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Article 1: Definitions

Effective from Jan 01 2024 - Nov 30 2021
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1-The following terms and phrases, wherever mentioned herein, shall have the same meanings stated in the Finance Companies Control Law.
 		 
2-For the purpose of applying the provisions hereof, the following terms and phrases, wherever mentioned herein, shall have the meanings assigned thereto, unless the context otherwise requires.
 		 
 2.1The Law: Finance Companies Control Law.
 
 2.2Rules: the Rules for Engaging in Debt-Based Crowdfunding.
 
 2.3Debt-Based Crowdfunding: raising funds from finance Participants through a digital Platform to be granted to an Institutional Beneficiary in accordance with a loan contract.
 
 2.4Debt-Based Crowdfunding Company (the Company): a joint-stock company licensed to engage in Debt-Based Crowdfunding activity through a digital Platform.
 
 2.5Institutional Beneficiary: a micro, small or medium-sized enterprise registered in the Kingdom of Saudi Arabia that seeks to obtain financing through a Debt-Based Crowdfunding Platform.
 
 2.6Participant: a natural or legal person that provides finance to an Institutional Beneficiary through a Debt-Based Crowdfunding Company.
 
 2.7Eligible Participant: a natural or legal person to whom one or more of the following applies:
 
  a.Has assets with a net value of at least SAR 3,000,000 (three million Saudi riyals).
 		 
  b.Currently working or has worked for at least three years in the financial sector in a position related to finance or investment.
 		 
  c.Has a professional certificate in finance or investment approved by an internationally recognized establishment.
 		 
  d.Has an annual income of at least SAR 600,000 (six hundred thousand Saudi riyals) in the past two years.
 		 
 2.8Finance Amount: funds raised from Participants via a Debt-Based Crowdfunding Platform to be provided for an Institutional Beneficiary.
 
 2.9Debt-Based Crowdfunding Platform (the Platform): a web-based platform or any other digital means, including websites and mobile applications, used and run by a Debt-Based Crowdfunding Company to carry out Debt-Based Crowdfunding.