Saudi Arabia is the newest regulatory destination in the Middle East region.

The fast-growing and fast-evolving marketplace in the Middle East region is getting even more attractive with emergence of new regulatory jurisdictions. Saudi Arabia is one of the most populous countries in the area, with the population reaching 32 million as of 2017, the country is a lucrative destination for forex brokers.

On April 25, the Capital Market Authority (CMA) of Saudi Arabia has issued its first forex broker license and, therefore, made the country even more attractive for brokers. The newly licensed broker for forex trading is a Closed Joint Stock Company in the Kingdom of Saudi Arabia.

AN INSIDER MARKET OR FAIR COMPETITION?

Even through this is an overall good news for the market, some experts are cautious that Saudi Arabia’s regulatory permits might become an exclusive right for some ‘hand-picked’ companies.

With the first regulatory license already granted, it remains unclear whether other companies would be able to apply and secure the lucrative permit. For the past few years, Saudi Arabia was in the process of opening up its capital markets, but the progress is slow and the market is still strictly controlled by the state.

Financial markets have long been preparing for the IPO listing of the biggest state-owned company - Saudi Aramco. Earlier this month, the company has managed to raise 10 times the bids it sought in a major bond sale. That fact can change the country’s plans for a public listing.

Saudi Arabia had also headlined the cryptocurrency space. The country’s central bank has been working jointly with the UAE monetary authorities to develop a new token.

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