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Platform feature
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Funding Souq
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Indiegogo |
What model of crowdfunding is the platform?
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- Debt-based crowdfunding: SMEs borrow money to fund their growth. Investors get paid back in monthly installments, with profit.
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-Donation and reward-based crowdfunding: creators and entrepreneurs raise capital for new products. Backers get first access. |
| What types of projects or businesses are funded? |
You are investing in pre-screened SMEs based in the Saudi Arabia and the UAE, providing them with working capital finance to help them grow. |
You are backing a wide range of startups and creators, with an emphasis on innovative tech products. |
What returns or benefits can investors expect from funding projects or businesses?
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Investors can expect a net yield of up to 15% and an IRR of up to 23% as monthly repayments allow for compound return.
To understand the difference between Yield and IRR read our blog here |
Entrepreneurs set the perks or rewards received by backers of their campaigns.
They often include early access to the new product, limited edition versions of merchandise, or behind-the-scenes content.
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When do investors receive their returns or rewards?
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Investors receive monthly principal and profit repayments. This enables compounding as these repayments are returned. |
The timeline for receiving products or rewards can vary widely and depends on the time needed for entrepreneurs to manufacture and distribute products. |
Why would a person or business choose this crowdfunding platform to raise funds?
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SMEs often struggle to get loans from banks, which prefer lending to large, established businesses, even when an SME is promising. |
Funding campaigns can help build communities around new products or services, creating early demand and testing concepts before wider distribution. |
Why would someone invest in a project listed on the platform?
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Investors like Funding Souq because it offers predictable monthly income and access to investments that were once exclusively the domain of large investors. |
Backers get unique access to new products, discounts by getting in early, and the satisfaction of supporting innovative entrepreneurs. |
Who can invest or back a project?
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Funding Souq’ can onboard nearly all nationalities, allowing almost anyone to invest in Saudi and UAE-based businesses. |
Indiegogo accepts backers from around the world and allows users to pay via major credit cards as well as via mobile payments.
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What happens if a funding campaign doesn’t reach its funding goal?
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If a campaign doesn’t generate enough interest, the collected funds are re-distributed to investors. |
Indiegogo campaigns fall under two categories.
1- Fixed funding: backers are fully refunded if the campaign doesn’t reach its target.
2- Flexible Funding: creator keeps the funding raised, even if it’s below the target, and the project proceeds.
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What is the minimum someone can invest in a project or business?
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The minimum investment is SAR/AED 1,000, or approximately $270. |
The platform has no standard minimum, though many campaigns will set a $1 minimum.
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What is the maximum someone can invest or pledge for a project?
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In Saudi Arabia:
retail investors can invest up to SAR 250,000 per year and up to 25% of any opportunity’s total requested amount.
- In the UAE:
retail investors can invest up to AED 365,000 per year and AED 36,000 per business.
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The maximum contribution is $50,000.
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What are the fees for investors or backers?
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Zero hidden fees.
The returns displayed on the platform are net of any applicable fees. The presented return is what you should expect to earn.
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Fees are not paid by backers but rather by the entrepreneurs who post on the platform.
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What are the fees for businesses or individuals raising money via the platform?
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- Origination fee: 2-5% based on the borrowers’ overall risk rating and tenure of the facility.
- Service fee: 2% of the profit payment that is paid back to investors along with the principal.
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- Platform fee: 5% of the successfully funded campaign
- Payment processing fee: 3-5% of each pledge.
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Are all finance and investment operations sharia-compliant?
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Yes. You can find more
details about our Shariah certification here
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No. Sharia-compliance depends on the nature of the products or service of any given campaign
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Who is eligible for borrowing or raising funds for a project?
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Any established business in Saudi Arabia or the UAE with a minimum of two years of trading.
The business should have SAR / AED 2 million of revenue and be profitable or on path to profitability.
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Creators must be 18 years, have a bank account, be located in an eligible country. Countries in the Middle East are not currently included.
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What level of financing can be accessed on the platform?
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Typically between SAR/AED 100,000 to 1,000,000, but up to a maximum of SAR/AED 7.5 million.
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There is no maximum funding limit for projects.
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