Saudi crowdfunding firms get 11B riyals funding
The crowdfunding sector for debt in Saudi Arabia has seen significant development since its inception in 2016. To date, the total funds provided by specialized companies have reached approximately 11 billion SAR, with 12 licensed companies operating in the field, led by "Sukuk Financial" and "Lendo." This digital system is used to facilitate direct loans from investors to companies, especially small and medium-sized enterprises, to support their growth and expansion activities. Returns typically range between 10% and 18%, while default rates remain low, between 1% and 1.5%. Additionally, the Saudi Central Bank has introduced new regulations allowing financing for establishments exceeding 7.5 million SAR and supporting sector growth through the regulation of digital financing activities.
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