Muscat – Oman’s Capital Market Authority (CMA) on Tuesday issued a decision licensing Dubai-based Beehive Technologies as crowdfunding platform for three years.
Beehive is a peer-to-peer financing company licensed for the crowdfunding activity in Saudi Arabia and the UAE. The company on its website claims that its peer-to-peer lending platform directly connects businesses with a crowd of investors on its marketplace who can fund financing request in days.
Crowdfunding platforms are innovative financing tools which employ financial technologies (Fintech) to allow entrepreneurs and micro, small and medium enterprises access to financing.
As per a statement issued by CMA, there are four types of crowdfunding platforms namely, donations, equity, reward and peer-to-peer financing. The peer-to-peer financing is applied by Beehive through the issuance of investment notes (convertible and negotiable).
Earlier in March, the Capital Market Authority approved the licensing of EthisX, the first global crowdfunding platform operator in Oman. EthisX is managed by Ethis Investment Platform LLC based out of Muscat and Kuala Lumpur. The platform was launched by Malaysia-based ethical investment and social finance platform operator Ethis Group.
Meanwhile, EthisX, in collaboration with CMA, is organising an event on Thursday under the title ‘Entrepreneurship Haven: From Idea to Profit Through Crowdfunding’ at the College of Banking and Financial Studies. The event will mark the official launch of EthisX crowdfunding platform in Oman.
EthisX acts as a first-of-its-kind cross-border ethical private capital marketplace able to offer direct sharia-compliant investments into SMEs and special purpose vehicle projects from around the globe. The platform allows companies to raise funds through equity crowdfunding and peer-to-peer financing that includes sukuk and micro-sukuk.
The CMA, which regulates the capital market and insurance sectors in the sultanate, had issued the regulation for crowdfunding platforms as part of the national priorities of the Oman Vision 2040. The rules for crowdfunding platforms in Oman are flexible enough and exempted the licensees from the fees until January 2023.
The CMA said that crowdfunding platforms furnish access for financiers and investors from inside and outside the sultanate through these platforms. Financing through these platforms is restricted to commercial enterprises not individuals who are allowed only as investors and financiers for the projects offered in the platform according to the terms and conditions stipulated in the CMA regulation.