Wahed Invest vs. Funding Souq

Halal Investing Platforms Review & Features Comparison

Overview

Funding Souq and Wahed are both sharia-compliant investment platforms. But which one has the right mix of risk, reward, and ease?

A key difference is that Funding Souq specializes in financing SMEs in the UAE-based and Saudi Arabia, offering investors an opportunity to participate in two of the fastest growing markets in the world. Wahed on the other hand is a robo-advisor, offering sharia compliant equities and fixed income.

The fees, expected returns and ability to customize your investments can vary greatly between these two platforms. Check out our comparison below to see which makes sense for you.

Features Comparison

For Investors

Platform feature	Funding Souq	Wahed Invest
Is the platform open to global investors regardless of where you’re based?	Yes. Funding Souq’s UAE (global) platform can onboard nearly all nationalities, allowing almost anyone to invest in UAE-based businesses. Separately, Funding Souq’s KSA platform can onboard only Saudi nationals and residents for investment in Saudi-based businesses as per Saudi Central Bank registration.	Yes. Wahed’s platform is open to global investors.
What are you investing in?	In financing a diverse range of Saudi-based SMEs that ordinary investors do not typically have access to.	A range of global securities selected by Wahed. These may include ETFs and indices that can also be purchased outside the platform by ordinary investors.
Can you select the investments yourself?	Yes. You can either hand pick your investment based on the detailed offerings available or allow the app’s AutoInvest feature to select for you.	No. Wahed’s platform will create a portfolio based on your preferences.
What is the minimum investment?	The minimum investment is AED/SAR 1,000, or approximately $270.	A minimum investment of $500 is required to activate your account.
What is the maximum investment?	Global investors investing in the UAE: - Retail investors can invest up to AED 365,000 per year and AED 36,000 per business. Investors 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.	There is no maximum.
What returns can investors expect?	Investors can expect a net yield of up to 15% and an IRR of upto 26% as monthly repayments allow for compound interest. To understand the difference between yield and APY (IRR) read our blog here.	-Wahed cites 13% returns net of fees for its “very aggressive” portfolio, as of December 2023. More conservative risk profiles should expect lower returns. You will receive an estimated return after you fill out your risk profile.
What are the fees for investors?	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.	You pay 0.99% per year for accounts up to $250,000. You pay 0.49% per year for accounts over $250,000. Fees are charged monthly.
Does the platform have an Auto-Investment option?	Yes. Once enabled, the Auto-Invest system will automatically allocate your funds into the marketplace based on your selected investment strategy.	Yes. The platform operates as a robo-advisor, meaning it selects and manages the investments for you after you fill out a questionnaire.
Are all finance and investment operations sharia-compliant?	Yes. You can find more details about our Shariah Certificate here.	Yes.

Invest with no hidden fees and get returns of up to 23%

Up to 23% return by financing SMEs

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