Saudi’s SAMA to boost digital economy; Completes licensing procedures of 2 banks

By Amirtha P S, Desk Reporter
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Saudi Arabia
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The Saudi Central Bank (SAMA) has completed the procedures linked to studying the license applications for two local digital banks to start operations in the Kingdom.

Based on the powers given under the Saudi Central Bank Law and the Banking Control Law, SAMA will submit a request for the approval of the license to the higher authorities.

After the approval is issued, the Central Bank will complete the supervision of the establishment and operating arrangements before the two banks conduct their business in the country.

This step comes in line with the SAMA’s role in keeping pace with the latest developments in the financial sector and to achieve the goals of the Kingdom’s Vision 2030 by developing the digital economy and allowing financial companies to support the growth of the private sector and opening the way for new companies to provide financial services.

In the past year, the Central Bank has approved 16 Saudi financial technology companies to provide payment services, consumer microfinance and electronic insurance brokerage. SAMA has also authorized 32 financial technology companies to work under the umbrella of the legislative experimental environment.

The move comes as a part of the efforts made by the SAMA to promote local banks to provide the best services and products through digital banking channels following international best practices in this field.

The Central Bank has confirmed continued receipt of new applications for licenses to engage in the banking business in the country to achieve an added value for the sector and contribute to the support and growth of the Saudi economy.

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