RIYADH — The Saudi Central Bank (SAMA) has announced the release of updated Rules for Engaging in Debt-Based Crowdfunding.

This move aligns with SAMA's responsibility to oversee and regulate debt-based crowdfunding companies and its ongoing efforts to advance the finance sector, with a particular focus on enabling the FinTech industry.

The updated rules include several key changes, notably the introduction of additional disclosure requirements, such as reporting default rates through the platforms.

Furthermore, the rules allow debt-based crowdfunding companies to participate in financing beneficiaries under specific conditions.

They also permit these companies to offer financing amounts exceeding SR7,500,000 to large commercial enterprises, licensed real estate development companies, or in cases where written approval is obtained from SAMA.

Earlier, SAMA had released a draft of the updated rules for public review, seeking comments and feedback from the public and industry experts to ensure transparency and encourage public participation. These inputs were reviewed and incorporated into the final version of the rules. — SG