Kickstarter Platform vs. Funding Souq

Crowdfunding Platforms in The UAE - Reviews & Features Comparison

As the crowdfunding ecosystem continues to grow, there’s an overwhelming number of options. Platforms exist to raise money for charities, real estate projects, and startups,

to name a few. While they typically involve the same core concept – pooling together relatively small amounts of money for large goals – the way they function, the benefits they offer users, and the types of projects they fund, can differ quite dramatically.

To demonstrate how very different platforms can serve goals that are often similar in spirit, we’ve compared Kickstarter,

one of the world’s leading reward-based platforms, with Funding Souq, a more specialized debt-based platform that offers investors the prospect of market-beating returns, and gives businesses opportunities for growth.

We unpack all of this in the chart below.

Features Comparison

For Investors

Platform feature	Funding Souq	Kickstarter Platform
What model of crowdfunding is the platform?	Debt-based crowdfunding: SMEs borrow money to raise capital. Investors get paid back in monthly installments, with profit.	Reward-based crowdfunding: people raise funds for creative projects and give the funders a range of rewards depending on their level of support.
What types of projects or businesses are funded?	You are investing in pre-screened SMEs based in the UAE and Saudi Arabia, providing them with working capital finance to help them grow.	You are backing a wide range of creative projects – from comic books and films to fashion, from traditional art to micro business ventures.
Why would a person or business choose this crowdfunding platform to raise funds?	SMEs often struggle to get loans from banks, which prefer lending to large, established businesses, even when an SME is promising.	A crowdfunded campaign is a low-risk way to test an idea, build a following, and get feedback before larger scale development.
Why would someone invest in a project listed on the platform?	Investors like Funding Souq because it offers predictable monthly income and access to investments that were once exclusively the domain of large investors.	People back projects that they want to see succeed, whether because it fills an unmet need, is a good cause, or is simply inspiring.
Who can invest or back a project?	- Funding Souq’s Global platform can onboard nearly all nationalities, allowing almost anyone to invest in UAE-based businesses. - Funding Souq’s KSA platform can onboard only Saudi nationals and residents as per Saudi Central Bank regulation.	Kickstarter accepts backers from around the world, as long as they have a major debit or credit card.
What happens if a funding campaign doesn’t reach its funding goal?	If a campaign doesn’t generate enough interest, the collected funds are re-distributed to investors.	Backers are not charged for their pledges unless the funding goal is met.
What is the minimum someone can invest in a project or business?	The minimum investment is SAR/AED 1,000, or approximately $270.	The minimum pledge for a project is $1, with higher pledges earning larger rewards.
What is the maximum someone can invest or pledge for a project?	- 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 United Arab Emirates Retail investors can invest up to AED 365,000 per year and AED 36,000 per business.	The maximum depends on the project’s country of origin. US-based projects for example have a $10,000 cap, while EU projects run to 8,500 Euros.
What returns or benefits can investors expect from funding projects or businesses?	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	The rewards are set by the creator of the project and depend on the nature of the work. The rewards include things like limited-edition products, discounts on the services or products, access to the creator’s work process, and recognition for their support.
When do investors receive their returns or rewards?	Investors receive monthly principal and profit repayments. This enables compounding as these repayments are returned.	After a creator gets funded, they typically produce something that acts as part of the reward, so the timeline varies by project.
What are the fees for investors or backers?	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.	No fees in the traditional sense. Backers simply pay what they want to contribute and receive a reward.
What are the fees for businesses or individuals raising money via the platform?	- 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.	- Platform fee: 5% of the successfully funded campaign - Payment processing fee: 3-5% of each pledge.
Are all finance and investment operations sharia-compliant?	Yes. You can find more details about our Shariah certification here	No. Whether any given project is Shariah compliant depends on the nature of the project and its activities.

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