CMA sets December-end as deadline for 8th review of FinTech ExPermit

Logo of Capital Market Authority (CMA)

The Capital Market Authority (CMA) announced today the final date for considering FinTech ExPermit applications within the eighth review of the FinTech ExPermit.

In a statement released today, the regulator stated that applications received by Tuesday, Dec. 31 of this year will be included in the current round, indicating that it will evaluate applications received after this date within the next round.

CMA invited all interested parties to submit applications for obtaining a FinTech Experimental Permit, provided that the submitted applications meet the necessary criteria for qualifying the FinTech product in accordance with the Financial Technology Experimental Permit Instructions. Among the key criteria is that the proposed product must fall under securities activities regulated by CMA and be in an advanced stage of development that allows for its testing in the FinTech Lab.

CMA's announcement of the eighth review round reflects its commitment to regulatory enablement for financial technology innovations and the promotion of this vital sector within the capital market. Since the launch of the FinTech Lab in 2018 until the end of the first half of 2024, 53 FinTech Experimental Permits have been granted. These permits have introduced several innovative models to the capital market, resulting in a diversification of investment tools available to various categories of investors and enhancing the attractiveness of financing through the capital market.

The authorized FinTech companies operating under the FinTech Lab have achieved remarkable results since commencing their activities under the permit until the first half of this year. The total funds raised through equity crowdfunding platforms and debt instrument offering platforms have exceeded SAR 3.8 billion, reflecting their active role in providing suitable financing solutions to support and expand economic entities at all stages. Additionally, investment fund and real estate investment fund distribution platforms have successfully attracted a wide range of investors to participate in CMA-licensed funds, with the total value of distributed units surpassing SAR 2.6 billion. The robo-advisor business model has also contributed to enabling investors to access innovative tools for managing their investments, with assets managed through robo-advisor platforms exceeding SAR 2.2 billion.

The FinTech Lab aims to attract a broader variety of innovative business models to the capital market. CMA encourages innovators to leverage the Kingdom's highly attractive and rapidly evolving FinTech ecosystem, enabling companies to innovate in the financial market and provide suitable investment and financing services for all market participants. This initiative aligns with the collaborative efforts under the Financial Sector Development Program (FSDP).