Saudi SAMA updates regulations for debt crowdfunding activities

Saudi SAMA updates regulations for debt crowdfunding activities
The Saudi Central Bank's headquarters in Riyadh. (Supplied)
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Updated 02 November 2021

Saudi SAMA updates regulations for debt crowdfunding activities

Saudi SAMA updates regulations for debt crowdfunding activities
  • Stakeholders invited to express views on new regulations within 15 days

RIYADH: The Saudi Central Bank has updated its regulations governing debt crowdfunding activities, the bank said in a statement on Monday.

The new rules aim to redefine the beneficiary to include all commercial establishments registered in the Kingdom that seek to obtain financing through the debt crowdfunding platform.

New regulations also aim to add 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. 

They also determine the ceiling of crowdfunding allowed based on the capital criterion, SAMA statement said.

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, it said.

SAMA called on 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. 

The draft of new rules can be reached by visiting the Public Consultation Platform affiliated to the National Competitiveness Center, the central bank said.

Crowdfunding is the practice of funding a project or a venture by raising money through the collective effort of a large number of people who each contribute a small amount.

Saudi small and medium enterprises have raised SR100 million ($26.65 million) so far this year through crowdfunding, Mohammed Al-Quwaiz, Saudi Capital Market Authority president recently said.

“In the current year, from the beginning of the year to the middle of the year, crowdfunding platforms collected about SR100 million, all of which are for entrepreneurial companies,” Al-Quwaiz said.


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Increased net losses happened despite a 4.3 percent increase in the company’s revenues. 

This rise in losses was a result of recorded accounting profits during the first quarter of 2021 against settlement discounts for some outstanding obligations with some banks that amounted to around SR20 million. 

Established in 1968, the company manufactures pipes. 


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The firm, formally known as Jahez International Co. for Information Systems Technology, seeks a full acquisition of The Chefz, it said in a bourse filing.

Riyadh-based The Chefz is an app specialized in food delivery and caters to several citites across the Kingdom.

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Alujain attributed the profit drop from SR60.3 million in the same period a year ago to an increase in finance costs.


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The prospectus for its capital increase will be issued through SR8 billion rights issue, after receiving the Capital Market Authority's approval, it added.