Saudi Arabia Financial Services Company in 2022
Saudi Arabia launched the first licence for non-bank financial services (for example e-wallets and payment services processors) on 30 January 2020. Below are some of the main considerations around Saudi Arabia financial services licences, and how Healy Consultants can assist.
Saudi Arabia non-bank financial services licence application procedure
- A non-bank financial services company, including e-money wallet or payment services processors (PSP), must obtain a Financial Technology Institution licence;
- To obtain the licence, the applicant must first incorporate a legal Saudi company;
- Once the Saudi company is incorporated, our team will apply for authorisation and licensing from the Saudi Arabian Monetary Authority (SAMA);
- After application review, SAMA will notify the applicant of the completeness of the application and issue a pre-approval or rejection;
- If approved, SAMA will the issue an authorisation approval before processing the operations licence;
- If rejected, Healy Consultants will liaise with SAMA and our Client to collect additional information and submit a second application.
Saudi Arabia non-bank financial services licence considerations
- Applicants must provide a feasibility study approved by a locally-licenced Firm and prepare a five-year business plan. Healy Consultants can assist with this requirement;
- Applicants intending to have external service providers must also provide draft contracts and agreements with these providers;
- The management team of the new licenced company must have relevant finance experience and academic qualifications;
- More than half of the board members of the company must be resident in Saudi Arabia;
- The administrative office of the new licenced company must be in Saudi Arabia. Healy Consultants can assist our Client to secure an office. Alternatively, Clients can use Healy Consultants Group PLC’s registered office;
- The minimum capital requirements for a non-bank financial services company range from SR50,000 to SAR500,000, depending on the financial services to be offered;
- SAMA may also require a credit report from each shareholder, issued by a Credit Information Systems-licenced company.
- The regulatory agencies responsible for financial services in Saudi Arabia include Saudi Arabian Monetary Agency (SAMA) and the Capital Market Authority (CMA);
- Obtaining any business licence in Saudi Arabia is difficult, and can take up to seven months. Where possible, Healy Consultants will shield our Clients from the day to day challenges of acquiring a Saudi Arabia financial services licence.
Request a Saudi Arabia financial services company setup quotation here.