Saudi central bank issues additional licensing guidelines for digital-only banks

The Saudi Arabian Monetary Authority on Monday (Feb 24) released additional licensing guidelines and criteria for digital-only banks in the Kingdom.

The guidelines complement SAMA’s Banking Licensing Guidelines and Minimum Criteria, said the regulator.

Guidelines for digital-only banks include that applicants for licences must be set up as a locally incorporated joint-stock company and maintain a physical presence in Saudi Arabia.

The Middle East’s largest economy has a highly competitive banking sector, with 13 local banks licensed and 18 foreign banks, according to SAMA. Four of the 18 foreign banks have not started operations and one, State Bank of India, has stopped operating.

SAMA said it has issued the additional guidelines for digital-only banks “to keep up with the developments in the financial and information technology sectors and to achieve the objectives of the Financial Sector Development Program (FSDP) and Saudi Vision 2030 by developing the digital economy”.

In September last year, Euromoney reported that SAMA was processing three new banking licences, one of which was for a digital bank.

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