SaudiArabia combines the Gulf’s largest population and stock market with afast-growing investment industry, but it is not an easy extension market for anoffshore retail FX or CFD broker. A CFD-only launch based on cross-bordersolicitation carries a much weaker regulatory and commercial case.London's trading industry is coming home!GeneralProfile and Regional PositionSaudiArabia is the largest economy and the most populous state in the GulfCooperation Council. It also occupies a strategic position between the Red Seaand the Arabian Gulf, is a G20 member, and plays a central role in regionalenergy, capital and government spending. Riyadh is increasingly the centre ofthe Kingdom’s financial and corporate activity, while Jeddah remains thecommercial gateway to the Red Sea, and the Eastern Province connects financewith the oil, gas and industrial economy.For afinancial company, scale is one of the main attractions. According to theofficial 2024 population estimates, Saudi Arabia had 35.30 million residents,including 19.64 million Saudi citizens and 15.67 million non-Saudi residents.These figures were produced after the 2022 Census and reflect the subsequentincrease in the expatriate workforce.Local FXand CFD Market and Regulatory FrameworkSaudiresidents trade currencies, gold, global indices and overseas shares throughinternational platforms. Arabic-language services, mobile trading and demandfor swap-free accounts make the Kingdom commercially important to globalbrokers.However,there is no official Saudi dataset covering the number of active FX or CFDtraders, their deposits or trading volumes. Market-size estimates published byaffiliate websites and lead-generation companies should therefore not betreated as official or investment-grade evidence.Theregulatory position requires a distinction between securities businessconducted in Saudi Arabia and the treatment of payments connected withnon-resident forex companies. The Capital Market Authority regulates securitiesbusiness in the Kingdom.The SaudiCentral Bank, commonly known as SAMA, supervises banks, payments, financecompanies, insurance and other financial activities within its mandate.SAMA’sRestrictions on Forex-Related TransfersSAMA’s (TheSaudi Central Bank) position on non-resident forex companies combinestransaction restrictions with a distinction between licensed and unlicensedforeign firms.A circularissued on 18 May 2017 identified three categories of prohibited activity. Thefirst covered foreign forex companies without relevant contractualrelationships with licensed Saudi financial institutions that promoted ormarketed their activities through websites, telephone calls or other channels.Find thefull analysis, including a detailed breakdown of the local market and businessenvironment, in our latest “Featured Country” report from Finance MagnatesIntelligence.This article was written by Sylwester Majewski at www.financemagnates.com.