The Ongoing digitalization of the financial services generate many opportunities to build inclusive and efficient financial services as well as promoting economic development through fostering innovation and increasing competitions while managing the associated risk. The Fintech ecosystem is evolving rabidly across the globe and a number of factors including real-time data availability through API’s, increased smartphone penetration, comfort and trust in digital transactions all coupled with stable and affordable infrastructure have all contributed to rapid and significant changes being seen.

As part of ‘Vision 2030’ enablers, Saudi Central Bank introduced its Regulatory Sandbox environment in early 2018 and invited companies to apply with new business models and concepts for which there was no regulatory path to launch to consumers. Having achieved success by contributing to the introduction of several completely new and amended regulatory frameworks in diverse sectors, Saudi Central Bank has now refreshed the Regulatory Sandbox Framework to address the increasing demand being seen in the Saudi market by fintechs and existing regulated entities with new innovative business models and concepts. This is in line with the Fintech strategy ambitious agenda, which was approved by the Kingdom Ministerial Council No. “574” in 25^th of May 2022 to transform and inject new energy into the financial sector as well as attract and grow our fintechs ecosystem to be amongst global leaders.

What is the Regulatory Sandbox?

The Regulatory Sandbox is a live environment that enables financial institutions and fintech companies to test an innovative financial product and/or service in the market with real consumers within a defined period and controls.

The Regulatory Sandbox is open throughout the year for applications for Licensed Financial institutions and Start-ups.