Kholoud Hussein 

Starting a business in Saudi Arabia offers vast opportunities, especially with the country’s rapid economic transformation under Vision 2030. As part of this plan, the Kingdom has made significant strides to encourage entrepreneurship, making it easier for startups to launch and grow. However, navigating the regulatory environment can still be challenging for startups, especially for those unfamiliar with local business practices and legal frameworks. Here’s what startups need to know about regulations in Saudi Arabia.

Business Registration and Legal Structures

The first step in launching a startup in Saudi Arabia is choosing the right legal structure. Options include a limited liability company (LLC), joint stock company (JSC), or a branch of a foreign company. LLCs are the most popular among startups, offering flexibility and limited liability to the shareholders.

The Ministry of Commerce and Investment (MCI) handles the registration process, and startups must ensure compliance with Saudi Arabia's Foreign Investment Law if they are foreign-owned. The Saudi Arabian General Investment Authority (SAGIA) oversees foreign investment and offers guidance to international startups on obtaining the necessary licenses and approvals.

Intellectual Property Protection

For startups focused on technology and innovation, intellectual property (IP) protection is crucial. Saudi Arabia has modernized its IP laws in recent years, and startups can register patents, trademarks, and copyrights with the Saudi Authority for Intellectual Property (SAIP). Having clear IP rights helps startups safeguard their innovations and avoid disputes.

Labor Laws and Saudization

Hiring employees in Saudi Arabia requires an understanding of local labor laws and regulations. The Kingdom has implemented the Nitaqat program, which mandates that companies employ a certain percentage of Saudi nationals, depending on the size and industry of the company. Compliance with Saudization is essential for startups to avoid penalties and remain eligible for certain government incentives.

Startups must also comply with Saudi Arabia’s Labor Law, which governs employee contracts, working hours, and benefits, ensuring that employees are treated fairly and their rights are protected.

Taxation and Zakat

Saudi Arabia has no personal income tax, but businesses, including startups, must pay corporate tax or Zakat, depending on ownership. Saudi-owned businesses are subject to Zakat, which is 2.5% of their assessable income. Foreign-owned businesses are subject to corporate income tax, which is set at 20%. Startups also need to account for Value Added Tax (VAT), currently set at 15%, applicable on most goods and services.

Compliance with Regulatory Authorities

Startups in sectors such as FinTech, e-commerce, or healthcare need to ensure they meet the specific requirements of their respective regulatory bodies. For instance, FinTech startups must comply with the Saudi Arabian Monetary Authority (SAMA) regulations, while e-commerce businesses need to follow E-commerce Law guidelines. It's important for startups to work closely with these regulatory bodies to stay compliant.

Finally, navigating Saudi Arabia’s regulatory environment may seem complex, but the Kingdom has made significant efforts to simplify business regulations and encourage entrepreneurship. By understanding the local legal structures, compliance requirements, and sector-specific regulations, startups can effectively launch and scale in one of the Middle East’s most promising markets. Whether you are a local entrepreneur or an international startup entering Saudi Arabia, staying informed about the regulatory environment is key to long-term success.

Kholoud Hussein 

Saudi Arabia, long known for its oil wealth, is undergoing a profound transformation, with sustainability at the core of its economic diversification efforts. As part of Vision 2030, the Kingdom aims to reduce its reliance on fossil fuels and invest in renewable energy and green technologies. A growing number of Saudi startups are emerging as leaders in the Green Tech revolution, driving innovation in sustainability, renewable energy, and eco-friendly solutions.

Government Support for Green Tech

The Saudi government has played a pivotal role in fostering this shift. Through Vision 2030, the Kingdom has committed to environmental sustainability, clean energy projects, and carbon reduction. Government initiatives such as the Saudi Green Initiative and the Middle East Green Initiative are setting ambitious goals to reduce carbon emissions and increase renewable energy production.

Startups are seizing this opportunity by innovating in areas like solar energy, waste management, sustainable agriculture, and electric mobility. These ventures are not only helping Saudi Arabia transition to a greener economy but are also contributing to the global fight against climate change.

Key Green Tech Startups in Saudi Arabia

Among the standout startups is Desert Technologies, a solar energy firm that is pioneering clean energy solutions across the Middle East and Africa. The company specializes in manufacturing and deploying solar panels, creating energy solutions that are tailored to the region’s harsh desert climate. Desert Technologies is helping Saudi Arabia reach its goal of producing 50% of its energy from renewable sources by 2030.

Another prominent player is Naqaa Solutions, a startup focused on waste management and recycling. By offering eco-friendly waste disposal and recycling services, Naqaa is helping businesses and municipalities reduce their environmental impact. Their innovative approach includes converting waste into energy and other useful byproducts, making waste management more efficient and sustainable.

Greenzie, another Saudi startup, is focusing on electric mobility solutions. With the growing emphasis on reducing emissions from transportation, Greenzie develops electric vehicle (EV) charging stations and works to promote the adoption of electric vehicles in the Kingdom. This aligns with Saudi Arabia’s plan to promote green transportation and reduce reliance on fossil fuels.

The Future of Green Tech in Saudi Arabia

Saudi startups are increasingly positioning themselves at the forefront of the Green Tech revolution, not just within the Kingdom, but on the global stage. With strong government backing, investor interest, and a growing demand for sustainable solutions, Saudi Arabia’s Green Tech sector is set for substantial growth in the coming years.

These startups are more than just pioneers of technology—they are catalysts for change in the Kingdom’s energy landscape. As Saudi Arabia transitions toward a greener future, these innovative companies are demonstrating how the country can balance economic growth with environmental responsibility, leading the way for the Green Tech revolution across the Middle East.

Kholoud Hussein 

The 24 Fintech Conference, held in Riyadh from September 3 to 5, marked a pivotal moment for Saudi Arabia's rapidly growing FinTech ecosystem. Gathering a wide array of stakeholders, including regulatory bodies, policymakers, investors, technology experts, and industry leaders from around the globe, the event underscored the nation's ambition to become a leader in the FinTech space.

Saudi Arabia’s Vision 2030, which seeks to diversify the economy away from oil dependence, has placed significant emphasis on digital transformation, and the FinTech sector is seen as a critical driver of that vision. The conference covered various topics, including FinTech regulation and governance, the integration of artificial intelligence (AI) and machine learning in financial operations, financial inclusion, and digital payment solutions. By the conclusion of the conference, several key recommendations emerged, which are set to shape the future of the FinTech industry in Saudi Arabia and beyond.

1. Enhancing FinTech Regulation and Governance: Building a Balanced Regulatory Framework

One of the core topics at the 24 Fintech Conference was the importance of a balanced regulatory framework to support FinTech innovation while ensuring consumer protection and financial stability. Regulatory bodies like the Saudi Arabian Monetary Authority (SAMA) and the Capital Market Authority (CMA) have already established a regulatory sandbox that allows startups to test their products in a controlled environment. However, the conference emphasized the need to further streamline regulations to keep pace with rapidly evolving financial technologies.

Key recommendations included:

• Creating flexible regulatory frameworks that can adapt to new technological advancements such as blockchain, AI, and machine learning without stifling innovation.
• Harmonizing regulations across the GCC region, allowing for seamless cross-border financial transactions and fostering a regional FinTech ecosystem.
• Promoting collaboration between regulators and industry players to ensure that rules are practical, forward-looking, and conducive to innovation.
• Strengthening cybersecurity standards to protect financial data, a critical aspect as digital financial services continue to expand.

A recurring theme was the necessity for regulatory clarity to encourage foreign investment. Investors and FinTech companies need assurance that they can operate within a predictable regulatory environment, which will also attract international partnerships and help Saudi Arabia position itself as a global FinTech hub.

2. Artificial Intelligence and Machine Learning in Financial Operations: The Future of Efficiency

AI and machine learning (ML) were central to many discussions, as these technologies are poised to transform financial operations. AI and ML have already started to play a significant role in areas like fraud detection, risk management, customer service (via chatbots), and personalized financial services.

Key recommendations on AI and ML integration included:

• Investment in AI talent development: Saudi Arabia needs to nurture a workforce skilled in AI and ML. This requires educational initiatives and partnerships between academic institutions and industry players to equip professionals with the skills needed for future financial services.
• Encouraging the use of AI in compliance: RegTech, or regulatory technology, powered by AI can help companies automate compliance procedures, reducing operational costs and ensuring adherence to regulations.
• Utilizing AI for financial inclusion: AI-driven platforms can analyze large datasets to offer personalized services to individuals who may have been excluded from traditional banking systems. This includes offering microloans, savings tools, and financial education to underserved communities.
• Maintaining a balance between automation and human oversight: While AI can enhance operational efficiency, it is critical to retain human oversight, particularly in decision-making processes involving high-risk financial transactions.

Policymakers were urged to support innovation in AI and ML by providing a regulatory environment that fosters experimentation while mitigating risks, especially concerning data privacy and security.

3. Financial Inclusion: Making Financial Services Accessible for All

Financial inclusion was a major theme throughout the 24 Fintech Conference, reflecting Saudi Arabia's commitment to expanding access to financial services for underbanked and unbanked populations. With over 70% of the Kingdom’s population having access to the internet, the potential for digital financial services is enormous. However, gaps remain in reaching marginalized communities and small businesses.

Key recommendations for financial inclusion included:

• Leveraging mobile banking and digital wallets: As smartphones become ubiquitous, mobile banking solutions and digital wallets are critical tools for bringing financial services to previously underserved populations. Expanding these services will require partnerships with telecommunications companies and financial institutions.
• Promoting microfinance solutions: Startups and financial institutions should develop more microfinance products to support small businesses and individual entrepreneurs, particularly women and rural populations. These solutions could help promote economic development in areas that traditional banking services have not reached.
• Enhancing financial literacy: Providing educational resources and tools to help individuals and small businesses better understand financial products and services will be essential. FinTech companies should collaborate with government agencies to deliver financial education programs through digital platforms.
• Encouraging Islamic FinTech solutions: Given the importance of Sharia-compliant financial products in the region, FinTech startups should develop innovative Islamic finance solutions that adhere to Sharia principles while leveraging modern technology.

4. Digital Payments and Cashless Economy: Reducing Cash Dependency

Another significant topic at the conference was the development of a cashless economy, an essential element of Saudi Arabia’s Vision 2030. With the rise of digital payments, both through mobile apps and contactless cards, the Kingdom is gradually moving toward a more digitized financial system.

Key recommendations to accelerate this transition included:

• Promoting the use of digital payments in everyday transactions: From public transport to government services, increasing the use of digital payments can further reduce reliance on cash. This will require incentives for consumers and businesses alike to adopt digital payment platforms.
• Supporting FinTech innovations in payments: Startups that specialize in payment solutions, such as peer-to-peer payments, cross-border transfers, and blockchain-based payment systems, should receive support in the form of funding, mentorship, and access to regulatory sandboxes.
• Boosting trust in digital platforms: Public awareness campaigns to ensure consumers feel confident in using digital financial services will be critical. This includes addressing concerns about data privacy and fraud, which can deter people from adopting digital payment methods.
• Expanding infrastructure for digital payments in rural areas: Ensuring that even the most remote areas of Saudi Arabia have access to reliable internet and mobile payment platforms will be key to achieving nationwide adoption of digital payments.

5. Fostering Innovation through Collaboration: Startups, Investors, and Corporations

The 24 Fintech Conference highlighted the importance of collaboration in driving innovation. Whether through partnerships between startups and established financial institutions, or between investors and regulators, cooperation is crucial for fostering an environment conducive to FinTech growth.

Key recommendations on fostering collaboration included:

• Creating public-private partnerships: Governments should actively partner with the private sector to promote FinTech innovation, provide infrastructure support, and ensure that regulations keep pace with technological advancements.
• Building innovation hubs and accelerators: Establishing FinTech hubs across the MENA region will enable startups to access resources, mentorship, and networking opportunities. These hubs should provide access to investors and regulatory sandboxes to help startups scale more quickly.
• Attracting international investors: By showcasing the potential of Saudi Arabia’s FinTech sector, the country can attract foreign direct investment (FDI). This will require creating favorable investment conditions, such as tax incentives, intellectual property protections, and clear exit strategies for investors.
• Encouraging cross-border collaborations: Given the regional nature of many financial challenges, fostering cross-border collaborations between startups and corporations in the GCC and broader MENA region is crucial. Harmonized regulations across borders would facilitate smoother operations for businesses looking to expand beyond Saudi Arabia.

6. Sustainability and Green Finance: The Future of Ethical Investment

In line with global trends, the conference also explored the role of sustainable finance and green FinTech solutions in Saudi Arabia’s future. As environmental, social, and governance (ESG) criteria become increasingly important to investors, the FinTech sector has a unique opportunity to create green financial products.

Key recommendations included:

• Promoting green financial products: FinTech startups should develop innovative solutions such as green bonds, carbon credit trading platforms, and sustainability-linked loans that align with Saudi Arabia’s growing interest in ESG investments.
• Encouraging sustainable investment platforms: By offering digital platforms that allow retail and institutional investors to invest in sustainable projects, FinTech companies can drive the growth of green finance.
• Incorporating ESG data into financial decision-making: AI and machine learning can help financial institutions better analyze ESG data and make more informed investment decisions based on sustainability metrics.

In conclusion, the 24 Fintech Conference provided invaluable insights into the future of FinTech in Saudi Arabia, highlighting the importance of regulation, technology, and collaboration. As Saudi Arabia continues to pursue its Vision 2030 goals, these recommendations will play a crucial role in shaping the Kingdom’s FinTech landscape. From enhancing regulation and fostering AI innovation to promoting financial inclusion and sustainability, the path forward is clear: Saudi Arabia is positioning itself as a leader in financial technology in the Middle East and beyond.

By implementing these recommendations, the country can unlock new opportunities for growth, attract foreign investment, and ensure that its FinTech ecosystem remains competitive on the global stage.

Kholoud Hussein 

As Saudi Arabia continues its march toward becoming a global hub for financial innovation, education and upskilling in the FinTech sector have emerged as critical areas of focus. Events like 24 Fintech, a premier gathering of industry leaders, innovators, and policymakers, provide a platform not just for showcasing the latest advancements in technology, but also for bridging the knowledge gap within the sector.

24 Fintech took place in Riyadh from 3 to 5 September and gathered regulatory bodies, policymakers, investors, technology experts, and industry leaders from around the world to discuss several topics, including, fintech regulation and governance, artificial intelligence and machine learning in financial operations, financial inclusion, and more.

At the heart of the discussions at 24 Fintech is the recognition that education and talent development are essential to sustaining the rapid growth of Saudi Arabia’s FinTech industry. With increasing demand for professionals skilled in areas such as blockchain, digital payments, and artificial intelligence (AI), the need for specialized training and educational initiatives is more urgent than ever.

The Growing Demand for FinTech Talent

The rise of FinTech in Saudi Arabia has been largely driven by government initiatives, regulatory reforms, and increasing consumer adoption of digital financial services. However, this growth has also exposed a significant talent shortage in the sector. Many companies are finding it difficult to hire professionals with the requisite knowledge in technology and finance. This talent gap has the potential to slow down innovation and impede the sector’s full potential.

24 Fintech addresses this challenge by emphasizing the importance of knowledge-sharing, education, and professional development. Through workshops, panel discussions, and keynote speeches, the event provides a platform for learning and collaboration. Industry leaders and academic experts discuss the latest trends and the skills needed to thrive in the evolving FinTech landscape, offering valuable insights for professionals, startups, and students alike.

Key Educational Takeaways from 24 Fintech

One of the most prominent themes from 24 Fintech was the need for continuous learning. With the rapid pace of technological advancement, professionals in the FinTech sector must continually update their skills to remain competitive. This includes understanding emerging technologies like blockchain, artificial intelligence, and machine learning, which are becoming increasingly integral to financial services.

The event featured workshops designed to equip participants with hands-on experience in these technologies, providing a practical understanding of how they can be applied to solve real-world financial challenges. These educational sessions are instrumental in bridging the gap between academic knowledge and industry requirements, ensuring that Saudi Arabia's workforce is well-prepared to meet the demands of a digital economy.

Additionally, collaborations between universities and the private sector were highlighted as a crucial step in building a strong educational foundation for the FinTech industry. Universities in Saudi Arabia are now offering specialized FinTech courses and degrees to address the growing need for qualified professionals. Partnerships between academia and industry ensure that the curriculum remains relevant, with input from businesses that understand the skills required for future success.

Government Initiatives Supporting FinTech Education

Saudi Arabia’s government has been proactive in fostering education and innovation within the FinTech sector. The launch of the Saudi FinTech Initiative, part of Vision 2030, focuses on providing a comprehensive framework for developing local talent and promoting innovation. This initiative includes collaborations with educational institutions to integrate FinTech into their curriculums, as well as incubator programs designed to support FinTech startups through mentorship, training, and funding.

Furthermore, the Saudi Arabian Monetary Authority (SAMA) has played a significant role in supporting FinTech education. Through its regulatory sandbox, SAMA provides startups with a platform to experiment and develop their products in a controlled environment, offering both learning opportunities and practical experience for young professionals entering the sector.

Closing the Knowledge Gap: Opportunities and Challenges

While significant progress has been made, closing the knowledge gap in Saudi Arabia’s FinTech sector remains a challenge. The rapid evolution of financial technologies requires an agile and adaptable workforce that is not only well-versed in technical skills but also understands the regulatory landscape and financial systems.

Events like 24 Fintech are crucial in addressing these challenges. By bringing together stakeholders from across the FinTech ecosystem—entrepreneurs, regulators, educators, and investors—such gatherings create opportunities for knowledge exchange and skill-building. The focus on continuous learning and professional development ensures that Saudi Arabia remains competitive in the global FinTech market.

However, to fully bridge the knowledge gap, a multi-faceted approach is needed. This includes investing in education at all levels, from primary education that encourages digital literacy to advanced degrees in financial technology. Additionally, industry leaders must continue to collaborate with educational institutions to ensure that the workforce is equipped with the skills necessary for future growth.

Finally, 24 Fintech has shown that education and professional development are key pillars of the FinTech sector's success in Saudi Arabia. By fostering a culture of continuous learning, promoting collaboration between academia and industry, and supporting government initiatives aimed at talent development, Saudi Arabia is well on its way to bridging the knowledge gap. As the demand for FinTech talent continues to grow, these efforts will be instrumental in positioning the Kingdom as a leader in financial innovation within the region and beyond.

Kholoud Hussein 

Saudi Arabia is witnessing a rapid transformation of its financial landscape, largely driven by the government’s commitment to nurturing the FinTech sector. In line with its Vision 2030 agenda, Saudi Arabia has launched several initiatives aimed at accelerating FinTech growth, promoting innovation, and creating a robust, competitive financial ecosystem.

Vision 2030 and the FinTech Strategy

At the heart of this transformation is Saudi Arabia’s Vision 2030, which aims to diversify the economy and reduce dependence on oil revenues. One of its key pillars is the development of the financial sector, where FinTech plays a pivotal role. The government recognizes the potential of FinTech to enhance financial inclusion, improve efficiency, and foster innovation across various sectors.

The Financial Sector Development Program (FSDP), launched under Vision 2030, aims to create an enabling environment for FinTech innovation. This includes modernizing regulations, facilitating partnerships between traditional financial institutions and startups, and supporting the digitalization of financial services. The goal is to increase the share of cashless transactions to 70% by 2030, a move that will be largely powered by FinTech.

Regulatory Sandboxes and SAMA’s Role

One of the most significant government initiatives is the creation of regulatory sandboxes. Launched by the Saudi Arabian Monetary Authority (SAMA) in 2018, the sandbox allows FinTech startups to test their products and services in a controlled environment, without the full burden of regulatory compliance. This initiative has been crucial in fostering innovation by providing a space for startups to experiment and refine their offerings.

SAMA, in collaboration with the Capital Market Authority (CMA), has also introduced new frameworks to regulate crowdfunding, digital payments, and peer-to-peer lending, ensuring that the regulatory environment keeps pace with technological advancements. These efforts not only provide a clear regulatory path for FinTech firms but also build trust with investors and consumers.

Supporting Financial Inclusion and Entrepreneurship

Another key aspect of Saudi Arabia’s FinTech growth is the government’s focus on financial inclusion. The introduction of digital payment platforms, mobile wallets, and microfinance solutions has brought financial services to underserved populations, particularly in rural areas. Initiatives such as the Saudi FinTech Initiative further support the sector by providing mentorship, funding, and infrastructure to early-stage startups.

In conclusion, through strategic initiatives, Saudi Arabia’s government is laying the groundwork for a thriving FinTech ecosystem. By fostering innovation, enhancing financial inclusion, and creating a forward-thinking regulatory framework, the government is accelerating the growth of FinTech, positioning the country as a leading financial hub in the Middle East.