Monetary Authority of Singapore (MAS) on 
Wednesday, October 18, 2023, in Riyadh, in the field of 
fintech and innovation. 
The agreement aims to strengthen collaboration and 
foster mutual development of the two organizations. It 
seeks to facilitate activities in international markets 
while respecting the rights and obligation of both parties, 
provide a robust framework for cooperation between the 
innovation departments of both organizations, establish 
effective mechanisms for sharing information regarding 
Fintech and innovation, promote their utilization in the 
markets and enhance cooperation and foster coordinated 
efforts in areas of mutual interest. 
Amended Comprehensive Motor Insurance Rules Take 
Effect  
The Saudi Central Bank (SAMA) announced the issuance of 
the Amended Comprehensive Motor Insurance Rules as 
part of the ongoing effort to regulate the insurance sector 
and protect the rights of beneficiaries. 
The amended rules seek to expand the insurance 
coverage to include relatives, private drivers and 
sponsorees of the insured. The amendment limits the 
scope of the coverage to individual clients only, granting 
corporate clients greater flexibility to customize 
insurance coverages and benefits according to their 
specific needs. 
SAMA: Total Assets for Saudi Finance Companies Sector
Grew by 9% in H1 2023 
The Saudi Central Bank (SAMA) issued its semi-annual
performance report of the finance companies’ sector and
real estate refinancing sector for the H1 2023. 
According to the report, most of the indicators in the 
finance companies sector grew at varying rates in H1 
2023. The paid-up share capital increased by 5% to SAR 
15.36 bn, total assets by 9% to SAR 62.36 bn, and total
financing portfolio by 7% to SAR 80.71 bn. Additionally,
the net income of the finance companies sector reached 
SAR 739mn. 
In terms of loan portfolio classification, the retail sector 
accounted for the largest share of 76%