CMA LAW: Press Release: Initial Implementation Phase of Securities-Based Crowdfunding: A Strategic Step Toward Regulating Alternative Finance and an Innovative Investment Solution

Kuwait, 24 December 2025 - The Capital Markets Authority (CMA) organized an awareness event at the Kuwait Economic Society (KES), entitled “Crowdfunding – Initial Implementation Phase”, with the participation of companies registered with the CMA as securities-based crowdfunding platforms, and in the presence of persons interested in the development of Financial Technology (FINTECH).

The event was inaugurated by Ms. Zahra Riyadh Al-Mousa, Financial Technology Unit Manager at the Supervision Sector in Capital Markets Authority, who explained that the regulation of securities-based crowdfunding is part of the initial implementation phase of the regulatory framework for financial technology issued in the latest Module of the Executive Bylaws of the CMA Law, namely Module Nineteen to enable companies registered with the CMA as crowdfunding platforms to launch their operating models in accordance with clear controls in preparation for evaluating the regulatory framework and transitioning to the full implementation phase.

Ms. Al-Mousa further clarified that the initial implementation phase is a pilot stage aimed at testing the regulatory framework within a controlled supervisory environment and assessing its efficiency and flexibility prior to full implementation. As this framework is implemented for the first time in the State of Kuwait, the phase may involve potential risks, particularly to investors, which requires enhanced disclosure and investor awareness, in addition to continuous regulatory supervision. The phase aims to support innovation in the field of financial technology while ensuring investor protection and promoting integrity and transparency, in preparation for establishing a sustainable crowdfunding system in line with international best practices in the State of Kuwait.

The stages for launching crowdfunding service through platforms include the offer preparation by the company that seeks to fund a specific project, reviewing and listing it on a registered platform, enabling investors to review the offers listed on the platform, and opening a fundraising campaign to acquire securities of the company for a specific period. This is followed by the allocation and registration of the securities in favor of investors upon achieving the funding target.

Ms. Al-Mousa added that the mechanism relies on an electronic platform acting as an intermediary between offer issuers and investors, whereby investment opportunities are presented with a high level of disclosure and transparency. Contributions are collected within a defined period, with regulatory procedures to be completed upon reaching the financial target, or funds returned in accordance with the approved offering terms.

She also emphasized the requirement for offer issuers to fulfill disclosure obligations, prepare the necessary documents and studies, and comply with the approved regulatory controls, in a manner that ensures investor protection and clarity of the risks associated with investment.

Furthermore, crowdfunding allows the participation of various categories of investors, in a manner consistent with their investment objectives and risk tolerance.

On his part, Mr. Mohammad Metab Al-Rasheed, Deputy CEO at AL Mowazi Capital, one of the companies registered with the CMA as a crowdfunding platform, delivered a speech in which he noted to the company’s ongoing efforts to provide innovative investment solutions that meet the needs of the Kuwaiti financial market. Among the most prominent of these solutions is its entry into the field of securities-based crowdfunding through iMowazi platform, which is the first digital crowdfunding platform in the State of Kuwait registered with the Capital Markets Authority that connects local companies with investors to raise capital in compliance with the highest regulatory standards. He further explained that crowdfunding provides investors with the opportunity to invest in promising start-ups, diversify their investment portfolios, and distribute risk.

Ms. Amar Amer Jaafar, Strategy Officer at National Investments Company (NIC), the second company to be registered with the CMA as a crowdfunding platform, also participated by presenting the operating mechanism of its NICrowd platform from the perspective of both offer issuers and investors, in addition to the Company’s requirements and procedures applicable to each. Ms. Jaafar stated that the application will be launched to the market in the coming weeks, where the public can download the application and explore the frameworks of participating in crowdfunding, whether as companies that seek funding or as investors.

This seminar is part of a series of events led by the Capital Markets Authority to enhance and raise public and investor awareness of securities activities, promote financial inclusion, and protect market participants through education on regulatory frameworks and modern financial technologies. On this occasion, the CMA extends its sincere thanks and appreciation to Kuwait Economic Society for its fruitful cooperation and for hosting this event, emphasizing the importance of partnership with civil society institutions in supporting awareness efforts and enhancing financial literacy across various segments of society.

The CMA further confirms the necessity for all members of the public and investors to verify the registration of their companies as crowdfunding platforms prior to entering into any investment, by referring to the CMA’s official website.

Ends-
Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance regulations, and protect investors from unfair practices which violate the CMA's Law.

Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.

For further information, please contact:
Awareness and Public Relations and Communication Office
Tel: 1888898
Email: pr-media@cma.gov.kw
 

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