The Saudi Central Bank, known as SAMA, has expanded its fintech ecosystem by authorizing Thara, a debt crowdfunding service, to function within Saudi Arabia. This increases the total of such platforms to nine within the nation’s market.
This endorsement marks the 59th fintech enterprise to gain approval from the nation’s financial authority. SAMA’s action is indicative of its commitment to fostering a dynamic financial sector, enhancing transactional efficacy, and championing innovative financial solutions to broaden financial participation across the country.
Thara, a fintech player in the realm of real estate, offers a bridge between investors and real estate development prospects via Murabaha financing. Its mission is to inject capital into property development initiatives while generating returns for investors.
In a recent move, Dnaneer Financing Co. became the eighth fintech entity to receive SAMA’s clearance to provide debt-based crowdfunding services in Saudi Arabia. Dnaneer serves as a conduit, linking investors with businesses that boast consistent revenue streams, thereby offering diverse investment options and furnishing businesses with necessary funding.
Additionally, two other companies were granted licenses in January 2023 to operate in the debt-based crowdfunding space. Forus, a fintech company, offers an intuitive and secure application designed for innovative fund management. In contrast, Tameed is an exclusive platform for purchase order finance in Saudi Arabia, facilitating peer-to-peer funding supported by government-endorsed purchase orders, thus connecting small to mid-sized enterprises with prospective financiers.
The issuance of these permits aligns with SAMA’s vision of establishing Saudi Arabia as a fintech powerhouse.
Moreover, earlier in the year, Riyadh-based fintech Raqamyah obtained SAMA’s nod to provide debt-based crowdlending solutions aimed at small and medium enterprises. The endorsement followed the successful demonstration of Raqamyah’s services within SAMA’s regulatory sandbox, an innovative testing ground for nurturing financial service advancements in the country. Founded in 2017, Raqamyah has been pivotal in enabling SMEs to access Shariah-compliant financing, allowing them to raise funds up to $1.3 million from individuals and institutions through its digital platform.