Start investing
Earn regular income
Up to 23%
Per Year
Sharia compliant investing in small business finance.
Private Credit Investing
Monthly repayments
and short investment horizons
Funding Souq is a crowdfunding platform that connects established Businesses with Investors.
We are featured on
Invest on the Go!
Download and register in seconds—start investing right away.
Download Now
We make private credit investing
Fast, safe, & Easy
-
Create an accountRegister as an investor in less than 3 minutes. -
Browse opportunitiesYou can invest manually or enable our Auto Invest feature. -
InvestDeposit funds and start investing. -
Monthly repaymentsChoose to withdraw your earnings or reinvest for maximum return.
Our Partners
Who can invest on Funding Souq?
Individual Investor
Individuals can invest up to AED 365,000 per calendar year and AED 36,000 in any one business.
Professional Investor
Professional investors don’t have an investment limit. To be classified as a professional investor you need to prove that your net worth exceeds $1m.
Corporate Investor
Companies that register as investors are classified as Corporate Investors.
Investing in
Private Credit
| empty |
Funding Souq
Private Credit
|
Real Estate
|
Stock Market
(S&P500)
|
High Yield Sukuk
or Bonds
|
|---|---|---|---|---|
|
Target Net Returns
|
15% p.a | 8% p.a | 9.4% p.a | 6% p.a |
| Investment Horizon | As little as 3 months | Years | Varies | Varies |
|
Diversification
Low correlation to other asset classes
|
|
|
|
|
| Regular Monthly Income |
|
|
|
|
Investment
Calculator
Frequently Asked Questions
Yes, it can be deactivated and activated on the Investment Settings page at any time.
The Balanced strategy is designed to make the most of the available opportunities on Funding Souq. Our system will allocate unlimited exposure to A-rated opportunities as these are fully guaranteed through our partnership with Sharjah Media City. Given that our B-rated opportunities are not guaranteed and are riskier, our system will limit your exposure to 10% of your total portfolio for these opportunities.
The Conservative strategy is designed to minimize your risk but with that comes lower returns as well. Our system will allocate your funds to only A-rated opportunities which are fully guaranteed through our partnership with Sharjah Media City.
Auto-Investing is a feature that allows you to invest your available funds in a hassle-free manner. If enabled, our system will automatically allocate your recently deposited funds or your repayments into live opportunities on the Marketplace. There are 2 types of Auto-Investing strategies, Balanced and Conservative, and these are designed to maximize your returns on a risk-adjusted basis.
Funding Souq is open to all nationalities although there are some regulatory restrictions.
Funding Souq requires the above documents to comply with the Dubai Financial Services Authority (DFSA). As per regulatory requirements, all regulated firms need to maintain valid ID documents and client information. This requires us to understand your identity, source of funds and previous dealings. If need may be, we might contact you for additional documents as the previous list is non-exhaustive. Funding Souq cannot withdraw money from your account and all deposits will be made by you transferring money into a segregated bank account.
Credit Parameters
Our Credit Team carefully analyzes the financial performance of SME borrowers, considering various factors to evaluate their financial capacity. We thoroughly assess the borrower’s ability to generate revenue, effectively manage cash flow, and fulfill their financial obligations. Our analysis encompasses several key areas of focus, including:
- Income Generation.
- Cash flow Assessment.
- Profitability and Ratio Matrix.
- Liquidity Ratio Evaluation.
- Working Capital Management.
- Debt Repayment Capacity.
- Capital Structure.
- Cash Cover in Bank Statements.
Assessing the credit history and risk profile of SME borrowers is essential to determine their reliability and creditworthiness. The Funding Souq Credit Team carefully examines the following areas to gain insights into the borrower's past credit behavior and assess associated risks:
- Review how well the borrower has repaid loans to Funding Souq and other financial institutions.
- Outstanding Debt and Facility Utilization.
- Considering credit factors specific to the borrower's industry that may impact their creditworthiness.
Assessing the background of all SME owners (>5% shareholding) is crucial in understanding their level of dedication and responsibility towards the business. The Funding Souq Credit Team evaluates the following points related to owner character and commitment:
- Do shareholders have family based in the UAE?
- Do shareholders have children in school in the UAE?
- Do shareholders own property in the UAE?
- How much debt do shareholders have in the UAE? and how much has been paid off?
- How much equity have shareholders invested in the business since conception?
- To what extent are shareholders withdrawing funds from the business?
- What are the shareholder’s current credit bureau scores?
Funding Souq conducts additional layers of due diligence to ensure the prospects are not advertised
outside the platform nor are they seeking funding on other platforms. Also, the firm uses a variety of
established private and public third parties to further supplement the internal risk analysis. These include:
- Sanction list screening softwares
- Credit Bureaus
As an integral part of the Funding Souq Risk Assessment process, a mandatory site visit report created that allows for a comprehensive evaluation of the business operations. During the visit business specific questions are asked, the working site is observed, and the management is interviewed.
Credit Scores
The borrower is assigned a risk band (A, B, or C) based on a credit score which is calculated by our proprietary credit score card. The table below outlines the different risk bands and their relative score.
A
90 - 98
B
54 - 89.99
C
26 - 53.99
The overall credit score is based on 4 main credit parameters and their respective weighting as outline below.
47%
Financial Capacity
(out overflow 47 points)
A
44 points or more
B
26 to 43 points
C
14 to 25 points
34%
Credit History and Risk
(out of 34 points)
A
31 points or more
B
18 to 30 points
C
6 to 17 points
10%
External Sources
(out of 10 points)
A
7 points or more
B
5 to 6 points
C
4 to 5 points
9%
Owner Character and Commitment
(out of 9 points)
A
6 points or more
B
6 to 7 points
C
2 to 5 points