Fsdp Quarterly Newsletter Q4 2023 Vf · Page 6

 
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SAMA Issues Rules For Regulating Buy Now Pay Later 
(BNPL) Companies 
The Saudi Central Bank (SAMA) announceed the issuance 
of the “Rules for Regulating Buy Now Pay Later (BNPL) 
Companies," as part of its role in supervising and 
controlling the BNPL companies. This decision reflects 
SAMA's continuous efforts to develop the financial sector 
as a whole and empower the Fintech sector in particular. 
Under these rules, the (BNPL) activity is defined as “a 
type of financing that allows a consumer to purchase 
goods or services without a term cost payable by the 
consumer." 
The rules aim to regulate the licensing of the (BNPL) 
companies and set minimum standards and procedures 
required to offer (BNPL) services. Additionally, the 
development of these rules will contribute to the growth 
and sustainability of the sector while safeguarding 
consumers' rights. 
The rules include various provisions related to licensing 
requirements, internal regulatory measures such as 
internal policies and procedures, information security 
standards and measures to combating financial crimes. 
Additionally, regulatory obligations designed to safeguard 
consumers, and establish boundaries for activities and 
credit, as well as provisions pertaining to supervision and 
compliance were included in the new rules. 
Marine Insurance Coverage Instructions Take Effect 
SAMA issued Marine Insurance Coverage Instructions as 
part of the ongoing effort to regulate and advance the 
insurance sector and protect rights of beneficiaries 
The instructions, drafted in coordination with the 
Transport General Authority, establish a comprehensive 
regulatory framework for mandatory and nonmandatory 
marine insurance and set the minimum limits for 
coverage and benefits. The instructions will contribute to 
improving the quality of insurance services and ensuring 
the right protection to all beneficiaries of marine 
insurance products. 
Listing and Trading Government Debt Instruments in 
the Saudi Stock Exchange 
In Q4 2023, Tadawul approved the listing request for debt 
instruments, issued by the government of the Kingdom of 
Saudi Arabia, which was submitted by the Ministry of 
Finance in accordance with the Listing Rules. Total value 
of these instruments amounts to SAR (17,203,440,000). 
Launch Single Stock Options Contracts 
The Saudi Exchange announced its intention to launch 
Single Stock Options (SSOs) contracts, the third 
derivatives product to be introduced in the Saudi 
Exchange. SSOs contracts will be available to trade on 27 
November 2023, enabling local and international 
investors to hedge and manage portfolio risks effectively. 
SSOs contracts will be cleared and settled by Securities 
Clearing Center Company (Muqassa) in line with 
international best practices. 
SSOs contracts are standard options contracts with an 
individual stock as its underlying asset. Four underlying 
assets have been selected from the largest and most 
liquid companies listed on the Saudi Exchange which are: 
Aramco, Al Rajhi Bank, STC, and Sabic. In the futures, the 
Saudi Exchange will expand its suite of SSOs contracts to
include additional companies. 
The Saudi Exchange will launch physically settled 
American options, which are a type of financial contracts 
that require the actual delivery of the underlying asset 
that can be exercised at any time prior to expiration. 
Speaking on the occasion, Mohammed Al Rumaih, CEO of
Saudi Exchange, stated that: “The launch of