Tuesday 3 October 2023

BHM Capital obtains crowdfunding platform licence

DUBAI, June 8, 2023

BHM Capital Financial Services, one of the leading financial institutions in the UAE’s capital markets, has obtained approval to provide operating services for crowdfunding platform from the Securities & Commodities Authority of the UAE.
This makes BHM Capital the first company in the UAE to obtain SCA’s approval to provide this service in accordance with a Cabinet decision on regulating the activities of crowdfunding platform operators, a statement said.
Obtaining the licence enables BHM Capital to offer crowdfunding solution on an electronic platform, to finance entrepreneurs, small and medium sized enterprises where the financing applicants present their project to potential investors through the platform, against share capital, in compliance with the regulations issued by UAE’s Securities & Commodities Authority, it said.
The number of small and medium-sized companies in the UAE has exceeded 550,000 and these companies provide job opportunities for more than 80% of the total workforce in the private sector, and that contributes to more than 63.5% of the non-oil GDP in the UAE. Despite the importance of these projects in the local economy, they sometimes face difficulties in meeting the requirements of traditional banks to obtain financing.
Abdel Hadi Al Sadi, CEO of BHM Capital, said: “The cabinet's decision to regulate crowdfunding platform activities solidifies the country's position as a global financial centre with a flexible and supportive environment for entrepreneurship and the small and medium-sized enterprises system, in line with globally recognised legislative frameworks, includes detailed provisions and governance rules that provide appropriate protection for both investors and financing applicants, clarifying their obligations under the supervision of the Securities and Commodities Authority. This will provide a secure means for investors on one hand, and an opportunity for small and medium-sized projects to obtain financing on the other hand.”
“It’s a significant milestone for BHM Capital to become the first Crowdfunding Platform Operator licensed by SCA in UAE; this reinforces the strategic role the company plays in the national economic diversification and growth, this time by supporting entrepreneurs and SMEs.” –TradeArabia News Service


More Finance & Capital Market Stories

calendarCalendar of Events