Entrepreneurial system

The Ministry of Commerce Grants Crowdfunding Licenses for Startups through Digital Platforms

After nearly two years since the issuance of the initial version of the Financial Technologies Regulation, securities-based crowdfunding platforms have officially been implemented in Kuwait. This development follows a decision by the Minister of Commerce and Industry and Minister of State for Communications Affairs, Omar Al-Omar, issued yesterday, to add a new activity under the name “Securities-Based Crowdfunding Platform” to the commercial activities in the country.

This activity involves “financing projects by raising funds from a large number of people through licensed digital platforms.”

A statement from the Ministry of Commerce cited Minister Al-Omar, who emphasized that this decision aims to provide new financing means for small projects through digital financial service platforms, contributing to diversifying sources of funding and supporting entrepreneurs.

Al-Omar expressed his confidence that this step will help achieve the private sector’s aspirations and develop the country’s digital infrastructure, stressing the government’s commitment to providing the necessary support and facilities to enhance competitiveness in the business market.

For his part, Dr. Ahmed Al-Melhem, Chairman of the Board of Commissioners of the Capital Markets Authority, affirmed that adding the activity of securities-based crowdfunding platforms represents a qualitative step in the development of local financial markets, noting the Authority’s commitment to supporting modern trends in the field of financing and expanding the options available to investors from various segments.

Dr. Al-Melhem explained that the Authority has issued an executive regulation under the title “Financial Technologies,” pointing out that this decision complements the provisions outlined in the regulation, which was developed according to best global practices.

He added that the Authority has established the necessary regulatory and supervisory frameworks and has received numerous applications from the newly established Financial Technologies Department within the Authority’s organizational structure, to ensure the implementation of the regulation in accordance with standards of fairness, competitiveness, and transparency.

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