Saudi SAMA issues regulations for debt crowdfunding activities

Arab News: 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 Control Law.

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 Vision 2030.

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.

Arab Contribution Time: 12-Jan-2021 06:32 (GMT)
Arab Last Update Time: 12-Jan-2021 06:32 (GMT)