Arab News, Tuesday, Jan 12, 2021 | Jamadi Al Awwal 28, 1442
Saudi SAMA issues regulations for debt crowdfunding activities
Saudi Arabia: The Saudi Central Bank (SAMA) issued regulations
of the debt crowdfunding activities, which aim to regulate the licensing
provisions for the companies in this field, in line with the Finance Companies
These regulations came in line with SAMA’s efforts to ensure financial stability
as well as the Kingdom’s ongoing economic development in the light of Saudi
The central bank also seeks to attract a new category of investors and the
owners of small and medium enterprises (SMEs), while ensuring their adherence to
the requirements of information security, corporate governance, internal
regulation, risk and compliance, and internal auditing, in addition to the
introduction of top-notch financing products that meet the investor aspirations.
According to these regulations, the entity which applies for licensing, should
have a minimum paid-up capital of SR5 million ($), while the central bank has
the right to raise or reduce the minimum capital according to market conditions.