Riyadh -- The Saudi Central Bank (SAMA) announces issuance of the rules for practicing debt crowdfunding activities, which aim to regulate provisions for licensing this type of company and to regulate its conduct of activities, in accordance with the p...
Riyadh -- The Saudi Central Bank (SAMA) announces issuance of the rules for practicing debt crowdfunding activities, which aim to regulate provisions for licensing this type of company and to regulate its conduct of activities, in accordance with the powers granted to the Saudi Central Bank, under the provisions of the Finance Companies Control Law.
The issuance of these rules comes as part of SAMA's efforts to support the opportunities for growth and economic development in the Kingdom of Saudi Arabia, in order to achieve the goals of the Kingdom's Vision 2030 by supporting and organizing modern financing activities. Including the activity of debt crowdfunding, and in line with the role of the central bank in promoting financial stability.
The Central Bank seeks through these rules to achieve several goals: Including attracting a new segment of investors and companies, owners of small and medium capitals, to work under its supervision, in a manner that ensures the efficiency of these companies by adhering to the requirements of information security, corporate governance, internal regulation, attribution, risk and compliance management, and internal auditing, in addition to encouraging innovation in financing products, in a way that contributes to providing modern financing products that can meet the needs of the beneficiaries.
The Central Bank indicated that the rules for practicing debt crowdfunding activity have set the minimum paid-up capital for the facility wishing a license to five million Saudi riyals, with the authority of the Central Bank to raise or reduce the minimum capital according to market conditions, noting in this regard that the draft rules for practicing debt crowdfunding activity had been published earlier to collect public opinions and interested individuals, in order to enhance the principle of transparency and participation. All the essential observations and views received were taken into consideration before being finalized.
The Central Bank invites investors wishing to engage in debt crowdfunding activity to familiarize themselves with financing regulations and their implementing regulations rules for practicing debt crowdfunding activity, and forms and guidelines for requesting a license to practice this activity by visiting the website via the link: https://www.sama.gov.sa/ar-sa/Laws/Pages/FinanceRulesAndRegulations.aspx.
Source: Saudi Press Agency