Saudi Central Bank Updates Rules on Crowdfunding to Support Fintech Companies  

Saudi Central Bank (SAMA) has made a recent update to the laws related to the separation of the funds of participants in the financing process and the funds of a crowdfunding facility.

Why it Matters?

The changes made will support the formation of new fintech companies emerging in the country.

Details

The new rules have redefined the beneficiary to include all commercial entities registered in Saudi Arabia seeking to receive financing via the debt crowdfunding platform. The definition of aggregate accounts was also added to ensure that there is a complete separation between the funds of the participants in the financing process and the funds of the crowdfunding facility.

Photo by geralt