Saudi Arabia to release second batch of cap markets fintech permits
Reference to the Capital market law issued by Royal Decree number (M/30) dated 31 July 2003, and The Financial Technology Experimental Permit Instructions published on 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.
As a continuous effort to promote FinTech innovation in the capital market, the Capital Market Authority (CMA) is pleased to welcome applications for the 2nd batch for the FinTech ExPermits with effect from 15/10/2018. The application period for the 2nd batch will be closed on 15/12/2018.
Under this regulation, the Authority announced on 11/12/2017 the establishment of the Financial Technology Experimental Permit (FinTech ExPermit) and opened the first batch of applications for a FinTech ExPermit in February of this year. The CMA had received a number of FinTech applications and had on 10/07/2018 granted the FinTech ExPermit to two (2) applicants to create equity crowdfunding platform.
In continuation of the CMA's role in regulating and developing the Capital Market, enhancing the role of the capital market in further supporting the Saudi economy and providing a supportive regulatory environment in light of the rapid development of Financial Technology (FinTech) in the capital market which supports providing new finance methods for investors as part of the CMA's strategy in facilitating funds which works under the umbrella of the financial development sector program - a Saudi vision 2030 executing program.
The CMA encourages applicants to submit applications on its FinTech products which will promote FinTech innovation and has the potential to promote growth and efficiency in the capital market.