Law & Regulation
Saudi Central Bank Law
The Law establishes the Saudi Central Bank's legal identity, objectives, governance and core monetary, financial-stability, reserve and supervisory functions. It is the approved Country Profile principal for Foreign Exchange / Capital Controls, without implying that it is a transaction-level exchange-control code. Its relevance is institutional: it supplies the authority under which SAMA regulates financial institutions, payment systems, currency and relevant cross-border financial activity.
Legal Significance
What This Instrument Does
The Law defines SAMA's objectives and powers, including monetary policy, currency issuance, reserve management, financial-sector stability, regulation/supervision within mandate, payment systems, information gathering and cooperation. Detailed institution-specific obligations generally sit in other laws and SAMA rules.
Why It Matters
Infrastructure finance relies on regulated banks, payments, accounts, hedging and cross-border flows. The Law identifies the competent central authority and legal basis for the regulatory layer affecting those functions; it does not itself promise convertibility or unrestricted transfer in every circumstance.
Key Provisions
- Legal status and independence
Establishes the central bank and governance framework. Transaction relevance: identifies regulator capacity and institutional authority.
- Monetary stability objectives
Sets core policy functions. Transaction relevance: relevant context for currency and funding environment, not a contractual guarantee.
- Currency issuance
Governs national currency functions. Transaction relevance: anchors payment denomination and monetary authority.
- Reserve management
Authorizes management of foreign reserves. Transaction relevance: contextual to FX framework; not an investor-specific transfer right.
- Financial stability
Gives SAMA system-stability functions. Transaction relevance: supports supervisory intervention and prudential policy.
- Regulation and supervision
Establishes powers over regulated financial institutions within mandate. Transaction relevance: bank/account/hedge counterparties operate within this layer.
- Payment and settlement systems
Supports oversight and development. Transaction relevance: relevant to project accounts and payment infrastructure.
- Information and inspection powers
Enables data collection and oversight. Transaction relevance: affects regulated counterparties and confidentiality expectations.
- Institutional cooperation and rulemaking
Supports implementation through regulations/instructions. Transaction relevance: current SAMA rules must be checked for specific products.
When You Would Use This
Identifying SAMA’s authority over a financing or payment activity.
Mapping regulatory approvals for banks or financial service providers.
Analysing the legal setting for project accounts and payment systems.
Framing foreign-exchange/cross-border flow diligence.
Reviewing central-bank information or supervisory powers.
Distinguishing the institutional framework from product-specific SAMA rules.
InfraLex Relevance
This Law is both a Banking Primary and the single displayed FX/Capital Controls framework instrument. Banking Control Law supports the FX topic but does not displace this resolution.
Legal Framework Position
- Banking & FinancePrimary / Framework Instrument
- Foreign Exchange / Capital ControlsPrimary / Framework Instrument
Instrument Overview
- Official Citation
- Royal Decree M/36, 11/4/1442H
- Instrument Type
- Law / Act
- Source Language
- Arabic
- Last Verified
- 6 September 2026