The Central Bank of Saudi Arabia (SAMA) issued the rules for practicing debt crowdfunding activities, which aim to regulate the provisions for licensing this type of company, and the organization of its conduct of its activities, according to the powers granted to the Central Bank in accordance with the provisions of the Finance Companies Control Law.

The issuance of these rules comes as part of the efforts aimed at supporting the opportunities for growth and economic development in the Kingdom, in order to achieve the goals of the Kingdom's Vision 2030 by organizing and supporting modern financing activities, including the activity of crowdfunding in debt, in line with the role of the Central Bank in promoting financial stability. Through these rules, the Central Bank seeks to achieve several goals, including attracting a new segment of investors and companies from owners of small and medium capitals to work under its supervision, which ensures the efficiency of these companies' work by adhering to information security requirements, and corporate governance, internal organization, attribution, risk and compliance management, and internal audit, in addition to encouraging innovation in the field of financing products, which contributes to providing modern financing products that meet the needs of the beneficiaries.

The Central Bank indicated that the rules for practicing debt crowdfunding activity have set the minimum paid-up capital for the facility wishing to license five million Saudi riyals, and the central bank is allowed to raise or reduce the minimum capital according to market conditions.

Source (Al-Arab London Newspaper, Edited)