Saudi Central Bank (SAMA), following the successful pilot in the Regulatory Sandbox, announced licensing Sulfah Financing Company; a closed joint-stock company with a capital of SAR 10 million was given a license to conduct consumer microfinance activity using financial technology.

SAMA clarified that it will continue to provide microfinancing licenses to companies specialized in this type of activity. SAMA stated that these types of licenses shall greatly support and empower the Kingdom's finance sector as they broaden its scope of activities, draw more investors and encourage medium capital companies while still operating efficiently and effectively through compliance with the SAMA's regulatory instructions and requirements related to risk management, compliance and clients' protection.

On a related note, SAMA indicated that licensing consumer-targeting microfinancing activities counts as a step forward towards its goal of promoting the Kingdom's financial stability and supporting economic growth and development, in line with the objectives of Saudi Vision 2030.

Lastly, SAMA affirmed that it will always endeavor to support the sector of financing and fintech, raise the level of effectiveness and flexibility of financial transactions and promote innovations within financial products and services to ultimately broaden the Kingdom's scope of financial inclusion and increase the outreach of financial services to the different segments of the Saudi society.