Crowdfunding In Bahrain

The Kingdom of Bahrain ("Bahrain") has become the second country within the Gulf Cooperation Council, after the United Arab Emirates, to allow crowdfunding. Crowdfunding is the use of small amounts of capital aggregated from a large number of individuals to finance a business venture. In this article we will provide an overview of Crowdfunding and its regulation in Bahrain.

Conventional Financing Based Crowdfunding Business ("CFC") Person to Business (P2B) is a lending e-platform which takes place on an online portal, through which people lend money to businesses, for the purpose of gaining a financial return in the form of interest payment and a repayment of the principal sum (loan amount) over a pre-specified period of time. CFC Platforms may raise funds for borrowers based in Bahrain or abroad, subject to regulation.