The Saudi Central Bank (SAMA) announces releasing public consultation on updated Rules for practicing debt crowdfunding activities. The issuance of these rules comes in continuation of SAMA's efforts to develop the financial sector and to keep abreast with developments of technology within the financing industry. In addition, supporting and enabling financial technology, has led to the emergence of a number of Fintech companies, and to the development of technology within financing activity.

SAMA clarified that the updated rules aims to redefine the beneficiary to include all commercial establishments registered in the Kingdom of Saudi Arabia that seek to obtain financing through the debt crowdfunding platform, and adding a definition of aggregate accounts to ensure complete separation between the funds of the participants in the financing process and the funds of the crowdfunding facility. In addition, it determines the ceiling of crowdfunding allowed based on the capital criterion by amending Article (Twenty-Eighth).

In this regard, SAMA invites the public, specialists and interested individuals to provide their views and observations on the draft rules within (15) days, noting that all views and observations will be under consideration for adopting the final version of these rules. This draft can be reached by visiting Public Consultation Platform affiliated to the National Competitiveness Center on the (link).