The Saudi Central Bank (SAMA) has issued updated “Rules for Engaging in Debt-Based Crowdfunding,” as announced on Thursday. This move aligns with SAMA’s role in regulating and overseeing debt-based crowdfunding companies and its broader efforts to advance the finance and FinTech sectors.
The updated rules introduce additional disclosure requirements, including the obligation for platforms to report default rates. Debt-based crowdfunding companies can now also participate in financing beneficiaries under these new regulations. The updated rules allow companies to provide financing exceeding SAR 7,500,000 to large commercial enterprises, licensed real estate developers, or with written approval from SAMA. SAMA had previously shared a draft of the updated rules, inviting feedback from the public and industry experts to promote transparency and participation. The feedback received was incorporated into the final version.
