SAMA issues licenses to debt-based crowdfunding fintech firms

RIYADH: The Saudi Central Bank, known as SAMA, issued licenses to two fintech firms specialized in debt-based crowdfunding, according to a statement issued on Monday.

The firms, Forus and Tameed, were issued licenses following SAMA evaluation through the central bank’s regulatory sandbox, which is an experimental environment devoted to the innovation of financial products and services in the Kingdom.

Forus offers a new way to manage one’s money with none of the old restrictions through a simple and secure app.

Tameed, on the other hand, is the only purchase order financing platform in Saudi Arabia. It provides financing based on government-backed purchase orders connecting small and mid-market businesses seeking finance through peer-to-peer financing.

Licensing the two fintech firms brings SAMA closer to its goal of positioning the Kingdom as one of the leading countries in the fintech industry.

Earlier in January, the central bank announced the launch of a new lab to allow businesses to test their products against an established framework. 

The service is a new concept that enables consumers of financial institutions to securely share their data with a third-party provider, facilitating innovative services and products.