CMA grants FinTech ExPermits to three firms

Saudi Arabia's Capital Market Authority (CMA) on Tuesday granted Financial Technology Experimental Permits (ExPermit) to three companies to create equity crowdfunding platforms, the market regulator said in separate statements.

Emkan Alarabiya Company, Buthoor Solidarity and Afaq Company will experiment the crowdfunding FinTech that allows investors to participate in funding small and medium size enterprises (SMEs) in exchange for shares in these enterprises.

The service will be provided through e-platforms owned and monitored respectively by the three companies.

The permits coincide with the beginning of ExPermit for the second batch of FinTech innovations announced in October 2018.

The regulator is set to reopen the door for the third batch of applications for ExPermits later this year.

The Fintech Lab, launched in late 2017, aims to create a regulatory framework designed to enhance and support innovation in the financial market.