Name
Global FinTech Guide
Country _ Name
Saudi Arabia
SectionTitle
RegTech and compliance management
Body
RegTech is composed of the words “regulatory” and “technology”. It is a collective term for the application of modern technologies, to get the increasing regulation in the banking- and financial sector under control both from an IT and a legal standpoint.

Introduction

Attitude of the country towards RegTech-services

Saudi Arabia has expressed significant interest in embracing RegTech as a means of improving efficiency and effectiveness in tackling financial crime. The digital banking guidelines published in 2020 describe banks operating “in a fully digitised environment”, which appears to open the way for using RegTech for processes like e-KYC. However, more details are needed around what is allowed in practice and how the regulations are to be interpreted. For instance, the use of facial biometric technology is still not permitted in financial services, which limits onboarding tools such as selfie and video verification (although banks are testing biometrics - Riyad Bank has started using voice authentication, and Al Rajhi Bank has rolled out self-service terminals featuring fingerprint biometrics). Another complication is data storage; as per its recently enacted Personal Data Protection Law, Saudi regulations place restrictions on the hosting, transfer and storing of customer data outside the Kingdom, restricting the use of many compliance platforms and tools.


Legal affairs

Obligations and requirements to provide RegTech-services

RegTech are usually unregulated if they are not used in the provision of regulated services. However, it must comply with existing regulations; e.g., regulations regarding the use and transmission of financial statements.  If subject to regulation, financial firms using the solution will be held liable and therefore will be obligated to comply with the relevant regulations in this area.

Additional comments regarding the legal situation for RegTech-services or what RegTech’s must be aware of in this business area

N/A


Economic conditions

Market size for RegTech-services and biggest companies in this business area

The Saudi Arabian RegTech market is experiencing substantial growth. Research and Markets estimates that the market was worth $399.7 million in 2024 and is projected to reach $865.6 million by 2029, with a compound annual growth rate (CAGR) of 16.7%. Another report by IMARC Group indicates that the market reached $146.64 million in 2024 and is expected to hit $652.40 million by 2033, with a CAGR of 18.04% between 2025 and 2033. This growth is fueled by the increasing adoption of digital transformation initiatives and the need for enhanced data precision and regulatory compliance in various sectors, particularly finance and healthcare

Additional comments regarding the economic situation for RegTech-services or what RegTech’s must be aware of in this business area

N/A

Authors

Close

Choose country