Latest news with #SR2
Arabian Post
16 hours ago
- Business
- Arabian Post
Saudi Bank Unveils New Credit‑Card Rules to Drive Transparency
Arabian Post Staff -Dubai The Saudi Central Bank has introduced sweeping reforms in the rules governing credit-card issuance and operation, aiming to reduce consumer costs, bolster transparency and align with global standards. The changes include mandatory fee notifications, reduced cash withdrawal charges, capped international transaction fees and improved disclosures. SAMA will implement these updates within 30 to 90 days. Key changes include a requirement for issuers to send SMS alerts before any fee or term modification, allowing cardholders a 14-day window to cancel agreements without penalty under the updated terms. E-wallet top-ups using credit cards will now incur no charges, a move intended to incentivise digital payments. ADVERTISEMENT Cash withdrawals of SR2,500 or less will carry a maximum fee of 3% of the transaction value; those of SR2,500 or more are capped at SR75. Previously, cash advance fees applied sharply until SR5,000 with a flat SR75, and beyond that 3%, up to SR300—making the new cap notably more favourable for larger withdrawals. International purchases will now attract a clear 2% fee of the transaction amount. A notable enhancement allows customers to deposit amounts beyond their credit limit and withdraw them at any point without additional charges, enhancing flexibility and consumer agency. Account statements must now be issued via SMS at least 25 days before payment, detailing balances, due dates and fees. Immediate notifications must follow any credit-card transaction, including details such as merchant, amount and remaining limit. Issuers are also required to provide pre‑transaction tools for estimating international charges and reward benefits. Repayment provisions maintain consumer safeguards: a 25-day minimum grace period is mandated before term costs apply. The rules prohibit levying additional fees for full balance payments and outlining clear terms for minimum payments and their implications. These reforms are underpinned by standardised disclosure templates for fees and benefits, inclusive of promotional terms—a step towards consistency across the market. Issuers must emphasise APR, term costs and expiration timelines for rewards or promotions, with SMS reminders 14 days in advance. SAMA's emphasis on mandatory due diligence and creditworthiness checks prior to card issuance is reinforced under the new framework. Criteria now include explicit customer consent via authenticated channels, formal credit record assessments and eligibility conditions aligned with industry best practices. Procedures for supplementary cards, default reporting and dispute resolution have also been clarified. For example, the minimum repayment remains 5% of the due balance, and any default procedures must include consumer advisory services before legal or collection measures begin. SMS has been designated the primary channel for disclosures, with issuers obliged to inform customers of account activity, fee changes and promotional developments. Financial institutions must adhere to SAMA‑specified notification templates to promote uniformity and clarity. According to a senior official within SAMA, the goal is to 'establish minimum requirements to promote disclosure, transparency and fair practices, as well as to limit credit risk.' Industry reaction has been generally positive. Analysts from regional banks suggest the rules will 'enhance consumer protection while supporting digital payment growth.' Critics, however, note potential implementation challenges—particularly in updating existing systems to align with stricter notification and compliance requirements. The timing reflects SAMA's broader strategy to modernise the financial sector and accelerate digital payments as part of Saudi Vision 2030. A 2020 directive mandated real‑time notifications for debit card and e-wallet transactions, laying foundational infrastructure for today's enhanced SMS regime. Collaboration with global payment networks—such as Visa, MasterCard and American Express—has helped shape caps on international and cash advance fees. Banks and fintech firms are now preparing compliance roadmaps. One major lender has initiated system-wide updates to include the new SMS templates, fee calculators and balance‑flexibility features. Industry trade bodies are urging transparency in implementation timelines to ensure consumers are well informed ahead of the rollout. As SAMA positions Saudi Arabia's credit‑card framework at par with international best practice, key areas to monitor include transparency in third‑party charges, enforcement mechanisms for non-compliant issuers, and feedback from consumer‑protection advocates.
Saudi Gazette
a day ago
- Business
- Saudi Gazette
New SAMA rules limit credit card fees: 3% cash withdrawal, 2% foreign purchases, free e-wallet top-ups
Saudi Gazette report RIYADH — The Saudi Central Bank (SAMA) announced on Thursday updated rules for the issuance and operation of credit cards, aimed at lowering costs for customers and increasing levels of disclosure and transparency. The new regulations will take effect within 30 to 90 days. Among the key updates, credit card issuers must notify customers of any changes in fees via SMS, with customers allowed to terminate their agreement within 14 days of receiving the notice. E-wallet top-ups via credit cards are now free of charge. For cash withdrawals below SR2,500, fees are capped at 3% of the transaction amount. For withdrawals of SR2,500 or more, fees are limited to a maximum of SR75. International purchases will now carry a 2% fee of the transaction value. Customers are also permitted to deposit additional amounts above their credit limit and withdraw them at any time without incurring charges. SAMA worked with global payment companies to assess and reduce associated transaction costs, as part of its mission to enhance Saudi Arabia's digital payment ecosystem and provide a diverse array of payment options for customers and visitors. Transparency measures now require issuers to notify customers immediately of any financial transactions and to send account statements via SMS. Issuers must also provide tools for customers to estimate rewards and international charges before making a purchase. Regarding repayment, customers may pay off their full outstanding balance without incurring late fees, with a mandatory grace period of at least 25 days. The regulations also unify disclosure templates for all fees, charges, and benefits within credit card agreements, promoting greater clarity for consumers. Previously, cash withdrawals carried fees of SR75 for transactions up to SR5,000 and 3% of the transaction amount for amounts over SR5,000, with a maximum fee of SR300. The new cap of SR75 for larger transactions offers more favorable terms. International transactions are now subject to a clear 2% fee, and additional charges include SR25 for invalid transaction disputes and account statement requests.
Saudi Gazette
6 days ago
- Business
- Saudi Gazette
Gulf stock markets tumble amid Israel-Iran escalation
Saudi Gazette report RIYADH — Financial markets across the Arabian Gulf and Egypt plunged sharply on Sunday, as escalating military tensions between Israel and Iran triggered widespread selloffs and heightened volatility across the region's stock exchanges. The downturn followed a weekend of intensified hostilities, with both sides exchanging airstrikes since Friday, rattling investor confidence and driving oil prices up nearly 7% by the close of trading on Friday. In Saudi Arabia, the Tadawul All Share Index (TASI) opened down by around 3%, before recovering slightly to close 1.81% lower at 10,647 points. Trading volumes exceeded SR2 billion. Despite the overall market drop, shares in Saudi Aramco rose 1.76%, buoyed by the oil price surge, peaking at SR25.50 on a trading value of more than SR357 million. The Kuwait Stock Exchange experienced the steepest losses, initially falling by 5%, which triggered a temporary trading ended the session down 3.9% at 8,507 points, shedding 348 points. Total trading exceeded 446 million shares, valued at KWD 127.7 stock market suffered one of its worst single-day losses in recent benchmark EGX 30 index fell 6.26% to 30,475 points, while market capitalization lost more than EGP 120 billion within the first 15 minutes of trading, as a wave of panic selling swept the Qatar Stock Exchange index also dropped 2.8% to 10,334 points, and the Muscat Securities Market slid 1.8% to 4,461 points. The Bahrain Bourse recorded a milder decline of 0.7%.
Saudi Gazette
26-05-2025
- Business
- Saudi Gazette
Saudi ride-hailing apps record over 27.9 million trips in Q1
Saudi Gazette report RIYADH — Saudi Arabia'sTransport General Authority (TGA) announced that the number of trips carried out via ride-hailing apps in the country exceeded 27.9 million trips during the first quarter of 2025, an increase of 87 percent compared to the same period of 2024. TGA confirmed that the total number of active drivers serving passenger transport apps in Saudi Arabia amounted to more than 2,47,700, including 13,000 females, during the first quarter of 2025. This was an increase of 68 percent for male drivers, and 83% for female drivers, compared to the first quarter of last year. TGA explained that Riyadh region topped the highest percentage of executed trips, recording 41.1 percent, while Makkah came second with 23.2 percent, followed by the Eastern Province with 15.7 percent, and Madinah with 6.5 percent. Al-Qassim and Asir each recorded 3.2 percent, Tabuk 2.7 percent, Hail 1.9 percent, Jazan 1.2 percent, Najran 0.6 percent, Al-Jawf 0.5 percent, and finally the Northern Borders and Al-Baha each 0.2 percent. . The ride-hailing apps in the country witnessed significant growth with the total annual income of Saudi male and female drivers from the sector exceeding SR2 billion.
Saudi Gazette
22-05-2025
- Business
- Saudi Gazette
GIB Capital closes deals in Q1 2025 with a total value exceeding several billion dollars
GIB Capital, the investment arm of Gulf International Bank, continues to strengthen its position in the investment services sector by achieving a number of accomplishments during the first quarter of 2025. Among these achievements, the company acted as financial advisor, institutional bookrunner, and joint underwriter for the IPO of Umm Al-Qura, with a total offering size of SR2 billion, which was oversubscribed 241 times. The company also served as joint lead manager and joint bookrunner in the $1.25 billion sukuk issuance for the Saudi Arabian Mining Company (Ma'aden), which was 8 times oversubscribed, receiving strong demand from international investors. As part of its expansion into global debt markets, GIB Capital managed a $1.75 billion sukuk issuance for the Islamic Development Bank (IsDB) as joint lead manager and joint bookrunner, with participation from a wide range of global investors. GIB Capital also acted as joint lead manager and joint bookrunner for a $1 billion sukuk issuance by the Bahrain Petroleum Company (Bapco), which attracted over $4 billion in orders. In another notable transaction, the company served as joint lead manager in the $2 billion sukuk issuance by the Saudi Real Estate Refinance Company (SRC), which was oversubscribed more than six times, with active participation from international transactions reflect GIB Capital's ability to efficiently execute complex financial operations and reaffirm its role as a key partner in the development of capital markets and in enhancing their appeal to both local and global investors.
