Saudi Arabia Permits 9 FinTech Companies to Operate in Regulatory Sandbox
The Saudi Arabian Monetary Authority (SAMA) announced that it has allowed nine more FinTech firms to function in the Regulatory Sandbox, increasing the number to thirty. This new step is SAMA’s attempt to encourage the digitization of financial services and direct towards digital transformation in the financial sector in accordance with the needs and goals of the Financial Sector Development Program, one of the Kingdom’s Vision 2030 programs.
— Asharq Al-Awsat English (@aawsat_eng) April 19, 2020
SAMA received about 103 requests for innovative solutions, accepted the ones that were in accordance with the Regulatory Sandbox Framework. Applications that are related to payments, financing, and insurance are eligible to apply to obtain the license directly and adhere to the recently issued guidelines.
SAMA’s Regulatory Sandbox included services such as Electronic Saving Societies (designed for individuals) and Crowdfunding Platforms (designed for small businesses and SMEs).
Some of the roles of the sandbox would be to increase financial knowledge among all segments of the society, promote the development of the national economy and diversification of its sources of income, and encourage savings, financing, and investment.
Other goals include the launching of supporting projects to enhance the spirit of innovation, including development and support of the SME sector to create a competitive economic environment that guarantees the sector’s sustainability, betterment and greater contribution to the national GDP.