Manafa Capital vs. Funding Souq

Review & Features Comparison

Overview

Both Funding Souq and Manafa are fintech firms that provide crowdfunding to small and medium-sized enterprises in the GCC.

Both companies aim to connect investors to SMEs seeking funding via platforms are easy to use, highly transparent, and quick to provide funding to SMEs.

Both firms boast state of the art technology, high average investment returns that are competitive with the market, as well conduct extensive due diligence on their portfolios.

Although very similar in nature, there are some differences which we seek to explore below.

Features Comparison

For Investors

Platform feature	Funding Souq	Manafa Capital
What will I be investing in?	Through Funding Souq you will be financing (giving a loan) to SMEs to support their working capital needs.	Investors provide startups with invoice financing and other credit facilities through Manafa. Separately, Manafa also has an equity crowdfunding arm which gives you access to ownership stakes in SMEs
Who can invest?	Funding Souq is the only crowdfunding platform in the Middle East that is regulated in 2 countries – Saudi Arabia & the UAE. Funding Souq’s KSA platform can onboard only Saudi nationals and residents as per the Saudi Central Bank regulation. Funding Souq’s Global (UAE) platform can onboard nearly all nationalities, allowing almost anyone to invest in UAE-based businesses.	Only Saudi nationals and residents can invest on Manafa
What is the minimum investment?	The minimum investment is SAR / AED 1,000, which approximates to $270.	The minimum investment in both its equity and debt finance platforms is SAR 1,000.
What is the maximum investment?	In Saudi Arabia Retail investors can invest up to SAR 250,000 per year. In the UAE Retail investors can invest up to AED 365,000 per year and AED 36,000 per business	For its debt financing platform retail investors can invest up to SAR 250,000 per year. For its equity platform retail investors are allowed to buy up to SAR 25,000 in shares per company. Those rated as qualified investors by the platform and institutional investors are allowed to exceed this limit.
What returns can investors expect?	Investors can expect a net yield of up to 15% and an internal rate of return (IRR) of up to 30% To understand the difference between yield and IRR read our blog here.	Investors in its debt finance platform can expect net annual yield / IRR of up to 15%. There is no stated rate of return in its equities investment arm, as these are variable and unique to each company.
When are investors repaid?	On a monthly basis, allowing for reinvestment and compounding for maximum return.	Investors typically get paid at the end of the period which ranges from 90 to 180 days. On the equity side, investor repaid through periodic dividends or at exit (sale of the company)
What are the fees to the investors?	The returns displayed on the platform are net of any applicable fees. The presented return is what you should expect to earn.	Manafa takes a management fee of 20% of the profit made on debt investments (excluding VAT). Manafa does not charge a fee on equity investments upon registration. There is no stated fee upon exiting a company.
Does the platform have an Auto-Investment option?	Yes. Once enabled, the Auto-Invest system will automatically allocate your deposited funds or repayments into opportunities based on your auto investing settings.	Yes. Manafa’s debt investment platform has an Auto-invest system that, if enabled, would allocate your deposited funds according to your criteria, preferences and investment strategy.
Is the platform Shariah-compliant	Yes, you can find out more details about our Shariah Certficate	Yes

For Businesses

Platform feature	Funding Souq	Manafa Capital
What products are being offered?	- Working capital loans that range from 3 to 12 months in duration. - Fixed asset loans that extend up to 24 months.	The debt platform offers: - Emergency financing to meet obligations within 48 hours of registration - Financing of letters of guarantee to maintain liquidity to implement projects. - Purchase order and supply chain financing. - For its equity’s platform, Manafa facilitates the sale of shares in SMEs to outside investors.
Who is eligible for borrowing?	- Creditworthy SMEs in Saudi Arabia or the UAE with a minimum of two years of trading. - The business should have at least SAR/AED 2 million of revenue and be profitable or on path to profitability.	- For its debt platform, companies eligible must be registered for at least one year and have revenues in excess of SAR 1 million. - The only eligibility stated for its equities platform is that the company needs to be established in Saudi Arabia. it must be an established company.
What is the maximum financing duration?	Request financing for periods of 3-24 months.	The maximum duration for financing for its debt platform is 12 months. There is no stated limit for its equitie's platform.
What level of financing is available?	Typically between SAR / AED 100,000 to 1,000,000, but up to a maximum of SAR/AED 7.5 million	- For its debt platform, companies can finance up to 80% of outstanding bills, with the maximum amount of all funding reaching SAR 7.5 million, while SAR 50,000 is the minimal amount of funding. - For its equities platform, SAR 10 million per year is the limit on offer.
What are the fees for borrowers?	- Admin fees: 2% to 3% - Annual rate: 6% to 15%, depending on credit rating.	Admin fees: 0.5% to 3% plus SAR 450 per financing transaction. Annual rate: 6% to 20%, depending on credit rating.
How long does it take to get a funding decision?	Typically, within 72 hours.	Typically, within 48 hours after registering and handing in the required documentation.
Are multiple funding facilities permitted?	Yes.	Yes.
Can you repay funds early without penalties?	Yes.	Yes.
Are all finance and investment operations sharia-compliant?	Yes.	Yes.

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

Up to 23% return by financing SMEs

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