SA Flag English
  • English
  • العربية
Menu

How It Works

Funding Souq connects established SMEs that are looking to borrow with retail and institutional investors worldwide.

Start investing Get funded
Aboutus
For Investors
Quick and easy process
  • Create an account
    Register in less than 3 minutes and add funds to your account.
  • Start investing
    Choose your risk appetite and opportunities that match
  • Receive monthly repayments
    Monitor your investment through an interactive dashboard
  • Re-invest
    Maximize your returns and grow your portfolio
    Start investing
Funding Souq connects lenders with creditworthy businesses and gives you the necessary tools to make an informed investment decision. Grow your wealth by creating jobs and contributing to the growth of the local economy. For more details, please visit our FAQs
For Businesses
Quick and easy process
  • Apply online
    Submit an online application in 5 minutes.
  • Get approved
    After assessing a successful application, we will send you an offer within 72 hours.
  • Receive Funds
    Once you accept our offer, we will launch a fundraising campaign. You will get the funds within 24 hrs of completion.
  • Repayments
    Pay monthly, or settle your obligations early with no extra fees.
    Get funded
Take your business to the next level with finance that arrives in days. Funding Souq provides a platform that provides businesses with quick and affordable access to funding.
Compliance Image
Shariah Compliance
Funding Souq offers Shariah-compliant investment and financing solutions. We are dedicated to following Islamic principles and have a Sharia Supervisory Board ensuring compliance of each transaction.

Certified by the Dar Al Sharia

Frequently Asked Questions

CRS is an information gathering and reporting requirement for financial institutions to help fight against tax evasion and protect the integrity of tax systems. For more information, please refer to the OECD website.

Financial institutions are required to identify clients who are tax residents outside the country where their accounts are domiciled and further relay the information to the local tax authorities. The tax authority may share the information with the authorities in the country where you are classified as a tax resident.

Yes, businesses can have more than facility at any point in time. However, a business must have made several successful repayments on their existing facility prior being approved for a second facility.

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 term KYC stands for “Know Your Customer” and is used throughout the client identification process. The pre-set KYC rules by the Saudi Central Bank (SAMA) are the standard requirements which need to be followed by all regulated entities. This includes identity verification, proof of address, employment information, and other general information. Investors need to clear all KYC requirements prior to being onboarded on the Funding Souq platform. The compliance department will conduct ongoing KYC check to ensure information is constantly updated.

Funding Souq is a crowdfunding platform that connects established businesses with investors. The platform uses technology to connect both parties through the principle of crowdfunding, - i.e. raising small amounts of funds from many individuals.

Yes, Funding Souq is committed to offering investment and borrowing opportunities that align with the principles of Shariah. We are certified by Dar Al Sharia, a subsidiary of Dubai Islamic Bank. To view our Sharia certificated you can click here.

Funding Souq is required to share the information with the local tax authority who will in turn share the information with the corresponding tax authorities where the client is a tax resident.

Businesses undergo a due diligence process that is led by the credit team. The risk assessments analyse business and financial performance as well as qualitative facts such as the strength of the management team, industry sentiment and others. The process also includes a site visit.

Investors will need to provide a passport (or an equivalent document), a proof of address, employment information and information on the source of funds. This list is not exhaustive and hence additional information may be requested on a case by case basis. Professional investors will need to provide additional documents in order to satisfy KYC requirements. More details on the required documentation for professional investors can be obtained on  [email protected].

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.

Simply put, investing with Funding Souq is one of the highest yielding investment options for retail and professional investors. Apart from the returns our investors benefit from:

 

1- Monthly Passive Income: Our investments repay principal and profit monthly, which enhances returns and decreases risk.

 

2- Data-Driven Decisions: Our credit risk teams use best in class credit models to ensure risk levels are kept to a minimum. Investors get a comprehensive profile of every investment opportunity.

 

 3- Unique Opportunities: Gain exclusive access to investment opportunities in the UAE and Saudi Arabia. Funding Souq is the only crowdfunding platform that is regulated in both markets.

 

  4-Low Barriers to Entry: Start investing with just SAR 1,000 from almost anywhere in the world.

 


For businesses, our aim is to support you fulfill your potential by focusing on: 

 

1-Quick Decisions: With our 3-day funding approval process, we are one of the quickest funders in the market.

 

 2-Hassle-free Approach: No account opening is needed as we disburse the funds directly into your bank account.  

 

3-Radical Transparency: We only charge a profit rate, an origination fee, and no other hidden fees unless a repayment is late. In this scenario we charge fixed late penalty fee as per the Shariah standards.

 

Generally, information needs to be provided on a one-off basis unless there is a change in tax residency status. However, Funding Souq may request documents as it deems necessary.

Repayments can be made by bank transfers.

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 promissory note 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 facilitates funds to be managed on behalf of someone else given the necessary KYC information is provided for both parties, i.e. the registered user on the platform and the beneficial owner of the funds. Also, the firm requests an authorization letter from the beneficial owner of the funds that allows you to invest the funds on their behalf.

Debt-based crowdfunding, often referred to as peer-to-peer (P2P) lending, is a contemporary financing method where investors—both individuals and institutions—provide capital to businesses or other individuals via an online platform. In the case of Funding Souq, the beneficiaries are borrowers that are established businesses (SMEs).

 

An SME applies for funding either online or offline and then our experienced credit and compliance teams assesses the opportunity.

If approved, a funding request is launched on our Marketplace and investors have the opportunity to make an investment.

When the funding request gets filled, the funds are disbursed to the borrower. On the repayment date, the business is required to repay, and the investors can choose to re-invest or withdraw their funds.


 

Please contact a professional tax advisor or check the OECD website. For more information on how to determine your tax residency.

Businesses need to be established in Saudi Arabia with a minimum of 2 years of trading. The venture needs to have SAR 2 million of revenue, a strong track record and profitable or on path to profitability. All businesses will undergo extensive due diligence through the credit assessment process.

Upon completing the onboarding, you will be able to deposit funds into your account through a bank transfer. Funding Souq doesn’t accept cash deposits.

As per CRS requirements, local tax authorities require financial institutions to collect information relating to the tax status of their clients. Due to this our investor registration process, includes a “self-certification” question.

Campaigns needs to be fully funded in order for them to be classified as complete. In case it fails generate enough interest, the collected funds are distributed to their beneficial owners.

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.

Funding Souq applies a risk-based approach when assessing clients. The firm doesn’t disclose the investors’ risk categories as the risk assessment process is only done for internal purposes.

Funding Souq has the best in breed security features such as encryption, identity and access management, and network security. These features are applied across the whole platform from the holding of data, application access, web communications, and back office operations. We are committed to implement and continuously improve security-aware software development, operational management, and threat-mitigation practices that are essential to the strong protection of services and data.

Investors need to be at a minimum of 18 years of age.

Funding Souq is currently in the process of getting regulated by the Saudi Central Bank (SAMA) to operate a Debt crowdfunding platform with license number ٨٦/أ ش/٢٠٢٤٠٣.

Funding Souq offers financing between SAR 50,000 and SAR 1,000,000 on terms of 6-36 months.

Individuals who do not receive a salary can become Investors, although the Company may ask these individuals to provide additional information to determine how they will fund their account.

Yes, the amount is transferred directly to the applicant's verified bank account. Once your application is approved and your bank account is verified, the transfer is initiated to ensure you receive the funds promptly and securely.

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.

All returns presented are net of fees, i.e. investors are expected to receive the returns which are presented to them on the platform. 

Borrowers get charged an origination fee that is dependent on the riskiness of the underlying business and the tenure of the finance. The fee varies from 2-5%. Funding Souq does not charge any additional fees.

 

If a relocation occurs, please contact [email protected]  to ensure whether you are still eligible to remain as a investor on the platform. If your account can no longer be maintained, the firm will restrict you from adding any further funds and from making any further investments. All existing investments will remain active and repayments will be made to your account. Once the fund has been repaid in full, you will be able to withdraw these repayments and your account will be permanently close.

Typically, a credit decision is issued within 72 hours of the applicant's submission. We strive to process your application as quickly and efficiently as possible. The 72-hour timeframe allows us to thoroughly review your application and ensure that all necessary checks are completed for a fair and accurate decision.

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.

 

Funding Souq has a Business Cessation Plan that is reviewed on an annual basis. If the business ceases to trade the uninvested funds will be returned to the respective investors’ bank accounts.  All existing financing contracts will remain valid, legally binding and installments will continue to be collected as projected.

Yes, you absolutely can. We offer the flexibility for you to pay off the financed amount before the due date.

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.

If you are dissatisfied with Funding Souq’s service, we urge you to email our Compliance department at [email protected]. Our team will investigate the matter with the aim of understanding whether we have acted fairly and within our contractual obligations. Upon concluding the investigation, a final written response will be provided.

  • Telephone 011 2419185
  • Email: [email protected]
  • Address: 7637, Othman Bin Affan, Ar RabiAl Ezdihar, Riyadh, Saudi Arabia.

In the event that a designated investment opportunity fails to achieve full funding within a 60-day period, all allocated capital will be redistributed to the respective investors, ensuring the return of their principal investment.

The maximum funds that can be deposited in a calendar year (January-December) is SAR 250,000. 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.

1. Valid Saudi commercial registration.
2. Minimum of three full years of operation.
3.Minimum of SAR 2,000,000 turnover.

Retail Investors are limited to investing 25% of the Finance Amount requested. This limit is placed automatically by the platform. The minimum investable amount is SAR 1,000.

Required Documents for Financing:

1. The Commercial Registration and Articles of Association
2. A comprehensive financial statement from the past two years
3. A bank statement covering the most recent year

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.

Funding Souq's Credit Risk Assessment Team evaluates each financing application based on the company's ability and willingness to repay. The evaluation begins with assessing the company's creditworthiness using a credit scoring card. This card considers various criteria and assigns a credit rating to each company, from which the associated risk category is determined. This determination is based on the evaluation of several factors, such as the company's financial capacity, credit history, owner's commitment, and analysis of external sources.

Funding Souq obtains a promissory note from the businesses as well as its signatories.

Financing is repaid via bank transfers. You will receive all the necessary bank details and instructions to set up your transfers seamlessly.

Investor funds are kept in a fully segregated client monies account operated by Arab National Bank that complies fully with the Saudi Central Bank.

The application process for financing with Fundiniq Souq takes less than 3 minutes. Start your registration through our website and provide us with the required information. After that, our team will contact you to complete the rest of the registration steps and guide you through the necessary documents needed to complete the registration process.

We at Fundiniq Souq are committed to providing continuous support throughout your journey with us. If you have any questions, do not hesitate to contact us at any time!

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.

The profit rate varies depending on the internally generated risk rating and the tenure of the fund. Additionally, the borrower pays a one-off origination fee that varies between 2-5%. 

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.

Investors can withdraw their participation in the financing at any time before the funding amount is fully completed. We encourage all our investors to carefully consider their investment options and ensure that the terms and conditions align with their capabilities and personal goals.

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.

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. The expected profits for participants will be disclosed for each investment opportunity in the opportunity's profile.

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.

 

This website uses cookies to enhance your experience. By clicking "Accept," you agree to the use of essential analytics and marketing cookies. Blocking some cookies may impact your experience For details, see our .