Saudi Arabia's Capital Market Authority (CMA) has approved Wahed Capital and Haseed Investing Company to test their robo-advisory services, as part of moves by the Arab world's biggest economy to encourage the use of financial technology.
The regulator stated that the companies will be able to experiment the robo-advisory service which allows clients to get advice on securities or investment scheme through direct access to automated online platform or application.
The approvals for Wahed Capital and Haseed Investing come after the Saudi central bank launched an initiative last year to encourage banks to settle payments using blockchain software.
Additionally, the both companies will also be permitted to offer automated online discretionary investment management.
Financial centers in the Gulf region including Abu Dhabi, Dubai and Bahrain have been pushing for a financial startup scene to position themselves as regional powerhouses in fintech.