SAUDI-ARABIA CROWDFUNDING

In Saudi Arabia, crowdfunding in 2024 is defined by an funding option provided by Saudi and international crowdlending platforms who bring together Saudi investors and saudi or foreign borrowers who are looking for cash to establish their own business.

In Saudi Arabia, crowdfunding is becoming the right funding solution to allow Saudis to invest their funds and other Saudis or foreigners to have access to cash without using the classic bank services but by exploiting independant crowdlending platforms.

In Saudi, crowdlending helps very often young Saudi business people facing obstacles when applying for a start-up loan at Saudi banks as latter do not always understand creative nor innovative business models which are presented to them through young saudi entrepreneurs.

In Saudi Arabia, crowdfunding plateform or crowdlending site bring together saudi equity injectors who are keen to invest in young projects on one side, and on the other side, young borrower who needs funds to implement their new business often because in the absence of own capital.

Saudi crowdfunding plateforms offer several options as to the form of lending which can be a pure loan but also a participation within the shares of a saudi startup leading to interference of the new investors in the management of the company.

In Saudi Arabia, crowdfunding in 2024 is regulated by the saudi arabian financial regulator who applies Islamic Finance which reflects the principle of the Sharia in this country where conventional financing is banned because of the use of interests (Riba).