English
The Saudi Central Bank, also known as SAMA, has issued a license to Funding Souq, a debt crowdfunding platform, allowing it to operate within the Kingdom of Saudi Arabia. This announcement signifies a significant milestone in the financial industry, particularly for small and medium-sized enterprises (SMEs).
Funding Souq, a digital financing platform catering to SMEs in the Middle East, serves as a vital link between established SMEs and debt investors worldwide. The platform facilitates small business loans and is driven by a mission to fuel SME growth, generate employment opportunities, and contribute to the advancement of the regional economy. Funding Souq was established in Dubai in September 2020.
Several compelling factors influenced Funding Souq's decision to expand its operations into Saudi Arabia:
1) Saudi Arabia's Status as a G20 Country and the Region's Largest Economy: The Kingdom's economic prominence and G20 membership present a wealth of opportunities for financial service providers like Funding Souq.
2) Business-Friendly Reforms: Over the past seven years, Saudi Arabia has implemented bold reforms to attract investments and foster a favorable business environment. These reforms have created numerous prospects for business expansion and growth.
3) Addressing Financing Gaps for SMEs: SMEs in Saudi Arabia face significant challenges in accessing financing. Recognizing this, the government has taken proactive steps to bridge the financing gap, making the market ripe for Funding Souq's services.
4) Strong Legal and Digital Infrastructure: Saudi Arabia boasts reliable legal frameworks, including promissory notes, and advanced digital infrastructure such as the "nafath" platform. These elements contribute to a more efficient financing ecosystem.
5) Vision 2030 Objectives: As part of Saudi Arabia's Vision 2030, the government aims to increase the allocation of financing to SMEs from 4% to 20%. Funding Souq aligns with this vision by supporting the growth of local SMEs and contributing to closing the financing gap, estimated at over 400 billion Saudi riyals.
Martin Jaouni, CEO and founder of Funding Souq, expressed his enthusiasm about obtaining the license, stating, "We are pleased to announce that we have officially obtained our license from the Saudi Central Bank. We look forward to supporting the growth of local SMEs and providing an excellent investment experience for our investors."
