The Saudi Arabian Monetary Authority "SAMA" announces that it has published (draft) rules for practicing debt crowdfunding activity. It aims to regulate licensing provisions for this type of company, and to regulate its conduct of its activities. SAMA calls on the public and interested people - in order to strength the principle of transparency and participation - to express their observations and views on the project as of the date 16/11/1441 AH, corresponding to 7/7/2020 AD, for a period of (30) thirty days.

                The issuance of these rules comes as part of SAMA's efforts to support growth opportunities and economic development in the Kingdom, in order to achieve the goals of the Kingdom's Vision 2030 by supporting and organizing modern financing activities, including the Debt-based crowdfunding activity, in line with the institution's role in promoting stability Financial.

                SAMA indicated in a statement that it is seeking through these rules to attract a new segment of investors and companies from owners of small and medium capitals to work, in a manner that ensures the efficiency of these companies' work by adhering to the requirements of information security, corporate governance, internal regulation, and attribution. Risk management, compliance and internal auditing, in addition to encouraging innovation in financing products; in a way that contributes to providing modern financing products that meet the needs of the beneficiaries.

                The draft rules for practicing debt crowdfunding activity set the minimum paid-up capital for a company that engages in this activity at (5,000,000) five million Saudi riyals, with SAMA's authority to raise or lower the minimum capital according to market conditions.

                In conclusion, SAMA invites interested legal entities and businesspersons wishing to engage in these activities to review the financing regulations, implementing, and the draft rules for practicing crowdfunding activity, by visiting the SAMA's website via the (link), noting that all the views and observations will be Subject to study for the purpose of approving the final version of these rules.