Riyadh, Saudi Arabia — The Saudi Central Bank (SAMA) has announced the release of updated regulations for debt-based crowdfunding, marking a significant step forward in the Kingdom’s efforts to enhance its financial ecosystem and foster the growth of the FinTech industry.
This latest move reflects SAMA’s commitment to regulating debt-based crowdfunding platforms while continuing to advance the finance sector. The updated rules introduce several key changes aimed at increasing transparency and expanding opportunities for both businesses and investors.
One of the most notable updates is the inclusion of new disclosure requirements, specifically mandating the reporting of default rates by crowdfunding platforms. This is expected to provide greater transparency and enhance investor confidence in debt-based crowdfunding projects.
The revised rules also allow debt-based crowdfunding companies to engage in financing beneficiaries under certain conditions, expanding the scope of services these platforms can offer. Additionally, companies will now be permitted to provide financing amounts exceeding SR7.5 million to large commercial enterprises, licensed real estate developers, or in cases where explicit written approval is obtained from SAMA.
In line with its goal of fostering public participation and ensuring transparency, SAMA previously released a draft of the updated rules for public review. Feedback and insights from industry experts and the general public were carefully considered and incorporated into the final version of the regulations.
These changes are expected to further stimulate the FinTech landscape in Saudi Arabia, opening new avenues for innovation and providing businesses with greater access to financing solutions.
For more information, visit SAMA’s official website.
