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Platform feature

Funding Souq

Sukuk Capital

As an investor, what will I be investing in?

- SMEs through working capital or fixed asset finance. 

- SMEs apply to Funding Souq to fulfill their growth plans via working capital finance or fixed asset finance.

In both cases the availed financing is intended to support the business’s growth. 

- Sukuk (Islamic Bonds) that are issued on behalf of companies (most of which are SMEs) seeking working capital finance, project finance and asset purchase finance.

- To understand the difference between Sukuk and traditional bonds, read our blog here.

Who can invest?

- Funding Souq is the only debt based crowdfunding platform in the Middle East that is regulated in 2 countries – Saudi Arabia & the UAE. 

- Funding Souq’s KSA platform can onboard only Saudi nationals and residents as per the Saudi Central Bank regulation. 

- Funding Souq’s Global (UAE) platform can onboard nearly all nationalities, allowing almost anyone to invest in UAE-based businesses. 

To invest on the Sukuk platform, you must be a Saudi national or a Saudi resident with a valid ID and a local Saudi bank account.

What is the minimum investment?

The minimum investment is SAR / AED 1,000, which approximates to $270.

The minimum investment is SAR 1,000

What is the maximum investment?

In the UAE:
- retail investors can invest up to AED 365,000 per year and SAR/AED 36,000 per business

What returns can investors expect?

- Investors can expect a net yield of up to 15% and Internal Rate of Return (IRR) of up to 30% as monthly repayments allow for the returns to compound. 

Investors can expect an average annual return of 13.75%.

When are investors repaid?

Investors receive monthly installments made of principal and profit. That means the repayments can be re-invested and in turn compound investor returns can compound.

Repayments can be quarterly, semi-annually, annually or at the end of the investment period. However, it is important to note that these coupons only comprise of the profit amount rather than the profit and principal. This decreases the compounding ability.

What are the fees for investors?

The returns displayed on the platform are net of any applicable fees.

The presented return is what you should expect to earn.

1% on annual basis per investment

Does the platform have an Auto-Investment option?

Yes.

No
Investors must choose an instrument to invest in.

Platform feature

Funding Souq

Sukuk Capital

What products are being offered? 

- Working capital loans that range from 3 to 12 months in duration. 

- Fixed asset loans that extend up to 24 months.

Working capital loans, project finance, and asset purchase finance of varying durations.

Who is eligible for borrowing?

- Creditworthy SMEs in Saudi Arabia or the UAE with a minimum of two years of trading.

- The business should have at least SAR/AED 2 million of revenue and be profitable or on path to profitability.

-Creditworthy SMEs in Saudi Arabia with audited financial statements.

What is the maximum financing duration?

Short term financing for 3-24 months.

What level of financing is available?

Typically between SAR / AED 100,000 to 1,000,000, but up to a maximum of SAR/AED 7.5 million.

A company can receive up to 30 million SAR in financing

What are the fees for borrowers?

Administration fees: 2% to 3%

Monthly profit rate: 1% to 1.5%

How long does it take to get a funding decision?

Within 3 working days from when the submission is completed.

Financing offers are typically sent within 3 business days from when your submission is completed.

Are multiple funding facilities permitted?

 Are all finance and investment operations sharia-compliant?

Yes,you can find out more details about our Shariah Certficate 

 Yes