Saudi Arabia RegTech Market Overview, 2030

The RegTech market in Saudi Arabia has witnessed significant development over the past decade, driven by the Kingdom’s rapidly expanding financial sector, increasing regulatory oversight, and digital transformation initiatives across banking, insurance, and fintech industries. Its early evolution was influenced by reforms following the 2008 global financial crisis, which prompted the Saudi Central Bank (SAMA) and the Capital Market Authority (CMA) to enhance regulatory frameworks, strengthen risk management, and enforce strict compliance requirements for financial institutions. Initially, adoption of RegTech solutions was concentrated among large banks and insurance companies to automate critical processes such as Know Your Customer (KYC), anti-money laundering (AML) monitoring, transaction surveillance, fraud detection, and regulatory reporting, ensuring compliance with local regulations including Anti-Money Laundering Law No. (4/2017) and guidelines issued by SAMA and CMA. Between 2015 and 2020, the Kingdom’s fintech sector, particularly in Riyadh, Jeddah, and Dammam, accelerated the deployment of AI-driven and cloud-based RegTech platforms, enabling real-time compliance monitoring, predictive analytics, digital onboarding, and automated reporting. Initiatives such as the Regulatory Sandbox by SAMA have fostered collaboration between fintech start-ups, banks, and technology providers, encouraging innovation under controlled conditions while ensuring regulatory adherence. Additionally, data protection regulations under the Personal Data Protection Law (PDPL, 2021) have driven demand for secure handling of personal and financial data, increasing the adoption of advanced compliance solutions. Today, Saudi Arabia’s RegTech market is characterized by a dynamic ecosystem where banks, insurers, fintech innovators, and regulators leverage AI, machine learning, big data analytics, and cloud computing to enhance operational efficiency, automate compliance, and manage risk in a complex and rapidly evolving financial landscape.

According to the research report ""Saudi Arabia RegTech Market Overview, 2030,”published by Bonafide Research, the Saudi Arabia RegTech market is anticipated to grow at more than 24.21% CAGR from 2025 to 2030.The regulatory and policy framework for RegTech in Saudi Arabia is well-structured, reflecting the Kingdom’s commitment to strengthening financial stability, enhancing transparency, and promoting digital innovation. The Saudi Central Bank (SAMA) serves as the primary regulator for banks, insurance companies, and other financial institutions, enforcing stringent compliance requirements for anti-money laundering (AML), counter-terrorism financing (CTF), risk management, and corporate governance. Key regulations include the Anti-Money Laundering Law No. (4/2017), which mandates comprehensive monitoring, reporting, and internal controls to prevent illicit financial activities. The Capital Market Authority (CMA) regulates the capital markets, ensuring investor protection, market integrity, and compliance with securities laws, while providing guidelines on transaction monitoring, fraud detection, and risk assessment. In addition, the Personal Data Protection Law (PDPL, 2021) governs the collection, processing, and storage of personal and financial data, requiring organizations to implement strict data privacy, consent management, and cross-border data transfer protocols. To foster innovation, SAMA and CMA have introduced regulatory sandbox initiatives, allowing fintech and RegTech firms to test new compliance technologies, AI-driven monitoring tools, blockchain applications, and cloud-based solutions under controlled regulatory environments. Policies also emphasize cybersecurity standards, digital identity verification, and operational risk management, which are critical for banks, insurers, and fintech companies deploying automated compliance platforms. Furthermore, coordination with international standards, such as Financial Action Task Force (FATF) recommendations and Basel guidelines, ensures alignment with global best practices. Collectively, Saudi Arabia’s regulatory and policy framework provides a robust, innovation-friendly environment, enabling financial institutions and fintech firms to deploy advanced RegTech solutions while maintaining strict adherence to national and international compliance requirements.

In Saudi Arabia, the RegTech market by end user spans financial and non-financial sectors, with banks representing the largest segment due to strict oversight from the Saudi Central Bank (SAMA) and compliance obligations under the Anti-Money Laundering Law No. (4/2017) and other regulatory directives. Major banks deploy RegTech solutions for Know Your Customer (KYC), anti-money laundering (AML) monitoring, fraud detection, transaction surveillance, risk management, and automated regulatory reporting to enhance operational efficiency and ensure regulatory compliance. Insurance companies increasingly leverage RegTech platforms to improve claims monitoring, solvency reporting, fraud prevention, and customer identity verification, aligning with SAMA guidelines. FinTech firms, particularly in Riyadh, Jeddah, and Dammam, are rapidly adopting digital onboarding, real-time transaction monitoring, AML compliance, and secure identity verification tools to meet licensing and regulatory requirements efficiently. The IT and telecom sector utilizes RegTech solutions for data privacy, cybersecurity, and compliance with the Personal Data Protection Law (PDPL, 2021). Public sector organizations implement RegTech platforms for risk analytics, fraud detection, and financial transparency initiatives. Energy and utilities companies are increasingly employing RegTech for regulatory reporting, ESG compliance, and operational risk management. Other sectors, including healthcare, retail, and logistics, are gradually integrating RegTech solutions to strengthen data governance, fraud prevention, and compliance management, reflecting the expanding applicability of RegTech beyond traditional financial institutions in Saudi Arabia.

In Saudi Arabia, the RegTech market by component is divided into solutions and services, with solutions capturing the larger share due to growing demand from banks, insurance companies, and fintech firms for automated compliance, risk management, and regulatory reporting tools. Solutions include applications for Know Your Customer (KYC), anti-money laundering (AML) monitoring, fraud detection, transaction surveillance, risk and compliance management, and data privacy compliance under Anti-Money Laundering Law No. (4/2017), SAMA directives, CMA guidelines, and the Personal Data Protection Law (PDPL, 2021). Large banks and insurance companies deploy these solutions to streamline complex compliance processes, reduce operational costs, and ensure accurate reporting, often integrating on-premises systems with AI, machine learning, and analytics-driven platforms to enhance predictive compliance and operational efficiency. FinTech start-ups and mid-sized institutions increasingly adopt cloud-based solutions for scalability, real-time monitoring, and cost efficiency, particularly for digital onboarding, identity verification, AML compliance, and regulatory intelligence. The services segment complements solutions by offering consulting, system integration, implementation support, training, and ongoing maintenance. Consulting services help organizations interpret complex regulatory requirements, design compliance strategies, and align internal processes with evolving national and international frameworks. Integration and managed services ensure seamless connectivity with legacy IT systems and allow smaller banks and fintech firms to outsource compliance operations, reducing internal resource burdens. Together, solutions drive automation and innovation, while services facilitate effective deployment, customization, and adaptation to Saudi Arabia’s evolving RegTech ecosystem across financial and non-financial sectors.

In Saudi Arabia, the RegTech market by deployment model is segmented into on-premises and cloud-based solutions, catering to the diverse requirements of large financial institutions, mid-sized banks, and fintech firms. On-premises deployments are primarily adopted by major banks, insurance companies, and government agencies that require maximum control over sensitive financial and personal data, full integration with legacy IT systems, and strict compliance with regulations enforced by the Saudi Central Bank (SAMA) and the Capital Market Authority (CMA). On-premises solutions are typically applied to critical functions such as Know Your Customer (KYC), anti-money laundering (AML) monitoring, transaction surveillance, fraud detection, and regulatory reporting, offering high security and operational control but requiring significant upfront investment and longer deployment timelines. Cloud-based RegTech solutions are increasingly favored by fintech start-ups, smaller banks, and mid-sized insurers due to advantages such as faster deployment, scalability, cost efficiency, and real-time compliance updates. Cloud platforms are particularly suitable for digital onboarding, AML monitoring, transaction monitoring, identity verification, and data privacy compliance under the Personal Data Protection Law (PDPL, 2021). As regulatory guidance evolves to support secure cloud adoption, cloud-based solutions are emerging as the fastest-growing deployment model, driven by operational flexibility, efficiency, and the need for agile, automated compliance management across financial and non-financial sectors in Saudi Arabia.

In Saudi Arabia, the RegTech market by enterprise size is distinctly divided between large enterprises and small & medium enterprises (SMEs), influenced by regulatory complexity, operational capacity, and resource availability. Large enterprises, including major banks, multinational insurance companies, and leading financial institutions, dominate the market due to stringent oversight from the Saudi Central Bank (SAMA) and the Capital Market Authority (CMA), alongside compliance obligations under Anti-Money Laundering Law No. (4/2017), SAMA directives, CMA guidelines, and the Personal Data Protection Law (PDPL, 2021). These organizations invest heavily in comprehensive RegTech solutions for Know Your Customer (KYC), anti-money laundering (AML) monitoring, transaction surveillance, fraud detection, risk management, and automated regulatory reporting, often integrating on-premises systems with AI, machine learning, and analytics-driven platforms to enhance predictive compliance and operational efficiency. Large enterprises also possess the financial and technical capacity to maintain in-house compliance teams and integrate solutions with legacy IT infrastructure. Conversely, SMEs including regional banks, fintech start-ups, smaller insurance companies, and non-banking financial institutions are increasingly adopting cloud-based RegTech platforms due to affordability, scalability, and faster deployment. RegTech-as-a-Service and managed service models allow SMEs to automate compliance processes, meet AML and data privacy requirements, and reduce reliance on limited internal resources. While large enterprises generate the majority of revenue, SMEs represent the fastest-growing segment, driven by Saudi Arabia’s expanding fintech ecosystem, digital transformation initiatives, and rising demand for cost-effective, agile compliance solutions across financial and non-financial sectors.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• RegTech Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By End User
• Banks
• Insurance Companies
• FinTech Firms
• IT and Telecom
• Public Sector
• Energy and Utilities
• Others

By Component
• Solution
• Services

By Deployment Model
• On-premises
• Cloud

By Enterprise Size
• Large Enterprises
• Small & Medium Enterprises (SMEs) Show more