CMA says year-round FinTech ExPermit reviews boost sandbox access

Ahmed Alajlan, Director of the CMA’s FinTech ExPermit Unit

The Capital Market Authority (CMA) said receiving and reviewing applications for Financial Technology Experimental Permits (FinTech ExPermit) throughout the year enhances flexibility and access to its regulatory sandbox, according to a statement to Argaam.

The CMA has invited public feedback on draft updates to its FinTech ExPermit instructions, launching a 30-day consultation to improve regulatory clarity and flexibility while supporting innovation.

Ahmad Alajlan, director of the CMA’s FinTech ExPermit Unit, told Argaam that applications are now accepted and reviewed on a continuous, year-round basis.

He said the move marks a significant step in developing the fintech sandbox environment by giving companies greater flexibility to apply and test solutions at the right time, helping accelerate innovation and speed up the launch of products and services.

Alajlan said the update aligns the regulatory framework with global best practices, supporting fintech sector growth and enhancing the appeal of the Saudi market to innovators and investors.

The proposed amendments include improvements to the application process and the introduction of a minimum three-month waiting period before reapplying after a rejection, allowing applicants to address feedback and improve submissions.

They also aim to strengthen supervision and oversight of licensed firms and raise governance requirements to ensure business continuity and compliance, supporting market stability and investor confidence.

The changes would expand the scope of fintech to include technology-driven products and services linked to securities and capital market activities, improving the comprehensiveness of the regulatory framework.

Alajlan added that the updates also provide greater flexibility for ownership exits in fintech firms, supporting sustainability, growth, and investment attractiveness.

He said the CMA will continue reviewing and assessing fintech sandbox applications in parallel with the proposed updates until they are formally approved.

The initiative is part of broader efforts to enhance the regulatory environment, boost the competitiveness of Saudi Arabia’s capital market, and support sector growth in line with Vision 2030 and the Financial Sector Development Program, while balancing innovation with market and investor protection.