From Sandbox to Scale: Implementation Gaps in Saudi Arabia’s FinTech Legal Framework

Abstract

Much of the discourse around FinTech regulation focuses on whether legal frameworks adequately facilitate private-sector innovation. This article argues that the more consequential and underexamined question is whether enacted frameworks are operationally adequate, sufficiently coherent, specific, and institutionally supported to govern the commercial realities of a mature FinTech sector. Using Saudi Arabia as its primary case, this study applies doctrinal legal analysis and thematic document analysis across six regulatory domains: licensing and sandbox governance, data protection, cybersecurity, consumer protection, Shariah compliance, and cross-border regulatory alignment, benchmarked against standards from the United Kingdom, United States, European Union, and United Arab Emirates. These jurisdictions are treated as sources of regulatory technique rather than as demonstrations of regulatory success. The analysis finds significant implementation gaps across all six domains: formal instruments have been enacted, but the transition pathways, proportionate calibrations, inter-agency coordination, and technology-specific rules necessary for operational adequacy remain underdeveloped. Drawing on Amstad’s regulatory objectives-principles-practices taxonomy, regulatory lifecycle theory, and institutional isomorphism, this study advances six targeted reform recommendations. The study concludes that regulatory maturation in emerging FinTech markets requires a deliberate transition from instrument adoption to implementation depth, from duck typing inherited frameworks to selectively coding the genuinely new governance that algorithmic finance demands.