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CMA gives go-ahead for crowdfunding activity

21 Nov 2021 CMA crowdfunding activity By OUR CORRESPONDENT

Muscat – The Capital Market Authority (CMA) on Sunday announced that the legislative system for launching crowdfunding platforms has been approved and ready for anyone wishing to engage in crowdfunding activity in Oman.

The regulations and controls for the crowdfunding activity are characterised by a high level of flexibility and adequate facilities, the CMA said in a statement.

In a statement to Oman News Agency, H E Abdulah al Salmi, executive president of the CMA, said that the decision to allow crowdfunding activity in the sultanate comes in response to the requirements of dealers in the capital market and entrepreneurs.

Earlier this year the Minister of Finance and chairman of the Capital Market Authority approved a resolution (No 151/2021) to amend some provisions of the Executive Regulations of the Capital Market Law to allow the activity of crowdfunding platforms in Oman.

As per the recent amendments to the provisions of the Executive Regulations of the Capital Market Law, the companies wishing to engage in this activity are exempted from licensing and activity fees (amounting to RO155,000) until January 1, 2023.

“This exemption comes in the context of the government’s efforts to facilitate business and economic recovery. Our aim is to support the establishment of national crowdfunding platforms of various types and attract global crowdfunding platforms to Oman.

This new activity will provide support for the growth of entrepreneurs and innovative SMEs in the country,” H E Salmi said.

He said that the regulatory provisions for crowdfunding platforms are sufficiently flexible and provide incentives to establish this type of platforms and contribute to supporting SMEs.

H E Salmi said the regulations allow the crowdfunding platform operators to provide financing through four ways: Donation-based financing, product-based financing, equity-based financing, and counterpart financing.

“It is an opportunity for Omani youth and a support for launching various national financing platforms to finance investment initiatives in any of the promising economic and productive sectors,” he added.

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