Laws on regulatory technology (RegTech) in Saudi Arabia: are they adequate?

Abstract

Purpose The Regulatory Technology (RegTech) is said to be the use of information technology for regulatory monitoring, reporting and compliance. It is used to solve regulatory and compliance issues more effectively and efficiently. Regulators with the digitization of regulation and datafication of processes would get empowered to manage volumes of data. RegTech would assist them in understanding innovative products, transactions, risks, reporting and any market manipulation activities in real time. For successful use of RegTech, the regulatory framework of a country should be comprehensive to address issues that may arise in the use of RegTech. Thus, the purpose of this article is to analyze the adequacy of the Saudi Arabian legal framework to address RegTech adoption. Design/methodology/approach The researcher using logical analysis method analyzed the available laws and interpreted the law to see the applicability and the adequacy of laws to regulate the use of RegTech in Saudi Arabia. The content analysis was also used in this research to analyze the literature. This analysis helped to explain the available literature on the research topic and its relevancy and the gap in literature. Findings The analysis using the logical and content methodologies shows that Saudi Arabia has general law to address some of the issues that might arise in the adoption of RegTech. Nonetheless, amending some of the existing laws or introducing guidelines could help better uplift of RegTech and similar technologies in Saudi Arabia. Originality/value As businesses and regulatory authorities embrace technology for better and efficient delivery of services and products in Saudi Arabia, the research is timely to analyze the adequacy of the laws in Saudi Arabia for adoption of RegTech. In the use of RegTech, issues related to privacy, due diligence, accountability and transparency could arise, however, there is a dearth of literature in these areas relating to technology adoption.