ISLAMIC EQUITY-BASED CROWDFUNDING REGULATORY MODEL: A LEGAL ANALYSIS IN SAUDI ARABIA
ISLAMIC EQUITY-BASED CROWDFUNDING REGULATORY MODEL: A LEGAL ANALYSIS IN SAUDI ARABIA

Summary/Abstract: One of the initiatives of the Saudi Vision 2030 is the Financial Sector Development Program, which has created the Financial Technology Lab by the Capital Market Authority (CMA). It is in July 2018 that the Saudi CMA declared, for the first time, the approval of two equity-based crowdfunding platforms licenses to two Fintech companies: Scopeer and Manafa Capital. Even though the lawfulness of equity-based crowdfunding was determined from a legal point of view in these two first Saudi crowdfunding platforms, there is no official law, regulation, or rule to legalize the crowdfunding activities. It seems that, determining the landscape and mechanisms of equity-based crowdfunding platforms are two prerequisites for drawing the legal framework for equity-based crowdfunding as a financial innovation.

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