SAMA Issues the Updated Rules for Engaging in Debt-Based Crowdfunding

The Saudi Central Bank (SAMA) has announced the issuance of the updated "Rules for Engaging in Debt-Based Crowdfunding." This step comes as part of its role in supervising and regulating debt-based crowdfunding companies and its continuous efforts to develop the finance sector in general and enable the FinTech sector in particular. In a press release issued today, these Rules included several updates, most notably adding more disclosure requirements that include default rates through its platform. In addition, debt-based crowdfunding companies may participate in financing beneficiaries according to the Rules. Additionally, the debt-based crowdfunding companies can offer finance amounts exceeding SAR7,500,000 to large commercial enterprises, licensed real estate development enterprises, or in the event of obtaining a written no-objection from SAMA. SAMA had previously published the updated draft Rules for Engaging in Debt-Based Crowdfunding, seeking comments and feedback from the public and experts to achie ve transparency and public participation. Comments and feedback were studied and considered in the final version of the Rules. To view the Rules, visit SAMA's website. Source: Saudi Press Agency