The Economy and Digitization of Currency in Saudi Arabia

More than a decade ago, the Saudi Government recognized how technology could change digital transactions in the country. Through the establishment of a comprehensive digital infrastructure, the government has created a modernized system that properly digitizes currency in the country. From this point on, technology and the economy became two sides of the same coin.

There are five things to consider when thinking of how technology has affected our currency and how it works. The importance of technology and its effective role in the Kingdom of Saudi Arabia cannot be understated, and Khalaf Bandar Law Firm will explain why.

How the Digitization of Currency Has Changed the Saudi Economy

1. Technical in the Balance of the Judiciary

The first legislation to regulate digital transactions in Saudi Arabia was passed in 2007. This legislature gave digital transactions the same authenticity as physical money. Many judicial decisions issued in the last few years support this, especially in banking cases.

One of the most important judicial decisions certified that bank telephones are considered as authentic as written evidence. This has been confirmed by the new system of evidence and the commercial court system.

2. Comprehensive Digital Infrastructure

We have had our digital infrastructure since the launch of the Abshar e-platform, the Naggs e-platform, and the Tawakkalna platform. Citizens and residents now do not need to visit the Ministry of the Interior, the Ministry of Justice, the courts, and others to view important legal documents. All these entities provide their services electronically.

This helped the Saudi Government and the country overall during the COVID-19 pandemic. Because our systems were digitized, concerned authorities did not have to stop operations and the country’s economy was not as affected as other countries.

3. Digital Payments and Financial Technology Sector

Digital payment channels have become incredibly popular in the Kingdom, causing cash payments to decline and become rare.

The Central Bank of Saudi Arabia has launched the Financial Technology Projects Support Initiative, or Makken. This program encourages investors to submit their projects and designs so they can be properly licensed, which has doubled the number of financial technology projects.

4. Electronic Financial Market Protections

The Saudi financial market is one of the most prominent examples of how digital development can help develop the Saudi economy and protect our business investments.

Digital algorithms are so advanced that they can identify suspicious operations and alert digital security teams. Digital security has contributed to the stability of the Saudi market.

5. Electronic Commerce Regulations

Electronic commerce is more regulated than before. Now, they are subject to the supervision and control of the Electronic Commerce Board. They monitor the application of electronic commerce regulations.

This system grants the consumer the right to cancel their order within fifteen days in the event of a late delivery. They also have the right to terminate within seven days of receiving the product or service if:

• The individualdoes not benefit from the product or service
• The consumer uses the contracted product and it doesn’t work as advertised
• The product or service has an unforeseen negative effect on the buyer

6. Economic Growth

Digitization is now a fundamental part of the Saudi economy. For the country to prosper, it needed appropriate regulations, laws, and environment.

The Saudi economy has been rewarded for its efforts as well. Digitization has motivated many companies to move to the Kingdom. Many foreign companies use our country’s digital infrastructure to offer their services remotely without having to have a physical workplace.

How the Attorneys at Khalaf Bhandar Law Firm Can Help

Even with all of the advances our country has made to digitize our economy and infrastructure, the legal process of joining the Saudi economy is not easy. Many businesses will still need legal assistance to traverse the differences between their home country and that of Saudi Arabia.

The team at Khalaf Bandar Law Firm can help. We have extensive experience helping businesses, both in Saudi Arabia and abroad, start in the Saudi economy. Whether you want to offer your services online or in person, we can help. Contact us today to schedule a consultation and learn more.