The Saudi Central Bank has updated its debt crowdfunding rules to further support fintech developments in the Kingdom.
The updated rules redefine the beneficiary to include all commercial establishments registered in Saudi Arabia seeking financing through debt crowdfunding. It also adds the definition of aggregate accounts to ensure complete separation between the funds of participants in the financing process and the funds of the crowdfunding facility while setting a crowdfunding ceiling amount based on the capital criterion.
There are eight Islamic crowdfunding and peer-to-peer finance platforms in Saudi Arabia, according to the IFN Islamic Fintech Landscape as at the 12th January 2022.