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How It Works

Funding Souq connects established SMEs that are looking to borrow with retail and institutional investors worldwide.

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Aboutus
For Investors
Quick and easy process
  • Create an account
    Register in less than 3 minutes and add funds to your account.
  • Start investing
    Choose your risk appetite and opportunities that match
  • Receive monthly repayments
    Monitor your investment through an interactive dashboard
  • Re-invest
    Maximize your returns and grow your portfolio
    Start investing
Funding Souq connects lenders with creditworthy businesses and gives you the necessary tools to make an informed investment decision. Grow your wealth by creating jobs and contributing to the growth of the local economy. For more details, please visit our FAQs
For Businesses
Quick and easy process
  • Apply online
    Submit an online application in 5 minutes.
  • Get approved
    After assessing a successful application, we will send you an offer within 72 hours.
  • Receive Funds
    Once you accept our offer, we will launch a fundraising campaign. You will get the funds within 24 hrs of completion.
  • Repayments
    Pay monthly, or settle your obligations early with no extra fees.
    Get funded
Take your business to the next level with finance that arrives in days. Funding Souq provides a platform that provides businesses with quick and affordable access to funding.
Compliance Image
Shariah Compliance
Funding Souq offers Shariah-compliant investment and financing solutions. We are dedicated to following Islamic principles and have a Sharia Supervisory Board ensuring compliance of each transaction.

Certified by Dar Al Sharia

Frequently Asked Questions

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.

All new investors will be subject to CRS self-certification on Funding Souq’s website.

Borrowers are charged an origination fee that is based on its overall risk rating and the tenure of the facility. This fee varies from 2-5%. Alongside origination fee, Business repays a certain percentage of the total facility amount as profit. From this profit payment, Funding Souq retains a 2% service fee, while the remainder is distributed to Investors.

All returns presented to the Investors are net of fees, i.e. investors are expected to receive the returns which are presented to them on the platform.

Funding Souq facilitates funds to be managed on behalf of someone else given the necessary KYC information is provided for both parties, i.e. the registered user on the platform and the beneficial owner of the funds. Also, the firm requests an authorization letter from the beneficial owner of the funds that allows you to invest the funds on their behalf.

Funding Souq is a crowdfunding platform that connects established businesses with investors. The platform uses technology to connect both parties through the principle of crowdfunding, - i.e. raising small amounts of funds from many individuals.

Yes, Funding Souq is committed to offering investment and borrowing opportunities that align with the principles of Shariah. We are certified by Dar Al Sharia, a subsidiary of Dubai Islamic Bank. To view our Sharia certificated you can click here.

Yes, it can be deactivated and activated on the Investment Settings page at any time.

CRS information is mandatory for the account opening process and an investor account cannot be opened without providing the relevant information.

Yes, businesses can have more than one facility at any point in time. However, a business must have made several successful repayments on their existing facility prior being approved for a second facility.

Upon completing the onboarding, you will be able to deposit funds into your account through a bank transfer. Funding Souq doesn’t accept cash deposits.

The returns displayed on our platform are presented net of any applicable fees. This means that the presented return is what you should expect to achieve.

Simply put, investing with Funding Souq is one of the highest yielding investment options for retail and professional investors. Apart from the returns our investors benefit from:

 

1- Monthly Passive Income: Our investments repay principal and profit monthly, which enhances returns and decreases risk.

 

2- Data-Driven Decisions: Our credit risk teams use best in class credit models to ensure risk levels are kept to a minimum. Investors get a comprehensive profile of every investment opportunity.

 

 3- Unique Opportunities: Gain exclusive access to investment opportunities in the UAE and Saudi Arabia. Funding Souq is the only crowdfunding platform that is regulated in both markets.

 

  4-Low Barriers to Entry: Start investing with just AED 1,000 from almost anywhere in the world.

 


For businesses, our aim is to support you fulfill your potential by focusing on: 

 

1-Quick Decisions: With our 3-day funding approval process, we are one of the quickest funders in the market.

 

 2-Hassle-free Approach: No account opening is needed as we disburse the funds directly into your bank account.  

 

3-Radical Transparency: We only charge a profit rate, an origination fee, and no other hidden fees unless a repayment is late. In this scenario we charge fixed late penalty fee as per the Shariah standards.

 

As per CRS requirements, Funding Souq needs to share the below information;
  • Name
  • Address
  • Jurisdiction(s) of tax residence
  • TIN(s)
  • Name of Reporting Financial Institution
  • Account number
  • Account balance
  • Gross proceeds paid or credited to the account

Businesses undergo a due diligence process that is led by the credit team. The risk assessments analyse business and financial performance as well as qualitative facts such as the strength of the management team, industry sentiment and others. The process also includes a site visit.

Investors need to be at a minimum of 18 years of age.

Debt-based crowdfunding, often referred to as peer-to-peer (P2P) lending, is a contemporary financing method where investors—both individuals and institutions—provide capital to businesses or other individuals via an online platform. In the case of Funding Souq, the beneficiaries are borrowers that are established businesses (SMEs).

 

An SME applies for funding either online or offline and then our experienced credit and compliance teams assesses the opportunity.

If approved, a funding request is launched on our Marketplace and investors have the opportunity to make an investment.

When the funding request gets filled, the funds are disbursed to the borrower. On the repayment date, the business is required to repay, and the investors can choose to re-invest or withdraw their funds.


Once an investment is made, it cannot be canceled. We encourage all our investors to carefully consider their investment choices and ensure that they are comfortable with the terms and conditions before making a commitment.

Funding Souq is required to share the information with the local tax authority which will in turn share the information with the corresponding tax authorities where the client is a tax resident.

Repayments can be settled early with no penalties.

The firm can maintain investor accounts for residents of most countries, with a few exceptions. If a relocation occurs, please contact [email protected]  to ensure whether you are still eligible to remain as a investor on the platform. If your account can no longer be maintained, the firm will restrict you from adding any further funds and from making any further investments. All existing investments will remain active and repayments will be made to your account. Once the fund has been repaid in full, you will be able to withdraw these repayments and your account will be permanently close.

Most of our investments are structured to provide monthly payouts, including the principal and the profit. This means that as an investor, you can expect to receive regular payments each month that comprise a portion of your initial investment (the principal) along with the profit earned on that investment.

Generally, information needs to be provided on a one-off basis unless there is a change in tax residency status. However, Funding Souq may request documents as it deems necessary.

Repayments can made either be processed electronically through bank transfers or post-dated cheques can be issued in line with UAE banking practices.

Individuals who do not receive a salary can become Investors, although the Company may ask these individuals to provide additional information to determine how they will fund their account.

Funding Souq ensures the security of information technology and data protection through robust measures, including encryption of sensitive data, periodic security audits, and compliance with regulatory standards on cyber security. The platform employs firewall protections, and intrusion detection systems, as well as Security Information and Event Management (SIEM) systems to monitor and analyze security events in real-time. Additionally, Funding Souq conducts regular employee training on cybersecurity best practices, performs ongoing monitoring and vulnerability assessments, and has a dedicated IT security team to respond to threats and maintain data integrity.

Investors can expect to receive up to 15% per annum on their investments. This rate is subject to the performance of the underlying investments and market conditions.

Please contact a professional tax advisor or check the OECD website. For more information on how to determine your tax residency.

Businesses need to be established in the UAE with a minimum of 2 years of trading. The venture needs to have AED 2M of revenue and profitable or on path to profitability. All businesses will undergo extensive due diligence through the credit assessment process.

Funding Souq is open to most investors except for a few nationalities due to local restrictions. Please contact  [email protected]  to check your eligibility.

The  Balanced Auto-investing strategy is designed for investors who aim to achieve the highest possible returns from the available opportunities. Our system will limit your investment per business to just 10% of your total portfolio. Receive and reinvest your monthly repayments to boost your returns up to 15% per year.

 

The Conservative Auto-investing strategy is designed for investors whose priority is capital preservation as opposed to making the most of all available opportunities. Our system will limit your investment per business to just 5% of your total portfolio. This would decrease the probability of loss but also decrease your potential return as the investing process will take longer. Receive and reinvest your monthly repayments to boost your returns up to 10% per year.

 

As per CRS requirements, local tax authorities require financial institutions to collect information relating to the tax status of their clients. Due to this our investor registration process, includes a “self-certification” question. Financial institutions are required to identify clients who are tax residents outside the country where their accounts are domiciled and further relay the information to the local tax authorities. The tax authority may share the information with the authorities in the country where you are classified as a tax resident.

In case a campaign fails to generate enough interest, the collected funds are distributed to their beneficial owners. An oversubscription is not possible as the funding campaign automatically closes on completion.

DFSA requires all regulated financial services firms to apply a risk-based approach when assessing clients. The firm doesn’t disclose the investors’ risk categories as the risk assessment process is only done for internal purposes.

CRS is an information gathering and reporting requirement for financial institutions to help fight against tax evasion and protect the integrity of tax systems. For more information, please refer to the OECD website.

Financial institutions are required to identify clients who are tax residents outside the country where their accounts are domiciled and further relay the information to the local tax authorities. The tax authority may share the information with the authorities in the country where you are classified as a tax resident.

Funding Souq offers financing between AED 50k to AED 1m for 3-24 months.

Funding Souq is open to all nationalities although there are some regulatory restrictions.

Investors will need to provide a passport (or an equivalent document), a proof of address, employment information and information on the source of funds. This list is not exhaustive and hence additional information may be requested on a case by case basis. Professional investors will need to provide additional documents in order to satisfy KYC requirements. More details on the required documentation for professional investors can be obtained on [email protected].

Funding Souq is a regulated entity by the DFSA and in turn, has a Business Cessation Plan that is reviewed on an annual basis. As a Category 4 license holder, Funding Souq is required to have a minimum capital commitment which will be resorted to if the business was to cease trading. If the business ceases to trade the uninvested funds will be returned to the respective investors’ bank accounts. Also, a repayment schedule and an outstanding payment statement will be sent to you within 5 working days. All existing financing contracts will remain valid, and legally binding and installments will continue to be collected as projected.

Yes, the amount is transferred directly to the applicant's verified bank account. Once your application is approved and your bank account is verified, the transfer is initiated to ensure you receive the funds promptly and securely.

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.

The term KYC stands for “Know Your Customer” and is used throughout the client identification process. The pre-set KYC rules by the Dubai Financial Services Authority (DFSA) are the standard requirements that need to be followed by all regulated entities. This includes identity verification, proof of address, employment information, and other general information. Investors need to clear all KYC requirements prior to being onboarded on the Funding Souq platform. The compliance department will conduct ongoing KYC checks to ensure information is constantly updated.

If you are dissatisfied with Funding Souq’s service, we urge you to email our Compliance department at [email protected]. Our team will investigate the matter with the aim of understanding whether we have acted fairly and within our contractual obligations. Upon concluding the investigation, a final written response will be provided. In case you don’t feel that your complaint has been resolved, you may then contact the DFSA. The DFSA is the independent regulator of all financial and ancillary services conducted within the DIFC. Contact the DFSA:
  • Dubai Financial Service Authority
  • PO Box 75850,
  • Dubai, UAE
  • Level 13, West Wing, The Gate, DIFC
  • Phone: +971 (0)4 559 2108
  • Complaints Portal: https://www.dfsa.ae/en/MediaRelease/Complaints
  • Further information can also be found at www.dfsa.ae

Funding Souq Ltd is authorized and regulated by the Dubai Financial Services Authority under number F005822. All contracts are drawn up under DIFC Law.

Typically, a credit decision is issued within 72 hours of the applicant's submission. We strive to process your application as quickly and efficiently as possible. The 72-hour timeframe allows us to thoroughly review your application and ensure that all necessary checks are completed for a fair and accurate decision.

If the borrower fails to make the payment on the due date, Funding Souq contacts the borrower within 24 hours to request immediate payment and an explanation. If payment is not made, Funding Souq attempts daily collections for the next 5 business days. Investors are informed of the delay after 5 working days, marking the account as overdue. If payment is not collected within 90 business days, Funding Souq sends a pre-default email notice. If the borrower does not respond within 24 hours, a final default declaration is sent. Investors are notified of the default as soon as possible. Post-default, Funding Souq may file a police report and initiate legal proceedings for recovery.

All returns presented are net of fees, i.e. investors are expected to receive the returns which are presented to them on the platform. 

Borrowers get charged an origination fee that is dependent on the riskiness of the underlying business and the tenure of the finance. The fee varies from 2-5%. Funding Souq does not charge any additional fees.

Yes, you absolutely can. We offer the flexibility for you to pay off the financed amount before the due date.

Funding Souq doesn’t allow an investor to sell their funds or fund parts before the end of the finance contract.

Funding Souq is a regulated financial services firm and ensures its platform is not used for money laundering or other unlawful activities by adhering to the applicable AML laws and regulations, appointing a Money Laundering Reporting Officer (MLRO), performing AML/KYC due diligence before onboarding clients, conducting international sanctions and targeted financial sanctions screenings, and implementing ongoing monitoring procedures, etc.

In the event that a designated investment opportunity fails to achieve full funding within a 30-day period, all allocated capital will be redistributed to the respective investors, ensuring the return of their principal investment.

Funding Souq will notify the lenders as soon as practically possible, through the Platform, if it comes across any information about a material change in the borrower’s circumstances after the commitment period. It will provide details to the lenders of the material change, any change in their rights arising from this material change, and subsequent actions Funding Souq intends to take.

1.Valid UAE trade license.
2.Minimum of two full years of operation.
3.Minimum of AED 2,000,000 turnover.

Funding Souq will notify the lenders through the Platform, as soon as practically possible if it comes across any information about material change in borrower’s circumstances during the commitment period. Funding Souq will request lenders to re-confirm their commitment within 5 business days. Funding Souq will have to cancel the funding commitment if the requisite confirmation from the lender is not received within the prescribed period. There is a question on material change during commitment period.

Required Documents for Financing:
- The Trade License and Articles of Association
- A comprehensive financial statement from the past two years
- A bank statement covering the most recent year

Business undergo an extensive due-diligence process that is led by our credit team. The risk assessments analyse the businesses and financial performance as well as qualitative facts such as the strength of the management team, industry appeal etc. These are a fraction of the actual data points that we use to formulate a view on the individual business. The final stage in the due diligence process is a site visit for further assurance. Once a business clears all due diligence, it is listed on the Funding Souq marketplace. For more information about our credit process, you can click here.

Funding Souq's Credit Risk Assessment Team evaluates each financing application based on the company's ability and willingness to repay. The evaluation begins with assessing the company's creditworthiness using a credit scoring card. This card considers various criteria and assigns a credit rating to each company, from which the associated risk category is determined. This determination is based on the evaluation of several factors, such as the company's financial capacity, credit history, owner's commitment, and analysis of external sources.

Funds originated by Funding Souq are aimed to support business expansion including working capital and therefore are unsecured against assets. However, to reduce default risk, businesses need to provide the necessary guarantees in line with UAE practices. This includes an undated but signed cheque for the total fund amount and at least one personal guarantee which is drafted under DIFC law.

Funding Souq obtains a security cheque from the borrower for the full amount, i.e. principlal and profit.

Click the “Get started” button on the homepage and follow the steps. Upon completing the online registration process including accepting the Terms and Conditions, you will receive an e-mail requesting passport copies and proof of residence (Emirates ID, tenancy contract, utility bill or employment letter) which you will need to send to  [email protected].  Your details will be checked, and you will be notified that you have been successfully onboarded within 3 working days. At times, additional documents may be required.

Financing is repaid through post-dated cheques that are collected by our representative.

The maximum funds that can be deposited in a calendar year (January-December) is AED 365,000 ($100,000). To keep track, the remaining amount can be reviewed in the Add/Withdraw funds tab. This is a regulatory requirement and if you would like to be exempted, you must be classified as a Professional Investor.

The application process for financing with Fundinq Souq takes less than 3 minutes. Start your registration through our website and provide us with the required information. After that, our team will contact you to complete the rest of the registration steps and guide you through the necessary documents needed to complete the registration process.

We at Fundiniq Souq are committed to providing continuous support throughout your journey with us. If you have any questions, do not hesitate to contact us at any time!

An investor can start investing with as little as AED 1,000 ($270). 

Retail investors are limited to AED 36,000 ($10,000) per business. This limit is placed automatically by the platform. The minimum investable amount is AED 1,000 ($270).

To be classified as a professional investor, you need to have net assets in excess of AED 3.67M ($1M) excluding your primary residence. If you satisfy these criteria, please contact [email protected] and you will be invited to meet a company representative who will determine whether you have the necessary experience and explain the associated risks of becoming a professional investor.

An investor account enters “wind down” status once it is suspended due to mandatory documentation being out of date. The Funding Souq team will contact you for the required document and only in case of no reply or insufficient documents. If your account enters “wind down” status, you will only be allowed to make fund withdrawals. Once the required documentation has been provided, your account will be re-activated.

Repayments will be deposited to your Funding Souq account on the platform from which you will be able to withdraw funds under the “Transfer” tab. Once a “withdraw request” is initiated you will receive the funds within 3 working days in your bank account. As per our Terms and Conditions, investor funds can only be withdrawn after 90 days from the date of deposit. This is to satisfy our anti-money laundering procedures.

Investor funds are kept in a fully segregated client monies account operated by Emirates NBD that complies fully with the DFSA’s Conduct of Business module, Application 5.

Investors can earn up to 15% per year by financing to established SMEs in the United Arab Emirates. The return will depend on the internally generated credit rating and the tenure of the finance request.

Businesses undergo a comprehensive due-diligence process that helps Funding Souq determine their riskiness. We analyze each business’s financial performance, credit score, and credit score of its director/s. Depending on the collected data, we formulate a view and assign a credit rating to the business. This credit rating determines the pricing at which the business can borrow on the platform.

Funding Souq is open to a diverse range of investors, including both individuals and corporate entities. Whether you are an individual looking to diversify your personal investment portfolio or a corporate investor seeking new investment opportunities, you are welcome to explore the options we offer.

Lenders may withdraw a commitment to provide funding if there is a material change in the borrower’s circumstances during the commitment period. Funding Souq will notify lenders of the change and request confirmation of their commitment within 5 business days. However, if the commitment period has ended and the opportunity is fully funded, lenders cannot withdraw their commitment. In that case, they must wait for repayments once the facility is disbursed and can withdraw from their repayments until the facility is fully repaid.

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