Forex trading is legal in Saudi Arabia and is regulated by the Saudi Central Bank (formerly known as SAMA - Saudi Arabian Monetary Authority) and the Capital Market Authority (CMA). The Saudi Central Bank is responsible for maintaining monetary stability, promoting the stability of the financial sector, and supporting economic growth in the Kingdom (1). Individual traders can participate in forex markets without legal restrictions, making Saudi Arabia an attractive destination for retail forex trading.
The regulatory framework ensures that forex trading activities comply with Islamic Sharia law principles, which is particularly important in Saudi Arabia's financial system. The Saudi Central Bank and CMA work together to oversee forex market operations and ensure fair trading practices (2). Unlike many other jurisdictions, Saudi Arabia does not impose personal income tax, which makes forex trading profits more attractive to individual traders. There are also no legal restrictions on the amount of profit that traders can withdraw from their forex accounts.
"The currency market is regulated and supervised by the Saudi Central Bank (SAMA) and the Capital Market Authority (CMA), whose remit includes ensuring that trading practices adhere to Sharia law."
While forex trading itself is legal, the Saudi Central Bank maintains strict oversight to protect investors from unlicensed brokers and fraudulent activities. The regulatory authorities require forex brokers operating in Saudi Arabia to obtain proper licensing and comply with local regulations. The Saudi Central Bank has issued warnings against dealing with unlicensed forex entities, emphasizing the importance of choosing regulated brokers to ensure investor protection and market integrity.
Source:
https://www.trade.gov/country-commercial-guides/saudi-arabia-trade-financing
https://www.daytrading.com/sa/forex
Last updated: 31-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
