CMA sets deadline for FinTech Experiment Permit applications in seventh review
Riyadh, October 27, 2023, The Capital Market Authority (CMA) has announced the deadline for considering applications for the FinTech Experiment Permit within the seventh review. Applications received by November 23 of this year will be considered in the current round, with those received afterward reviewed in the subsequent round.
The CMA is actively encouraging interested parties to participate and apply for the FinTech ExPermit, provided they meet the qualifying criteria, which includes the product's relevance to securities activities and its readiness for a FinTech experiment. This underlines the CMA's role in promoting the fintech sector within the capital market, particularly since the establishment of the FinTech Lab in 2018. The number of FinTech ExPermits granted by the CMA's Board has now reached 49, illustrating the commitment to fostering innovation in the capital market.
FinTech companies operating within the FinTech Lab have already shown significant results. Equity Crowdfunding and Debt Instruments Offering platforms have facilitated investments exceeding SAR 1.4 billion. These platforms offer effective financing solutions for economic entities throughout their development stages.
Investment and real estate fund distribution platforms have also attracted a substantial investor base, exceeding SAR 1.6 billion in total unit value distributed. The Robo-advisory model has enabled investors to access innovative tools for managing their investments, with assets under management (AUM) surpassing half a billion Saudi riyals.
The CMA continuously receives FinTech ExPermit applications throughout the year, evaluating them in batches and announcing results on its website. These efforts align with the CMA's regulatory initiatives to position Saudi Arabia as a FinTech industry leader, furthering the objectives of the Financial Sector Development Program (FSDP) in accordance with Vision 2030. The FinTech Lab aims to promote diversified innovative business models in the capital market, while the CMA encourages innovators to leverage the Kingdom's growing FinTech ecosystem to provide investment and financing services for all market participants under the umbrella of the Financial Sector Development Program.