Crowdfunding is a way of raising money to finance projects and businesses. It enables fundraisers to collect money from a large number of people via online platforms. Crowdfunding is most often used by startup companies or growing businesses as a way of accessing alternative funds.
This decision reflects SAMA’s endeavor to support the financial sector, increase the efficiency of financial transactions, and promote innovative financial solutions for financial inclusion in Saudi Arabia, according to the SAMA statement.
In April, the Saudi Central Bank provided a license to Funding Souq, an SMEs financing and investment platform, to operate its debt crowdfunding platform in the Kingdom of Saudi Arabia.
Funding Souq aims to fuel SME growth, create jobs, and drive the economy forward in Saudi Arabia. By connecting established SMEs with retail and institutional debt investors worldwide, the platform provides accessible business loans to support the growth aspirations of local businesses.
Last year, SAMA issued ‘Rules for regulating buy now pay later (BNPL) companies’, as part of its role in supervising and controlling BNPL companies. SAMA said in a statement that the move reflects SAMA’s continuous efforts to develop the financial sector as a whole and empower the Fintech sector in particular.
