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Statement by Qatar Central Bank
DOHA, Qatar, Oct. 10, 2023 /PRNewswire/ — In line with the financial sector strategy and the financial technology (Fintech) strategy, and based on Qatar Central Bank’s permanent endeavor to regulate and develop the financial sector in the country, Qatar Central Bank issued instructions for the Loan-Based Crowdfunding Regulation, for the purpose of licensing and regulating (Loan-Based Crowdfunding activities and services in Qatar).
Qatar Central Bank Announces that all companies wishing to work in this field must apply to obtain the necessary license from QCB.
Loan-based crowdfunding platforms are considered innovative financial platforms that enable borrowers in need of financing to communicate with various investors and obtain short-term financing. Borrowers, such as SMEs, who find it difficult to access traditional bank loans, can obtain the financing necessary for growth of their business and overcome the challenges that they may face with the expansion of their projects. Loan-based crowdfunding platforms represent an important opportunity for investors to diversify their investments and participate in supporting SMEs.
Qatar Central Bank is keen to provide effective and valuable initiatives that help create an environment conducive to the growth of the financial technology sector in the country, as these platforms support the development of the financial sector and enhance the transparency, efficiency and ease of the borrowing process
Qatar Central Bank also stated that the instructions are available on QCB’s website.