2020 Q2 Report En · Page 5

 
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Financial Sector Development Highlights 
SAMA Announces Granting Licenses for Finance Support 
Activities 
The Saudi Arabian Monetary Authority (SAMA) announced 
granting licenses for finance support activities, by announcing the 
issuance of the first license for National Finance Services 
Company, as a closed joint-stock company with a capital of 
SAR 80mn. 
This step comes from SAMA's supportive role to enable the 
finance sector by allowing new and supporting activities to 
strengthen the sector and support companies and facilitate their 
business. It also comes in line with the SAMA's role in enhancing 
financial stability and supporting opportunities for economic 
growth and development being witnessed by Saudi Arabia 
towards achieving the objectives of Vision 2030. 
SAMA Issues the Rules Governing Bancassurance Activities  
SAMA announces the issuance of the rules governing 
Bancassurance activities in the Kingdom. This step comes as part 
of SAMA's aspirations and efforts in developing the financial 
services environment and aligning with the latest technical 
developments in the insurance industry around the world, along 
with SAMA's efforts to raise the Insurance sector growth and 
spreading insurance culture and awareness. 
These rules aim to expand the scope of distribution and marketing 
of insurance products through banks; to ease the access to variety 
of financial needs at one place. These rules come to place to 
regulate the practices of Bancassurance in the Kingdom, as well 
as the relation between the insurance companies and the banks. 
The Bancassurance rules have a substantial role in raising the 
demand and awareness of saving products by promoting the 
distribution of insurance products in isolated areas. 
SAMA Deployed Blockchain Technology for Money Transfer 
with Local Banks 
SAMA has recently used blockchain technology to deposit part of 
the liquidity that SAMA had previously announced, to be injected 
into the banking sector, as part of SAMA's actions aimed at 
enhancing the sector's capabilities to continue its role in providing 
credit facilities. This comes as a part of SAMA's continuing efforts 
in exploring and experimenting emerging technologies and 
keeping pace with the global trends of central banks in assessing 
the impacts of such technologies on the financial sector. 
SAMA is one of the pioneer central banks to experiment 
blockchain technology for money transfers, this move was one of 
the key innovative initiatives launched by SAMA in its program to 
enable and develop Fintech in the Kingdom. These include among 
others: The Fintech Saudi Initiative in cooperation with the Capital 
Market Authority, the introduction of SAMA Regulatory Sandbox, 
and an array of digital banking services and payments. 
SAMA Permits 9 New Fintech Companies to Operate in the
Regulatory Sandbox Specialized in Providing Saving
Solutions for Individuals and Crowdfunding for SMEs 
SAMA announced that it has permitted 9 FinTech companies as a
new batch to operate in the Regulatory Sandbox. These 
companies have, therefore joined the list of companies permitted 
in the two previous cohorts, bringing the total number of 
companies permitted by SAMA to 30.  
The new batch of companies comes as part of SAMA's endeavor 
to accomplish and promote the digitization of financial services 
and drive towards digital transformation in the financial sector in 
line with the requirements and objectives of the Financial Sector