You can see the rules and regulations in other jurisdictions.
Saudi Arabia cannot passported activities governed or licensed by foreign jurisdictions. Foreign companies must have local legal presence in Saudi Arabia in order to carry out their activities in the country. Hence, the company from another jurisdiction will need to seek the appropriate licensing in Saudi Arabia depending on its activities from SAMA, the CMA or both, as well as from the Ministry of Investment (MISA).1
If the foreign entity attempts to conduct its activities in Saudi Arabia without legal presence in Saudi Arabia, the transfer of monetary amounts from the local account to the foreign account may trigger a red flag with the banks, which may subject the entity to investigation. A foreign entity must have a local bank account in order to avoid this, and opening a local bank account requires having a local presence in order to open one.1
It is impossible to offer cross-border services or products without a local presence. Once the company offering the fintech service or product establishes a local presence in Saudi Arabia, it can provide the services or products via establishing a new company and obtaining a MISA license or, in limited cases, appointing a Saudi-licensed agent to provide the services and products.1
Foreign entities who wish to conduct marketing services, either directly or through the use of a local partner, must ensure that all activities are compliant with Banking Consumer Protection Principles issued by SAMA. Where a foreign entity appoints a local partner to solicit these services, the foreign entity is exempt from seeking marketing licence provided that the local partner is licensed by the relevant authorities. Before making any decisions, we typically recommend that foreign entities perform due diligence on licensing requirements.1
A Saudi Arabian bank account must be opened by an entity that has legal local existence, which is subject to MISA licensing for foreign exchange or currency control. A Saudi Arabian bank account must also be opened if it wishes to establish local existence.1
The transfer of amounts collected in Saudi Arabia to the parent company's offshore account will be permitted once an entity has successfully established itself in Saudi Arabia and opened a local bank account.1
To diversify the economy and achieve the goals of Saudi Arabia's Vision 2030, MISA has instituted lower requirements for foreign persons who wish to acquire ownership rights within the country. However, certain activities remain restricted for foreign visitors, and others may entail meeting additional conditions or seeking a local partner. The type of requirements that must be met pertain directly to the business activity that is being established in Saudi Arabia. Therefore, potential foreign entities have four different ways of carrying out their endeavours in the region:
