Saudi Arabia’s Debt Crowdfunding Sector Hits $2.9bn in Total Financing

RIYADH — Debt‑based crowdfunding platforms in Saudi Arabia have provided SR11 billion ($2.93 billion) in total financing since the activity was introduced in 2016, according to the Saudi Central Bank.

SAMA said that 10 digital brokerage firms are currently licensed to operate in the Kingdom, connecting customers with financing providers through electronic platforms. The Saudi market now has 75 licensed finance companies as of June 2026, including 12 firms engaged in debt crowdfunding activities.

Debt crowdfunding is a digital ecosystem that enables companies to obtain direct loans from a pool of investors individuals or institutions through an intermediary platform. Borrowers repay the financed amount along with agreed returns, without resorting to traditional financing institutions. This model provides businesses, particularly small and medium‑sized enterprises, with access to funding sources that support growth and expansion, while giving investors opportunities to participate in financing economic activities.

Returns on debt crowdfunding platforms range between 10 percent and 18 percent before fees, which average around 1 percent of the total invested amount. Default rates remain low, between 1 percent and 1.5 percent, according to company data. However, global experts and regulators warn that high returns come with high risk of losses.

SAMA has supported the sector through regulatory frameworks, licensing new institutions, easing access to banking services, and enhancing disclosure of financing data for micro, small, and medium enterprises. Digital brokerage firms operate as technology‑based entities that allow customers to compare and select financing offers based on their financial standing, without approaching each provider individually.

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