RIYADH: Lending platform Dnaneer Financing Co. has become the eighth fintech firm authorized to operate to offer debt-based crowdfunding solutions in Saudi Arabia.
The Saudi Central Bank has granted a license to the company, according to a statement from the institution, also known as SAMA.
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.
With this approval, the total number of finance companies licensed by SAMA has reached 57.
The move is part of the central bank’s efforts to strengthen the Kingdom’s financial sector, enhance transactional efficiency, and promote innovative financial inclusion.
In August, SAMA issued a license to Themar, a Shariah-compliant peer-to-peer purchase financing network, enabling it to provide debt-based crowdfunding solutions in the Kingdom.
The fintech firm specializes in connecting small and micro businesses with investors.
Additionally, among the eight authorized companies offering debt-based crowdfunding solutions in the Kingdom, two received permits in January.
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 approval from SAMA 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 small and medium enterprises to Shariah-compliant financing, allowing them to secure funds of up to $1.3 million from individual and institutional lenders through its online platform. The company has been actively participating in SAMA’s regulatory sandbox since 2019.
