Regulations are increasingly complex, dynamic — and for many organisations burdensome. While regulatory compliance is a global issue, it is urgent for GCC countries with their bold economic diversification and technology plans, such as in artificial intelligence, logistics, and financial technology. If they observe regulations and anticipate issues, GCC economies can flourish and create jobs.
One way to ensure regulatory compliance is regulatory technology ( regtech). By combining advanced digital tools, data analytics, and automation, regtech provides knowledge, detection, and compliance. It streamlines processes, alerts against violations, creates reassurance, and can enhance operations.
Indeed, intensifying digital transformation in GCC countries can provide a “greenfield” for regtech development and innovation. Given their ambitions, GCC organisations need regtech. Domestic and international regulators have intensified scrutiny in multiple areas, including anti-money laundering, data privacy; and environmental, social and governance compliance — which costs.
For example, LexisNexis Risk Solutions puts the burden of global financial compliance in 2023 at $206.1bn, with financial crime compliance in 2021 in the Middle East (except the UAE) costing $11.9bn.
Also, regulations can overlap or conflict, confusing, as occurred in the U.K. with data retention requirements.
Already, GCC organisations recognise regtech’s importance. In the Middle East, including the GCC, T.