The Saudi Central Bank (SAMA) announces that it has updated the rules for practicing debt crowdfunding activities. Updating these rules followed the public consultation released earlier on the Public Consultation Platform.
This step comes in line with SAMA's continued efforts to develop the finance sector and to keep abreast of recent development in the finance industry as well as support Fintech that led to the emergence of a number of Fintech companies.
SAMA clarified that the updated rules aim to redefine the beneficiary to include all commercial establishments registered in the Kingdom of Saudi Arabia that seek to obtain financing through the debt crowdfunding platform, and adding the definition of aggregate accounts to ensure complete separation between the funds of the participants in the financing process and the funds of the crowdfunding facility. In addition, it determines the allowed ceiling crowdfunding based on the capital criterion by amending Article (Twenty-Eighth).
The updated rules can be viewed by visiting SAMA website (link).