Due to the rise of financial technology fintech in Saudi Arabia, The Saudi Arabian Monetary Authority (SAMA) and the Capital Market Authority (CMA) have set up regulations to control Fintech-related activities in Saudi Arabia.

Any fintech Company that wants to enter the market in Saudi Arabia must first get the required licenses from The Saudi Arabian Monetary Authority (SAMA), the Capital Market Authority (CMA), or even both. The kind of license required depends on the services and activities the Fintech company wishes to perform.

A temporary license is issued by SAMA or CMA, permitting the fintech companies to go ahead with the activities for a trial period before getting approval from the authorities in charge.

All fintech startups must first obtain an expert and meet all requirements stated by the Capital Market Authority (CMA).

Any natural or legal person can apply to the authority to obtain a Fintech Expert. This permit gives an entity the right to practice in the fintech lab to release and test their FinTech innovations.

The applicant/entity can only test and deploy their FinTech product if granted the ExPermit.

The relevant authorities may impose additional regulatory requirements or restrictions, or conditions from the existing CMA’s regulation.

APPLICATION PROCESS

• Submit FinTech Expert application form to CMA or SAMA
• The appropriate regulatory reviews the application to determine the applicant’s preliminary eligibility following the requirements set out in the instructions

If the applicant potentially qualifies for the FinTech ExPermit, the financial technology company commences the business after notifying the Authority and obtaining its approval. If the company doesn’t qualify, the application is rejected, and the applicant is informed and given a grace period to fulfill the regulatory requirements.

Investment in fintech has skyrocketed worldwide in the last decade. Because of this, fintech tech startups in Saudi Arabia are rising, seeing the positive effects of it worldwide. Investors in Saudi Arabia are eager to invest in fintech technology in Saudi Arabia, as they are seeing how it continues to transform all aspects of the traditional banking industry.

Open Source:-https://fintechbuddysaudi.com/the-rise-of-fintech-in-saudi-arabia/