The Capital Markets Authority of Saudi Arabia (CMA) has granted the Financial Technology Experimental Permit (FinTech ExPermit) to the Sukuk Capital Company and Osool & Bakheet Investment Company.

The FinTech ExPermit aims to provide a regulatory framework conducive to the innovation of fintech in the capital market within the kingdom.

The FinTech ExPermit was announced by the authority in 2017, and the first batch of applications were submitted by February in 2018.

Based on this permit, Sukuk Capital Company will enable small and medium size enterprises (SME) to obtain the required funding by arranging the offering of Sukuk to finance projects, and offering them to the collective investors registered in the platform.

Meanwhile, Osool & Bakheet Investment Company, a Saudi closed joint stock company, will be able to experiment the crowdfunding fintech that allows investors to participate in funding SMEs in exchange for shares in such enterprises. The service will be provided through an electronic platform owned and monitored by the company.

CMA highlighted that this permit coincides with the launch of the third batch for ExPermit of FinTech innovations which was announced at the end of November.

The CMA has opened the door for the fourth batch of applications for FinTech ExPermits beginning October this year.

Last year, CMA had granted three FinTech ExPermits to equity crowdfunding platforms Buthoor Solidarity, Afaq and Emkan Alarabiya.

Featured image credit: Pexels.com