2 Saudi regulators have unique sandboxes

In Saudi Arabia, the Central Bank of Saudi Arabia, or SAMA, and the Capital Market Authority, or CMA, have distinct sandboxes:

- mohan@bankingfrontiers.​com

The Central Bank of Saudi Arabia, or SAMA, has a regulatory sandbox framework that allows financial institutions and fintech companies to test innovative financial products, services and business models in a controlled environment. The framework is part of Saudi Arabia's Vision 2030, which aims to diversify and innovate the financial sector in the country.

SAMA has stipulated that applicants for the sandbox should be able to demonstrate innovation in the proposed service or product, provide a Minimum Viable Product and have an exit plan. The sandbox is open to both domestic and overseas applicants, including entrepreneurs, non-regulated firms, and existing regulated companies. Selected participants can test their chosen business model or concept in a regulatory environment whenever they are ready, rather than being tied to a specific predetermined model. It is the prerogative of SAMA to review the applications and determine whether the technology or service can be launched in the broader market.

KEY OBJECTIVES

The sandbox has as its main aims the following:

• Facilitating the introduction of new products to the market that meet consumers' demands and needs, increase efficiency and enhance quality of service. All the participants will be able to test their solution in a controlled environment for a specified period and upon completion take these new solutions to market based on the guidelines defined by the regulator.