Saudi Businesses Set to Benefit from New Crowdfunding Solutions
In a groundbreaking development, Hala Payments Co. has received licensing approval from the Saudi Central Bank to offer debt-based crowdfunding products to businesses in the Kingdom. This move opens up a world of opportunities for small and medium enterprises looking for funding solutions.
Empowering Small Businesses with Debt-Based Crowdfunding
With over 50,000 merchants already utilizing Hala Payments Co.’s fintech platform for inbound and outbound payment options, the approval from the central bank marks a significant milestone. Debt-based crowdfunding provides a lifeline for projects and businesses in need of financial support, allowing them to secure loans from multiple investors instead of relying on a single lender.
Fostering Innovation and Financial Inclusion
The Saudi Central Bank’s decision to grant licenses to companies like Thara, a debt crowdfunding platform specializing in real estate development projects, is part of a larger effort to support and empower the finance sector in the Kingdom. By promoting innovation and enhancing financial inclusion, these initiatives aim to extend financial services to all segments of society.
Ensuring Compliance and Accountability
SAMA emphasized the importance of dealing with licensed financial institutions and warned that any necessary actions, such as on-site visits and reviews of regulations and procedures, will be taken to verify compliance. The central bank also outlined conditions under which a license may be canceled, underscoring the need for transparency and adherence to regulations in the debt-based crowdfunding industry.