Islamic Finance

Saudi Arabia grants fintech sukuk platform Wethaq experimental permit

Saudi Arabia’s capital market regulator has given Wethaq Capital Markets Platform Company a financial technology experimental permit (FinTech ExPermit).

The Capital Market Authority said in a statement on Tuesday (June 9) the permit allows Wethaq to use its distributed ledger technology to arrange the offering of securities to investors, starting with sukuk.

Wethaq in November announced it had issued a pilot sukuk on its digital platform that it says automates the agency and infrastructure services required in the entire lifecycle of sukuk. The sukuk was issued under the supervision of the Dubai Financial Services Authority.

Saudi Arabia’s Fintech ExPermits scheme “aims to promote fintech innovation in a controlled environment which the consequences of failure can be contained”, according to the capital markets regulator.

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