The Saudi Central Bank “SAMA” issues the updated version of the “Rules for Practicing Debt Crowdfunding Activity”.
The Saudi Central Bank (SAMA) has obliged Debt crowdfunding companies disclose On the default rates across its platforms, it also allowed it to finance commercial establishments with amounts exceeding 7.5 million riyals ($2 million), according to a statement issued Thursday.
What are debt crowdfunding companies?
Debt crowdfunding companies are platforms that enable individuals or companies to obtain loans by raising money from a large number of investors, where these investors can contribute small amounts to the financing process.
Highlights of the rules and updates
The Saudi Central Bank approved several updates related to debt crowdfunding companies, the most important of which are:
Obligating companies to disclose default rates through their platforms.
Allowing participation in financing beneficiary establishments in accordance with the specified controls.
These companies can now finance establishments with amounts exceeding 7.5 million riyals ($2 million) in some cases, most notably: in the event of obtaining a written non-objection from the Central Bank, or when financing large commercial establishments and establishments licensed to practice real estate development activity.
