Saudi Arabia greenlights crowdfunding for sukuk, debt offerings

Dubai: Saudi Arabia’s Capital Market Authority (CMA) has approved a regulatory framework that will allow licensed financial institutions to offer sukuk and other debt instruments through securities crowdfunding platforms, marking a significant step in expanding fintech activity in the Kingdom.

The move follows an experimental phase launched in 2021, during which sukuk issuance through crowdfunding surged to SR3.4 billion in 2024, more than double the SR1.5 billion recorded the year before.

The number of permits granted to practice the model also rose to 17, up from 14. Under the new framework, capital market institutions must hold an “arranging” license to conduct such offerings.

The rules also update requirements for safeguarding client funds and registrable functions, while allowing private placements to broaden the investor pool.

The CMA said the initiative will diversify corporate funding sources, strengthen the sukuk and debt market, and align with the regulator’s strategic goal of making the Kingdom’s capital market more attractive to issuers and global investors.