Submitting Financial Guarantee

Requirements for Submitting Financial Guarantee

The financial guarantee must be addressed to the Ministry of Industry and Mineral Resources.
The value of the financial guarantee must be in accordance with the approved rehabilitation and closure plan, in the case of guarantees related to exploitation licenses of classes (A and B).
All required information must be stated accurately, including the name of the applicant company, the bank guarantee number, the name of the issuing bank, and the issuance and expiry dates of the bank guarantee.

Financial Guarantee Types

A bank guarantee issued by any bank operating in the Kingdom.
A financial guarantee account through one of the banks operating in the Kingdom.
An executive bond from the company or its owning company, if the company is with high financial capacity, and listed on the main Saudi Stock Exchange, supported by an annual report from a certified public accountant.
Saudi government bonds that are eligible for pledge.
Insurance and guarantee products and instruments.

Procedures for Submitting the Financial Guarantee

The application for the financial guarantee is done electronically through Saudi banks via the "Bawadl" platform. These banks include:

Riyad Bank
SABB (Saudi British Bank)
Al Rajhi Bank
Alinma Bank
The Saudi National Bank (SNB)
Bank Albilad
Gulf International Bank
Arab Bank
Banque Saudi Fransi
Bank AlJazira
The Saudi Investment Bank

Accordingly, the issuance or amendment of the financial guarantee is carried out electronically through the bank, and there is no need to submit the original guarantee to the Ministry.

If a manual guarantee is issued by any of the above banks, the original financial guarantee must be returned to the issuing bank in order for it to be reissued electronically.

Duration for Submitting the Financial Guarantee

For building materials quarry licenses, the guarantee must cover the full duration of the license to be issued, in addition to 18 months calculated from the license expiry date.
For mining and small mine licenses, the guarantee must cover the full duration of the license to be issued, in addition to 180 days calculated from the license expiry date.