KSA عربي
KSA عربي
Global عربي
Saudi Arabia is emerging as a prime destination for investments. In 2024, it received SAR 119 billion (approximately $31.7 billion) from foreign investors, a 24% increase from the previous year.
This aligns with Vision 2030, which targets growing revenues to $100 billion per month by the end of the decade and diversifying the nation's economy away from oil dependence.
For investors, this means numerous opportunities in the real estate, fintech, manufacturing, and small and SMEs sectors.
But it is not opportunities alone that guarantee profit. Many projects had been planned well but ended up with no actual returns due to a lack of proper regulation, or failed due to platforms not being transparent or not providing the returns expected, given the associated risks with the projects and their offerings.
In a rapidly developing market such as Saudi Arabia, numerous opportunities are generated daily. The real challenge is not finding opportunity, but selecting those with consistent returns and minimal risks.
Because of this, high return opportunities are now a key part of investment plans in Saudi Arabia. For example, Funding Souq is among the first debt crowdfunding platforms that have been approved by the Saudi Arabian Monetary Authority (SAMA).
It allows investors to lend money to SMEs and earn as much as 15% per year, depending on the borrower's credit rating and the loan amount. While 15% might not seem like alot to some investors but it does indicate strong growth, financial stability, and the potential to sustain the nation's economy moving forward.
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If you are looking for significant returns, do not simply believe the marketing claims and always see what really drives the returns up. When evaluating a platform, it is essential to consider various factors, including the platform's historical performance, risk, ease of access, ownership, fees, and user-friendliness.
One of these areas impacts the other, and high returns with high risk or high costs do not always yield much or any real return. When combining all these criteria and considering the rules and practices in Saudi Arabia, investors will be able to make well-informed and feasible decisions.
The first step when picking a high investment return platform in Saudi Arabia is to examine its past performance. The historical returns reflect how well the platform managed your investments throughout the period, not just one golden year.
In Saudi Arabia, the mutual funds governed by the Capital Market Authority (CMA) should show their one, three, and five-year performance.
This will enable investors to understand whether returns were stable or temporary. It is essential to review such data because some platform when offers 15% annually, the investors may not have actually earned that amount annually, after subtracting fees and expenses.
The analysis of returns without a consideration of risk is misleading. Usually, high returns attract high risks, including credit or market volatility or liquidity.
That is why Saudi regulators, such as the Saudi Arabian Monetary Agency (SAMA), require licensed institutions to have effective risk-management policies. Based on their regulation, banks have to assess risks such as credit risk, concentration risk, and liquidity risk before they can offer any investment products.
For investors, this means you should not just invest in a particular business hoping to make a lot of money, but also be able to make a profit even if the conditions shift.
The next factor is liquidity, which refers to the ease of accessing funds. Some investments do offer high returns, but lock your money up for several years, which may not be such a good idea if you need cash sooner.
For Saudi investment funds, the law states that fund managers must have a minimum of liquid assets to satisfy investor’s redemption requests.
This rule protects investors from being locked up when they want to exit, and ensures that if this exit becomes necessary, investors get a fair price for their investment. When selecting a platform to invest, the investor should verify that it supports timely withdrawals and that the assets it holds can be liquidated quickly.
Another important consideration for the investor is to ensure compliance with local laws. In Saudi Arabia, CMA regulates securities and investment funds, whereas SAMA regulates banks and finance companies.
These regulators mandate licensing of various platforms that operate under a set of rules relating to transparency, disclosure, and investor protection.
For instance, CMA's new guidelines require managers to disclose fees and risks of funds transparently. In this way, it will be beneficial when a platform under such supervision helps mitigate the risk of fraud and creates a sense of security for investors.
Even if a platform is earning you great returns, the platform fees can take a chunk out of what you are earning. All costs, including management charges, commissions, or performance-based fees, must be disclosed in offering documents and contracts required by Saudi regulations.
However, fees should be compared fully, as the spread in fee structure can differ by up to 2% per year, resulting in significant differences in the long-term return for investors.
The investors should always focus on net returns, not gross returns, because the gross returns are what they receive after deducting the costs.
After all, user experience and technology serve as an objective function and the platform should offer clear dashboards, mobile access for investors, and regular reporting that enables investors to track and make informed decisions.
The high-tech also facilitates better risk management and visibility. At the same time, it won't directly generate excess returns, it goes a long way toward ensuring investors are involved, error-free, and confident in the process.
In Saudi Arabia, several emerging digital platforms are expanding these efforts to simplify the investment process and make it more transparent for both local and international investors.
The investment market in Saudi Arabia has changed rapidly in recent years. As part of Vision 2030, the government has supported the expansion of digital financial services, assuring that they comply with both SAMA and the CMA's policies. It has opened up new opportunities for investors to generate profits.
Whereas in the past, all investors had to use banks or traditional sukuk, but now they can choose from numerous platforms that offer direct access to small businesses, invoice financing, or corporate and government sukuk.
Each platform has slightly different attributes, and depending on how the investor has combined return, risk, and regulation, the outcome is likely to be different.
Funding Souq is a SAMA-licensed company and one of the leading SME lending platforms in Saudi Arabia. The concept behind them is fundamental, wherein investors provide money to small businesses and receive a profit on the money, plus the loan, on a monthly basis.
The reports show that the platform can give upto 23% annual ROI on selected deals. Funding Souq also has a transparent risk management strategy, which helps to protect the investors while providing good returns.
The platform's default rates are approximately 2.3%, significantly lower than other peer-to-peer (P2P) platforms. It also works with a scheme called the Kafala Program, which is a government protection scheme for investors that can cover up to 50% of a loan.
This means investors receive higher returns as well as additional protection. Since these repayments are made monthly, investors have quick access to their capital for investment in new deals, providing excellent liquidity.
The SMEs constitute over 99% of Saudi companies and approximately 28% of the kingdom's GDP, aiming for 35% by 2030.
By investing via Funding Souq, you can make your own money and support this vital industry. That's why Funding Souq is the platform where investor’s money drives the nation's growth.
Lendo platform is also a SAMA-licensed invoice financing platform and it works like investors pay for unpaid invoices, and they get their money back when the invoices are collected. Since its inception, Lendo has invested over SAR 2.5 billion and has paid back more than $33 million to its investors.
Lendo significant advantage is its short-term deals, which run for just a few months, appealing to investors who need quick access to their money. But the returns are less than Funding Souq and as the money is tied up for a short period, you have little chance of earning. It is suitable for individuals seeking liquidity, but not expecting significant growth.
Tameed platform works differently. It provides financial support to government orders to small businesses. It was licensed by SAMA in 2023 and has financed over SAR 400 million of contracts.
The return rate is about 15% a year, which is considered to be in the mid-range of what other platforms are offering.
Since the contracts are from the government, lenders feel more secure knowing that the money will be paid.
That minimizes risk, but also means you don't earn as much money as you would if you were using Funding Souq. Another downside is that the deals are conditional on government orders, so there is less variety than general SME lending.
Sukuk Capital offers investors an option to purchase Islamic bonds and other structured debt. Many use it for a steady income following Islamic rules. The average return is around 11% to 12%, less than the return of crowdfunding platforms but more than savings accounts or deposits.
Sukuk Capital is popular due to its stability and clarity of structure because sukuk are backed by tangible assets and they not only have less fluctuation in price but also lower returns than other choices.
The sukuk remains useful for investors looking for more predictable income, it does not offer the high returns of newer platforms like Funding Souq.
Kafaa Capital, which the CMA regulates, allows investors to invest in sukuk and other funds. The minimum investment is SAR 1,000, which is perfect for small capitalists. Some investments have returned over 19%, which is high for this type of asset.
The returns are not as steady as on SME lending platforms, and they depend a lot on the market. Many investors use Kafaa alongside other platforms, but it cannot substitute the higher and more frequent returns of Funding Souq.
Dar Al Arkan is one of the prominent Saudi real estate developers. Its sukuk provides guaranteed returns to investors on company debt. In June 2025, it issued sukuk with annual payments of 7.25% for a five-year term, raising USD 750 million.
The benefit is that the sukuk originates from a prominent and established developer. However, the annual percentage return of 7.25% is very low compared to what SMEs platforms can offer. The corporate sukuk is not for those who are chasing big profits, but it's better for investors who prefer steady, reliable income.
These sukuk are issued under the supervision of the National Debt Management Centre and offer the public investment opportunities. These sukuk are 100% guaranteed by the Saudi government and are sold through banks in the kingdom.
The best part about Sah Savings is its security because the Government backs them, and there is virtually no risk of default. The disadvantage is that they offer the lowest returns compared to other platforms. As a result, they generally appeal to extremely conservative investors.
1- What is the average ROI for high-return platforms in the KSA?
The return on investment in Saudi Arabia varies by platform and product type. For instance, Funding Souq claims to achieve IRRs of 23% on some SME loan deals, while Invoice-financing companies like Lendo typically earn around 12% to 15% annually. The investments in Sukuk are more consistent because they provide more modest rates of return, usually 4% to 12%.
However, because these differences exist, there is no single number that defines the Saudi market. Usually, a higher rate of return comes with higher risk. At the same time, sukuk yields are lower and more predictable. The right opportunity for an investor to invest in is based on whether they want their money to grow rapidly and earn investment returns or start to generate steady, consistent returns.
2- How do I choose the right investment platform for my goals?
First and foremost, clarify what you would like to accomplish. If you're interested in ultra-fast growth and don't mind some risk, consider platforms such as Funding Souq or Lendo. If you prefer stability and lower volatility, sukuk or government-backed savings products like Sah Sukuk will be more suitable.
When your goals are clear, you can make a platform-by-platform comparison based on rules, history, and costs. A license from SAMA or CMA indicates trust, and reports on default rates and costs indicate whether the return is looking good in practice. When investors compare these facts with their own goals, they will make a better investment decision for you.
3- Can expats invest in Saudi-based platforms?
Many Saudi investment platforms allow non-citizens who hold a valid Iqama and have a local bank account to invest. These individuals can invest in P2P lending, sukuk, and other approved products by SAMA or the CMA. At most, they require basic information, so the registration is relatively straightforward.
While limits still exist, citizens and residents of the country can purchase products such as Sah-sukuk. Expats also need to check if profits can be transferred abroad based on the policy of their bank.
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4- What is the minimum investment amount for these platforms?
The minimum investment amount required also varies based on the platform. For example, Funding Souq allows investments as low as SAR 1,000, making it easy to start with a small amount of money. Other sukuk issuers, such as Kafaa Capital, have also adopted the threshold of SAR 1,000.
These low entry points let investors sample the market and gain confidence in it. Other opportunities, such as business deals for real estate or corporate sukuk, will require larger amounts, typically ranging from SAR 10,000 and above. So before you buy, research the minimum requirements of each platform and make sure you have a plan on how to spend across platforms.
5- Are there tax benefits for investing in the KSA?
The Kingdom does not impose tax on any personal investment income; therefore, returns on sukuk, P2P financing, or other licensed platforms are generally paid in full to the investors, without any deductions.
Although corporate investors pay corporate tax on their profits, expats should always rely on their country, since some countries make their people declare income abroad, even though Saudi Arabia doesn't have a tax rate.
6- How do Shariah-compliant platforms ensure ethical investing?
The Shariah-compliant platform excludes activities such as interest-bearing loans and investments in forbidden sectors. Instead, they structure their commodities via contracts like the murabaha (cost-plus), mudaraba (profit-share), or sukuk. And these contracts are tied to the underlying economic activity, so they're both ethical and transparent.
To ensure it, most platforms have a Shariah board or an external Shariah expert who reviews each offering. In practical application, what this means is that if investors are using a platform like Funding Souq, they know that returns are generated in such a way that is not against Islamic finance.
7- What regulations govern these investment platforms in the KSA?
In Saudi Arabia, the regulation is divided between two leading authorities. The Saudi Arabian Monetary Agency (SAMA) regulates financing activities, including peer-to-peer lending and crowdfunding, while the Capital Market Authority (CMA) regulates securities, sukuk, and investment funds.
This structure ensures that each type of product is controlled within the appropriate framework. These are not formalistic rules and they require maintaining capital reserves, publishing transparent reports, and adhering to strict risk-management processes that include the use of platforms. It also reassures investors that their capital is being held safely under SAMA or CMA's supervision.
8- Is my investment protected?
As it is today, the nature of protection is determined by the structure of the product and the platform upon which the product is to run. On Funding Souq, a part of the loan principal can be guaranteed under the Kafala Program, supported by the Saudi government.
In contrast, products similar to Sah sukuk (Sah Shariah Sukuk) are backed directly by the state and thus fully protected. So while some investments are much safer than others when it comes to safety nets, investors are going to be exposed to more market and borrower risk. Even the guarantees will typically cover a portion of the investment. Therefore, protection is one security, not an alternative to providence.
9- Can I withdraw my investment at any time?
It depends upon the product, such as P2P platforms like Funding Souq; the amount you have invested in the platform remains locked until the borrower makes the repayments. Even though they're committed, investors get monthly payments of profit and principal that can be reinvested.
With sukuk or savings products, it may be possible to exit early if a secondary market exists but this is not guaranteed. Because of these differences, investors always ensure they learn the terms of liquidity before investing.
10- Are there any fees associated with using these platforms?
All platforms charge fees, but the amount and who pays these fees differ. Some charge a servicing fee straight from the investors, while others charge borrowers fees, which are indirectly passed on to investors via lower returns. Either way, the costs are deducted from the actual profit generated, hence the necessity of paying attention to net yields, not numbers on the headline.
Investors need to examine the actual net returns, not just the advertised returns. A platform that offers 15% ROI, but after subtracting fees, investors receive 12%, while another platform delivers 13% ROI before subtracting fees, which gives you higher net returns.
11- How can I assess the credibility of an investment platform?
The best way to know whether a platform is well-known is to see if it has a CMA or SAMA license. These regulators give strong regulations that protect the investors. You also want to look at things like how long the platform has been operating, how much it has raised, its defaulted loans, and how many repayments it's successfully made.
Additionally, investors should seek transparency. A company that is clear about what it is doing, honest, transparent, and discloses its risks is going to earn more trust than a company that is not. The user testimonials and independent reviews give another layer of information.
12- What are the risks associated with investing in these platforms?
Every investment has risk. In Saudi Arabia, the primary risks associated with high-return platforms are default risk, liquidity risk, and market risk. In P2P lending, borrowers are held responsible for repaying the loans. If they do not, the loan becomes defaulted. Liquidity problems arise since funds can be tied up for months or years, depending on the product.
The Kafala program helps mitigate the risk, but it cannot remove it entirely. Second, both oil price fluctuations and changes in regulations can have adverse effects on businesses. If investors are aware of these risks, they will prepare and set reasonable expectations.
13- What is P2P lending, and how does it work?
P2P lending is a platform that connects investors with businesses seeking capital. They do it through a perfectly legal platform like Funding Souq, which verifies borrowers, drafts contracts, and pays accordingly.
In this way, investors can directly lend to SMEs and receive monthly payments that include the amount borrowed plus a profit. In this way, the model provides higher potential returns than bank accounts, where return on investment comes in the form of bank deposits, but it also comes with the risk of defaulting if a borrower doesn't repay. For that reason, many investors make investments across different opportunities by spreading their money to reduce the risk.
Disclamer:
This post is for educational purposes only, and does not constitute investment advice or a solicitation to take any financial action. It should not be relied upon when making investment or financing decisions.
