RIYADH: Saudi Arabia’s Capital Market Authority approved a regulatory framework enabling licensed firms to offer sukuk and debt instruments through crowdfunding platforms, expanding financing access and diversifying funding sources.
The framework, effective immediately, applies to institutions licensed for “arranging” activities and follows an experimental phase that began in the second quarter of 2021.
The authority introduced amendments to the Rules on the Offer of Securities and Continuing Obligations, the Rules for Special Purpose Entities, and the Capital Market Institutions Regulations.
The CMA aims to broaden participation in the debt market, deepen its structure, and enhance liquidity by enabling crowdfunding-based debt offerings as part of exempt cases under the offering rules. Private placements are also permitted, potentially increasing the scope and size of such offerings.
“The framework is designed to increase the number of capital market institutions engaged in fintech activities and supports diversification and sustainability of corporate funding sources,” the CMA said.
