Saudi Gazette report
RIYADH — The Capital Market Authority (CMA) board has accepted the regulatory framework enabling capital market establishments licensed for “arranging” actions to supply debt devices within the sukuk and debt market by way of securities crowdfunding platforms.
The framework follows the experimental section, which started within the second quarter of 2021, and it’s now thought-about one of many actions that may be carried out underneath the license to follow securities enterprise in arranging.
The CMA additionally accepted amendments to the Guidelines on the Provide of Securities and Persevering with Obligations, the Guidelines for Particular Functions Entities, and the Capital Market Establishments Rules, which is able to come into impact as of their publication date.
The regulatory framework goals to extend the variety of capital market establishments engaged in fintech (finance know-how) actions, in addition to increasing the participation of capital market establishments within the providing of debt devices by way of crowdfunding in securities. This contributes to deepening the debt devices market and enhancing its attractiveness to issuers and traders, in alignment with the CMA’s strategic aims.
Key accepted parts embody enabling capital market establishments to supply debt devices within the Sukuk and Debt Devices Market, with the requirement that they get hold of an “Arranging” license to conduct the exercise. This additionally permits corporations holding a FinTech Experimental Allow or these fascinated about offering the exercise to acquire the suitable license to follow it as a capital market establishment. The initiative helps the diversification and sustainability of company funding sources and facilitates broader investor entry to debt devices.
In response to the accepted regulatory framework, capital market establishments are required to acquire an “Arranging” license in securities actions in the event that they intend to conduct one of these providing. This permits them to supply debt devices by way of securities crowdfunding platforms as one of many exempt providing instances in accordance with the Guidelines on the Provide of Securities and Persevering with Obligations, with the opportunity of utilizing personal placements to broaden the scope and measurement of the focused providing.
One other key ingredient of the framework consists of the event of the necessities for registrable capabilities and the necessities for safeguarding shopper funds for capital market establishments licensed to conduct “Arranging” actions in the midst of securities crowdfunding.
Fintech firms licensed to follow the talked about exercise within the FinTech Lab will proceed working till the expiry of their permits. Afterwards, they might apply for the suitable license to conduct the exercise in accordance with the provisions of the adopted regulatory framework. It needs to be famous that new functions to conduct this exercise within the FinTech Lab will not be accepted at CMA, until they contain an revolutionary side requiring testing, contemplating the issuance of the regulatory framework enabling its follow by capital market establishments.
Debt providing and funding mannequin witnessed rising exercise throughout their Experimental section within the FinTech Lab, recording exceptional progress in 2024. The worth of sukuk issued by way of them rose to roughly SR3.4 billion in comparison with SR1.5 billion in 2023. The variety of permits granted to follow this mannequin additionally elevated to 17, up from 14 within the earlier 12 months.
The CMA approval comes as a part of efforts to boost the debt devices market and broaden its investor base by enabling capital market establishments licensed to conduct arranging actions to supply debt devices by way of securities crowdfunding platforms. It varieties a part of the draft titled “Regulatory Framework for Debt Devices Providing Platforms and Investing in Them,” which was beforehand revealed by the CMA on March 20, 2025, on the Unified Digital Platform for Consulting the Public and Authorities Entities to the Nationwide Competitiveness Heart and the CMA’s web site.
