Setting Up Financial Services in Saudi Arabia: Process & Opportunities
Learn how to set up a financial services business in Saudi Arabia, from licensing and compliance to market growth.
Backed by the Financial Sector Development Program (FSDP), a flagship initiative under Vision 2030, Saudi is building a diversified, inclusive financial ecosystem.
For foreign financial services companies, setting up a business in Saudi Arabia now presents a unique opportunity to tap into one of the region's most dynamic and fastest-growing financial markets, supported by comprehensive regulatory reforms and a thriving capital market infrastructure.
Steps to Establish Your Financial Services Business in Saudi Arabia
Below is the complete three-stage market expansion roadmap for incorporating a Saudi financial services entity.
Phase 1: Legal Entity Establishment (Projected Timeline: 1 Month)
The journey to setting up a financial services business in Saudi Arabia starts with laying the proper legal foundation for your establishment.
- Obtain a MISA Investor License (valid for one year)
- Reserve your company name
- Draft and notarize Articles of Association (AoA)
- Secure Commercial Registration (CR) from the Ministry of Commerce
- Obtain Chamber of Commerce (CoC) registration
Phase 2: Authorization and Hiring (Projected Timeline: 2-3 Months)
After establishing your legal entity, proceed with authorizing operations and onboarding staff to create an effective market presence.
- Obtain an official company seal
- Register with the Ministry of Labor
- Enroll with the General Organization for Social Insurance (GOSI) for employee coverage
- Register a National Address
- Issue a General Manager (GM) visa
- Register with the General Authority of Zakat and Tax (ZATCA) for VAT compliance
Phase 3: Residency and Banking (Projected Timeline: 3-6 Months)
The final stage involves completing residency procedures and establishing banking relationships—critical elements for financial services operations.
- Activate the Chamber of Commerce (CoC) account
- Obtain health insurance for the GM
- Complete the GM's medical check-up
- Issue the GM's Iqama (residency permit)
- Register with the Muqeem portal
- Register with the Absher portal
- Register with the Qiwa portal
- Register with the Mudad portal
- Open a corporate bank account with a Saudi bank
Key Regulatory Authorities Overseeing Financial Services in Saudi Arabia
Saudi Arabia's financial services sector is overseen by three primary regulatory bodies:
- Saudi Central Bank (SAMA)—Regulates banks, insurance firms, finance companies, payment services and fintech.
- The Capital Market Authority (CMA)—governs capital market institutions, including asset managers, investment banks, brokerages, and custodians.
- Insurance Authority—Regulates insurance and reinsurance companies
CMA License Application Process
To obtain a CMA license, companies must:
- Choose the appropriate license type based on their intended capital market activities
- Assemble comprehensive documentation, including:
- CMA application form with a detailed business plan
- Governance and organizational charts
- Compliance and AML-CFT manuals
- Audited and forecast financials
- Fit-and-proper evidence for key personnel
- Technical specifications and systems architecture
- Demonstrate adequate capital with evidence of paid-up capital meeting minimum requirements (amounts vary by activity type)
- Undergo regulatory review through CMA's multi-stage assessment covering business plans, systems, and fit-and-proper checks
- Achieve operational readiness by establishing required local roles, completing CMA professional exams where needed, implementing technical systems, meeting Saudization requirements, and satisfying any conditional approvals before commencing activities
Post-Setup Compliance and Operational Requirements
Foreign financial services companies must navigate a comprehensive regulatory framework designed to ensure financial stability, consumer protection, and market integrity.
Meeting the Saudization (Nitaqat) Requirements: Saudi labor regulations require all companies to meet their Saudization quota according to their size and sector. Companies that fail to comply risk being placed in the Red Zone, which may lead to operational disruptions and legal penalties.
Keeping Governmental Accounts Current: Businesses incorporated in Saudi Arabia, including those establishing operations in Al Madinah, must maintain accurate and up-to-date accounts on platforms such as Muqeem, Qiwa, and Mudad.
Annual Tax Filing with ZATCA: All entities operating in Saudi Arabia are required to submit annual tax returns accurately and within the deadlines set by ZATCA.
Payroll Compliance: Companies employing local staff must adhere to regulations regarding salary payments and proper record-keeping.
License Renewal: Operating in Saudi Arabia requires obtaining specific licenses that must be renewed periodically. We help track these obligations and manage renewals for documents such as the General Manager’s Iqama, Commercial Registration (CR), and MISA licenses.
Related read: Key Compliance Areas in Saudi Arabia for Foreign Businesses
Why Expand Your Financial Services Business to Saudi Arabia
The Kingdom has established itself as the region's financial powerhouse, with multiple growth drivers converging to create a compelling investment case.
Unprecedented Market Scale and Growth Trajectory
Saudi Arabia's financial services market has reached remarkable highs across multiple segments. The stock market capitalization hit $2.4 trillion by Q2 2025, ranking among the fastest-growing markets globally. Total banking assets reached SAR 4.49 trillion ($1.2 trillion) in 2024, accounting for 131% of the FSDB’s program’s target of SR3.43 trillion.
The asset management industry has expanded dramatically, with assets under management reaching $295 billion in Q1 2025 and projected to surpass $400 billion by 2026—growing at 12% annually since 2015. This growth trajectory signals sustained marked demand for diverse investment products and professional asset management services.
Moreover, Saudi Arabia is now considered the largest market in the region for Islamic finance, with total assets across sectors exceeding SAR 3.1 trillion. This growth opens significant doors for international banks and financial institutions specializing in Sharia-compliant finance.
Expanding Capital Markets Infrastructure
Saudi Arabia is accelerating its IPO pipeline with new frameworks, including SPAC regulations, to expand funding avenues and enhance private-sector participation. Saudi companies raised $2.8 billion through six listings in H1 2025 alone, maintaining the Kingdom's position as the region's largest IPO market.
The introduction of foreign ownership liberalization, with new regulations allowing foreigners to own majority stakes in local companies, has eased previous caps that limited foreign ownership of listed firms to 49%. This reform has opened significant opportunities for foreign institutional investors and asset managers.
Booming Fintech Ecosystem
The fintech sector has experienced explosive growth, expanding from just 14 companies in 2020 to 261 licensed firms in 2025. This rapid expansion has created over 11,000 jobs and attracted $860 million in VC investment in H1 2025 alone.
The Kingdom targets reaching 525 fintech companies by 2030, with emerging segments like embedded finance and Buy Now, Pay Later (BNPL) solutions driven by a young, tech-savvy population.
Digital Transformation and Payment Revolution
Electronic payments now account for 79% of all retail transactions, reflecting rapid digital transformation across the financial sector. This shift from 36% cashless transactions at the start of Vision 2030 to the current 80% demonstrates the Kingdom's successful execution of its digital payment strategy.
Regtech and Compliance Solutions
As regulations evolve, there's growing demand for regtech solutions that simplify compliance with SAMA and CMA requirements. International tech companies with expertise in regulatory technology can help local financial institutions and new market entrants operate efficiently within Saudi Arabia's developing regulatory framework.
Global regtech firms are already capitalizing on these opportunities, with TeamSec being a notable example. The company has recently set up a foreign business in Saudi Arabia via AstroLabs, the Gulf’s leading business expansion platform, to meet rising demand for securitization and alternative financing.
