The Saudi Central Bank (SAMA) added more disclosure requirements, including information on default rates through its platform, in its updated “Rules for Engaging in Debt-Based Crowdfunding”.
In addition, debt-based crowdfunding companies may participate in financing beneficiaries according to the new rules.
Additionally, such companies can offer finance amounts exceeding SAR 7.5 million to large commercial enterprises, licensed real estate development enterprises.
The debt-based crowdfunding companies, however, will be required to obtain no-objections from SAMA for such issuances.
The rule update is part of the central bank’s efforts to develop the finance sector in general and enable the fintech sector in particular.
SAMA had previously published the updated draft Rules for Engaging in Debt-Based Crowdfunding, seeking comments and feedback from the public and experts to achieve transparency and public participation.
Comments and feedback were studied and considered in the final version of the rules.
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