RIYADH: Saudi Arabia is working toward improving disclosure practices for consumers and standardizing the mechanism of calculating annual percentage rates for financing products, according to its apex bank. In a press statement issued on Wednesday, Saudi Central Bank, also known as SAMA, called for a public consultation on the draft rules governing the calculation of the APR. The APR is a fixed interest rate for an entire year and offers a complete picture of what consumers will pay for a loan. The apex bank has invited its stakeholders and the public to send suggestions and observations on the proposal via its public consultation platform. The statement added that the suggestion period is open until Aug. 31. FASTFACTS The APR is a fixed interest rate for an entire year and offers a complete picture of what consumers will pay for a loan. The apex bank has invited its stakeholders and the public to send suggestions and observations on the proposal via its public consultation platform. This move follows SAMA’s decision to raise its key interest rates by 25 basis points on July 26, mirroring the Federal Reserve’s quarter-percentage-point increase in US interest rates. The repo rate was adjusted to 6 percent, while the reverse repo rate saw a raise to 5.5 percent, according to the central bank statement. SAMA’s commitment to enhancing consumer finance within the Kingdom and promoting financial literacy has been evident through various initiatives supporting businesses and clients. In July, the bank approved insurance financial technology rules after gathering feedback via the National Competitiveness Center’s Public Consultation Platform. These insurtech regulations aim to oversee business operations, ensure client protection, and encourage fair competition in solution provision and services, thus sustaining sector stability and growth. The new rules encompass essential aspects of the insurance industry, including practitioner responsibilities, accurate client information, and conduct guidelines safeguarding client rights, compliance, and control. SAMA stated that this move aligns with its dedication to facilitating insurance sector expansion while regulating the interaction between insurtech firms and clients, ensuring the rights of all involved parties are protected. Saudi Arabia’s insurance sector witnessed robust growth, increasing by 26.9 percent to SR53 billion ($14.1 billion) in 2022, as indicated by SAMA’s 16th annual insurance market report. This marked a significant rise from the 8.4 percent increase to SR42 billion recorded in 2021.