The Capital Market Authority (CMA) Grants a Financial Technology experimental permit (FinTech ExPermit) to Emkan Alarabiya Company to Create Equity Crowdfunding Platform
Based upon the Capital Market Law issued by Royal Decree No. (M/30) dated 2/6/1424H, and reference to the Financial Technology Experimental Permit Instructions issued by CMA in 10/01/2018, which aims to provide a regulatory framework that is conducive for the innovation of Financial Technology (FinTech) in the capital market within the Kingdom. In relation to this, the CMA Board of Commissioners issued its resolution to grant Emkan Alarabiya Company a Financial Technology Experimental Permit (ExPermit) to create an equity crowdfunding platform.
Based on this permit, Emkan Alarabiya Company will be able to experiment the crowdfunding FinTech which allows investors to participate in funding small and medium size enterprises in exchange for shares in such enterprises. The service is provided through an electronic platform owned and monitored by Emkan Alarabiya Company.
CMA would like to highlight that this permit coincides with the beginning of ExPermit for the Second batch of FinTech innovations which was announced in 7/10/2018, related to securities businesses that fall under the CMA's supervision. Later this year, the CMA will reopen the door for the third batch of applications for FinTech ExPermits.