Saudi Arabia: Non-Saudi Law Firm Directors May Now Be Appointed to Foreign Law Firms

Saudi Gazette, 16 October 2022: An executive regulation regulating foreign law firms’ licensing has been announced, meaning they can now appoint non-Saudis to directorship roles, provided they fulfil certain conditions.

Under the regulation, a non-Saudi director may be appointed as long as no less than a quarter of the board of directors or the council of executives of the firm are Saudi partners or shareholders licensed to practice the legal profession.

One of the Saudi partners, with a minimum of seven years of experience, must be a company director.

The law firm must also not have been implicated in a crime involving moral turpitude, dishonesty, or a severe professional violation in any country it practises.

For the full story, click here.

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Saudi Arabia: Regulations for Distribution of Gas and Petroleum Aim to Protect Consumers

Okaz, 9 October 2022: Saudi Arabia’s Ministry of Energy has announced new executive regulations aiming to protect the rights and interests of residential and commercial consumers of dry gas and liquid petroleum gas.

Under the regulations, the licensee must adhere to security, safety, health and environmental requirements and prepare an emergency plan by the Ministry of the Interior’s instruction.

Residential consumers are those who supply dry gas, liquid petroleum gas, liquid petroleum gas cylinders, or alternative natural gas for residential purposes.

Commercial consumers are those whose facility is supplied for commercial purposes, including government or industrial facilities which do not consume more than 70,000 litres per day.

For the full story, click here.

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Saudi Arabia: Cameras to be Banned in Medical Checkup Rooms

Saudi Gazette, 6 October 2022: Saudi Arabia’s Cabinet has approved a Law banning the installing of cameras in medical checkup rooms.

The installation of cameras will also be banned in inpatient rooms, physiotherapy facilities, rooms for changing clothes, toilets, salons and women’s clubs.

Surveillance cameras must be fixed or mobile and must not include cameras that individuals install in private residential compounds.

Under Article 5 of the relevant Law, manufacturing, importing, selling, installing, operating or maintaining security surveillance cameras is not allowed without the appropriate approvals being obtained first.

The Law will apply to Ministries, public authorities and institutions, oil and petrochemical facilities, power generation and water desalination facilities, air tourism facilities, commercial complexes and shopping centres.

It will also apply to financial institutions, banks, money transfer centres and residential buildings, including complexes in residential buildings.

In addition, they will apply to the Grand Mosque in Mecca, the Prophet’s Mosque in Medina, the Holy Sites of Mina, Arafat and Muzdalifah, mosques, clubs, sports facilities and stadiums, public and private cultural facilities, youth centres and public and private recreational and health facilities.

They will apply to medical cities, hospitals and clinics, commercial warehouses and main roads and their intersections, highways connecting cities and governorates, fuel stations and gas sales outlets, public and private educational facilities and facilities providing food services as well.

They will also apply to public transport, event and festival venues, places of economic and commercial activities, public and private museums and historical and heritage sites that receive visitors. The Interior Ministry can include any other site, activity or facility it considers appropriate to add to the list of facilities which fall within the purview of security surveillance cameras.

Those responsible for implementing the law must install, maintain and operate security surveillance cameras around the clock and preserve recordings. The law also states that the recording should be preserved, and no modifications will be made to it if reporting any specific accident until the completion of the investigation procedures.

The devices covered by the law are classified as high-sensitivity entities or facilities which must directly connect to their security surveillance camera systems, medium-sensitivity destinations, facilities or properties and low-sensitivity destinations and facilities which do not require links to the operating room.

A visible board or panels must be placed in a prominent place on the premises showing they are equipped with security surveillance cameras.

The regulations specify their features, numbers and places of installation.

It is illegal to transfer and publish camera video footage except with the approval of the Ministry of Interior or the Presidency of State Security, in line with a judicial order, or at the request of the relevant investigation authority.

Those who do not comply with the Law will be fined.

Those who violate technical specifications for installing each camera will be fined 500 Riyals. A fine of 1,000 Riyals will be imposed for each camera not installed in line with the terms and conditions prescribed in the manual.

Failing to keep video recordings will lead to fines of 5,000 Riyals being imposed, and anyone who transmits or publishes the video recordings in violation of the law or damages or sabotages devices of security surveillance camera systems or recordings will be fined 20,000 Riyals.

The Ministry of Interior, the Presidency of State Security and the Saudi Data and Artificial Intelligence Authority will be responsible for implementing the Law of Security Surveillance Cameras.

They will determine the mandatory deadline for installing cameras and security monitoring devices by each category covered under the Law.

Also reported in Okaz on 5 October 2022. For the full story, click here.

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Saudi Arabia: Central Bank Launches Public Consultation on Finance Companies Control Law

Arab News, 6 October 2022: Saudi Arabia’s Central Bank has launched a public consultation on amendments to the Finance Companies Control Law.

The amendments will affect companies that practice finance activities. They must offer the finance activity as a joint stock company.

Under the amendments, the Central Bank has the right to grant exceptions to finance companies to allow them to practice activities other than finance.

The definition of Finance Company will also no longer have the word joint stock in it if the amendments are approved.

The amendments are being proposed to ensure transparency and broader participation.

Comments can be submitted via the National Competitiveness Centre’s Public Consultation Platform.

They are also being proposed to strengthen the Bank’s commitment to upkeep relevant international principles and standards and boost growth in the sector. Additional reporting from Okaz on 6 October 2022. For the full story, click here.

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Saudi Arabia: New Unified Regulator for Insurance Sector to be Established

Saudi Gazette, 28 September 2022: Saudi Arabia’s Finance Minister has announced a new unified regulator for the insurance sector in the Kingdom will be established.

It will be established soon and will help develop the sector. They announced this at the 6th Saudi Insurance Symposium.

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Saudi Arabia: Regulatory Framework for Equity Crowdfunding Approved

Saudi Arabia’s Capital Market Authority has approved a regulatory framework for equity crowdfunding.

They have issued an appropriate Decision to this effect.

Under the Decision, the Capital Market Institutions Regulations, Investment Accounts Instructions, Rules on the Offer of Securities and Continuing Obligations and the Glossary of Defined Terms Used in The Regulations and Rules of the Capital Market Authority have been amended.

They will allow Capital Market Institutions who are authorised to arrange activities to offer securities via Equity Crowdfunding platforms and hold their clients’ money in the course of securities crowdfunding.

They also specify the requirements for custody of clients’ money received by capital market institutions which are authorised to carry out arranging activities in the course of carrying out securities crowdfunding and opening and operating investment accounts.

They aim to support financial technology innovations in the capital market by setting out a regulatory framework for equity crowdfunding, including determining the requisite authorisation for capital market institutions to carry it out and enabling companies which have a Financial Technology Experimental Permit (FinTech ExPermit) to obtain the appropriate authorisation to practice as a capital market institution, in line with the relevant international best practices.

The amendments will come into force on their published date.

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Saudi Arabia: Saudisation to be Implemented in Fun Cities

Saudi Gazette, 25 September 2022: Saudi Arabia’s Human Resources and Social Development Ministry has announced it will implement Saudisation in fun cities.

The programme is also being implemented in amusement parks.

The programme started to be implemented on 24 September.

Under the Decision, the new programme covers 70% of jobs in independent and seasonal fun cities and family entertainment centres.

It covers 100% of jobs in entertainment cities within closed commercial complexes or malls.

The Ministry has published the appropriate procedural guide on its website.

The guide states the Decision does not conflict with the Saudisation rates previously specified for various professions, which apply to the firm’s total employees in line with the Nitaqat Saudisation program.

It also states the Saudisation percentage will be calculated after subtracting workers who belong to the professions exempted.

Those who do not comply will be penalised—also reported in Okaz on 25 September 2022.

For the full story, click here.

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