The Kuwait Capital Markets Authority (CMA) launched the securities-based crowdfunding service for the first time in Kuwait on Sunday by registering the first company in the CMA's FinTech registry to provide this service.

In a press statement, the CMA said the launch aligns with its efforts to adopt and implement international best practices for developing Kuwait's capital markets, in line with its strategic objectives to grow these markets and diversify their investment instruments.

The Authority explained that it has registered the first company in its securities-based FinTech services registry - "Al-Mawazi Capital" - to operate a securities-based crowdfunding platform. The CMA described this step as a tangible example of implementing its FinTech regulations by introducing a novel service previously unavailable in the country.

The service aims to support FinTech sector growth, promote financial inclusion in Kuwait, provide diverse financial and investment tools, and create new investment and financing channels to serve broader segments of society more effectively. It will also support entrepreneurs and project owners through these new funding channels.

The CMA clarified that securities-based crowdfunding enables companies to obtain financing from the general public for specific projects listed on CMA-registered crowdfunding platforms. This occurs either through equity participation or securities issuance.

The Authority stated that registered crowdfunding platforms are legal entities authorized by the CMA to provide digital operating systems that facilitate interaction between offer issuers and the general public for securities offerings.

These platforms create direct channels connecting investors interested in funding small and medium enterprises while providing alternative, non-traditional investment opportunities for retail investors and entrepreneurs. They also enhance market liquidity by offering alternative financing solutions beyond traditional channels.

The CMA emphasized the significance of FinTech as a rapidly evolving sector with growing adoption. These new services streamline the qualification process for service providers while safeguarding investor rights for those wishing to participate.