Debt crowdfunding hits SAR 771 mln in 2022: SAMA

Saudi Arabian banknotes

The total value of debt crowdfunding loans amounted to SAR 771 million in 2022, the Saudi Central Bank’s (SAMA) annual FinTech report showed. 

The number of financing transactions hit 1260 in 2022, compared to 422 in 2021. 

Meanwhile, average investment amount of the debt crowdfunding investors climbed to SAR 36,000, compared to 31,000 in 2021. 

The average annual interest rate (excluding fees) in the debt crowdfunding service rose to 16% in 2022, compared to an average rate of 13% in 2021. 

The total number of investments (contributions) through the service increased to 51,000 in 2022, compared to 12,000 during 2021. The number of investors (participants) registered with the service reached 92,000, including 27,000 active investors representing 29% of the total number customers, the report added. 

Debt crowdfunding is a financing process carried out through collecting money from participants wishing to finance through a digital platform, to grant credit facility to applicants as per financing contracts after studying the applicant’s credit and financial situation. 

The following table shows the details of the financing granted through the debt crowdfunding service:

The average value of financing granted through the debt crowdfunding service reached SAR 601 million by the end of 2022.

The report pointed out that the total number of establishments (borrowers) registered in the service increased to 729 last year, of whom 453 borrowers obtained one financing, compared to a total of 398 borrowers in 2021, as the following table shows:

The report stated that the average debt crowdfunding loan tenure increased to 11 months during the past year, compared to six months during 2021, noting that the total number of debt crowdfunding employees reached 78 in 2022, an increase of 81% compared to the previous year.