Saudi debt crowdfunding platform Thara obtains license from SAMA

The Saudi Central Bank, also known as SAMA, has issued license to Thara, a debt crowdfunding platform, to operate in the Kingdom raising the total number of companies authorized in this domain to nine.

This new license brings the number of fintech companies permitted by the apex bank to 59.

“This decision reflects SAMA’s endeavor to support the financial sector, increase efficiency of financial transactions, and promote innovative financial solutions for financial inclusion in Saudi Arabia,” the bank said in a statement.

Thara is a fintech specializing in financing real estate development projects. It connects individual and institutional investors with investment opportunities in the real estate development sector through Murabaha financing.

The company’s objective is to provide liquidity for real estate development projects and investment returns for financiers.

In November 2023, Dnaneer Financing Co. was the eighth fintech firm to be authorized by SAMA to operate in the debt-based crowdfunding solutions space in the Kingdom.

The firm is a lending platform that connects recurring revenue businesses with investors in Saudi Arabia, as they offer various investment opportunities to them while providing financing to businesses that have a steady stream of revenue.

Additionally, among the nine authorized companies offering debt-based crowdfunding solutions in the Kingdom, two received permits in January 2023.

These include Forus, a fintech firm, and Tameed, an exclusive platform in Saudi Arabia for purchase order finance.

Forus provides a user-friendly and secure app that offers a novel approach to fund management.

On the other hand, Tameed facilitates funding through peer-to-peer financing, leveraging government-backed purchase orders. This connects small and mid-market firms in search of financing with potential lenders.

These licenses bring SAMA one step closer to its objective of positioning Saudi Arabia as a leading force in the fintech industry.

In February, the Riyadh-based fintech firm Raqamyah secured SAMA approval to provide debt-based crowdlending solutions to small and medium enterprises.

The license was awarded following successful testing of the company’s solutions within SAMA’s regulatory sandbox, an experimental environment dedicated to fostering innovation in financial products and services in Saudi Arabia.

Established in 2017, Raqamyah facilitates access for SMEs to Shariah-compliant financing, allowing them to secure funds of up to $1.3 million from individual and institutional lenders through its online platform.