Fintech players can test their products under eased regulatory requirements with two separate sandbox initiatives: Licensed and unlicensed fintech firms can trial digital financial solutions in a live environment by applying to either the Saudi Central Bank’s (Sama) Regulatory Sandbox Framework or the Capital Market Authority’s (CMA) Fintech Lab. While Sama’s framework supports a broad range of financial innovations, CMA’s Fintech Lab specifically targets securities-focused products. Both initiatives were launched in 2018.

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SAMA REGULATORY SANDBOX-

Sama’s sandbox offers a fast-track to market by enabling rapid product testing and lowering compliance costs. The process unfolds in four key stages: application, operational readiness, testing, and graduation. Over a 6-12 month testing period, successful participants can apply for a license (if needed) and scale their operations. Applications are open on Sama’s website.

Eligibility: Licensed entities, such as banks, ins. and financing companies, and money exchangers, can apply directly. Non-licensed fintechs can apply independently or partner with a licensed entity. International fintechs can also apply or partner with a local firm if they have tested their solutions abroad. The Open Banking Lab currently hosts 19 companies that can test their open banking services with real customers before their official launch.

Sandbox alumni include open banking platforms XSquare, NeoTek, Lean Technologies, Mod5r, as well as peer-to-peer lending platform MoneyMoon.

Payment initiation services included: In September 2024, Sama updated its Open BankingFramework to integrate payment initiation services (PIS), aiming to standardize secure PIS deployment and clarify the responsibilities of PIS providers. Sama also added Seen Tarbi and Neotek to its Open Banking Lab platform and approved MoneyMoon for peer-to-peer lending activities.

CMA FINTECH LAB-

CMA’s Fintech Lab grants Financial Technology Experimental Permits (FinTech ExPermit) only to innovators focused on securities activities — unlike the sandbox’s broader coverage. Recipients can test their services for up to two years, with the option to exit or scale if they meet testing goals in line with the Capital Market Law. You can apply here.

Eligibility criteria for the FinTech ExPermit include having a service ready for live testing, with acceptance hinging on factors such as the applicant’s business model, technical capabilities, financial stability, legal compliance, and the potential impact of their product on the capital market. Applications are accepted year-round in batches.

FAST FIGURES- CMA granted 53 permits to fintech companies as of 1H 2024. These companies have raised over SAR 3.8 bn through equity crowdfunding and debt offering platforms to support economic entities at various stages. Additionally, SAR 2.6 bn worth of units were distributed through investment and real estate fund platforms, while robo-advisory platforms under the Lab’s regulation managed assets worth SAR 2.2 bn.

The lab’s graduates include equity crowdfunding platforms such as Tahaluf Capital and Mudaraba Capital, as well as robo-advisory players such as Malaa and Abyan.

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