The Saudi Capital Market Authority (CMA) announced granting Emkan Alarabiya Company a financial technology experimental permit to create an equity crowdfunding platform.
The permit will enable the company to experiment crowdfunding in a fintech medium, at which investors can take part in financing small and medium enterprises (SMEs) in return for ownership of shares in these firms. The fintech based electronic platform of the firm provides these crowdfunding services and it is monitored by the firm itself.
Last year, CMA issued instructions on financial technology experimental permit providing a regulatory framework that facilitates fintech innovations in the local capital market.
Earlier in July this year, the Saudi regulator granted two Saudi firms experimental permits allowing them to test using robo-advisory services, or computer-generated advice for investors. Read more here:
Another regulator, the Saudi central bank (SAMA) launched regulatory sandbox for fintech firms that allows local and international financial technology firms to test new digital solutions. Read more here:
Other Gulf regional financial centers such as Abu Dhabi and Bahrain are taking several regulatory measures to create a conducive environment in the fintech race. Read more here:
(Writing by Nada Al Rifai firstname.lastname@example.org, editing by Seban Scaria)
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