Warnings in Saudi Arabia against leniency in trading in currency markets

Saudi specialists warned yesterday of leniency in dealings with global currency markets and falling into the face of forex transactions, stressing the importance of caution and not dealing with unauthorized investment companies and widespread advertising campaigns.
Equity market analyst Hamad al-Olayan told Middle East that Saudi Arabia has a financial sector development program as part of the Kingdom’s Vision 2030 targets, focused on creating and developing a diversified and effective financial sector to support the development of the national economy, diversify sources of income, and stimulate savings and finance.
He added that recently, as a result of one of the repercussions of Corona emerged currency trading platforms, taking advantage of the crazy rises achieved by some traditional and digital currencies that attracted a lot of money, stressing that the Central Bank of Saudi Arabia, in the face of a major challenge with regard to the level of capacity to develop legislation that fortifys the economy, against any potential risks from currency platforms, especially digital ones, as well as maintaining the level of security of any electronic piracy. Cryptocurrencies and forex in Saudi Arabia are prohibited because these transactions have different negative consequences for customers and high risks being outside the control umbrella within the Kingdom, indicating at the same time, indicating that the activity of locally licensed brokerage companies officially represented by offices within the Kingdom, is limited to trading other types of financial instruments such as currency pairs, trading Saudi shares, gold and some financial products except bitcoin and digital currencies, which made foreign companies a haven for those wishing to trade this categorycurrencies from Saudi investors.
For his part, he told «Middle East» financial analyst Mohammed Al-Maimoni that investing in the forex exchange market and the currency exchange market is one of the most important investment tools carried out by traders in hedging stock markets and taking advantage of the price vibrations that occur in the currencies as well as taking advantage of changes in interest rates, continuing “but these risks remain strong in the market, which necessitates the need to follow government legislation and official authorities in Saudi Arabia.”

“The situation in Saudi Arabia is still in the process of regulating this market and licensing a number of companies to obtain a work permit in the Kingdom so that there are more controls and tight control by official financial flows authorities so that there are specific restrictions preventing entry into illegal investments,” he said. “In addition to protecting investors and customers from the fictitious platform network, there are a number of companies in the Kingdom that provide this service to investors who have the required conditions of necessary certificates and sufficient expertise.”
“I advise traders in the global markets to be careful because of the high risks of knowledge, learning and follow-up carefully, adherence to basic editing and monitoring of global events, especially since such a market includes opportunities traded 24 hours a day and is considered high risk due to the use of leverages.”
For his part, financial analyst Mohammed Al Ankari said in an interview with «Middle East» about the growing dealing in the currency market (Forex) traders in Saudi Arabia is a decision for those who want to deal with them, where most traders trade them through international platforms, but the risk, according to Al-Ankari, is that some turn to unauthorized platforms from entities such as U.S. and British commodity and securities bodies and that the person does not have knowledge of the risks of these transactions as quick momentary speculations.
“In my opinion, it needs high professionalism,” he said, adding that it is better to address the current situation of growing domestic demand and the lack of data on the volume of transactions, increasing licensed local institutions while raising awareness of the nature of these dangerous markets.