Saudi Arabia’s fintech sector is experiencing a remarkable transformation, driven by the nation’s Vision 2030 initiative aimed at fostering innovation like in the fintech sector.
With Saudi Arabia’s fintech sector forecasted to grow from $64 billion in 2024 to $87 billion by 2029, it’s no surprise that international players are eyeing for business setup in Saudi Arabia. That’s why, investors eyeing this burgeoning market must get acquainted with the regulatory landscape, market dynamics, and strategic entry points.
This post acts as a guide for investors looking to expand into the Saudi Arabian fintech market, offering insights into regulatory compliance, licensing, and opportunities for fintech business incorporation in the KSA.
SAUDI ARABIA’S FINTECH MARKET – HIGHLIGHTS
1. The Growing Fintech Market in Saudi Arabia
Saudi Arabia is undergoing a financial revolution, with fintech at the center of its modernization efforts. The government’s initiatives like the Financial Sector Development Program (FSDP), and the creation of Fintech Saudi, have contributed to the sector’s rapid rise.
In 2023 alone, the number of fintech companies grew from 89 to 200, a staggering increase reflecting the market’s potential. The sector now generates over SAR 3.75 billion ($1 billion) in revenue annually, serving millions of customers across the Kingdom.
2. Regulatory Requirements
The Saudi Arabian Monetary Authority (SAMA) and the Capital Market Authority (CMA) are the primary regulators supervising fintech activities in Saudi Arabia.
Depending on the nature of the services like payment solutions, peer-to-peer lending, or investment platforms, fintech companies must obtain the appropriate licenses from these bodies, including the submission of detailed business plans, security measures, and compliance protocols.
Additionally, SAMA’s Regulatory Sandbox offers fintech startups the opportunity to test their products under supervision, ideal for innovative solutions like digital currencies and new payment models.
3. Major Steps to Market Entry
– Pre-Entry Market Research
Before entering the Saudi market, fintech firms must conduct thorough research to understand:
- Consumer behavior – How local customers interact with fintech services.
- Competitive landscape – Identifying key players and market gaps.
- Compliance regulations – Ensuring alignment with local laws.
– Required Documents for Company Registration
To register a fintech company in Saudi Arabia, businesses must prepare their documentation properly.
Required Documents for Startups:
- Commercial Registration (CR) – Attested by the Ministry of Foreign Affairs (MOFA) and the Saudi Embassy.
- Memorandum of Association (MoA) and Articles of Association (AoA) – Attested by MOFA and the Saudi Embassy.
- A letter of intent, startup brief, and pitch deck.
- Support letter from a VC firm or licensed incubator.
Required Documents for Established Businesses:
- Commercial Registration (CR) – Attested by MOFA and the Saudi Embassy.
- MoA and AoA – Attested by MOFA and the Saudi Embassy.
- Audited Financial Statement – Attested by MOFA and the Saudi Embassy.
4. The Market Entry Process: 3 Key Phases
#Phase One: Registration
- Obtain a MISA License from the Ministry of Investment (MISA).
- Reserve a company name and draft a local Articles of Association (AoA).
- Register with the Chamber of Commerce (CoC).
- Issue the Commercial Registration (CR).
#Phase Two: Setup
- Obtain a company seal.
- Register with the Ministry of Labor and the General Organization for Social Insurance (GOSI).
- Apply for a General Manager (GM) visa.
- Register with the General Authority of Zakat and Tax (ZATCA) and VAT registration.
#Phase Three: Banking and Compliance
- Activate the CoC account.
- Obtain health insurance and complete medical checkups.
- Issue the GM’s Iqama (residence permit).
- Register on government platforms like Muqeem, Absher, Qiwa, and Mudad.
- Open a corporate bank account for financial transactions.
5. Post-Setup: Regulatory Approvals for Fintechs
Once the company is registered, fintechs must acquire third-party approval from either SAMA or CMA, depending on their services.
– For payment, lending, or banking services → Apply for a SAMA fintech license.
– For securities and investment platforms → Obtain CMA approval.
How Nimbus Consultancy can Help?
While Saudi Arabia offers a fertile ground for fintech investors, it presents some major challenges in the form of documentation, registrations, operational setup with compliance, and sustenance.
At Nimbus Consultancy, we offer end-to-end support, from licensing to compliance and market launch, for your fintech company formation services in Saudi Arabia.
Ready to Enter the KSA’s Fintech Market?
Saudi Arabia is one of the most promising fintech markets globally, thanks to its regulatory support, financial investments, and rising consumer demand. For fintech firms looking to expand into the Kingdom, a well-structured entry strategy is essential.
By navigating regulatory approvals, setting up operations efficiently, and leveraging local partnerships, fintechs can tap into this rapidly growing market and drive financial innovation in the region.