In a workshop held in the Asharqia Chamber yesterday:
Capital Market Authority: crowdfunding represents a need for a wide range of investors
Yusuf bin Abdul Rahman Al-Zamei, a policy development specialist at the Capital Market Authority, said that financial technology has become a market need that serves all sectors, and a lot of activities emerge from it, including crowdfunding .. pointing out that the authority has appointed a special platform that was called the automatic consultant, which means related investments With this type of activity.
Al-Zameea, who was speaking during the "crowdfunding" workshop hosted by the Asharqia Chamber represented by the Finance Committee on Tuesday 24/12/2019, said that financial technology is a new financial industry that uses technical applications to improve financial products and services, by facilitating the access of all categories of investors to services Finance in an easy, fast and competitive cost, and that is through "automating" procedures and operations, linking with databases and service providers, and reducing dependence on the human element ... adding that this technology has witnessed successive developments that started from the issuance of credit cards, and the emergence of ATM devices F-automatic, and then the electronic trading of shares, and then growing then shift the central bank of computers, these developments culminated in the emergence of smart devices.
He mentioned that technical investments around the world have doubled 18 times during the last ten years, and it is expected that investments in securities and alternative financing will grow during the year 2022 to reach five times its status in 2017.
He pointed out that the value of transactions in the global financial technology market is about 4,256,048 million US dollars in 2018, and it is expected that the value of transactions will increase at an annual growth rate (2018-2022) by more than 17%, leading to a total amount of 8,018,084 million dollars in 2022. Stressing that the largest sector in the market is the digital payments sector, which has a total transaction value of $ 3,265.209 million in the year 2018, indicating that China has achieved the highest value of transactions, reaching $ 1,56,408 million in the same year.
And he touched on the issue of crowdfunding, which is the product of financial technology, and which is the financing of collective ownership in exchange for shares, lending financing, financing for issuing debt papers, real estate financing and charitable financing..noting that the authority specializes in authorizing crowdfunding models related to securities only. Six permits were issued to collective property financing companies.
He pointed out that the authority is taking several measures to define the regulatory framework for crowdfunding, including determining eligibility for investors who can participate in financing the projects offered, the upper limit of the amount invested, and companies that cannot obtain financing through crowdfunding platforms, the ceiling of the financing campaign, and disclosing to investors about Possible risks from investing in projects through the platform (investor percentage), and setting customer agreements (exporters and investors) that should include conditions for providing services and financial fees and charges imposed by the platform and any other information .. stressing The Commission has set a platform under the name of automated counselor as anyone looking to invest are placed in the image of the event, such as guidance to investment funds, including by practical interests and orientation.
It is noteworthy that the workshop was moderated by Finance Committee member Ibrahim bin Fahd Al-Assaf, who confirmed the global growth of the phenomenon, and is a natural result of the growth of electronic commerce.
