Funding Souq is Officially in Saudi!
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Activating Auto Investing allows investors to invest in a portfolio of businesses instead of a single business. This reduces the investment risk and makes investing more convenient as our algorithm automatically allocates investor funds as per their pre-determined preferences.
The Balanced strategy is designed to make the most of the available opportunities on Funding Souq. Our system will allocate unlimited exposure to A-rated opportunities as these are fully guaranteed through our partnership with Sharjah Media City. Given that our B-rated opportunities are not guaranteed and are riskier, our system will limit your exposure to 10% of your total portfolio for these opportunities.
The Conservative strategy is designed to minimize your risk but with that comes lower returns as well. Our system will allocate your funds to only A-rated opportunities which are fully guaranteed through our partnership with Sharjah Media City.
Funding Souq only accepts credit worthy businesses after extensive due diligence has undertaken to ensure their creditworthiness. However, that doesn’t mean that risk is fully eliminated, and defaults can still occur. That is exactly why we encourage our investors to diversify their exposure across a number of business and hence lower the risk of capital loss. As an unsecured facility, the risk is borne by the investor. Funding Souq is committed to exercising everything in its power to collect the funds and will initiate legal action if deemed relevant. In order to minimize the risk of a business defaulting, businesses need to provide the necessary guarantees in line with Saudi Arabia practices. This includes an undated but signed cheque for the total fund amount and at least one personal guarantee which is drafted under Saudi Arabia law.
Funding Souq doesn’t allow a investor to sell their investment or investment parts before the end of the finance contract.
Funding Souq will notify the Investors as soon as practically possible if it comes across any information about material change in borrower’s circumstances. It will provide details to the Investors of the material change, any change in their rights arising from this material change and subsequent actions Funding Souq intend to take.
Business undergo an extensive due-diligence process that is led by our credit team. The risk assessments analyse the businesses and financial performance as well as qualitative facts such as the strength of the management team, industry appeal etc. These are a fraction of the actual data points that we use to formulate a view on the individual business. The final stage in the due diligence process is a site visit for further assurance. Once a business clears all due diligence, it is listed on the Funding Souq marketplace. For more information about our credit process, you can click here.
Funds originated by Funding Souq are aimed to support business expansion including working capital and therefore are unsecured against assets. However, to reduce default risk, businesses need to provide certain guarantees. These include promissory notes signed in the personal and entity capacity by the partners.
Click the “Get started” button on the homepage and follow the steps. Upon completing the online registration process including accepting the Terms and Conditions, You will be asked to verify your identity via the Nafath application. Our team will then review the application and proceed to approve you. At times, additional documents may be required.
The maximum funds that can be deposited in a calendar year (January-December) is SAR 200,000. To keep track, the remaining amount can be reviewed in the Add/Withdraw funds tab. This is a regulatory requirement and if you would like to be exempted, you must be classified as a Professional Investor.
Retail Investors are limited to investing 25% of the Finance Amount requested, with the total amount of contribution capped at SAR 50,000 per business. This limit is placed automatically by the platform. The minimum investable amount is SAR 1,000.
An investor account enters “wind down” status once it is suspended due to mandatory documentation being out of date. The Funding Souq team will contact you for additional documentation to reactivate your account. If your account enters “wind down” status, you will only be allowed to make fund withdrawals. Once the required documentation has been provided, your account will be re-activated.
Investor funds are kept in a fully segregated client monies account operated by Arab National Bank that complies fully with the Saudi Central Bank.
Investors can earn up to 15% per year by financing to established SMEs in the Saudi Arabia. The return will depend on the internally generated credit rating and the tenure of the finance request.
Businesses undergo a comprehensive due-diligence process that helps Funding Souq determine their riskiness. We analyse each business’s financial performance, credit score and the credit score of its director/s. Depending on the collected data, we formulate a view and assign a credit rating to the business. This credit rating determines the pricing at which the business can borrow on the platform.
Investors can expect to receive up to 15% per annum on their investments. This rate is subject to the performance of the underlying investments and market conditions.
Once an investment is made, investors have 48 hours during which they can cancel their investments . We encourage all our investors to carefully consider their investment choices and ensure that they are comfortable with the terms and conditions before making a commitment.
Most of our investments are structured to provide monthly payouts, including the principal and the profit. This means that as an investor, you can expect to receive regular payments each month that comprise a portion of your initial investment (the principal) along with the profit earned on that investment.
Funding Souq is open to a diverse range of investors, including both individuals and corporate entities. Whether you are an individual looking to diversify your personal investment portfolio or a corporate investor seeking new investment opportunities, you are welcome to explore the options we offer.
The returns displayed on our platform are presented net of any applicable fees. This means that the presented return is what you should expect to achieve.
Yes, it can be deactivated and activated on the Investment Settings page at any time.
Once an investment is made, it cannot be canceled. We encourage all our investors to carefully consider their investment choices and ensure that they are comfortable with the terms and conditions before making a commitment.
Investors can expect to receive up to 15% per annum on their investments. This rate is subject to the performance of the underlying investments and market conditions.
An investor can start investing with as little as SAR 1,000 .
Only those who hold Saudi National ID or Iqama.
To be classified as a Eligible Participant, you need one or more of the following:
a. Has assets with a net value of at least SAR 3M.
b. Currently working or has worked for at least three years in the financial sector in a position related to finance or investment.
c. Has a professional certificate in finance or investment approved by an internationally recognized establishment.
d. Has an annual income of at least SAR 600k in the past two years.
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